URMAS v. FINLAND

July 2, 2007

<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" eId="part-1"><num>Part 1</num><heading>Charges, rates <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-income-tax"><heading>Income tax</heading><section eId="section-1"><num>1</num><heading>Charge, main rates, thresholds and allowances <abbr title="Et cetera" xml:lang="la">etc</abbr> for 2010-11</heading><subsection eId="section-1-1"><num>(1)</num><content>Income tax is charged for the tax year 2010-11.</content></subsection><subsection eId="section-1-2"><num>(2)</num><intro>For that tax year—</intro><level class="para1" eId="section-1-2-a"><num>(a)</num><content>the basic rate is 20%,</content></level><level class="para1" eId="section-1-2-b"><num>(b)</num><content>the higher rate is 40%, and</content></level><level class="para1" eId="section-1-2-c"><num>(c)</num><content>the additional rate is 50%.</content></level></subsection><subsection eId="section-1-3"><num>(3)</num><intro>The amounts specified in the following provisions of ITA 2007 are the same for the tax year 2010-11 as for the tax year 2009-10—</intro><level class="para1" eId="section-1-3-a"><num>(a)</num><content>sections 10(5) and 12(3) (basic rate limit and starting rate limit for savings),</content></level><level class="para1" eId="section-1-3-b"><num>(b)</num><content>sections 35, 36(1), 37(1) and 38(1) (personal allowances and blind person's allowance),</content></level><level class="para1" eId="section-1-3-c"><num>(c)</num><content>sections 43, 45(3)(a) and (b) and 46(3)(a) and (b) (tax reductions for married couples and civil partners), and</content></level><level class="para1" eId="section-1-3-d"><num>(d)</num><content>sections 36(2), 37(2), 45(4) and 46(4) (adjusted net income limit).</content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-corporation-tax"><heading>Corporation tax</heading><section eId="section-2"><num>2</num><heading>Charge and main rate for financial year 2011</heading><subsection eId="section-2-1"><num>(1)</num><content>Corporation tax is charged for the financial year 2011.</content></subsection><subsection eId="section-2-2"><num>(2)</num><intro>For that year the rate of corporation tax is—</intro><level class="para1" eId="section-2-2-a"><num>(a)</num><content><ins class="substitution first last" ukl:ChangeId="d30p163" ukl:CommentaryRef="c2125279"><noteRef uk:name="commentary" href="#c2125279" class="commentary"/>26%</ins> on profits of companies other than ring fence profits, and</content></level><level class="para1" eId="section-2-2-b"><num>(b)</num><content>30% on ring fence profits of companies.</content></level></subsection><subsection eId="section-2-3"><num>(3)</num><content>In subsection (2) “<term refersTo="#term-ring-fence-profits" eId="term-ring-fence-profits">ring fence profits</term>” has the same meaning as in Part 8 of CTA 2010 (see section 276 of that Act).</content></subsection></section><section eId="section-3"><num>3</num><heading>Small profits rates and fractions for financial year 2010</heading><subsection eId="section-3-1"><num>(1)</num><intro>For the financial year 2010 the small profits rate is—</intro><level class="para1" eId="section-3-1-a"><num>(a)</num><content>21% on profits of companies other than ring fence profits, and</content></level><level class="para1" eId="section-3-1-b"><num>(b)</num><content>19% on ring fence profits of companies.</content></level></subsection><subsection eId="section-3-2"><num>(2)</num><intro>For the purposes of Part 3 of CTA 2010, for that year—</intro><level class="para1" eId="section-3-2-a"><num>(a)</num><content>the standard fraction is 7/400ths, and</content></level><level class="para1" eId="section-3-2-b"><num>(b)</num><content>the ring fence fraction is 11/400ths.</content></level></subsection><subsection eId="section-3-3"><num>(3)</num><content>In subsection (1) “<term refersTo="#term-ring-fence-profits" eId="term-ring-fence-profits">ring fence profits</term>” has the same meaning as in Part 8 of CTA 2010 (see section 276 of that Act).</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-capital-gains-tax"><heading>Capital gains tax</heading><section eId="section-4"><num>4</num><heading>Increase in entrepreneurs' relief</heading><subsection eId="section-4-1"><num>(1)</num><intro>In section 169N(3) of <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 (limit on entrepreneurs' relief)—</intro><level class="para1" eId="section-4-1-a"><num>(a)</num><content><mod>for “£1 million” (in both places) substitute <quotedText>“ £2 million ”</quotedText>, and</mod></content></level><level class="para1" eId="section-4-1-b"><num>(b)</num><content><mod>in paragraph (b), after “total of” insert <quotedText>“ so much of ”</quotedText> and insert at the end <quotedText>“ as was subject to reduction under subsection (2) ”</quotedText>.</mod></content></level></subsection><subsection eId="section-4-2"><num>(2)</num><content>The amendments made by subsection (1) have effect in relation to qualifying business disposals occurring on or after 6 April 2010.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-capital-allowances"><heading>Capital allowances</heading><section eId="section-5"><num>5</num><heading>Annual investment allowance</heading><subsection eId="section-5-1"><num>(1)</num><content><mod>In section 51A(5) of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (entitlement to annual investment allowance: maximum allowance), for “£50,000” substitute <quotedText>“ £100,000 ”</quotedText>.</mod></content></subsection><subsection eId="section-5-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to expenditure incurred on or after the relevant date.</content></subsection><subsection eId="section-5-3"><num>(3)</num><intro>Subsections (4) and (5) apply in relation to a chargeable period (“the actual chargeable period”) which—</intro><level class="para1" eId="section-5-3-a"><num>(a)</num><content>begins before the relevant date, and</content></level><level class="para1" eId="section-5-3-b"><num>(b)</num><content>ends on or after that date.</content></level></subsection><subsection eId="section-5-4"><num>(4)</num><intro>The maximum allowance under section 51A of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 for the actual chargeable period is the sum of each maximum allowance that would be found if—</intro><level class="para1" eId="section-5-4-a"><num>(a)</num><content>the period beginning with the first day of the chargeable period and ending with the day before the relevant date, and</content></level><level class="para1" eId="section-5-4-b"><num>(b)</num><content>the period beginning with the relevant date and ending with the last day of the chargeable period,</content></level><wrapUp>were treated as separate chargeable periods.</wrapUp></subsection><subsection eId="section-5-5"><num>(5)</num><content>But, so far as concerns expenditure incurred before the relevant date, the maximum allowance under section 51A of that Act for the actual chargeable period is to be calculated as if the amendment made by subsection (1) had not been made.</content></subsection><subsection eId="section-5-6"><num>(6)</num><intro>In this section “<term refersTo="#term-the-relevant-date" eId="term-the-relevant-date">the relevant date</term>” means—</intro><level class="para1" eId="section-5-6-a"><num>(a)</num><content>for corporation tax purposes, 1 April 2010, and</content></level><level class="para1" eId="section-5-6-b"><num>(b)</num><content>for income tax purposes, 6 April 2010.</content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-stamp-duty-land-tax"><heading>Stamp duty land tax</heading><section eId="section-6"><num><noteRef href="#key-fd155571fabc6f27f67de7fe05483409" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>6</num><heading>Relief for first-time buyers</heading><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></section><section eId="section-7"><num>7</num><heading>Rate in respect of residential property where consideration over £1m</heading><subsection eId="section-7-1"><num><noteRef href="#key-a8e406c009eb66ab449e8cb2d6fa6a38" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(1)</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subsection><subsection eId="section-7-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to any land transaction of which the effective date is on or after 6 April 2011.</content></subsection><subsection eId="section-7-3"><num>(3)</num><intro>But that amendment does not have effect in relation to any transaction—</intro><level class="para1" eId="section-7-3-a"><num>(a)</num><content>effected in pursuance of a contract entered into and substantially performed before 25 March 2010, or</content></level><level class="para1" eId="section-7-3-b"><num>(b)</num><content>effected in pursuance of a contract entered into before that date and not excluded by subsection (4).</content></level></subsection><subsection eId="section-7-4"><num>(4)</num><intro>A transaction effected in pursuance of a contract entered into before 25 March 2010 is excluded by this subsection if—</intro><level class="para1" eId="section-7-4-a"><num>(a)</num><content>there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 25 March 2010,</content></level><level class="para1" eId="section-7-4-b"><num>(b)</num><content>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</content></level><level class="para1" eId="section-7-4-c"><num>(c)</num><content>on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-inheritance-tax"><heading>Inheritance tax</heading><section eId="section-8"><num>8</num><heading>Rate bands</heading><subsection eId="section-8-1"><num>(1)</num><content>The Table substituted in Schedule 1 to <abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984 by section 155(1)(b) and (4) of FA 2006 (which provides for a rate of nil per cent on such portion of the value concerned as does not exceed £325,000 and a rate of 40 per cent on such portion as exceeds that amount) has effect in relation to chargeable transfers made on or after 6 April 2010.</content></subsection><subsection eId="section-8-2"><num>(2)</num><intro>Accordingly, omit—</intro><level class="para1" eId="section-8-2-a"><num>(a)</num><content>in <abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984, the Table substituted in Schedule 1 in relation to chargeable transfers made on or after that date (which provided for a rate of nil per cent on such portion of the value concerned as does not exceed £350,000 and a rate of 40 per cent on such portion as exceeds that amount), and</content></level><level class="para1" eId="section-8-2-b"><num>(b)</num><content>in FA 2007, section 4 (which substituted it).</content></level></subsection><subsection eId="section-8-3"><num>(3)</num><content>Section 8 of <abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984 (indexation) does not have effect by virtue of any difference between the retail prices index for the month of September in 2010, 2011, 2012 or 2013 and the previous September.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-alcohol-and-tobacco"><heading>Alcohol and tobacco</heading><section eId="section-9"><num>9</num><heading>Rates of alcoholic liquor duties</heading><subsection eId="section-9-1"><num>(1)</num><content><abbr class="acronym" title="Alcoholic Liquor Duties Act">ALDA</abbr> 1979 is amended as follows.</content></subsection><subsection eId="section-9-2"><num>(2)</num><content><mod>In section 5 (rate of duty on spirits), for “£22.64” substitute <quotedText>“ £23.80 ”</quotedText>.</mod></content></subsection><subsection eId="section-9-3"><num>(3)</num><content><mod>In section 36(1AA)(a) (standard rate of duty on beer), for “£16.47” substitute <quotedText>“ £17.32 ”</quotedText>.</mod></content></subsection><subsection eId="section-9-4"><num>(4)</num><intro>In section 62(1A) (rates of duty on cider)—</intro><level class="para1" eId="section-9-4-a"><num>(a)</num><content><mod>in paragraph (a) (rate of duty per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent), for “£207.20” substitute <quotedText>“ £217.83 ”</quotedText>,</mod></content></level><level class="para1" eId="section-9-4-b"><num>(b)</num><content><mod>in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent which is not sparkling cider), for “£47.77” substitute <quotedText>“ £54.04 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-9-4-c"><num>(c)</num><content><mod>in paragraph (c) (rate of duty per hectolitre in any other case), for “£31.83” substitute <quotedText>“ £36.01 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-9-5"><num>(5)</num><intro>In section 62(1A) (as amended by subsection (4))—</intro><level class="para1" eId="section-9-5-a"><num>(a)</num><content><mod>in paragraph (b), for “£54.04” substitute <quotedText>“ £50.22 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-9-5-b"><num>(b)</num><content><mod>in paragraph (c), for “£36.01” substitute <quotedText>“ £33.46 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-9-6"><num>(6)</num><content><mod>For the table in Schedule 1 substitute—<quotedText startQuote="“">TABLE OF RATES OF DUTY ON WINE AND MADE-WINE </quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><part><num>PART 1</num><heading>WINE OR MADE-WINE OF A STRENGTH NOT EXCEEDING 22 PER CENT</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:66%"/><default:col span="1" style="width:34%"/></default:colgroup><default:tbody><default:tr><default:th>Description of wine or made-wine</default:th><default:th>Rates of duty per hectolitre £</default:th></default:tr><default:tr><default:td>Wine or made-wine of a strength not exceeding 4 per cent</default:td><default:td>69.32</default:td></default:tr><default:tr><default:td>Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent</default:td><default:td>95.33</default:td></default:tr><default:tr><default:td>Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling</default:td><default:td>225.00</default:td></default:tr><default:tr><default:td>Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent</default:td><default:td>217.83</default:td></default:tr><default:tr><default:td>Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding 15 per cent</default:td><default:td>288.20</default:td></default:tr><default:tr><default:td>Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent</default:td><default:td>299.97</default:td></default:tr></default:tbody></default:table></foreign></tblock></content></part><part><num>PART 2</num><heading>WINE OR MADE-WINE OF A STRENGTH EXCEEDING 22 PER CENT</heading><content><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:66%"/><default:col span="1" style="width:34%"/></default:colgroup><default:tbody><default:tr><default:th>Description of wine or made-wine</default:th><default:th>Rates of duty per litre of alcohol in wine or made-wine £</default:th></default:tr><default:tr><default:td>Wine or made-wine of a strength exceeding 22 per cent</default:td><default:td>23.80</default:td></default:tr></default:tbody></default:table></foreign></tblock></content></part></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-9-7"><num>(7)</num><content>The amendments made by subsections (2) to (4) and (6) are treated as having come into force on 29 March 2010.</content></subsection><subsection eId="section-9-8"><num>(8)</num><content>The amendments made by subsection (5) come into force on 30 June 2010.</content></subsection></section><section eId="section-10"><num>10</num><heading>Rates of tobacco products duty</heading><subsection eId="section-10-1"><num>(1)</num><content><mod>For the table in Schedule 1 to TPDA 1979 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:45%"/><default:col span="1" style="width:55%"/></default:colgroup><default:tbody><default:tr><default:td>1. Cigarettes</default:td><default:td>An amount equal to 24 per cent of the retail price plus £119.03 per thousand cigarettes</default:td></default:tr><default:tr><default:td>2. Cigars</default:td><default:td>£180.28 per kilogram</default:td></default:tr><default:tr><default:td>3. Hand-rolling tobacco</default:td><default:td>£129.59 per kilogram</default:td></default:tr><default:tr><default:td>4. Other smoking tobacco and chewing tobacco</default:td><default:td>£79.26 per kilogram</default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-10-2"><num>(2)</num><content>The amendment made by subsection (1) is treated as having come into force at 6 pm on 24 March 2010.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-vehicle-excise-duty"><heading>Vehicle excise duty</heading><section eId="section-11"><num>11</num><heading>Rates for motorcycles</heading><subsection eId="section-11-1"><num>(1)</num><intro>In paragraph 2(1) of Schedule 1 to <abbr class="acronym" title="Vehicle Excise and Registration Act">VERA</abbr> 1994 (annual rates of duty: motorcycles)—</intro><level class="para1" eId="section-11-1-a"><num>(a)</num><content><mod>in paragraph (c) (motorbicycle which has engine with cylinder capacity exceeding 400cc but not exceeding 600cc), for “£48” substitute <quotedText>“ £50 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-11-1-b"><num>(b)</num><content><mod>in paragraph (d) (motorcycle not within any of paragraphs (a) to (c)), for “£66” substitute <quotedText>“ £70 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-11-2"><num>(2)</num><content>The amendments made by subsection (1) have effect in relation to licences taken out on or after 1 April 2010.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-fuel-duties"><heading>Fuel duties</heading><section eId="section-12"><num>12</num><heading>Fuel duties: rates and rebates from April 2010</heading><subsection eId="section-12-1"><num>(1)</num><content><abbr class="acronym" title="Hydrocarbon Oil Duties Act">HODA</abbr> 1979 is amended as follows.</content></subsection><subsection eId="section-12-2"><num>(2)</num><intro>In section 6(1A) (main rates)—</intro><level class="para1" eId="section-12-2-a"><num>(a)</num><content><mod>in paragraph (a) (unleaded petrol), for “£0.5619” substitute <quotedText>“ £0.5719 ”</quotedText>,</mod></content></level><level class="para1" eId="section-12-2-b"><num>(b)</num><content><mod>in paragraph (aa) (aviation gasoline), for “£0.3457” substitute <quotedText>“ £0.3835 ”</quotedText>,</mod></content></level><level class="para1" eId="section-12-2-c"><num>(c)</num><content><mod>in paragraph (b) (light oil other than unleaded petrol or aviation gasoline), for “£0.6591” substitute <quotedText>“ £0.6691 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-2-d"><num>(d)</num><content><mod>in paragraph (c) (heavy oil), for “£0.5619” substitute <quotedText>“ £0.5719 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-12-3"><num>(3)</num><content><mod>In section 6AA(3) (rate of duty on biodiesel), for “shall be £0.3619 a litre” substitute <quotedText>“ is the same as that in the case of heavy oil ”</quotedText>.</mod></content></subsection><subsection eId="section-12-4"><num>(4)</num><intro>In section 6AB (rate of duty on bioblend)—</intro><level class="para1" eId="section-12-4-a"><num>(a)</num><content><mod>in subsection (3), for the words after “is the” substitute <quotedText>“ same as that in the case of heavy oil. ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-4-b"><num>(b)</num><content>omit subsections (4) and (5).</content></level></subsection><subsection eId="section-12-5"><num>(5)</num><content><mod>In section 6AD(3) (rate of duty on bioethanol), for “shall be £0.3619 a litre.” substitute <quotedText>“ is the same as that in the case of unleaded petrol. ”</quotedText></mod></content></subsection><subsection eId="section-12-6"><num>(6)</num><intro>In section 6AE (rate of duty on blends of bioethanol and hydrocarbon oil)—</intro><level class="para1" eId="section-12-6-a"><num>(a)</num><content><mod>in subsection (3), for the words after “bioethanol blend” substitute <quotedText>“ is the same as that in the case of unleaded petrol. ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-6-b"><num>(b)</num><content>omit subsections (4) and (5).</content></level></subsection><subsection eId="section-12-7"><num>(7)</num><intro>In section 8(3) (road fuel gas)—</intro><level class="para1" eId="section-12-7-a"><num>(a)</num><content><mod>in paragraph (a) (natural road fuel gas), for “£0.2216” substitute <quotedText>“ £0.2360 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-7-b"><num>(b)</num><content><mod>in paragraph (b) (other road fuel gas), for “£0.2767” substitute <quotedText>“ £0.3053 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-12-8"><num>(8)</num><intro>In section 11(1) (rebate on heavy oil)—</intro><level class="para1" eId="section-12-8-a"><num>(a)</num><content><mod>in paragraph (a) (fuel oil), for “£0.1037” substitute <quotedText>“ £0.1055 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-8-b"><num>(b)</num><content><mod>in paragraph (b) (gas oil), for “£0.1080” substitute <quotedText>“ £0.1099 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-12-9"><num>(9)</num><content><mod>In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.1037” substitute <quotedText>“ £0.1055 ”</quotedText>.</mod></content></subsection><subsection eId="section-12-10"><num>(10)</num><content><mod>In section 14A(2) (rebate on certain biodiesel), for “£0.1080” substitute <quotedText>“ £0.1099 ”</quotedText>.</mod></content></subsection><subsection eId="section-12-11"><num>(11)</num><intro>The following are revoked—</intro><level class="para1" eId="section-12-11-a"><num>(a)</num><content>the Hydrocarbon Oil Duties (Hydrogenation of Biomass) (Reliefs) Regulations 2006 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2006/3426),</content></level><level class="para1" eId="section-12-11-b"><num>(b)</num><content>the Hydrocarbon Oil Duties (Sulphur-free Diesel) (Hydrogenation of Biomass) (Reliefs) (Amendment) Regulations 2007 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2007/2406), and</content></level><level class="para1" eId="section-12-11-c"><num>(c)</num><content>regulation 11 of the Hydrocarbon Oil, Biofuels and Other Fuel Substitutes (Determination of Composition of a Substance and Miscellaneous Amendments) Regulations 2008 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2008/753).</content></level></subsection><subsection eId="section-12-12"><num>(12)</num><content>The amendments made by this section are treated as having come into force on 1 April 2010.</content></subsection></section><section eId="section-13"><num>13</num><heading>Fuel duties: further changes in rates and rebates</heading><subsection eId="section-13-1"><num>(1)</num><content><abbr class="acronym" title="Hydrocarbon Oil Duties Act">HODA</abbr> 1979 is amended as follows.</content></subsection><subsection eId="section-13-2"><num>(2)</num><intro>In section 6(1A) (main rates)—</intro><level class="para1" eId="section-13-2-a"><num>(a)</num><intro>in paragraph (a) (unleaded petrol)—</intro><level class="para2" eId="section-13-2-a-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.5719” substitute <quotedText>“ £0.5819 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-2-a-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.5819” substitute <quotedText>“ £0.5895 ”</quotedText>,</mod></content></level></level><level class="para1" eId="section-13-2-b"><num>(b)</num><intro>in paragraph (b) (light oil other than unleaded petrol or aviation gasoline)—</intro><level class="para2" eId="section-13-2-b-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.6691” substitute <quotedText>“ £0.6791 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-2-b-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.6791” substitute <quotedText>“ £0.6867 ”</quotedText>, and</mod></content></level></level><level class="para1" eId="section-13-2-c"><num>(c)</num><intro>in paragraph (c) (heavy oil)—</intro><level class="para2" eId="section-13-2-c-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.5719” substitute <quotedText>“ £0.5819 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-2-c-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.5819” substitute <quotedText>“ £0.5895 ”</quotedText>.</mod></content></level></level></subsection><subsection eId="section-13-3"><num>(3)</num><intro>In section 8(3) (road fuel gas)—</intro><level class="para1" eId="section-13-3-a"><num>(a)</num><intro>in paragraph (a) (natural road fuel gas)—</intro><level class="para2" eId="section-13-3-a-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.2360” substitute <quotedText>“ £0.2505 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-3-a-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.2505” substitute <quotedText>“ £0.2615 ”</quotedText>, and</mod></content></level></level><level class="para1" eId="section-13-3-b"><num>(b)</num><intro>in paragraph (b) (other road fuel gas)—</intro><level class="para2" eId="section-13-3-b-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.3053” substitute <quotedText>“ £0.3195 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-3-b-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.3195” substitute <quotedText>“ £0.3304 ”</quotedText>.</mod></content></level></level></subsection><subsection eId="section-13-4"><num>(4)</num><intro>In section 11(1) (rebate on heavy oil)—</intro><level class="para1" eId="section-13-4-a"><num>(a)</num><intro>in paragraph (a) (fuel oil)—</intro><level class="para2" eId="section-13-4-a-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.1055” substitute <quotedText>“ £0.1074 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-4-a-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.1074” substitute <quotedText>“ £0.1088 ”</quotedText>, and</mod></content></level></level><level class="para1" eId="section-13-4-b"><num>(b)</num><intro>in paragraph (b) (gas oil)—</intro><level class="para2" eId="section-13-4-b-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.1099” substitute <quotedText>“ £0.1118 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-4-b-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.1118” substitute <quotedText>“ £0.1133 ”</quotedText>.</mod></content></level></level></subsection><subsection eId="section-13-5"><num>(5)</num><intro>In section 14(1) (rebate on light oil for use as furnace fuel)</intro><level class="para1" eId="section-13-5-a"><num>(a)</num><content><mod>on 1 October 2010, for “£0.1055” substitute <quotedText>“ £0.1074 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-13-5-b"><num>(b)</num><content><mod>on 1 January 2011, for “£0.1074” substitute <quotedText>“ £0.1088 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-13-6"><num>(6)</num><intro>In section 14A(2) (rebate on certain biodiesel)—</intro><level class="para1" eId="section-13-6-a"><num>(a)</num><content><mod>on 1 October 2010, for “£0.1099” substitute <quotedText>“ £0.1118 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-13-6-b"><num>(b)</num><content><mod>on 1 January 2011, for “£0.1118” substitute <quotedText>“ £0.1133 ”</quotedText>.</mod></content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-other-environmental-taxes"><heading>Other environmental taxes</heading><section eId="section-14"><num>14</num><heading>Rates of air passenger duty</heading><subsection eId="section-14-1"><num>(1)</num><intro>In section 30 of FA 1994 (air passenger duty: rates)—</intro><level class="para1" eId="section-14-1-a"><num>(a)</num><content><mod>in subsection (2) (journeys ending in <abbr class="acronym" title="United Kingdom">UK</abbr> or Part 1 territory), for “£11” substitute <quotedText>“ £12 ”</quotedText> and for “£22” substitute <quotedText>“ £24 ”</quotedText>,</mod></content></level><level class="para1" eId="section-14-1-b"><num>(b)</num><content><mod>in subsection (3) (journeys ending in Part 2 territory), for “£45” substitute <quotedText>“ £60 ”</quotedText> and for “£90” substitute <quotedText>“ £120 ”</quotedText>,</mod></content></level><level class="para1" eId="section-14-1-c"><num>(c)</num><content><mod>in subsection (4) (journeys ending in Part 3 territory), for “£50” substitute <quotedText>“ £75 ”</quotedText> and for “£100” substitute <quotedText>“ £150 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-14-1-d"><num>(d)</num><content><mod>in subsection (4A) (other journeys), for “£55” substitute <quotedText>“ £85 ”</quotedText> and for “£110” substitute <quotedText>“ £170 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-14-2"><num>(2)</num><content>The amendments made by subsection (1) have effect in relation to the carriage of passengers beginning on or after 1 November 2010.</content></subsection></section><section eId="section-15"><num>15</num><heading>Standard rate of landfill tax</heading><subsection eId="section-15-1"><num>(1)</num><content><mod>In section 42(1) and (2) of FA 1996 (standard amount of landfill tax), for “£48” substitute <quotedText>“ £56 ”</quotedText>.</mod></content></subsection><subsection eId="section-15-2"><num>(2)</num><content>The amendments made by subsection (1) have effect in relation to disposals made (or treated as made) on or after 1 April 2011.</content></subsection></section><section eId="section-16"><num>16</num><heading>Rate of aggregates levy</heading><content><noteRef href="#c2125283" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></section><section eId="section-17"><num>17</num><heading>Rates of climate change levy</heading><subsection eId="section-17-1"><num>(1)</num><content><mod>In Schedule 6 to FA 2000 (climate change levy), for the table in paragraph 42(1) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:47%"/><default:col span="1" style="width:53%"/></default:colgroup><default:tbody><default:tr><default:th>Taxable commodity supplied</default:th><default:th>Rate at which levy payable if supply is not a reduced-rate supply</default:th></default:tr><default:tr><default:td>Electricity</default:td><default:td>£0.00485 per kilowatt hour</default:td></default:tr><default:tr><default:td>Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility</default:td><default:td>£0.00169 per kilowatt hour</default:td></default:tr><default:tr><default:td>Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state</default:td><default:td>£0.01083 per kilogram</default:td></default:tr><default:tr><default:td>Any other taxable commodity</default:td><default:td>£0.01321 per kilogram</default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-17-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to supplies treated as taking place on or after 1 April 2011.</content></subsection></section><section eId="section-18"><num>18</num><heading>Climate change levy: reduced-rate supplies</heading><subsection eId="section-18-1"><num>(1)</num><content><mod>In Schedule 6 to FA 2000 (climate change levy), in paragraph 42(1)(c) (reduced-rate supplies), for “20 per cent.” substitute <quotedText>“ 35 per cent. ”</quotedText>.</mod></content></subsection><subsection eId="section-18-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to supplies treated as taking place on or after 1 April 2011.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-gambling"><heading>Gambling</heading><section eId="section-19"><num><noteRef href="#key-79727740ea46b102ea82e85b683ff4f5" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>19</num><heading>Rate of bingo duty</heading><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></section><section eId="section-20"><num>20</num><heading>Rates of gaming duty</heading><subsection eId="section-20-1"><num>(1)</num><content><mod>In section 11(2) of FA 1997 (rates of gaming duty), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:66%"/><default:col span="1" style="width:34%"/></default:colgroup><default:tbody><default:tr><default:th>Part of gross gaming yield</default:th><default:th>Rate</default:th></default:tr><default:tr><default:td>The first £1,975,000</default:td><default:td>15 per cent</default:td></default:tr><default:tr><default:td>The next £1,361,500</default:td><default:td>20 per cent</default:td></default:tr><default:tr><default:td>The next £2,385,000</default:td><default:td>30 per cent</default:td></default:tr><default:tr><default:td>The next £5,033,500</default:td><default:td>40 per cent</default:td></default:tr><default:tr><default:td>The remainder</default:td><default:td>50 per cent</default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-20-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to accounting periods beginning on or after 1 April 2010.</content></subsection></section><section eId="section-21"><num>21</num><heading>Amusement machine licence duty</heading><subsection eId="section-21-1"><num>(1)</num><content><mod>In section 23(2) of BGDA 1981 (amount of duty payable on amusement machine licence), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:19%"/><default:col span="1" style="width:13%"/><default:col span="1" style="width:13%"/><default:col span="1" style="width:13%"/><default:col span="1" style="width:13%"/><default:col span="1" style="width:13%"/><default:col span="1" style="width:13%"/></default:colgroup><default:tbody><default:tr><default:th>Months for which licence granted</default:th><default:th>Category A £</default:th><default:th>Category B1 £</default:th><default:th>Category B2 £</default:th><default:th>Category B3 £</default:th><default:th>Category B4 £</default:th><default:th>Category C £</default:th></default:tr><default:tr><default:td>1</default:td><default:td>520</default:td><default:td>265</default:td><default:td>210</default:td><default:td>210</default:td><default:td>190</default:td><default:td>85</default:td></default:tr><default:tr><default:td>2</default:td><default:td>1015</default:td><default:td>505</default:td><default:td>395</default:td><default:td>395</default:td><default:td>360</default:td><default:td>150</default:td></default:tr><default:tr><default:td>3</default:td><default:td>1520</default:td><default:td>760</default:td><default:td>605</default:td><default:td>605</default:td><default:td>545</default:td><default:td>225</default:td></default:tr><default:tr><default:td>4</default:td><default:td>2025</default:td><default:td>1015</default:td><default:td>800</default:td><default:td>800</default:td><default:td>725</default:td><default:td>300</default:td></default:tr><default:tr><default:td>5</default:td><default:td>2540</default:td><default:td>1270</default:td><default:td>1000</default:td><default:td>1000</default:td><default:td>900</default:td><default:td>375</default:td></default:tr><default:tr><default:td>6</default:td><default:td>3050</default:td><default:td>1520</default:td><default:td>1195</default:td><default:td>1195</default:td><default:td>1085</default:td><default:td>450</default:td></default:tr><default:tr><default:td>7</default:td><default:td>3555</default:td><default:td>1775</default:td><default:td>1395</default:td><default:td>1395</default:td><default:td>1265</default:td><default:td>520</default:td></default:tr><default:tr><default:td>8</default:td><default:td>4060</default:td><default:td>2025</default:td><default:td>1600</default:td><default:td>1600</default:td><default:td>1450</default:td><default:td>600</default:td></default:tr><default:tr><default:td>9</default:td><default:td>4570</default:td><default:td>2285</default:td><default:td>1800</default:td><default:td>1800</default:td><default:td>1630</default:td><default:td>675</default:td></default:tr><default:tr><default:td>10</default:td><default:td>5075</default:td><default:td>2540</default:td><default:td>1995</default:td><default:td>1995</default:td><default:td>1810</default:td><default:td>750</default:td></default:tr><default:tr><default:td>11</default:td><default:td>5580</default:td><default:td>2795</default:td><default:td>2195</default:td><default:td>2195</default:td><default:td>1990</default:td><default:td>820</default:td></default:tr><default:tr><default:td>12</default:td><default:td>5805</default:td><default:td>2905</default:td><default:td>2285</default:td><default:td>2285</default:td><default:td>2075</default:td><default:td>860</default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-21-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to cases where the application for the amusement machine licence is received by the Commissioners for Her Majesty's Revenue and Customs after 4 pm on 26 March 2010.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-new-taxes"><heading>New taxes</heading><section eId="section-22"><num>22</num><heading>Bank payroll tax</heading><content>Schedule 1 contains provision for and in connection with bank payroll tax.</content></section><section eId="section-23"><num><noteRef href="#c2125357" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>23</num><heading>Pensions: high income excess relief charge</heading><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></section></hcontainer></part>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1"><num>1</num><heading>Charge, main rates, thresholds and allowances <abbr title="Et cetera" xml:lang="la">etc</abbr> for 2010-11</heading><subsection eId="section-1-1"><num>(1)</num><content>Income tax is charged for the tax year 2010-11.</content></subsection><subsection eId="section-1-2"><num>(2)</num><intro>For that tax year—</intro><level class="para1" eId="section-1-2-a"><num>(a)</num><content>the basic rate is 20%,</content></level><level class="para1" eId="section-1-2-b"><num>(b)</num><content>the higher rate is 40%, and</content></level><level class="para1" eId="section-1-2-c"><num>(c)</num><content>the additional rate is 50%.</content></level></subsection><subsection eId="section-1-3"><num>(3)</num><intro>The amounts specified in the following provisions of ITA 2007 are the same for the tax year 2010-11 as for the tax year 2009-10—</intro><level class="para1" eId="section-1-3-a"><num>(a)</num><content>sections 10(5) and 12(3) (basic rate limit and starting rate limit for savings),</content></level><level class="para1" eId="section-1-3-b"><num>(b)</num><content>sections 35, 36(1), 37(1) and 38(1) (personal allowances and blind person's allowance),</content></level><level class="para1" eId="section-1-3-c"><num>(c)</num><content>sections 43, 45(3)(a) and (b) and 46(3)(a) and (b) (tax reductions for married couples and civil partners), and</content></level><level class="para1" eId="section-1-3-d"><num>(d)</num><content>sections 36(2), 37(2), 45(4) and 46(4) (adjusted net income limit).</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-1"><num>(1)</num><content>Income tax is charged for the tax year 2010-11.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-2"><num>(2)</num><intro>For that tax year—</intro><level class="para1" eId="section-1-2-a"><num>(a)</num><content>the basic rate is 20%,</content></level><level class="para1" eId="section-1-2-b"><num>(b)</num><content>the higher rate is 40%, and</content></level><level class="para1" eId="section-1-2-c"><num>(c)</num><content>the additional rate is 50%.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-1-3"><num>(3)</num><intro>The amounts specified in the following provisions of ITA 2007 are the same for the tax year 2010-11 as for the tax year 2009-10—</intro><level class="para1" eId="section-1-3-a"><num>(a)</num><content>sections 10(5) and 12(3) (basic rate limit and starting rate limit for savings),</content></level><level class="para1" eId="section-1-3-b"><num>(b)</num><content>sections 35, 36(1), 37(1) and 38(1) (personal allowances and blind person's allowance),</content></level><level class="para1" eId="section-1-3-c"><num>(c)</num><content>sections 43, 45(3)(a) and (b) and 46(3)(a) and (b) (tax reductions for married couples and civil partners), and</content></level><level class="para1" eId="section-1-3-d"><num>(d)</num><content>sections 36(2), 37(2), 45(4) and 46(4) (adjusted net income limit).</content></level></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-corporation-tax"><heading>Corporation tax</heading><section eId="section-2"><num>2</num><heading>Charge and main rate for financial year 2011</heading><subsection eId="section-2-1"><num>(1)</num><content>Corporation tax is charged for the financial year 2011.</content></subsection><subsection eId="section-2-2"><num>(2)</num><intro>For that year the rate of corporation tax is—</intro><level class="para1" eId="section-2-2-a"><num>(a)</num><content><ins class="substitution first last" ukl:ChangeId="d30p163" ukl:CommentaryRef="c2125279"><noteRef uk:name="commentary" href="#c2125279" class="commentary"/>26%</ins> on profits of companies other than ring fence profits, and</content></level><level class="para1" eId="section-2-2-b"><num>(b)</num><content>30% on ring fence profits of companies.</content></level></subsection><subsection eId="section-2-3"><num>(3)</num><content>In subsection (2) “<term refersTo="#term-ring-fence-profits" eId="term-ring-fence-profits">ring fence profits</term>” has the same meaning as in Part 8 of CTA 2010 (see section 276 of that Act).</content></subsection></section><section eId="section-3"><num>3</num><heading>Small profits rates and fractions for financial year 2010</heading><subsection eId="section-3-1"><num>(1)</num><intro>For the financial year 2010 the small profits rate is—</intro><level class="para1" eId="section-3-1-a"><num>(a)</num><content>21% on profits of companies other than ring fence profits, and</content></level><level class="para1" eId="section-3-1-b"><num>(b)</num><content>19% on ring fence profits of companies.</content></level></subsection><subsection eId="section-3-2"><num>(2)</num><intro>For the purposes of Part 3 of CTA 2010, for that year—</intro><level class="para1" eId="section-3-2-a"><num>(a)</num><content>the standard fraction is 7/400ths, and</content></level><level class="para1" eId="section-3-2-b"><num>(b)</num><content>the ring fence fraction is 11/400ths.</content></level></subsection><subsection eId="section-3-3"><num>(3)</num><content>In subsection (1) “<term refersTo="#term-ring-fence-profits" eId="term-ring-fence-profits">ring fence profits</term>” has the same meaning as in Part 8 of CTA 2010 (see section 276 of that Act).</content></subsection></section></hcontainer>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2-1"><num>(1)</num><content>Corporation tax is charged for the financial year 2011.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-2-3"><num>(3)</num><content>In subsection (2) “<term refersTo="#term-ring-fence-profits" eId="term-ring-fence-profits">ring fence profits</term>” has the same meaning as in Part 8 of CTA 2010 (see section 276 of that Act).</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3"><num>3</num><heading>Small profits rates and fractions for financial year 2010</heading><subsection eId="section-3-1"><num>(1)</num><intro>For the financial year 2010 the small profits rate is—</intro><level class="para1" eId="section-3-1-a"><num>(a)</num><content>21% on profits of companies other than ring fence profits, and</content></level><level class="para1" eId="section-3-1-b"><num>(b)</num><content>19% on ring fence profits of companies.</content></level></subsection><subsection eId="section-3-2"><num>(2)</num><intro>For the purposes of Part 3 of CTA 2010, for that year—</intro><level class="para1" eId="section-3-2-a"><num>(a)</num><content>the standard fraction is 7/400ths, and</content></level><level class="para1" eId="section-3-2-b"><num>(b)</num><content>the ring fence fraction is 11/400ths.</content></level></subsection><subsection eId="section-3-3"><num>(3)</num><content>In subsection (1) “<term refersTo="#term-ring-fence-profits" eId="term-ring-fence-profits">ring fence profits</term>” has the same meaning as in Part 8 of CTA 2010 (see section 276 of that Act).</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-1"><num>(1)</num><intro>For the financial year 2010 the small profits rate is—</intro><level class="para1" eId="section-3-1-a"><num>(a)</num><content>21% on profits of companies other than ring fence profits, and</content></level><level class="para1" eId="section-3-1-b"><num>(b)</num><content>19% on ring fence profits of companies.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-2"><num>(2)</num><intro>For the purposes of Part 3 of CTA 2010, for that year—</intro><level class="para1" eId="section-3-2-a"><num>(a)</num><content>the standard fraction is 7/400ths, and</content></level><level class="para1" eId="section-3-2-b"><num>(b)</num><content>the ring fence fraction is 11/400ths.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-3-3"><num>(3)</num><content>In subsection (1) “<term refersTo="#term-ring-fence-profits" eId="term-ring-fence-profits">ring fence profits</term>” has the same meaning as in Part 8 of CTA 2010 (see section 276 of that Act).</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4"><num>4</num><heading>Increase in entrepreneurs' relief</heading><subsection eId="section-4-1"><num>(1)</num><intro>In section 169N(3) of <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 (limit on entrepreneurs' relief)—</intro><level class="para1" eId="section-4-1-a"><num>(a)</num><content><mod>for “£1 million” (in both places) substitute <quotedText>“ £2 million ”</quotedText>, and</mod></content></level><level class="para1" eId="section-4-1-b"><num>(b)</num><content><mod>in paragraph (b), after “total of” insert <quotedText>“ so much of ”</quotedText> and insert at the end <quotedText>“ as was subject to reduction under subsection (2) ”</quotedText>.</mod></content></level></subsection><subsection eId="section-4-2"><num>(2)</num><content>The amendments made by subsection (1) have effect in relation to qualifying business disposals occurring on or after 6 April 2010.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-1"><num>(1)</num><intro>In section 169N(3) of <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 (limit on entrepreneurs' relief)—</intro><level class="para1" eId="section-4-1-a"><num>(a)</num><content><mod>for “£1 million” (in both places) substitute <quotedText>“ £2 million ”</quotedText>, and</mod></content></level><level class="para1" eId="section-4-1-b"><num>(b)</num><content><mod>in paragraph (b), after “total of” insert <quotedText>“ so much of ”</quotedText> and insert at the end <quotedText>“ as was subject to reduction under subsection (2) ”</quotedText>.</mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-4-2"><num>(2)</num><content>The amendments made by subsection (1) have effect in relation to qualifying business disposals occurring on or after 6 April 2010.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5"><num>5</num><heading>Annual investment allowance</heading><subsection eId="section-5-1"><num>(1)</num><content><mod>In section 51A(5) of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (entitlement to annual investment allowance: maximum allowance), for “£50,000” substitute <quotedText>“ £100,000 ”</quotedText>.</mod></content></subsection><subsection eId="section-5-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to expenditure incurred on or after the relevant date.</content></subsection><subsection eId="section-5-3"><num>(3)</num><intro>Subsections (4) and (5) apply in relation to a chargeable period (“the actual chargeable period”) which—</intro><level class="para1" eId="section-5-3-a"><num>(a)</num><content>begins before the relevant date, and</content></level><level class="para1" eId="section-5-3-b"><num>(b)</num><content>ends on or after that date.</content></level></subsection><subsection eId="section-5-4"><num>(4)</num><intro>The maximum allowance under section 51A of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 for the actual chargeable period is the sum of each maximum allowance that would be found if—</intro><level class="para1" eId="section-5-4-a"><num>(a)</num><content>the period beginning with the first day of the chargeable period and ending with the day before the relevant date, and</content></level><level class="para1" eId="section-5-4-b"><num>(b)</num><content>the period beginning with the relevant date and ending with the last day of the chargeable period,</content></level><wrapUp>were treated as separate chargeable periods.</wrapUp></subsection><subsection eId="section-5-5"><num>(5)</num><content>But, so far as concerns expenditure incurred before the relevant date, the maximum allowance under section 51A of that Act for the actual chargeable period is to be calculated as if the amendment made by subsection (1) had not been made.</content></subsection><subsection eId="section-5-6"><num>(6)</num><intro>In this section “<term refersTo="#term-the-relevant-date" eId="term-the-relevant-date">the relevant date</term>” means—</intro><level class="para1" eId="section-5-6-a"><num>(a)</num><content>for corporation tax purposes, 1 April 2010, and</content></level><level class="para1" eId="section-5-6-b"><num>(b)</num><content>for income tax purposes, 6 April 2010.</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-1"><num>(1)</num><content><mod>In section 51A(5) of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (entitlement to annual investment allowance: maximum allowance), for “£50,000” substitute <quotedText>“ £100,000 ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to expenditure incurred on or after the relevant date.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-3"><num>(3)</num><intro>Subsections (4) and (5) apply in relation to a chargeable period (“the actual chargeable period”) which—</intro><level class="para1" eId="section-5-3-a"><num>(a)</num><content>begins before the relevant date, and</content></level><level class="para1" eId="section-5-3-b"><num>(b)</num><content>ends on or after that date.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-4"><num>(4)</num><intro>The maximum allowance under section 51A of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 for the actual chargeable period is the sum of each maximum allowance that would be found if—</intro><level class="para1" eId="section-5-4-a"><num>(a)</num><content>the period beginning with the first day of the chargeable period and ending with the day before the relevant date, and</content></level><level class="para1" eId="section-5-4-b"><num>(b)</num><content>the period beginning with the relevant date and ending with the last day of the chargeable period,</content></level><wrapUp>were treated as separate chargeable periods.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-5"><num>(5)</num><content>But, so far as concerns expenditure incurred before the relevant date, the maximum allowance under section 51A of that Act for the actual chargeable period is to be calculated as if the amendment made by subsection (1) had not been made.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-5-6"><num>(6)</num><intro>In this section “<term refersTo="#term-the-relevant-date" eId="term-the-relevant-date">the relevant date</term>” means—</intro><level class="para1" eId="section-5-6-a"><num>(a)</num><content>for corporation tax purposes, 1 April 2010, and</content></level><level class="para1" eId="section-5-6-b"><num>(b)</num><content>for income tax purposes, 6 April 2010.</content></level></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-stamp-duty-land-tax"><heading>Stamp duty land tax</heading><section eId="section-6"><num><noteRef href="#key-fd155571fabc6f27f67de7fe05483409" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>6</num><heading>Relief for first-time buyers</heading><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></section><section eId="section-7"><num>7</num><heading>Rate in respect of residential property where consideration over £1m</heading><subsection eId="section-7-1"><num><noteRef href="#key-a8e406c009eb66ab449e8cb2d6fa6a38" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(1)</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subsection><subsection eId="section-7-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to any land transaction of which the effective date is on or after 6 April 2011.</content></subsection><subsection eId="section-7-3"><num>(3)</num><intro>But that amendment does not have effect in relation to any transaction—</intro><level class="para1" eId="section-7-3-a"><num>(a)</num><content>effected in pursuance of a contract entered into and substantially performed before 25 March 2010, or</content></level><level class="para1" eId="section-7-3-b"><num>(b)</num><content>effected in pursuance of a contract entered into before that date and not excluded by subsection (4).</content></level></subsection><subsection eId="section-7-4"><num>(4)</num><intro>A transaction effected in pursuance of a contract entered into before 25 March 2010 is excluded by this subsection if—</intro><level class="para1" eId="section-7-4-a"><num>(a)</num><content>there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 25 March 2010,</content></level><level class="para1" eId="section-7-4-b"><num>(b)</num><content>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</content></level><level class="para1" eId="section-7-4-c"><num>(c)</num><content>on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</content></level></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-6"><num><noteRef href="#key-fd155571fabc6f27f67de7fe05483409" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>6</num><heading>Relief for first-time buyers</heading><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-6-1"><num>(1)</num><content>Part 4 of FA 2003 (stamp duty land tax) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-6-2"><num>(2)</num><content><mod>After section 57A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e453"><num>57AA</num><heading>First-time buyers</heading><subsection eId="d25e457"><num>(1)</num><intro>A land transaction is exempt from charge under section 55 if—</intro><level class="para1" eId="d25e463"><num>(a)</num><content>it is a relevant acquisition of a major interest in land,</content></level><level class="para1" eId="d25e469"><num>(b)</num><content>the land consists entirely of residential property,</content></level><level class="para1" eId="d25e475"><num>(c)</num><content>the relevant consideration (see section 55) for the transaction (other than any consisting of rent) is more than £125,000 but not more than £250,000,</content></level><level class="para1" eId="d25e481"><num>(d)</num><content>the purchaser, or (if more than one) each of the purchasers, is a first-time buyer who intends to occupy the residential property as the purchaser’s only or main residence, and</content></level><level class="para1" eId="d25e487"><num>(e)</num><content>(subject to subsection (4)) the transaction is not one of a number of linked transactions.</content></level></subsection><subsection eId="d25e493"><num>(2)</num><intro>In this section “first-time buyer” means a person who—</intro><level class="para1" eId="d25e499"><num>(a)</num><content>has not previously been a purchaser in relation to a relevant acquisition of a major interest in land which consisted of or included residential property,</content></level><level class="para1" eId="d25e505"><num>(b)</num><content>has not previously acquired an equivalent interest in such land under the law of a territory outside the United Kingdom,</content></level><level class="para1" eId="d25e511"><num>(c)</num><content>has not previously been, or been one of the persons who was, “the person” for the purposes of section 71A, 72, 72A or 73 in a case where the first transaction within the meaning of the section concerned was a relevant acquisition of a major interest in land which consisted of or included residential property, and</content></level><level class="para1" eId="d25e517"><num>(d)</num><content>would not have been such a person for those purposes in such a case if the provisions mentioned in paragraph (c) had been in force, and had had effect in the territory concerned, at all material times (subject, where required, to appropriate modifications).</content></level></subsection><subsection eId="d25e523"><num>(3)</num><intro>In this section “relevant acquisition of a major interest in land” means an acquisition of a major interest in land other than—</intro><level class="para1" eId="d25e529"><num>(a)</num><content>the grant of a lease for a term of less than 21 years, or</content></level><level class="para1" eId="d25e535"><num>(b)</num><content>the assignment of a lease which has less than 21 years to run.</content></level></subsection><subsection eId="d25e541"><num>(4)</num><content>Subsection (1)(e) does not prevent a transaction being exempt from charge under section 55 if each of the linked transactions is one the subject-matter of which is land, or an interest in or right over land, which falls within section 116(1)(a), (b) or (c) by reason of its connection with the same building.</content></subsection></section></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-6-3"><num>(3)</num><content><mod>After section 73C insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e557"><num>73CA</num><heading>Sections 71A to 73: first-time buyers</heading><subsection eId="d25e561"><num>(1)</num><intro>Where section 71A, 72, 72A or 73 applies, the first transaction within the meaning of the section concerned is exempt from charge under section 55 if—</intro><level class="para1" eId="d25e567"><num>(a)</num><content>the transaction is a relevant acquisition of a major interest in land,</content></level><level class="para1" eId="d25e573"><num>(b)</num><content>the land consists entirely of residential property,</content></level><level class="para1" eId="d25e579"><num>(c)</num><content>the relevant consideration (see section 55) for the transaction (other than any consisting of rent) is more than £125,000 but not more than £250,000,</content></level><level class="para1" eId="d25e585"><num>(d)</num><content>the person (within the meaning of the section concerned), or (if more than one) each of them, is a first-time buyer who intends to occupy the residential property as the person’s only or main residence, and</content></level><level class="para1" eId="d25e591"><num>(e)</num><content>(subject to subsection (3)) the transaction is not one of a number of linked transactions.</content></level></subsection><subsection eId="d25e597"><num>(2)</num><intro>In subsection (1)—</intro><hcontainer name="definition"><content>“first-time buyer”, and</content></hcontainer><hcontainer name="definition"><content>“relevant acquisition of a major interest in land”,</content></hcontainer><wrapUp>have the same meaning as in section 57AA.</wrapUp></subsection><subsection eId="d25e614"><num>(3)</num><content>Subsection (4) of section 57AA applies for the purposes of this section.</content></subsection></section></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-6-4"><num>(4)</num><content><mod>In section 110 (approval of regulations under general power), insert at the end—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e627"><num>(6)</num><content>This section does not apply to regulations containing only provision varying section 57AA or 73CA, or paragraph 15 of Schedule 9, which does not increase any person’s liability to tax.</content></subsection></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-6-5"><num>(5)</num><content><mod>In Schedule 9 (right to buy, shared ownership leases etc), insert at the end—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7" eId="d25e640"><heading>First-time buyers</heading><paragraph eId="d25e643" class="schProv1"><num>15</num><subparagraph eId="d25e647"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="d25e653"><num>(a)</num><content>a lease is granted as mentioned in sub-paragraph (1)(a) of paragraph 2 and the conditions in sub-paragraph (2) of that paragraph are met but no election is made for tax to be charged in accordance with that paragraph,</content></level><level class="para1" eId="d25e659"><num>(b)</num><content>a lease is granted as mentioned in sub-paragraph (1)(a) of paragraph 4 and the conditions in sub-paragraph (2) of that paragraph are met but no election is made for tax to be charged in accordance with that paragraph,</content></level><level class="para1" eId="d25e665"><num>(c)</num><content>paragraph 4A applies in relation to the acquisition of an interest (but the acquisition is not exempt from charge by virtue of sub-paragraph (2) of that paragraph),</content></level><level class="para1" eId="d25e671"><num>(d)</num><content>a shared ownership trust is declared but no election is made for tax to be charged in accordance with paragraph 9, or</content></level><level class="para1" eId="d25e677"><num>(e)</num><content>an equity-acquisition payment is made under a shared ownership trust (but the equity-acquisition payment, and the consequential increase in the purchaser’s beneficial interest, are not exempt from charge by virtue of paragraph 10).</content></level></subparagraph><subparagraph eId="d25e683"><num>(2)</num><intro>Neither section 57AA nor section 73CA applies in relation to—</intro><level class="para1" eId="d25e689"><num>(a)</num><content>the acquisition of the lease,</content></level><level class="para1" eId="d25e695"><num>(b)</num><content>the acquisition of the interest,</content></level><level class="para1" eId="d25e701"><num>(c)</num><content>the declaration of the shared ownership trust, or</content></level><level class="para1" eId="d25e707"><num>(d)</num><content>the equity-acquisition payment and the consequential increase in the purchaser’s beneficial interest.</content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-6-6"><num>(6)</num><content>The amendments made by this section have effect in relation to any land transaction of which the effective date is on or after 25 March 2010 but before 25 March 2012.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-7"><num>7</num><heading>Rate in respect of residential property where consideration over £1m</heading><subsection eId="section-7-1"><num><noteRef href="#key-a8e406c009eb66ab449e8cb2d6fa6a38" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(1)</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subsection><subsection eId="section-7-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to any land transaction of which the effective date is on or after 6 April 2011.</content></subsection><subsection eId="section-7-3"><num>(3)</num><intro>But that amendment does not have effect in relation to any transaction—</intro><level class="para1" eId="section-7-3-a"><num>(a)</num><content>effected in pursuance of a contract entered into and substantially performed before 25 March 2010, or</content></level><level class="para1" eId="section-7-3-b"><num>(b)</num><content>effected in pursuance of a contract entered into before that date and not excluded by subsection (4).</content></level></subsection><subsection eId="section-7-4"><num>(4)</num><intro>A transaction effected in pursuance of a contract entered into before 25 March 2010 is excluded by this subsection if—</intro><level class="para1" eId="section-7-4-a"><num>(a)</num><content>there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 25 March 2010,</content></level><level class="para1" eId="section-7-4-b"><num>(b)</num><content>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</content></level><level class="para1" eId="section-7-4-c"><num>(c)</num><content>on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-7-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to any land transaction of which the effective date is on or after 6 April 2011.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-7-3"><num>(3)</num><intro>But that amendment does not have effect in relation to any transaction—</intro><level class="para1" eId="section-7-3-a"><num>(a)</num><content>effected in pursuance of a contract entered into and substantially performed before 25 March 2010, or</content></level><level class="para1" eId="section-7-3-b"><num>(b)</num><content>effected in pursuance of a contract entered into before that date and not excluded by subsection (4).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-7-4"><num>(4)</num><intro>A transaction effected in pursuance of a contract entered into before 25 March 2010 is excluded by this subsection if—</intro><level class="para1" eId="section-7-4-a"><num>(a)</num><content>there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 25 March 2010,</content></level><level class="para1" eId="section-7-4-b"><num>(b)</num><content>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</content></level><level class="para1" eId="section-7-4-c"><num>(c)</num><content>on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</content></level></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8"><num>8</num><heading>Rate bands</heading><subsection eId="section-8-1"><num>(1)</num><content>The Table substituted in Schedule 1 to <abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984 by section 155(1)(b) and (4) of FA 2006 (which provides for a rate of nil per cent on such portion of the value concerned as does not exceed £325,000 and a rate of 40 per cent on such portion as exceeds that amount) has effect in relation to chargeable transfers made on or after 6 April 2010.</content></subsection><subsection eId="section-8-2"><num>(2)</num><intro>Accordingly, omit—</intro><level class="para1" eId="section-8-2-a"><num>(a)</num><content>in <abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984, the Table substituted in Schedule 1 in relation to chargeable transfers made on or after that date (which provided for a rate of nil per cent on such portion of the value concerned as does not exceed £350,000 and a rate of 40 per cent on such portion as exceeds that amount), and</content></level><level class="para1" eId="section-8-2-b"><num>(b)</num><content>in FA 2007, section 4 (which substituted it).</content></level></subsection><subsection eId="section-8-3"><num>(3)</num><content>Section 8 of <abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984 (indexation) does not have effect by virtue of any difference between the retail prices index for the month of September in 2010, 2011, 2012 or 2013 and the previous September.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-1"><num>(1)</num><content>The Table substituted in Schedule 1 to <abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984 by section 155(1)(b) and (4) of FA 2006 (which provides for a rate of nil per cent on such portion of the value concerned as does not exceed £325,000 and a rate of 40 per cent on such portion as exceeds that amount) has effect in relation to chargeable transfers made on or after 6 April 2010.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-2"><num>(2)</num><intro>Accordingly, omit—</intro><level class="para1" eId="section-8-2-a"><num>(a)</num><content>in <abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984, the Table substituted in Schedule 1 in relation to chargeable transfers made on or after that date (which provided for a rate of nil per cent on such portion of the value concerned as does not exceed £350,000 and a rate of 40 per cent on such portion as exceeds that amount), and</content></level><level class="para1" eId="section-8-2-b"><num>(b)</num><content>in FA 2007, section 4 (which substituted it).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-8-3"><num>(3)</num><content>Section 8 of <abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984 (indexation) does not have effect by virtue of any difference between the retail prices index for the month of September in 2010, 2011, 2012 or 2013 and the previous September.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-1"><num>(1)</num><content><abbr class="acronym" title="Alcoholic Liquor Duties Act">ALDA</abbr> 1979 is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-2"><num>(2)</num><content><mod>In section 5 (rate of duty on spirits), for “£22.64” substitute <quotedText>“ £23.80 ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-3"><num>(3)</num><content><mod>In section 36(1AA)(a) (standard rate of duty on beer), for “£16.47” substitute <quotedText>“ £17.32 ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-4"><num>(4)</num><intro>In section 62(1A) (rates of duty on cider)—</intro><level class="para1" eId="section-9-4-a"><num>(a)</num><content><mod>in paragraph (a) (rate of duty per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent), for “£207.20” substitute <quotedText>“ £217.83 ”</quotedText>,</mod></content></level><level class="para1" eId="section-9-4-b"><num>(b)</num><content><mod>in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent which is not sparkling cider), for “£47.77” substitute <quotedText>“ £54.04 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-9-4-c"><num>(c)</num><content><mod>in paragraph (c) (rate of duty per hectolitre in any other case), for “£31.83” substitute <quotedText>“ £36.01 ”</quotedText>.</mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-5"><num>(5)</num><intro>In section 62(1A) (as amended by subsection (4))—</intro><level class="para1" eId="section-9-5-a"><num>(a)</num><content><mod>in paragraph (b), for “£54.04” substitute <quotedText>“ £50.22 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-9-5-b"><num>(b)</num><content><mod>in paragraph (c), for “£36.01” substitute <quotedText>“ £33.46 ”</quotedText>.</mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-7"><num>(7)</num><content>The amendments made by subsections (2) to (4) and (6) are treated as having come into force on 29 March 2010.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-9-8"><num>(8)</num><content>The amendments made by subsection (5) come into force on 30 June 2010.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-10-2"><num>(2)</num><content>The amendment made by subsection (1) is treated as having come into force at 6 pm on 24 March 2010.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11"><num>11</num><heading>Rates for motorcycles</heading><subsection eId="section-11-1"><num>(1)</num><intro>In paragraph 2(1) of Schedule 1 to <abbr class="acronym" title="Vehicle Excise and Registration Act">VERA</abbr> 1994 (annual rates of duty: motorcycles)—</intro><level class="para1" eId="section-11-1-a"><num>(a)</num><content><mod>in paragraph (c) (motorbicycle which has engine with cylinder capacity exceeding 400cc but not exceeding 600cc), for “£48” substitute <quotedText>“ £50 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-11-1-b"><num>(b)</num><content><mod>in paragraph (d) (motorcycle not within any of paragraphs (a) to (c)), for “£66” substitute <quotedText>“ £70 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-11-2"><num>(2)</num><content>The amendments made by subsection (1) have effect in relation to licences taken out on or after 1 April 2010.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-1"><num>(1)</num><intro>In paragraph 2(1) of Schedule 1 to <abbr class="acronym" title="Vehicle Excise and Registration Act">VERA</abbr> 1994 (annual rates of duty: motorcycles)—</intro><level class="para1" eId="section-11-1-a"><num>(a)</num><content><mod>in paragraph (c) (motorbicycle which has engine with cylinder capacity exceeding 400cc but not exceeding 600cc), for “£48” substitute <quotedText>“ £50 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-11-1-b"><num>(b)</num><content><mod>in paragraph (d) (motorcycle not within any of paragraphs (a) to (c)), for “£66” substitute <quotedText>“ £70 ”</quotedText>.</mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-11-2"><num>(2)</num><content>The amendments made by subsection (1) have effect in relation to licences taken out on or after 1 April 2010.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-fuel-duties"><heading>Fuel duties</heading><section eId="section-12"><num>12</num><heading>Fuel duties: rates and rebates from April 2010</heading><subsection eId="section-12-1"><num>(1)</num><content><abbr class="acronym" title="Hydrocarbon Oil Duties Act">HODA</abbr> 1979 is amended as follows.</content></subsection><subsection eId="section-12-2"><num>(2)</num><intro>In section 6(1A) (main rates)—</intro><level class="para1" eId="section-12-2-a"><num>(a)</num><content><mod>in paragraph (a) (unleaded petrol), for “£0.5619” substitute <quotedText>“ £0.5719 ”</quotedText>,</mod></content></level><level class="para1" eId="section-12-2-b"><num>(b)</num><content><mod>in paragraph (aa) (aviation gasoline), for “£0.3457” substitute <quotedText>“ £0.3835 ”</quotedText>,</mod></content></level><level class="para1" eId="section-12-2-c"><num>(c)</num><content><mod>in paragraph (b) (light oil other than unleaded petrol or aviation gasoline), for “£0.6591” substitute <quotedText>“ £0.6691 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-2-d"><num>(d)</num><content><mod>in paragraph (c) (heavy oil), for “£0.5619” substitute <quotedText>“ £0.5719 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-12-3"><num>(3)</num><content><mod>In section 6AA(3) (rate of duty on biodiesel), for “shall be £0.3619 a litre” substitute <quotedText>“ is the same as that in the case of heavy oil ”</quotedText>.</mod></content></subsection><subsection eId="section-12-4"><num>(4)</num><intro>In section 6AB (rate of duty on bioblend)—</intro><level class="para1" eId="section-12-4-a"><num>(a)</num><content><mod>in subsection (3), for the words after “is the” substitute <quotedText>“ same as that in the case of heavy oil. ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-4-b"><num>(b)</num><content>omit subsections (4) and (5).</content></level></subsection><subsection eId="section-12-5"><num>(5)</num><content><mod>In section 6AD(3) (rate of duty on bioethanol), for “shall be £0.3619 a litre.” substitute <quotedText>“ is the same as that in the case of unleaded petrol. ”</quotedText></mod></content></subsection><subsection eId="section-12-6"><num>(6)</num><intro>In section 6AE (rate of duty on blends of bioethanol and hydrocarbon oil)—</intro><level class="para1" eId="section-12-6-a"><num>(a)</num><content><mod>in subsection (3), for the words after “bioethanol blend” substitute <quotedText>“ is the same as that in the case of unleaded petrol. ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-6-b"><num>(b)</num><content>omit subsections (4) and (5).</content></level></subsection><subsection eId="section-12-7"><num>(7)</num><intro>In section 8(3) (road fuel gas)—</intro><level class="para1" eId="section-12-7-a"><num>(a)</num><content><mod>in paragraph (a) (natural road fuel gas), for “£0.2216” substitute <quotedText>“ £0.2360 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-7-b"><num>(b)</num><content><mod>in paragraph (b) (other road fuel gas), for “£0.2767” substitute <quotedText>“ £0.3053 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-12-8"><num>(8)</num><intro>In section 11(1) (rebate on heavy oil)—</intro><level class="para1" eId="section-12-8-a"><num>(a)</num><content><mod>in paragraph (a) (fuel oil), for “£0.1037” substitute <quotedText>“ £0.1055 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-8-b"><num>(b)</num><content><mod>in paragraph (b) (gas oil), for “£0.1080” substitute <quotedText>“ £0.1099 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-12-9"><num>(9)</num><content><mod>In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.1037” substitute <quotedText>“ £0.1055 ”</quotedText>.</mod></content></subsection><subsection eId="section-12-10"><num>(10)</num><content><mod>In section 14A(2) (rebate on certain biodiesel), for “£0.1080” substitute <quotedText>“ £0.1099 ”</quotedText>.</mod></content></subsection><subsection eId="section-12-11"><num>(11)</num><intro>The following are revoked—</intro><level class="para1" eId="section-12-11-a"><num>(a)</num><content>the Hydrocarbon Oil Duties (Hydrogenation of Biomass) (Reliefs) Regulations 2006 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2006/3426),</content></level><level class="para1" eId="section-12-11-b"><num>(b)</num><content>the Hydrocarbon Oil Duties (Sulphur-free Diesel) (Hydrogenation of Biomass) (Reliefs) (Amendment) Regulations 2007 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2007/2406), and</content></level><level class="para1" eId="section-12-11-c"><num>(c)</num><content>regulation 11 of the Hydrocarbon Oil, Biofuels and Other Fuel Substitutes (Determination of Composition of a Substance and Miscellaneous Amendments) Regulations 2008 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2008/753).</content></level></subsection><subsection eId="section-12-12"><num>(12)</num><content>The amendments made by this section are treated as having come into force on 1 April 2010.</content></subsection></section><section eId="section-13"><num>13</num><heading>Fuel duties: further changes in rates and rebates</heading><subsection eId="section-13-1"><num>(1)</num><content><abbr class="acronym" title="Hydrocarbon Oil Duties Act">HODA</abbr> 1979 is amended as follows.</content></subsection><subsection eId="section-13-2"><num>(2)</num><intro>In section 6(1A) (main rates)—</intro><level class="para1" eId="section-13-2-a"><num>(a)</num><intro>in paragraph (a) (unleaded petrol)—</intro><level class="para2" eId="section-13-2-a-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.5719” substitute <quotedText>“ £0.5819 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-2-a-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.5819” substitute <quotedText>“ £0.5895 ”</quotedText>,</mod></content></level></level><level class="para1" eId="section-13-2-b"><num>(b)</num><intro>in paragraph (b) (light oil other than unleaded petrol or aviation gasoline)—</intro><level class="para2" eId="section-13-2-b-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.6691” substitute <quotedText>“ £0.6791 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-2-b-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.6791” substitute <quotedText>“ £0.6867 ”</quotedText>, and</mod></content></level></level><level class="para1" eId="section-13-2-c"><num>(c)</num><intro>in paragraph (c) (heavy oil)—</intro><level class="para2" eId="section-13-2-c-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.5719” substitute <quotedText>“ £0.5819 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-2-c-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.5819” substitute <quotedText>“ £0.5895 ”</quotedText>.</mod></content></level></level></subsection><subsection eId="section-13-3"><num>(3)</num><intro>In section 8(3) (road fuel gas)—</intro><level class="para1" eId="section-13-3-a"><num>(a)</num><intro>in paragraph (a) (natural road fuel gas)—</intro><level class="para2" eId="section-13-3-a-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.2360” substitute <quotedText>“ £0.2505 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-3-a-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.2505” substitute <quotedText>“ £0.2615 ”</quotedText>, and</mod></content></level></level><level class="para1" eId="section-13-3-b"><num>(b)</num><intro>in paragraph (b) (other road fuel gas)—</intro><level class="para2" eId="section-13-3-b-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.3053” substitute <quotedText>“ £0.3195 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-3-b-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.3195” substitute <quotedText>“ £0.3304 ”</quotedText>.</mod></content></level></level></subsection><subsection eId="section-13-4"><num>(4)</num><intro>In section 11(1) (rebate on heavy oil)—</intro><level class="para1" eId="section-13-4-a"><num>(a)</num><intro>in paragraph (a) (fuel oil)—</intro><level class="para2" eId="section-13-4-a-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.1055” substitute <quotedText>“ £0.1074 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-4-a-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.1074” substitute <quotedText>“ £0.1088 ”</quotedText>, and</mod></content></level></level><level class="para1" eId="section-13-4-b"><num>(b)</num><intro>in paragraph (b) (gas oil)—</intro><level class="para2" eId="section-13-4-b-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.1099” substitute <quotedText>“ £0.1118 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-4-b-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.1118” substitute <quotedText>“ £0.1133 ”</quotedText>.</mod></content></level></level></subsection><subsection eId="section-13-5"><num>(5)</num><intro>In section 14(1) (rebate on light oil for use as furnace fuel)</intro><level class="para1" eId="section-13-5-a"><num>(a)</num><content><mod>on 1 October 2010, for “£0.1055” substitute <quotedText>“ £0.1074 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-13-5-b"><num>(b)</num><content><mod>on 1 January 2011, for “£0.1074” substitute <quotedText>“ £0.1088 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-13-6"><num>(6)</num><intro>In section 14A(2) (rebate on certain biodiesel)—</intro><level class="para1" eId="section-13-6-a"><num>(a)</num><content><mod>on 1 October 2010, for “£0.1099” substitute <quotedText>“ £0.1118 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-13-6-b"><num>(b)</num><content><mod>on 1 January 2011, for “£0.1118” substitute <quotedText>“ £0.1133 ”</quotedText>.</mod></content></level></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12"><num>12</num><heading>Fuel duties: rates and rebates from April 2010</heading><subsection eId="section-12-1"><num>(1)</num><content><abbr class="acronym" title="Hydrocarbon Oil Duties Act">HODA</abbr> 1979 is amended as follows.</content></subsection><subsection eId="section-12-2"><num>(2)</num><intro>In section 6(1A) (main rates)—</intro><level class="para1" eId="section-12-2-a"><num>(a)</num><content><mod>in paragraph (a) (unleaded petrol), for “£0.5619” substitute <quotedText>“ £0.5719 ”</quotedText>,</mod></content></level><level class="para1" eId="section-12-2-b"><num>(b)</num><content><mod>in paragraph (aa) (aviation gasoline), for “£0.3457” substitute <quotedText>“ £0.3835 ”</quotedText>,</mod></content></level><level class="para1" eId="section-12-2-c"><num>(c)</num><content><mod>in paragraph (b) (light oil other than unleaded petrol or aviation gasoline), for “£0.6591” substitute <quotedText>“ £0.6691 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-2-d"><num>(d)</num><content><mod>in paragraph (c) (heavy oil), for “£0.5619” substitute <quotedText>“ £0.5719 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-12-3"><num>(3)</num><content><mod>In section 6AA(3) (rate of duty on biodiesel), for “shall be £0.3619 a litre” substitute <quotedText>“ is the same as that in the case of heavy oil ”</quotedText>.</mod></content></subsection><subsection eId="section-12-4"><num>(4)</num><intro>In section 6AB (rate of duty on bioblend)—</intro><level class="para1" eId="section-12-4-a"><num>(a)</num><content><mod>in subsection (3), for the words after “is the” substitute <quotedText>“ same as that in the case of heavy oil. ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-4-b"><num>(b)</num><content>omit subsections (4) and (5).</content></level></subsection><subsection eId="section-12-5"><num>(5)</num><content><mod>In section 6AD(3) (rate of duty on bioethanol), for “shall be £0.3619 a litre.” substitute <quotedText>“ is the same as that in the case of unleaded petrol. ”</quotedText></mod></content></subsection><subsection eId="section-12-6"><num>(6)</num><intro>In section 6AE (rate of duty on blends of bioethanol and hydrocarbon oil)—</intro><level class="para1" eId="section-12-6-a"><num>(a)</num><content><mod>in subsection (3), for the words after “bioethanol blend” substitute <quotedText>“ is the same as that in the case of unleaded petrol. ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-6-b"><num>(b)</num><content>omit subsections (4) and (5).</content></level></subsection><subsection eId="section-12-7"><num>(7)</num><intro>In section 8(3) (road fuel gas)—</intro><level class="para1" eId="section-12-7-a"><num>(a)</num><content><mod>in paragraph (a) (natural road fuel gas), for “£0.2216” substitute <quotedText>“ £0.2360 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-7-b"><num>(b)</num><content><mod>in paragraph (b) (other road fuel gas), for “£0.2767” substitute <quotedText>“ £0.3053 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-12-8"><num>(8)</num><intro>In section 11(1) (rebate on heavy oil)—</intro><level class="para1" eId="section-12-8-a"><num>(a)</num><content><mod>in paragraph (a) (fuel oil), for “£0.1037” substitute <quotedText>“ £0.1055 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-8-b"><num>(b)</num><content><mod>in paragraph (b) (gas oil), for “£0.1080” substitute <quotedText>“ £0.1099 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-12-9"><num>(9)</num><content><mod>In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.1037” substitute <quotedText>“ £0.1055 ”</quotedText>.</mod></content></subsection><subsection eId="section-12-10"><num>(10)</num><content><mod>In section 14A(2) (rebate on certain biodiesel), for “£0.1080” substitute <quotedText>“ £0.1099 ”</quotedText>.</mod></content></subsection><subsection eId="section-12-11"><num>(11)</num><intro>The following are revoked—</intro><level class="para1" eId="section-12-11-a"><num>(a)</num><content>the Hydrocarbon Oil Duties (Hydrogenation of Biomass) (Reliefs) Regulations 2006 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2006/3426),</content></level><level class="para1" eId="section-12-11-b"><num>(b)</num><content>the Hydrocarbon Oil Duties (Sulphur-free Diesel) (Hydrogenation of Biomass) (Reliefs) (Amendment) Regulations 2007 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2007/2406), and</content></level><level class="para1" eId="section-12-11-c"><num>(c)</num><content>regulation 11 of the Hydrocarbon Oil, Biofuels and Other Fuel Substitutes (Determination of Composition of a Substance and Miscellaneous Amendments) Regulations 2008 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2008/753).</content></level></subsection><subsection eId="section-12-12"><num>(12)</num><content>The amendments made by this section are treated as having come into force on 1 April 2010.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-1"><num>(1)</num><content><abbr class="acronym" title="Hydrocarbon Oil Duties Act">HODA</abbr> 1979 is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-2"><num>(2)</num><intro>In section 6(1A) (main rates)—</intro><level class="para1" eId="section-12-2-a"><num>(a)</num><content><mod>in paragraph (a) (unleaded petrol), for “£0.5619” substitute <quotedText>“ £0.5719 ”</quotedText>,</mod></content></level><level class="para1" eId="section-12-2-b"><num>(b)</num><content><mod>in paragraph (aa) (aviation gasoline), for “£0.3457” substitute <quotedText>“ £0.3835 ”</quotedText>,</mod></content></level><level class="para1" eId="section-12-2-c"><num>(c)</num><content><mod>in paragraph (b) (light oil other than unleaded petrol or aviation gasoline), for “£0.6591” substitute <quotedText>“ £0.6691 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-2-d"><num>(d)</num><content><mod>in paragraph (c) (heavy oil), for “£0.5619” substitute <quotedText>“ £0.5719 ”</quotedText>.</mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-3"><num>(3)</num><content><mod>In section 6AA(3) (rate of duty on biodiesel), for “shall be £0.3619 a litre” substitute <quotedText>“ is the same as that in the case of heavy oil ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-4"><num>(4)</num><intro>In section 6AB (rate of duty on bioblend)—</intro><level class="para1" eId="section-12-4-a"><num>(a)</num><content><mod>in subsection (3), for the words after “is the” substitute <quotedText>“ same as that in the case of heavy oil. ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-4-b"><num>(b)</num><content>omit subsections (4) and (5).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-5"><num>(5)</num><content><mod>In section 6AD(3) (rate of duty on bioethanol), for “shall be £0.3619 a litre.” substitute <quotedText>“ is the same as that in the case of unleaded petrol. ”</quotedText></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-6"><num>(6)</num><intro>In section 6AE (rate of duty on blends of bioethanol and hydrocarbon oil)—</intro><level class="para1" eId="section-12-6-a"><num>(a)</num><content><mod>in subsection (3), for the words after “bioethanol blend” substitute <quotedText>“ is the same as that in the case of unleaded petrol. ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-6-b"><num>(b)</num><content>omit subsections (4) and (5).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-7"><num>(7)</num><intro>In section 8(3) (road fuel gas)—</intro><level class="para1" eId="section-12-7-a"><num>(a)</num><content><mod>in paragraph (a) (natural road fuel gas), for “£0.2216” substitute <quotedText>“ £0.2360 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-7-b"><num>(b)</num><content><mod>in paragraph (b) (other road fuel gas), for “£0.2767” substitute <quotedText>“ £0.3053 ”</quotedText>.</mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-8"><num>(8)</num><intro>In section 11(1) (rebate on heavy oil)—</intro><level class="para1" eId="section-12-8-a"><num>(a)</num><content><mod>in paragraph (a) (fuel oil), for “£0.1037” substitute <quotedText>“ £0.1055 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-12-8-b"><num>(b)</num><content><mod>in paragraph (b) (gas oil), for “£0.1080” substitute <quotedText>“ £0.1099 ”</quotedText>.</mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-9"><num>(9)</num><content><mod>In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.1037” substitute <quotedText>“ £0.1055 ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-10"><num>(10)</num><content><mod>In section 14A(2) (rebate on certain biodiesel), for “£0.1080” substitute <quotedText>“ £0.1099 ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-11"><num>(11)</num><intro>The following are revoked—</intro><level class="para1" eId="section-12-11-a"><num>(a)</num><content>the Hydrocarbon Oil Duties (Hydrogenation of Biomass) (Reliefs) Regulations 2006 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2006/3426),</content></level><level class="para1" eId="section-12-11-b"><num>(b)</num><content>the Hydrocarbon Oil Duties (Sulphur-free Diesel) (Hydrogenation of Biomass) (Reliefs) (Amendment) Regulations 2007 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2007/2406), and</content></level><level class="para1" eId="section-12-11-c"><num>(c)</num><content>regulation 11 of the Hydrocarbon Oil, Biofuels and Other Fuel Substitutes (Determination of Composition of a Substance and Miscellaneous Amendments) Regulations 2008 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2008/753).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-12-12"><num>(12)</num><content>The amendments made by this section are treated as having come into force on 1 April 2010.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13"><num>13</num><heading>Fuel duties: further changes in rates and rebates</heading><subsection eId="section-13-1"><num>(1)</num><content><abbr class="acronym" title="Hydrocarbon Oil Duties Act">HODA</abbr> 1979 is amended as follows.</content></subsection><subsection eId="section-13-2"><num>(2)</num><intro>In section 6(1A) (main rates)—</intro><level class="para1" eId="section-13-2-a"><num>(a)</num><intro>in paragraph (a) (unleaded petrol)—</intro><level class="para2" eId="section-13-2-a-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.5719” substitute <quotedText>“ £0.5819 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-2-a-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.5819” substitute <quotedText>“ £0.5895 ”</quotedText>,</mod></content></level></level><level class="para1" eId="section-13-2-b"><num>(b)</num><intro>in paragraph (b) (light oil other than unleaded petrol or aviation gasoline)—</intro><level class="para2" eId="section-13-2-b-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.6691” substitute <quotedText>“ £0.6791 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-2-b-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.6791” substitute <quotedText>“ £0.6867 ”</quotedText>, and</mod></content></level></level><level class="para1" eId="section-13-2-c"><num>(c)</num><intro>in paragraph (c) (heavy oil)—</intro><level class="para2" eId="section-13-2-c-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.5719” substitute <quotedText>“ £0.5819 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-2-c-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.5819” substitute <quotedText>“ £0.5895 ”</quotedText>.</mod></content></level></level></subsection><subsection eId="section-13-3"><num>(3)</num><intro>In section 8(3) (road fuel gas)—</intro><level class="para1" eId="section-13-3-a"><num>(a)</num><intro>in paragraph (a) (natural road fuel gas)—</intro><level class="para2" eId="section-13-3-a-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.2360” substitute <quotedText>“ £0.2505 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-3-a-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.2505” substitute <quotedText>“ £0.2615 ”</quotedText>, and</mod></content></level></level><level class="para1" eId="section-13-3-b"><num>(b)</num><intro>in paragraph (b) (other road fuel gas)—</intro><level class="para2" eId="section-13-3-b-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.3053” substitute <quotedText>“ £0.3195 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-3-b-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.3195” substitute <quotedText>“ £0.3304 ”</quotedText>.</mod></content></level></level></subsection><subsection eId="section-13-4"><num>(4)</num><intro>In section 11(1) (rebate on heavy oil)—</intro><level class="para1" eId="section-13-4-a"><num>(a)</num><intro>in paragraph (a) (fuel oil)—</intro><level class="para2" eId="section-13-4-a-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.1055” substitute <quotedText>“ £0.1074 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-4-a-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.1074” substitute <quotedText>“ £0.1088 ”</quotedText>, and</mod></content></level></level><level class="para1" eId="section-13-4-b"><num>(b)</num><intro>in paragraph (b) (gas oil)—</intro><level class="para2" eId="section-13-4-b-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.1099” substitute <quotedText>“ £0.1118 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-4-b-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.1118” substitute <quotedText>“ £0.1133 ”</quotedText>.</mod></content></level></level></subsection><subsection eId="section-13-5"><num>(5)</num><intro>In section 14(1) (rebate on light oil for use as furnace fuel)</intro><level class="para1" eId="section-13-5-a"><num>(a)</num><content><mod>on 1 October 2010, for “£0.1055” substitute <quotedText>“ £0.1074 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-13-5-b"><num>(b)</num><content><mod>on 1 January 2011, for “£0.1074” substitute <quotedText>“ £0.1088 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-13-6"><num>(6)</num><intro>In section 14A(2) (rebate on certain biodiesel)—</intro><level class="para1" eId="section-13-6-a"><num>(a)</num><content><mod>on 1 October 2010, for “£0.1099” substitute <quotedText>“ £0.1118 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-13-6-b"><num>(b)</num><content><mod>on 1 January 2011, for “£0.1118” substitute <quotedText>“ £0.1133 ”</quotedText>.</mod></content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13-1"><num>(1)</num><content><abbr class="acronym" title="Hydrocarbon Oil Duties Act">HODA</abbr> 1979 is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13-2"><num>(2)</num><intro>In section 6(1A) (main rates)—</intro><level class="para1" eId="section-13-2-a"><num>(a)</num><intro>in paragraph (a) (unleaded petrol)—</intro><level class="para2" eId="section-13-2-a-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.5719” substitute <quotedText>“ £0.5819 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-2-a-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.5819” substitute <quotedText>“ £0.5895 ”</quotedText>,</mod></content></level></level><level class="para1" eId="section-13-2-b"><num>(b)</num><intro>in paragraph (b) (light oil other than unleaded petrol or aviation gasoline)—</intro><level class="para2" eId="section-13-2-b-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.6691” substitute <quotedText>“ £0.6791 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-2-b-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.6791” substitute <quotedText>“ £0.6867 ”</quotedText>, and</mod></content></level></level><level class="para1" eId="section-13-2-c"><num>(c)</num><intro>in paragraph (c) (heavy oil)—</intro><level class="para2" eId="section-13-2-c-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.5719” substitute <quotedText>“ £0.5819 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-2-c-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.5819” substitute <quotedText>“ £0.5895 ”</quotedText>.</mod></content></level></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-13-2-a"><num>(a)</num><intro>in paragraph (a) (unleaded petrol)—</intro><level class="para2" eId="section-13-2-a-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.5719” substitute <quotedText>“ £0.5819 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-2-a-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.5819” substitute <quotedText>“ £0.5895 ”</quotedText>,</mod></content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-13-2-b"><num>(b)</num><intro>in paragraph (b) (light oil other than unleaded petrol or aviation gasoline)—</intro><level class="para2" eId="section-13-2-b-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.6691” substitute <quotedText>“ £0.6791 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-2-b-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.6791” substitute <quotedText>“ £0.6867 ”</quotedText>, and</mod></content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-13-2-c"><num>(c)</num><intro>in paragraph (c) (heavy oil)—</intro><level class="para2" eId="section-13-2-c-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.5719” substitute <quotedText>“ £0.5819 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-2-c-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.5819” substitute <quotedText>“ £0.5895 ”</quotedText>.</mod></content></level></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13-3"><num>(3)</num><intro>In section 8(3) (road fuel gas)—</intro><level class="para1" eId="section-13-3-a"><num>(a)</num><intro>in paragraph (a) (natural road fuel gas)—</intro><level class="para2" eId="section-13-3-a-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.2360” substitute <quotedText>“ £0.2505 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-3-a-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.2505” substitute <quotedText>“ £0.2615 ”</quotedText>, and</mod></content></level></level><level class="para1" eId="section-13-3-b"><num>(b)</num><intro>in paragraph (b) (other road fuel gas)—</intro><level class="para2" eId="section-13-3-b-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.3053” substitute <quotedText>“ £0.3195 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-3-b-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.3195” substitute <quotedText>“ £0.3304 ”</quotedText>.</mod></content></level></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-13-3-a"><num>(a)</num><intro>in paragraph (a) (natural road fuel gas)—</intro><level class="para2" eId="section-13-3-a-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.2360” substitute <quotedText>“ £0.2505 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-3-a-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.2505” substitute <quotedText>“ £0.2615 ”</quotedText>, and</mod></content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-13-3-b"><num>(b)</num><intro>in paragraph (b) (other road fuel gas)—</intro><level class="para2" eId="section-13-3-b-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.3053” substitute <quotedText>“ £0.3195 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-3-b-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.3195” substitute <quotedText>“ £0.3304 ”</quotedText>.</mod></content></level></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13-4"><num>(4)</num><intro>In section 11(1) (rebate on heavy oil)—</intro><level class="para1" eId="section-13-4-a"><num>(a)</num><intro>in paragraph (a) (fuel oil)—</intro><level class="para2" eId="section-13-4-a-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.1055” substitute <quotedText>“ £0.1074 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-4-a-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.1074” substitute <quotedText>“ £0.1088 ”</quotedText>, and</mod></content></level></level><level class="para1" eId="section-13-4-b"><num>(b)</num><intro>in paragraph (b) (gas oil)—</intro><level class="para2" eId="section-13-4-b-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.1099” substitute <quotedText>“ £0.1118 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-4-b-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.1118” substitute <quotedText>“ £0.1133 ”</quotedText>.</mod></content></level></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-13-4-a"><num>(a)</num><intro>in paragraph (a) (fuel oil)—</intro><level class="para2" eId="section-13-4-a-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.1055” substitute <quotedText>“ £0.1074 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-4-a-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.1074” substitute <quotedText>“ £0.1088 ”</quotedText>, and</mod></content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-13-4-b"><num>(b)</num><intro>in paragraph (b) (gas oil)—</intro><level class="para2" eId="section-13-4-b-i"><num>(i)</num><content><mod>on 1 October 2010, for “£0.1099” substitute <quotedText>“ £0.1118 ”</quotedText>, and</mod></content></level><level class="para2" eId="section-13-4-b-ii"><num>(ii)</num><content><mod>on 1 January 2011, for “£0.1118” substitute <quotedText>“ £0.1133 ”</quotedText>.</mod></content></level></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13-5"><num>(5)</num><intro>In section 14(1) (rebate on light oil for use as furnace fuel)</intro><level class="para1" eId="section-13-5-a"><num>(a)</num><content><mod>on 1 October 2010, for “£0.1055” substitute <quotedText>“ £0.1074 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-13-5-b"><num>(b)</num><content><mod>on 1 January 2011, for “£0.1074” substitute <quotedText>“ £0.1088 ”</quotedText>.</mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-13-6"><num>(6)</num><intro>In section 14A(2) (rebate on certain biodiesel)—</intro><level class="para1" eId="section-13-6-a"><num>(a)</num><content><mod>on 1 October 2010, for “£0.1099” substitute <quotedText>“ £0.1118 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-13-6-b"><num>(b)</num><content><mod>on 1 January 2011, for “£0.1118” substitute <quotedText>“ £0.1133 ”</quotedText>.</mod></content></level></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-14"><num>14</num><heading>Rates of air passenger duty</heading><subsection eId="section-14-1"><num>(1)</num><intro>In section 30 of FA 1994 (air passenger duty: rates)—</intro><level class="para1" eId="section-14-1-a"><num>(a)</num><content><mod>in subsection (2) (journeys ending in <abbr class="acronym" title="United Kingdom">UK</abbr> or Part 1 territory), for “£11” substitute <quotedText>“ £12 ”</quotedText> and for “£22” substitute <quotedText>“ £24 ”</quotedText>,</mod></content></level><level class="para1" eId="section-14-1-b"><num>(b)</num><content><mod>in subsection (3) (journeys ending in Part 2 territory), for “£45” substitute <quotedText>“ £60 ”</quotedText> and for “£90” substitute <quotedText>“ £120 ”</quotedText>,</mod></content></level><level class="para1" eId="section-14-1-c"><num>(c)</num><content><mod>in subsection (4) (journeys ending in Part 3 territory), for “£50” substitute <quotedText>“ £75 ”</quotedText> and for “£100” substitute <quotedText>“ £150 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-14-1-d"><num>(d)</num><content><mod>in subsection (4A) (other journeys), for “£55” substitute <quotedText>“ £85 ”</quotedText> and for “£110” substitute <quotedText>“ £170 ”</quotedText>.</mod></content></level></subsection><subsection eId="section-14-2"><num>(2)</num><content>The amendments made by subsection (1) have effect in relation to the carriage of passengers beginning on or after 1 November 2010.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-14-1"><num>(1)</num><intro>In section 30 of FA 1994 (air passenger duty: rates)—</intro><level class="para1" eId="section-14-1-a"><num>(a)</num><content><mod>in subsection (2) (journeys ending in <abbr class="acronym" title="United Kingdom">UK</abbr> or Part 1 territory), for “£11” substitute <quotedText>“ £12 ”</quotedText> and for “£22” substitute <quotedText>“ £24 ”</quotedText>,</mod></content></level><level class="para1" eId="section-14-1-b"><num>(b)</num><content><mod>in subsection (3) (journeys ending in Part 2 territory), for “£45” substitute <quotedText>“ £60 ”</quotedText> and for “£90” substitute <quotedText>“ £120 ”</quotedText>,</mod></content></level><level class="para1" eId="section-14-1-c"><num>(c)</num><content><mod>in subsection (4) (journeys ending in Part 3 territory), for “£50” substitute <quotedText>“ £75 ”</quotedText> and for “£100” substitute <quotedText>“ £150 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-14-1-d"><num>(d)</num><content><mod>in subsection (4A) (other journeys), for “£55” substitute <quotedText>“ £85 ”</quotedText> and for “£110” substitute <quotedText>“ £170 ”</quotedText>.</mod></content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-1-a"><num>(a)</num><content><mod>in subsection (2) (journeys ending in <abbr class="acronym" title="United Kingdom">UK</abbr> or Part 1 territory), for “£11” substitute <quotedText>“ £12 ”</quotedText> and for “£22” substitute <quotedText>“ £24 ”</quotedText>,</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-1-b"><num>(b)</num><content><mod>in subsection (3) (journeys ending in Part 2 territory), for “£45” substitute <quotedText>“ £60 ”</quotedText> and for “£90” substitute <quotedText>“ £120 ”</quotedText>,</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-1-c"><num>(c)</num><content><mod>in subsection (4) (journeys ending in Part 3 territory), for “£50” substitute <quotedText>“ £75 ”</quotedText> and for “£100” substitute <quotedText>“ £150 ”</quotedText>, and</mod></content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-14-1-d"><num>(d)</num><content><mod>in subsection (4A) (other journeys), for “£55” substitute <quotedText>“ £85 ”</quotedText> and for “£110” substitute <quotedText>“ £170 ”</quotedText>.</mod></content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-14-2"><num>(2)</num><content>The amendments made by subsection (1) have effect in relation to the carriage of passengers beginning on or after 1 November 2010.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-15"><num>15</num><heading>Standard rate of landfill tax</heading><subsection eId="section-15-1"><num>(1)</num><content><mod>In section 42(1) and (2) of FA 1996 (standard amount of landfill tax), for “£48” substitute <quotedText>“ £56 ”</quotedText>.</mod></content></subsection><subsection eId="section-15-2"><num>(2)</num><content>The amendments made by subsection (1) have effect in relation to disposals made (or treated as made) on or after 1 April 2011.</content></subsection></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-16"><num>16</num><heading>Rate of aggregates levy</heading><content><noteRef href="#c2125283" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-17-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to supplies treated as taking place on or after 1 April 2011.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-18"><num>18</num><heading>Climate change levy: reduced-rate supplies</heading><subsection eId="section-18-1"><num>(1)</num><content><mod>In Schedule 6 to FA 2000 (climate change levy), in paragraph 42(1)(c) (reduced-rate supplies), for “20 per cent.” substitute <quotedText>“ 35 per cent. ”</quotedText>.</mod></content></subsection><subsection eId="section-18-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to supplies treated as taking place on or after 1 April 2011.</content></subsection></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-19"><num><noteRef href="#key-79727740ea46b102ea82e85b683ff4f5" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>19</num><heading>Rate of bingo duty</heading><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-20-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to accounting periods beginning on or after 1 April 2010.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-21"><num>21</num><heading>Amusement machine licence duty</heading><subsection eId="section-21-1"><num>(1)</num><content><mod>In section 23(2) of BGDA 1981 (amount of duty payable on amusement machine licence), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:19%"/><default:col span="1" style="width:13%"/><default:col span="1" style="width:13%"/><default:col span="1" style="width:13%"/><default:col span="1" style="width:13%"/><default:col span="1" style="width:13%"/><default:col span="1" style="width:13%"/></default:colgroup><default:tbody><default:tr><default:th>Months for which licence granted</default:th><default:th>Category A £</default:th><default:th>Category B1 £</default:th><default:th>Category B2 £</default:th><default:th>Category B3 £</default:th><default:th>Category B4 £</default:th><default:th>Category C £</default:th></default:tr><default:tr><default:td>1</default:td><default:td>520</default:td><default:td>265</default:td><default:td>210</default:td><default:td>210</default:td><default:td>190</default:td><default:td>85</default:td></default:tr><default:tr><default:td>2</default:td><default:td>1015</default:td><default:td>505</default:td><default:td>395</default:td><default:td>395</default:td><default:td>360</default:td><default:td>150</default:td></default:tr><default:tr><default:td>3</default:td><default:td>1520</default:td><default:td>760</default:td><default:td>605</default:td><default:td>605</default:td><default:td>545</default:td><default:td>225</default:td></default:tr><default:tr><default:td>4</default:td><default:td>2025</default:td><default:td>1015</default:td><default:td>800</default:td><default:td>800</default:td><default:td>725</default:td><default:td>300</default:td></default:tr><default:tr><default:td>5</default:td><default:td>2540</default:td><default:td>1270</default:td><default:td>1000</default:td><default:td>1000</default:td><default:td>900</default:td><default:td>375</default:td></default:tr><default:tr><default:td>6</default:td><default:td>3050</default:td><default:td>1520</default:td><default:td>1195</default:td><default:td>1195</default:td><default:td>1085</default:td><default:td>450</default:td></default:tr><default:tr><default:td>7</default:td><default:td>3555</default:td><default:td>1775</default:td><default:td>1395</default:td><default:td>1395</default:td><default:td>1265</default:td><default:td>520</default:td></default:tr><default:tr><default:td>8</default:td><default:td>4060</default:td><default:td>2025</default:td><default:td>1600</default:td><default:td>1600</default:td><default:td>1450</default:td><default:td>600</default:td></default:tr><default:tr><default:td>9</default:td><default:td>4570</default:td><default:td>2285</default:td><default:td>1800</default:td><default:td>1800</default:td><default:td>1630</default:td><default:td>675</default:td></default:tr><default:tr><default:td>10</default:td><default:td>5075</default:td><default:td>2540</default:td><default:td>1995</default:td><default:td>1995</default:td><default:td>1810</default:td><default:td>750</default:td></default:tr><default:tr><default:td>11</default:td><default:td>5580</default:td><default:td>2795</default:td><default:td>2195</default:td><default:td>2195</default:td><default:td>1990</default:td><default:td>820</default:td></default:tr><default:tr><default:td>12</default:td><default:td>5805</default:td><default:td>2905</default:td><default:td>2285</default:td><default:td>2285</default:td><default:td>2075</default:td><default:td>860</default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-21-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to cases where the application for the amusement machine licence is received by the Commissioners for Her Majesty's Revenue and Customs after 4 pm on 26 March 2010.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" eId="section-21-1"><num>(1)</num><content><mod>In section 23(2) of BGDA 1981 (amount of duty payable on amusement machine licence), for the table substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><heading>TABLE</heading><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:19%"/><default:col span="1" style="width:13%"/><default:col span="1" style="width:13%"/><default:col span="1" style="width:13%"/><default:col span="1" style="width:13%"/><default:col span="1" style="width:13%"/><default:col span="1" style="width:13%"/></default:colgroup><default:tbody><default:tr><default:th>Months for which licence granted</default:th><default:th>Category A £</default:th><default:th>Category B1 £</default:th><default:th>Category B2 £</default:th><default:th>Category B3 £</default:th><default:th>Category B4 £</default:th><default:th>Category C £</default:th></default:tr><default:tr><default:td>1</default:td><default:td>520</default:td><default:td>265</default:td><default:td>210</default:td><default:td>210</default:td><default:td>190</default:td><default:td>85</default:td></default:tr><default:tr><default:td>2</default:td><default:td>1015</default:td><default:td>505</default:td><default:td>395</default:td><default:td>395</default:td><default:td>360</default:td><default:td>150</default:td></default:tr><default:tr><default:td>3</default:td><default:td>1520</default:td><default:td>760</default:td><default:td>605</default:td><default:td>605</default:td><default:td>545</default:td><default:td>225</default:td></default:tr><default:tr><default:td>4</default:td><default:td>2025</default:td><default:td>1015</default:td><default:td>800</default:td><default:td>800</default:td><default:td>725</default:td><default:td>300</default:td></default:tr><default:tr><default:td>5</default:td><default:td>2540</default:td><default:td>1270</default:td><default:td>1000</default:td><default:td>1000</default:td><default:td>900</default:td><default:td>375</default:td></default:tr><default:tr><default:td>6</default:td><default:td>3050</default:td><default:td>1520</default:td><default:td>1195</default:td><default:td>1195</default:td><default:td>1085</default:td><default:td>450</default:td></default:tr><default:tr><default:td>7</default:td><default:td>3555</default:td><default:td>1775</default:td><default:td>1395</default:td><default:td>1395</default:td><default:td>1265</default:td><default:td>520</default:td></default:tr><default:tr><default:td>8</default:td><default:td>4060</default:td><default:td>2025</default:td><default:td>1600</default:td><default:td>1600</default:td><default:td>1450</default:td><default:td>600</default:td></default:tr><default:tr><default:td>9</default:td><default:td>4570</default:td><default:td>2285</default:td><default:td>1800</default:td><default:td>1800</default:td><default:td>1630</default:td><default:td>675</default:td></default:tr><default:tr><default:td>10</default:td><default:td>5075</default:td><default:td>2540</default:td><default:td>1995</default:td><default:td>1995</default:td><default:td>1810</default:td><default:td>750</default:td></default:tr><default:tr><default:td>11</default:td><default:td>5580</default:td><default:td>2795</default:td><default:td>2195</default:td><default:td>2195</default:td><default:td>1990</default:td><default:td>820</default:td></default:tr><default:tr><default:td>12</default:td><default:td>5805</default:td><default:td>2905</default:td><default:td>2285</default:td><default:td>2285</default:td><default:td>2075</default:td><default:td>860</default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-21-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to cases where the application for the amusement machine licence is received by the Commissioners for Her Majesty's Revenue and Customs after 4 pm on 26 March 2010.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-1-crossheading-new-taxes"><heading>New taxes</heading><section eId="section-22"><num>22</num><heading>Bank payroll tax</heading><content>Schedule 1 contains provision for and in connection with bank payroll tax.</content></section><section eId="section-23"><num><noteRef href="#c2125357" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>23</num><heading>Pensions: high income excess relief charge</heading><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></section></hcontainer>

<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="part-2"><num>Part 2</num><heading>Anti-avoidance and revenue protection</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-losses-capital-allowances-etc"><heading>Losses, capital allowances <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><section eId="section-24"><num>24</num><heading>Sideways relief <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><content>Schedule 3 contains provision about sideways relief <abbr title="et cetera" xml:lang="la">etc.</abbr></content></section><section eId="section-25"><num>25</num><heading>Property loss relief</heading><subsection eId="section-25-1"><num>(1)</num><content>Chapter 4 of Part 4 of ITA 2007 (losses from property businesses) is amended as follows.</content></subsection><subsection eId="section-25-2"><num>(2)</num><content><mod>In section 117 (overview of Chapter), after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content>This Chapter also contains provision restricting relief under this Chapter (see section 127A).</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-25-3"><num>(3)</num><content><mod>In section 120 (deduction of property losses from general income), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7)</num><content>See also section 127A (no relief for tax-generated losses attributable to annual investment allowance).</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-25-4"><num>(4)</num><content><mod>After section 127 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Restrictions on relief</heading><section><num>127A</num><heading>No relief for tax-generated losses attributable to annual investment allowance</heading><subsection><num>(1)</num><intro>This section applies if—</intro><level class="para1"><num>(a)</num><content>in a tax year a person makes a loss in a <abbr class="acronym" title="United Kingdom">UK</abbr> property business or overseas property business (whether carried on alone or in partnership),</content></level><level class="para1"><num>(b)</num><content>the loss has a capital allowances connection (see section 123(2)), and</content></level><level class="para1"><num>(c)</num><content>the loss arises directly or indirectly in consequence of, or otherwise in connection with, relevant tax avoidance arrangements.</content></level></subsection><subsection><num>(2)</num><content>No property loss relief against general income may be given to the person for so much of the applicable amount of the loss as is attributable to an annual investment allowance.</content></subsection><subsection><num>(3)</num><content>For the purposes of subsection (2), the applicable amount of the loss is to be treated as attributable to capital allowances before anything else and to an annual investment allowance before any other capital allowance.</content></subsection><subsection><num>(4)</num><intro>In subsection (1) “<term refersTo="#term-relevant-tax-avoidance-arrangements">relevant tax avoidance arrangements</term>” means arrangements—</intro><level class="para1"><num>(a)</num><content>to which the person is a party, and</content></level><level class="para1"><num>(b)</num><content>the main purpose, or one of the main purposes, of which is being in a position to make use of an annual investment allowance in the obtaining of a reduction in tax liability by means of property loss relief against general income.</content></level></subsection><subsection><num>(5)</num><content>In subsection (4) “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</content></subsection><subsection><num>(6)</num><content>In this section “<term refersTo="#term-the-applicable-amount-of-the-loss">the applicable amount of the loss</term>” has the meaning given by section 122.</content></subsection></section></hcontainer></quotedStructure></mod></content></subsection><subsection eId="section-25-5"><num>(5)</num><intro>The amendments made by this section have effect in relation to a loss if it arises directly or indirectly in consequence of, or otherwise in connection with—</intro><level class="para1" eId="section-25-5-a"><num>(a)</num><content>arrangements which are entered into on or after 24 March 2010, or</content></level><level class="para1" eId="section-25-5-b"><num>(b)</num><content>any transaction forming part of arrangements which is entered into on or after that date.</content></level></subsection><subsection eId="section-25-6"><num>(6)</num><content>But those amendments do not have effect where the arrangements are, or any such transaction is, entered into pursuant to an unconditional obligation in a contract made before that date.</content></subsection><subsection eId="section-25-7"><num>(7)</num><content>“<term refersTo="#term-an-unconditional-obligation" eId="term-an-unconditional-obligation">An unconditional obligation</term>” means an obligation which may not be varied or extinguished by the exercise of a right (whether or not under the contract).</content></subsection></section><section eId="section-26"><num>26</num><heading>Capital allowance buying</heading><content>Schedule 4 contains provisions about capital allowance buying.</content></section><section eId="section-27"><num>27</num><heading>Leased assets</heading><content>Schedule 5 contains provisions about leased assets.</content></section><section eId="section-28"><num>28</num><heading>Cushion gas</heading><subsection eId="section-28-1"><num>(1)</num><content>Part 2 of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (plant and machinery allowances) is amended as follows.</content></subsection><subsection eId="section-28-2"><num>(2)</num><content>Section 70J (meaning of “funding lease”) is amended as follows.</content></subsection><subsection eId="section-28-3"><num>(3)</num><content><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content>A plant or machinery lease is also a “funding lease” if the plant or machinery is cushion gas.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-28-4"><num>(4)</num><content><mod>In subsection (2), for “Subsection (1) is” substitute <quotedText>“ Subsections (1) and (1A) are ”</quotedText>.</mod></content></subsection><subsection eId="section-28-5"><num>(5)</num><content><mod>After subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7)</num><content>In this section “<term refersTo="#term-cushion-gas">cushion gas</term>” means gas that functions or is intended to function as plant in a particular gas storage facility.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-28-6"><num>(6)</num><intro>In section 104A(1) (special rate expenditure)—</intro><level class="para1" eId="section-28-6-a"><num>(a)</num><content>omit the “and” at the end of paragraph (d), and</content></level><level class="para1" eId="section-28-6-b"><num>(b)</num><content><mod>after paragraph (e) insert<quotedText startQuote="“">and </quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(f)</num><content>expenditure incurred on or after 1 April 2010 on the provision of cushion gas (within the meaning given by section 70J(7)).</content></level></quotedStructure></mod></content></level></subsection><subsection eId="section-28-7"><num>(7)</num><content><mod>After section 104F insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>104G</num><heading>Disposal events in respect of cushion gas</heading><subsection><num>(1)</num><content>This section applies if expenditure incurred by a person on the provision of cushion gas used in a particular gas storage facility includes both new expenditure and old expenditure.</content></subsection><subsection><num>(2)</num><content>Any disposal event which concerns any of that cushion gas is to be treated for the purposes of this Part as relating to cushion gas which is the subject of the new expenditure before cushion gas which is the subject of the old expenditure.</content></subsection><subsection><num>(3)</num><intro>The result of subsection (2) (including any further application of that subsection) is that a disposal event may be treated as relating—</intro><level class="para1"><num>(a)</num><content>only to cushion gas which is the subject of the new expenditure,</content></level><level class="para1"><num>(b)</num><intro>both to—</intro><level class="para2"><num>(i)</num><content>cushion gas which is the subject of the new expenditure, and</content></level><level class="para2"><num>(ii)</num><content>cushion gas which is the subject of the old expenditure, or</content></level></level><level class="para1"><num>(c)</num><content>only to cushion gas which is the subject of the old expenditure.</content></level></subsection><subsection><num>(4)</num><intro>If a disposal event is treated, as a result of subsection (2), as relating both to—</intro><level class="para1"><num>(a)</num><content>cushion gas which is the subject of the new expenditure, and</content></level><level class="para1"><num>(b)</num><content>cushion gas which is the subject of the old expenditure,</content></level><wrapUp>it is to be treated for the purposes of this Part as two separate disposal events, the first relating to cushion gas within paragraph (a) and the second relating to cushion gas within paragraph (b).</wrapUp></subsection><subsection><num>(5)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-cushion-gas">cushion gas</term>” has the meaning given by section 70J(7),</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-new-expenditure">new expenditure</term>” means expenditure incurred on or after 1 April 2010, and</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-old-expenditure">old expenditure</term>” means expenditure incurred before that date.</content></hcontainer></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-28-8"><num>(8)</num><content>The amendments made by subsections (2) to (5) have effect in relation to leases whose inception (within the meaning given by section 70YI(1) of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001) is on or after 1 April 2010.</content></subsection><subsection eId="section-28-9"><num>(9)</num><content>The amendments made by subsection (6) have effect in relation to expenditure incurred on or after 1 April 2010.</content></subsection><subsection eId="section-28-10"><num>(10)</num><content>The amendment made by subsection (7) has effect in relation to disposal events on or after 1 April 2010.</content></subsection></section><section eId="section-29"><num>29</num><heading>Sale of lessors: consortium relationships</heading><subsection eId="section-29-1"><num>(1)</num><content>Chapters 3 and 4 of Part 9 of CTA 2010 (sales of lessors) are amended as follows.</content></subsection><subsection eId="section-29-2"><num>(2)</num><content>In section 393(7) (qualifying 75% subsidiaries), omit “or 90%”.</content></subsection><subsection eId="section-29-3"><num>(3)</num><intro>In section 394 (consortium relationships)—</intro><level class="para1" eId="section-29-3-a"><num>(a)</num><content><mod>in subsections (1)(b), (4) and (5)(b), for “90%” substitute <quotedText>“ 75% ”</quotedText>, and</mod></content></level><level class="para1" eId="section-29-3-b"><num>(b)</num><content>in subsection (9)(b), omit “or 90%”.</content></level></subsection><subsection eId="section-29-4"><num>(4)</num><intro>In section 398 (qualifying 75% or 90% subsidiary), omit—</intro><level class="para1" eId="section-29-4-a"><num>(a)</num><content>subsections (5) and (6), and</content></level><level class="para1" eId="section-29-4-b"><num>(b)</num><content>in subsection (7)(b), “and “90% subsidiary””,</content></level><wrapUp>and, in the heading, omit “or 90%”.</wrapUp></subsection><subsection eId="section-29-5"><num>(5)</num><content><mod>In section 405(2)(b) and (6) (adjustments to basic amount), for “90%” substitute <quotedText>“ 75% ”</quotedText>.</mod></content></subsection><subsection eId="section-29-6"><num>(6)</num><content><mod>In sections 408(5)(b) and 430(4)(b) (associated company), for “90%” substitute <quotedText>“ 75% ”</quotedText>.</mod></content></subsection><subsection eId="section-29-7"><num>(7)</num><content>In Schedule 4 to CTA 2010, omit the entry relating to “qualifying 90% subsidiary (in Chapters 3 to 6 of Part 9)”.</content></subsection><subsection eId="section-29-8"><num>(8)</num><content>The amendments made by this section have effect where the relevant day is on or after 9 December 2009.</content></subsection><subsection eId="section-29-9"><num>(9)</num><content>Corresponding amendments, having effect where the relevant day is on or after that date, are to be treated as having been made in Schedule 10 to FA 2006.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-charities-etc"><heading>Charities <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><section eId="section-30"><num>30</num><heading>Charities and community amateur sports clubs: definitions</heading><content>Schedule 6 contains provision about the meaning of “charity” (and related expressions) and “community amateur sports club”.</content></section><section eId="section-31"><num>31</num><heading>Gifts of shares <abbr title="Et cetera" xml:lang="la">etc</abbr> to charities</heading><content>Schedule 7 contains provision about schemes to obtain or increase relief in respect of certain gifts to charities.</content></section><section eId="section-32"><num>32</num><heading>Miscellaneous amendments</heading><content>Schedule 8 contains miscellaneous amendments of provisions relating to charities.</content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-remittance-basis"><heading>Remittance basis</heading><section eId="section-33"><num>33</num><heading>“Relevant person”</heading><subsection eId="section-33-1"><num>(1)</num><content>Section 809M of ITA 2007 (remittance basis: meaning of “relevant person”) is amended as follows.</content></subsection><subsection eId="section-33-2"><num>(2)</num><content><mod>In subsection (2)(f), insert at the end <quotedText>“ or a company which is a 51% subsidiary of such a company, ”</quotedText>.</mod></content></subsection><subsection eId="section-33-3"><num>(3)</num><content><mod>In subsection (3)(ca), for “Act),” substitute <quotedText>“ Act) and, in relation to a company that would be a close company if it were resident in the United Kingdom, means a person who would be such a participator if it were a close company, ”</quotedText>.</mod></content></subsection><subsection eId="section-33-4"><num>(4)</num><content>The amendments made by this section are treated as having come into force on 6 April 2010.</content></subsection></section><section eId="section-34"><num>34</num><heading>Foreign currency bank accounts</heading><content>Schedule 9 contains provision about foreign currency bank accounts.</content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-other-international-matters"><heading>Other international matters</heading><section eId="section-35"><num>35</num><heading>Penalties: offshore income <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-35-1"><num>(1)</num><content>Schedule 10 contains provision about penalties in respect of offshore income <abbr title="et cetera" xml:lang="la">etc.</abbr></content></subsection><subsection eId="section-35-2"><num>(2)</num><content>Schedule 10 comes into force on such day as the Treasury may by order appoint.</content></subsection><subsection eId="section-35-3"><num>(3)</num><intro>An order under subsection (2)—</intro><level class="para1" eId="section-35-3-a"><num>(a)</num><content>may make different provision for different purposes, and</content></level><level class="para1" eId="section-35-3-b"><num>(b)</num><content>may include transitional provisions and savings.</content></level></subsection><subsection eId="section-35-4"><num>(4)</num><content>The Treasury may by order make any incidental, supplemental, consequential, transitional or transitory provision or saving that appears appropriate in consequence of, or otherwise in connection with, Schedule 10.</content></subsection><subsection eId="section-35-5"><num>(5)</num><intro>An order under subsection (4) may—</intro><level class="para1" eId="section-35-5-a"><num>(a)</num><content>make different provision for different purposes, and</content></level><level class="para1" eId="section-35-5-b"><num>(b)</num><content>make provision amending, repealing or revoking an enactment or instrument (whenever passed or made).</content></level></subsection><subsection eId="section-35-6"><num>(6)</num><content>An order under this section is to be made by statutory instrument.</content></subsection><subsection eId="section-35-7"><num>(7)</num><content>A statutory instrument containing an order under subsection (4) is subject to annulment in pursuance of a resolution of the House of Commons.</content></subsection></section><section eId="section-36"><num>36</num><heading>Reliefs and reductions for foreign tax</heading><content>Schedule 11 contains provision about activities designed to increase the amount allowed by way of credit or reduction in respect of foreign tax.</content></section><section eId="section-37"><num>37</num><heading>Asset transfer to non-resident company: recovery of postponed charge</heading><subsection eId="section-37-1"><num>(1)</num><intro>In section 140 of <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 (postponement of charge on transfer of assets to non-resident company)—</intro><level class="para1" eId="section-37-1-a"><num>(a)</num><content><mod>in subsection (4), for “the consideration received by it on the disposal shall be treated as increased by” substitute <quotedText>“ there shall be deemed to accrue to the transferor company as a chargeable gain on that occasion ”</quotedText>, and</mod></content></level><level class="para1" eId="section-37-1-b"><num>(b)</num><content><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content>A chargeable gain which is deemed to accrue under subsection (4) is in addition to any gain or loss that actually accrues to the transferor company on the disposal of the securities.</content></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-37-2"><num>(2)</num><content>In Schedule 7AC to that Act (exemption for disposals by companies with substantial shareholding), omit paragraph 35 (recovery of charge postponed on transfer of asset to non-resident company).</content></subsection><subsection eId="section-37-3"><num>(3)</num><content>The amendments made by this section have effect in relation to disposals of securities on or after 6 January 2010.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-securities-etc"><heading>Securities <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><section eId="section-38"><num>38</num><heading>Transactions in securities</heading><content>Schedule 12 contains provision about transactions in securities.</content></section><section eId="section-39"><num>39</num><heading>Approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> schemes: eligible shares</heading><subsection eId="section-39-1"><num>(1)</num><content>In Part 4 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (shares to which approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> schemes can apply), omit paragraph 17(1)(c) (shares in a company which is under the control of a listed company).</content></subsection><subsection eId="section-39-2"><num>(2)</num><intro>Accordingly, in that Schedule—</intro><level class="para1" eId="section-39-2-a"><num>(a)</num><intro>in paragraph 17—</intro><level class="para2" eId="section-39-2-a-i"><num>(i)</num><content><mod>after sub-paragraph (1)(a) insert <quotedText>“ or ”</quotedText>,</mod></content></level><level class="para2" eId="section-39-2-a-ii"><num>(ii)</num><content>omit “or” at the end of sub-paragraph (1)(b), and</content></level><level class="para2" eId="section-39-2-a-iii"><num>(iii)</num><content>omit sub-paragraph (2), and</content></level></level><level class="para1" eId="section-39-2-b"><num>(b)</num><content>omit paragraph 20(3)(c) (and the “or” before it).</content></level></subsection><subsection eId="section-39-3"><num>(3)</num><intro>The amendments made by this section—</intro><level class="para1" eId="section-39-3-a"><num>(a)</num><content>come into force on 24 September 2010, and</content></level><level class="para1" eId="section-39-3-b"><num>(b)</num><content>have effect in relation to options granted on or after that day.</content></level></subsection><subsection eId="section-39-4"><num>(4)</num><intro>If—</intro><level class="para1" eId="section-39-4-a"><num>(a)</num><content>during the period beginning with 24 March 2010 and ending with 23 September 2010 (“<term refersTo="#term-the-transitional-period" eId="term-the-transitional-period">the transitional period</term>”), a share option is granted to an individual in accordance with the provisions of an approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme, and</content></level><level class="para1" eId="section-39-4-b"><num>(b)</num><content>the shares which may be acquired by the exercise of the option are shares in a company which is under the control of a listed company, other than shares of a class listed on a recognised stock exchange,</content></level><wrapUp>the share option is to be treated for the purposes of the <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> code as not having been granted in accordance with the provisions of an approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme.</wrapUp></subsection><subsection eId="section-39-5"><num>(5)</num><content>An alteration made to a scheme during the transitional period in order to meet the amended paragraph 17 requirement is to be regarded as an alteration made in a key feature of the scheme for the purposes of paragraph 30 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (withdrawal of approval).</content></subsection><subsection eId="section-39-6"><num>(6)</num><content>Where the amended paragraph 17 requirement is not met in respect of an approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme at the end of the transitional period, the requirement is to be treated for the purposes of paragraph 30(2)(a) of that Schedule (disqualifying events) as ceasing to be met immediately after that time.</content></subsection><subsection eId="section-39-7"><num>(7)</num><content>Where, by virtue of subsection (6), approval is withdrawn from a scheme under Part 7 of that Schedule, that withdrawal has effect (from the time determined in accordance with paragraph 30(1) of that Schedule) in relation to options granted on or after 24 September 2010 only.</content></subsection><subsection eId="section-39-8"><num>(8)</num><content>In subsections (3) to (7) references to options having been granted include new share options granted under the terms of a provision included in a scheme under paragraph 26 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (exchange of shares on company reorganisation); but paragraph 27(5) of that Schedule (new share options treated as granted at same time as old share options) does not apply for the purposes of those subsections.</content></subsection><subsection eId="section-39-9"><num>(9)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-amended-paragraph-17-requirement" eId="term-the-amended-paragraph-17-requirement">the amended paragraph 17 requirement</term>” means the requirement of paragraph 17 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 as amended by this section;</content></hcontainer><hcontainer name="definition"><content>“approved” and “<abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme” have the meaning given by section 521 of that Act;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-control" eId="term-control">control</term>” and “<term refersTo="#term-listed-company" eId="term-listed-company">listed company</term>” have the same meaning as in paragraph 17 of Schedule 4 to that Act.</content></hcontainer></subsection></section><section eId="section-40"><num><noteRef href="#key-01ae7194ff30870eabcee8b7f920ab71" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>40</num><heading>Unauthorised unit trusts</heading><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></section><section eId="section-41"><num>41</num><heading>Index-linked gilt-edged securities</heading><content>Schedule 14 contains provision about index-linked gilt-edged securities.</content></section><section eId="section-42"><num>42</num><heading>Approved share incentive plans</heading><subsection eId="section-42-1"><num>(1)</num><content>Paragraph 84(1) of Schedule 2 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (approved share incentive plans) is amended as follows.</content></subsection><subsection eId="section-42-2"><num>(2)</num><content><mod>For paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><intro>an alteration being made—</intro><level class="para2"><num>(i)</num><content>in the share capital of a company any of whose shares are subject to the plan trust, or</content></level><level class="para2"><num>(ii)</num><content>in the rights attaching to any shares of such a company,</content></level><wrapUp>that materially affects the value of shares that are subject to the plan trust;</wrapUp></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-42-3"><num>(3)</num><content><mod>In paragraph (e), for “have been awarded to participants” substitute <quotedText>“ are subject to the plan trust ”</quotedText>.</mod></content></subsection><subsection eId="section-42-4"><num>(4)</num><content>Section 989 of CTA 2009 (deduction for contribution to plan trust) is amended as follows.</content></subsection><subsection eId="section-42-5"><num>(5)</num><content><mod>In subsection (1), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content>the payment is not made pursuant to tax avoidance arrangements,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-42-6"><num>(6)</num><content><mod>After subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro>For the purposes of this section the payment mentioned in subsection (1)(a) is made pursuant to tax avoidance arrangements if—</intro><level class="para1"><num>(a)</num><content>it is made pursuant to arrangements entered into by the paying company, and</content></level><level class="para1"><num>(b)</num><content>the main purpose, or one of the main purposes, of the paying company in entering into the arrangements was to obtain a deduction or an increased deduction.</content></level></subsection><subsection><num>(6B)</num><content>In subsection (6A) “<term refersTo="#term-arrangements">arrangements</term>” includes any arrangements, scheme or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-42-7"><num>(7)</num><content>The amendments made by subsections (1) to (3) have effect in relation to events taking place on or after 24 March 2010.</content></subsection><subsection eId="section-42-8"><num>(8)</num><content>The amendments made by subsections (4) to (6) have effect in relation to payments made on or after that day.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-loan-relationships-and-derivative-contracts"><heading>Loan relationships and derivative contracts</heading><section eId="section-43"><num>43</num><heading>Close companies: release of loans to participators <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-43-1"><num>(1)</num><content><mod>In CTA 2009, after section 321 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>321A</num><heading>Restriction on debits resulting from release of loans to participators <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><intro>This section applies if—</intro><level class="para1"><num>(a)</num><content>a loan gives rise to a charge to tax under section 455 of CTA 2010 (including a charge by virtue of section 459 or 460 of that Act), and</content></level><level class="para1"><num>(b)</num><content>the whole or a part of the debt in respect of the loan is released or written off.</content></level></subsection><subsection><num>(2)</num><content>No debit is to be brought into account for the purposes of this Part in respect of the release or writing off.</content></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-43-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to debts (or parts of debts) released or written off on or after 24 March 2010.</content></subsection></section><section eId="section-44"><num>44</num><heading>Connected companies: releases of debts</heading><content>Schedule 15 contains provision about releases of debts in cases involving connected companies.</content></section><section eId="section-45"><num>45</num><heading>Relationships treated as loan relationships <abbr title="Et cetera" xml:lang="la">etc</abbr>: repos</heading><subsection eId="section-45-1"><num>(1)</num><content><mod>In paragraph 4 of Schedule 13 to FA 2007 (ignoring effect on borrower of sale of securities), in sub-paragraph (4) omit the “and” at the end of paragraph (a) and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(aa)</num><content>an amount representative of income payable in respect of the securities is not to be ignored as a result of sub-paragraph (3)(b) if it is, in accordance with generally accepted accounting practice, so recognised or taken into account, and</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-45-2"><num>(2)</num><intro>In section 550 of CTA 2009 (ignoring effect on borrower of sale of securities)—</intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><mod>in subsection (4), for “and (6)” substitute <quotedText>“ to (6) ”</quotedText>, and</mod></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><mod>after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro>For the purposes of the charge to corporation tax, an amount representative of income payable in respect of the securities is not to be ignored as a result of subsection (3)(b) if—</intro><level class="para1"><num>(a)</num><content>it is, in accordance with generally accepted accounting practice, recognised in determining the borrower's profit or loss for that or any other period, or</content></level><level class="para1"><num>(b)</num><content>it is taken into account in calculating the amounts which are so recognised.</content></level></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-45-3"><num>(3)</num><content>The amendments made by this section are treated as always having had effect.</content></subsection></section><section eId="section-46"><num>46</num><heading>Risk transfer schemes</heading><content>Schedule 16 contains provision about risk transfer schemes.</content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-insurance-companies"><heading>Insurance companies</heading><section eId="section-47"><num><noteRef href="#key-032aee3decfb220b957de43ce16aed7c" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>47</num><heading>Apportionment of asset value increases</heading><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-pensions"><heading>Pensions</heading><section eId="section-48"><num>48</num><heading>Extension of special annual allowance charge</heading><subsection eId="section-48-1"><num>(1)</num><content>Schedule 35 to FA 2009 (special annual allowance charge) is amended as follows.</content></subsection><subsection eId="section-48-2"><num>(2)</num><intro>In paragraph 1(2) (high-income individual)—</intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content><mod>in the first sentence, for “£150,000” substitute <quotedText>“ £130,000 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-48-2-b"><num>(b)</num><content><mod>insert at the end—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">Paragraph 16A makes special provision about cases in which the individual's relevant income for the tax year 2009-10 is less than £150,000.</quotedStructure></mod></content></level></subsection><subsection eId="section-48-3"><num>(3)</num><intro>In paragraph 2 (calculation of relevant income)—</intro><level class="para1" eId="section-48-3-a"><num>(a)</num><content>in the last sentence of sub-paragraph (1),</content></level><level class="para1" eId="section-48-3-b"><num>(b)</num><content>in sub-paragraph (2) (in each place), and</content></level><level class="para1" eId="section-48-3-c"><num>(c)</num><content>in sub-paragraph (3) (in both places),</content></level><wrapUp><mod>for “£150,000” substitute <quotedText>“ £130,000 ”</quotedText>.</mod></wrapUp></subsection><subsection eId="section-48-4"><num>(4)</num><content><mod>After sub-paragraph (5) of that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(5A)</num><intro>If—</intro><level class="para1"><num>(a)</num><content>the individual's relevant income for the tax year (whether that is the tax year 2009-10 or a later tax year) would (apart from this sub-paragraph) be less than £130,000 if the reference in sub-paragraph (5) to a scheme made on or after 22 April 2009 were to a scheme made on or after 9 December 2009, and</content></level><level class="para1"><num>(b)</num><content>the individual's relevant income for the tax year 2009-10 is less than £150,000,</content></level><wrapUp>the individual's relevant income for the tax year is to be assumed to be less than £130,000.</wrapUp></subsection></quotedStructure></mod></content></subsection><subsection eId="section-48-5"><num>(5)</num><content><mod>In paragraph 11(3)(b), after “22 April” insert <quotedText>“ 2009 ”</quotedText>.</mod></content></subsection><subsection eId="section-48-6"><num>(6)</num><content><mod>After paragraph 16 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><section><num>16A</num><heading>Individuals with relevant income below £150,000 in 2009-10</heading><hcontainer name="wrapper2"><subsection><num>(1)</num><content>This paragraph has effect if the individual's relevant income for the tax year 2009-10 is less than £150,000.</content></subsection><subsection><num>(2)</num><content>References in this Schedule to a pre-22 April 2009 pension input amount are to a pre-9 December 2009 pension input amount.</content></subsection><subsection><num>(3)</num><content>References in this Schedule to noon on 22 April 2009 are to 9 December 2009.</content></subsection><subsection><num>(4)</num><content>Other references in this Schedule to 22 April 2009 (except in paragraph 2) are to 9 December 2009.</content></subsection><subsection><num>(5)</num><content>The reference in paragraph 16(2) to 21 April 2009 is to 8 December 2009.</content></subsection><subsection><num>(6)</num><content>If the amount arrived at in the case of the individual under sub-paragraph (1) of paragraph 2 for the tax year 2009-10 is less than £150,000, take the steps in that sub-paragraph in relation to the tax year 2007-08 and the tax year 2008-09.</content></subsection></hcontainer><hcontainer name="wrapper2"><intro>If the result is £150,000 or more for either or both of those earlier tax years the individual's relevant income for the tax year 2009-10 is to be assumed for the purposes of sub-paragraph (1) to be £150,000.</intro><subsection><num>(7)</num><content>If there is a scheme the main purpose, or one of the main purposes, of which is to secure that the individual's relevant income for the tax year 2009-10 is less than £150,000, it is to be assumed for the purposes of sub-paragraph (1) to be £150,000.</content></subsection></hcontainer></section></quotedStructure></mod></content></subsection><subsection eId="section-48-7"><num>(7)</num><content>The amendments made by this section have effect for the tax year 2009-10 and subsequent tax years (but see paragraph 21(2) of Schedule 35 to FA 2009).</content></subsection></section><section eId="section-49"><num>49</num><heading>Information</heading><content><mod>In section 251(5) of FA 2004 (persons who can be required to provide information to scheme administrators <abbr title="Et cetera" xml:lang="la">etc</abbr>), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content>employers of members of a registered pension scheme,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-value-added-tax-and-insurance-premium-tax"><heading>Value added tax and insurance premium tax</heading><section eId="section-50"><num>50</num><heading>Extension of reverse charge provisions to supplies of services</heading><subsection eId="section-50-1"><num>(1)</num><content><mod>In section 55A of <abbr class="acronym" title="Value Added Tax Act">VATA</abbr> 1994 (customers to account for tax on supplies of goods of a kind used in missing trader intra-community fraud), after “goods” (in each place, including the heading) insert <quotedText>“ or services ”</quotedText>.</mod></content></subsection><subsection eId="section-50-2"><num>(2)</num><content><mod>In paragraph 2(3B) of Schedule 11 to that Act (power to require notifications relating to supplies to which section 55A(6) applies), after “goods” insert <quotedText>“ or services ”</quotedText>.</mod></content></subsection></section><section eId="section-51"><num>51</num><heading>Insurance premium tax: separate contracts</heading><subsection eId="section-51-1"><num>(1)</num><content>Part 3 of FA 1994 (insurance premium tax) is amended as follows.</content></subsection><subsection eId="section-51-2"><num>(2)</num><content>Section 72 (meaning of “premium”) is amended as follows.</content></subsection><subsection eId="section-51-3"><num>(3)</num><content><mod>After subsection (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1AA)</num><content>A contract (“the relevant contract”) is not to be regarded as a separate contract for the purposes of subsection (1A) above if conditions A to D are met.</content></subsection><subsection><num>(1AB)</num><content>Condition A is that the insured is an individual (“I”) and enters into the taxable insurance contract in a personal capacity.</content></subsection><subsection><num>(1AC)</num><intro>Condition B is that I—</intro><level class="para1"><num>(a)</num><content>is required to enter into the relevant contract by, or as a condition of entering into, the taxable insurance contract, or</content></level><level class="para1"><num>(b)</num><content>would be unlikely to enter into the relevant contract without also entering into the taxable insurance contract.</content></level></subsection><subsection><num>(1AD)</num><intro>Condition C is that—</intro><level class="para1"><num>(a)</num><content>the amount charged to I under the relevant contract in respect of any particular services is not open to negotiation by I, or</content></level><level class="para1"><num>(b)</num><content>the other terms on which particular services are to be provided to I under the relevant contract are not open to such negotiation.</content></level></subsection><subsection><num>(1AE)</num><content>Condition D is that the amount charged to I under the taxable insurance contract is arrived at without a comprehensive assessment having been undertaken of the individual circumstances of I which might affect the level of risk.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-51-4"><num>(4)</num><content><mod>After subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9A)</num><content>Provision may be made by order amending subsections (1AA) to (1AE) above.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-51-5"><num>(5)</num><content><mod>In section 74(4) and (6) (orders which need to be approved by House of Commons), for “or 71” substitute <quotedText>“ , 71 or 72 ”</quotedText>.</mod></content></subsection><subsection eId="section-51-6"><num>(6)</num><content>The amendment made by subsection (3) has effect in relation to payments made on or after 24 March 2010.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-inheritance-tax"><heading>Inheritance tax</heading><section eId="section-52"><num>52</num><heading>Reversionary interests of purchaser or settlor <abbr title="Et cetera" xml:lang="la">etc</abbr> in relevant property</heading><subsection eId="section-52-1"><num>(1)</num><content><mod>In <abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984, after section 81 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>81A</num><heading>Reversionary interests in relevant property</heading><subsection><num>(1)</num><intro>Where a reversionary interest in relevant property to which—</intro><level class="para1"><num>(a)</num><content>a person who acquired it for a consideration in money or money's worth, or</content></level><level class="para1"><num>(b)</num><content>the settlor or the spouse or civil partner of the settlor,</content></level><wrapUp>(a “relevant reversioner”) is beneficially entitled comes to an end by reason of the relevant reversioner becoming entitled to an interest in possession in the relevant property, the relevant reversioner is to be treated as having made a disposition of the reversionary interest at that time.</wrapUp></subsection><subsection><num>(2)</num><content>A transfer of value of a reversionary interest in relevant property to which a relevant reversioner is beneficially entitled is to be taken to be a transfer which is not a potentially exempt transfer.</content></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-52-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to reversionary interests to which a relevant reversioner becomes beneficially entitled on or after 9 December 2009.</content></subsection></section><section eId="section-53"><num>53</num><heading>Interests in possession</heading><subsection eId="section-53-1"><num>(1)</num><content><abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984 is amended as follows.</content></subsection><subsection eId="section-53-2"><num>(2)</num><intro>In section 3A (potentially exempt transfers)—</intro><level class="para1" eId="section-53-2-a"><num>(a)</num><content>in subsection (6), omit “other than section 52”, and</content></level><level class="para1" eId="section-53-2-b"><num>(b)</num><content><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><content>The reference in subsection (6) above to any provision of this Act does not include section 52 below except where the transfer of value treated as made by that section is one treated as made on the coming to an end of an interest which falls within section 5(1B) below.</content></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-53-3"><num>(3)</num><intro>In section 5 (meaning of estate)—</intro><level class="para1" eId="section-53-3-a"><num>(a)</num><content><mod>in subsection (1)(a)(ii), after “below” insert <quotedText>“ unless it falls within subsection (1B) below ”</quotedText>, and</mod></content></level><level class="para1" eId="section-53-3-b"><num>(b)</num><content><mod>after subsection (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro>An interest in possession falls within this subsection if the person—</intro><level class="para1"><num>(a)</num><content>was domiciled in the United Kingdom on becoming beneficially entitled to it, and</content></level><level class="para1"><num>(b)</num><content>became beneficially entitled to it by virtue of a disposition which was prevented from being a transfer of value by section 10 below.</content></level></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-53-4"><num>(4)</num><intro>In—</intro><level class="para1" eId="section-53-4-a"><num>(a)</num><content>section 49(1A) (treatment of interests in possession),</content></level><level class="para1" eId="section-53-4-b"><num>(b)</num><content>section 51(1A) (disposal of interest in possession), and</content></level><level class="para1" eId="section-53-4-c"><num>(c)</num><content>section 52(2A) and (3A) (charge on termination of interest in possession),</content></level><wrapUp>insert at the end (not as part of paragraph (c))—<mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">or falls within section 5(1B) above.</quotedStructure></mod></wrapUp></subsection><subsection eId="section-53-5"><num>(5)</num><content><mod>In section 57A(1A) (relief where property enters maintenance fund), insert at the end (not as part of paragraph (c))—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">or fell within section 5(1B) above.</quotedStructure></mod></content></subsection><subsection eId="section-53-6"><num>(6)</num><content><mod>In section 100(1A) (alterations of capital <abbr title="Et cetera" xml:lang="la">etc</abbr> where participators are trustees), insert at the end (not as part of paragraph (c))—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">or falls within section 5(1B) above.</quotedStructure></mod></content></subsection><subsection eId="section-53-7"><num>(7)</num><content><mod>In section 101(1A) (companies' interests in settled property), insert at the end (not as part of paragraph (b))—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">or falls within section 5(1B) above.</quotedStructure></mod></content></subsection><subsection eId="section-53-8"><num>(8)</num><content><mod>In section 102ZA(1)(b)(ii) of FA 1986 (gifts with reservation: termination of interests in possession), after “serial interest” insert <quotedText>“ or falls within section 5(1B) of the 1984 Act ”</quotedText>.</mod></content></subsection><subsection eId="section-53-9"><num>(9)</num><content>In F(No.2)A 1987, omit section 96(2)(c).</content></subsection><subsection eId="section-53-10"><num>(10)</num><content>The amendments made by this section have effect in relation to an interest in possession to which a person is beneficially entitled if the person becomes beneficially entitled to it on or after 9 December 2009.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-stamp-taxes"><heading>Stamp taxes</heading><section eId="section-54"><num>54</num><heading>SDRT: depositary receipt systems and clearance services systems</heading><subsection eId="section-54-1"><num>(1)</num><content>Part 4 of FA 1986 (stamp duty reserve tax) is amended as follows.</content></subsection><subsection eId="section-54-2"><num>(2)</num><content><mod>In section 95(1) (depositary receipts: exceptions), before “there shall be” insert <quotedText>“ subject to section 97C, ”</quotedText>.</mod></content></subsection><subsection eId="section-54-3"><num>(3)</num><content><mod>In section 97(1) (clearance services: exceptions), before “there shall be” insert <quotedText>“ subject to section 97C, ”</quotedText>.</mod></content></subsection><subsection eId="section-54-4"><num>(4)</num><content><mod>In section 97B (transfer between depositary receipt system and clearance system), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content>Subsection (1) is subject to section 97C.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-54-5"><num>(5)</num><content><mod>After that section insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>97C</num><heading>Transfers to non-EU depositary receipt and clearance services systems</heading><subsection><num>(1)</num><intro>This section applies where arrangements are made in accordance with which chargeable securities are—</intro><level class="para1"><num>(a)</num><content>issued to an <abbr class="acronym" title="European Union">EU</abbr> system, and</content></level><level class="para1"><num>(b)</num><content>subsequently transferred from an <abbr class="acronym" title="European Union">EU</abbr> system to a non-EU system.</content></level></subsection><subsection><num>(2)</num><intro>Nothing in section 95(1), 97(1) or 97B(1) disapplies a charge to tax under section 93 or 96 in respect of that transfer if—</intro><level class="para1"><num>(a)</num><content>the chargeable securities have not previously been transferred, or</content></level><level class="para1"><num>(b)</num><content>where they have previously been transferred, the transfer (or, if more than one, each of them) was an exempt transfer.</content></level></subsection><subsection><num>(3)</num><intro>For the purposes of subsection (1)(a) chargeable securities are issued to an <abbr class="acronym" title="European Union">EU</abbr> system if—</intro><level class="para1"><num>(a)</num><content>pursuant to an arrangement of the kind mentioned in section 93(1), they are issued to a nominee in respect of an <abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer, or</content></level><level class="para1"><num>(b)</num><content>pursuant to an arrangement of the kind mentioned in section 96(1), they are issued to a nominee in respect of an <abbr class="acronym" title="European Union">EU</abbr> clearance service operator.</content></level></subsection><subsection><num>(4)</num><intro>For the purposes of subsection (1)(b)—</intro><level class="para1"><num>(a)</num><content>a transfer is from an <abbr class="acronym" title="European Union">EU</abbr> system if it is from a company which is incorporated under the law of a member State and at the time of the transfer falls within section 67(6) or 70(6), and</content></level><level class="para1"><num>(b)</num><content>a transfer is to a non-EU system if it is to a company which is not incorporated under the law of a member State and at the time of the transfer falls within section 67(6) or 70(6).</content></level></subsection><subsection><num>(5)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-eu-clearance-service-operator"><abbr class="acronym" title="European Union">EU</abbr> clearance service operator</term>” means a person—</intro><level class="para1"><num>(a)</num><content>whose business is or includes the provision of clearance services for the purchase and sale of chargeable securities, and</content></level><level class="para1"><num>(b)</num><content>who—<blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num>if it is a company, is incorporated under the law of a member State, and</item><item><num>(ii)</num>in any other case, is resident in a member State;</item></blockList></content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-eu-depositary-receipt-issuer"><abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer</term>” means a person—</intro><level class="para1"><num>(a)</num><content>whose business is or includes issuing depositary receipts for chargeable securities, and</content></level><level class="para1"><num>(b)</num><content>who—<blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num>if it is a company, is incorporated under the law of a member State, and</item><item><num>(ii)</num>in any other case, is resident in a member State;</item></blockList></content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-exempt-transfer">exempt transfer</term>” means a transfer in respect of which, by reason of section 90(5), 95(1), 97(1) or 97B(1), no charge to stamp duty reserve tax arises;</content></hcontainer><hcontainer name="definition"><intro>“nominee”—</intro><level class="para1"><num>(a)</num><content>in respect of an <abbr class="acronym" title="European Union">EU</abbr> clearance service operator, means a person whose business is or includes holding chargeable securities as nominee for the <abbr class="acronym" title="European Union">EU</abbr> clearance service operator, and</content></level><level class="para1"><num>(b)</num><content>in respect of an <abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer, means a person whose business is or includes holding chargeable securities as nominee or agent for the <abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer.</content></level></hcontainer></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-54-6"><num>(6)</num><content>The amendments made by this section have effect in relation to transfers of chargeable securities on or after 1 October 2009.</content></subsection></section><section eId="section-55"><num>55</num><heading><abbr class="acronym" title="Stamp Duty Land Tax">SDLT</abbr>: partnerships</heading><subsection eId="section-55-1"><num>(1)</num><intro>In section 75C of FA 2003 (<abbr class="acronym" title="Stamp Duty Land Tax">SDLT</abbr> anti-avoidance: supplemental)—</intro><level class="para1" eId="section-55-1-a"><num>(a)</num><content>in subsection (8), omit paragraph (b) (and the “and” before it), and</content></level><level class="para1" eId="section-55-1-b"><num>(b)</num><content><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><content>Nothing in Part 3 of Schedule 15 applies to the notional transaction under section 75A.</content></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-55-2"><num>(2)</num><content>The amendments made by subsection (1) have effect in relation to any notional transaction of which the effective date is on or after 24 March 2010.</content></subsection><subsection eId="section-55-3"><num>(3)</num><intro>But those amendments do not have effect in relation to a notional transaction if any scheme transaction is—</intro><level class="para1" eId="section-55-3-a"><num>(a)</num><content>completed before that date,</content></level><level class="para1" eId="section-55-3-b"><num>(b)</num><content>effected in pursuance of a contract entered into and substantially performed before that date, or</content></level><level class="para1" eId="section-55-3-c"><num>(c)</num><content>effected in pursuance of a contract entered into before that date and not excluded by subsection (4).</content></level></subsection><subsection eId="section-55-4"><num>(4)</num><intro>A scheme transaction effected in pursuance of a contract entered into before 24 March 2010 is excluded by this subsection if—</intro><level class="para1" eId="section-55-4-a"><num>(a)</num><content>there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 24 March 2010,</content></level><level class="para1" eId="section-55-4-b"><num>(b)</num><content>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</content></level><level class="para1" eId="section-55-4-c"><num>(c)</num><content>it is a land transaction and on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-administration"><heading>Administration</heading><section eId="section-56"><num>56</num><heading>Disclosure of tax avoidance schemes</heading><content>Schedule 17 contains amendments of the provisions relating to the disclosure of tax avoidance schemes.</content></section><section eId="section-57"><num>57</num><heading>Opening of postal packets</heading><subsection eId="section-57-1"><num>(1)</num><content>Section 106 of the Postal Services Act 2000 (power to detain postal packets containing contraband) is amended as follows.</content></subsection><subsection eId="section-57-2"><num>(2)</num><content><mod>In subsection (4), for paragraphs (a) and (b) substitute <quotedText>“ in the presence of a representative of the postal operator ”</quotedText>.</mod></content></subsection><subsection eId="section-57-3"><num>(3)</num><content>Omit subsection (5).</content></subsection><subsection eId="section-57-4"><num>(4)</num><content>In subsection (7)(b), omit “if he is absent”.</content></subsection></section></hcontainer></part>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-losses-capital-allowances-etc"><heading>Losses, capital allowances <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><section eId="section-24"><num>24</num><heading>Sideways relief <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><content>Schedule 3 contains provision about sideways relief <abbr title="et cetera" xml:lang="la">etc.</abbr></content></section><section eId="section-25"><num>25</num><heading>Property loss relief</heading><subsection eId="section-25-1"><num>(1)</num><content>Chapter 4 of Part 4 of ITA 2007 (losses from property businesses) is amended as follows.</content></subsection><subsection eId="section-25-2"><num>(2)</num><content><mod>In section 117 (overview of Chapter), after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content>This Chapter also contains provision restricting relief under this Chapter (see section 127A).</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-25-3"><num>(3)</num><content><mod>In section 120 (deduction of property losses from general income), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7)</num><content>See also section 127A (no relief for tax-generated losses attributable to annual investment allowance).</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-25-4"><num>(4)</num><content><mod>After section 127 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Restrictions on relief</heading><section><num>127A</num><heading>No relief for tax-generated losses attributable to annual investment allowance</heading><subsection><num>(1)</num><intro>This section applies if—</intro><level class="para1"><num>(a)</num><content>in a tax year a person makes a loss in a <abbr class="acronym" title="United Kingdom">UK</abbr> property business or overseas property business (whether carried on alone or in partnership),</content></level><level class="para1"><num>(b)</num><content>the loss has a capital allowances connection (see section 123(2)), and</content></level><level class="para1"><num>(c)</num><content>the loss arises directly or indirectly in consequence of, or otherwise in connection with, relevant tax avoidance arrangements.</content></level></subsection><subsection><num>(2)</num><content>No property loss relief against general income may be given to the person for so much of the applicable amount of the loss as is attributable to an annual investment allowance.</content></subsection><subsection><num>(3)</num><content>For the purposes of subsection (2), the applicable amount of the loss is to be treated as attributable to capital allowances before anything else and to an annual investment allowance before any other capital allowance.</content></subsection><subsection><num>(4)</num><intro>In subsection (1) “<term refersTo="#term-relevant-tax-avoidance-arrangements">relevant tax avoidance arrangements</term>” means arrangements—</intro><level class="para1"><num>(a)</num><content>to which the person is a party, and</content></level><level class="para1"><num>(b)</num><content>the main purpose, or one of the main purposes, of which is being in a position to make use of an annual investment allowance in the obtaining of a reduction in tax liability by means of property loss relief against general income.</content></level></subsection><subsection><num>(5)</num><content>In subsection (4) “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</content></subsection><subsection><num>(6)</num><content>In this section “<term refersTo="#term-the-applicable-amount-of-the-loss">the applicable amount of the loss</term>” has the meaning given by section 122.</content></subsection></section></hcontainer></quotedStructure></mod></content></subsection><subsection eId="section-25-5"><num>(5)</num><intro>The amendments made by this section have effect in relation to a loss if it arises directly or indirectly in consequence of, or otherwise in connection with—</intro><level class="para1" eId="section-25-5-a"><num>(a)</num><content>arrangements which are entered into on or after 24 March 2010, or</content></level><level class="para1" eId="section-25-5-b"><num>(b)</num><content>any transaction forming part of arrangements which is entered into on or after that date.</content></level></subsection><subsection eId="section-25-6"><num>(6)</num><content>But those amendments do not have effect where the arrangements are, or any such transaction is, entered into pursuant to an unconditional obligation in a contract made before that date.</content></subsection><subsection eId="section-25-7"><num>(7)</num><content>“<term refersTo="#term-an-unconditional-obligation" eId="term-an-unconditional-obligation">An unconditional obligation</term>” means an obligation which may not be varied or extinguished by the exercise of a right (whether or not under the contract).</content></subsection></section><section eId="section-26"><num>26</num><heading>Capital allowance buying</heading><content>Schedule 4 contains provisions about capital allowance buying.</content></section><section eId="section-27"><num>27</num><heading>Leased assets</heading><content>Schedule 5 contains provisions about leased assets.</content></section><section eId="section-28"><num>28</num><heading>Cushion gas</heading><subsection eId="section-28-1"><num>(1)</num><content>Part 2 of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (plant and machinery allowances) is amended as follows.</content></subsection><subsection eId="section-28-2"><num>(2)</num><content>Section 70J (meaning of “funding lease”) is amended as follows.</content></subsection><subsection eId="section-28-3"><num>(3)</num><content><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content>A plant or machinery lease is also a “funding lease” if the plant or machinery is cushion gas.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-28-4"><num>(4)</num><content><mod>In subsection (2), for “Subsection (1) is” substitute <quotedText>“ Subsections (1) and (1A) are ”</quotedText>.</mod></content></subsection><subsection eId="section-28-5"><num>(5)</num><content><mod>After subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7)</num><content>In this section “<term refersTo="#term-cushion-gas">cushion gas</term>” means gas that functions or is intended to function as plant in a particular gas storage facility.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-28-6"><num>(6)</num><intro>In section 104A(1) (special rate expenditure)—</intro><level class="para1" eId="section-28-6-a"><num>(a)</num><content>omit the “and” at the end of paragraph (d), and</content></level><level class="para1" eId="section-28-6-b"><num>(b)</num><content><mod>after paragraph (e) insert<quotedText startQuote="“">and </quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(f)</num><content>expenditure incurred on or after 1 April 2010 on the provision of cushion gas (within the meaning given by section 70J(7)).</content></level></quotedStructure></mod></content></level></subsection><subsection eId="section-28-7"><num>(7)</num><content><mod>After section 104F insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>104G</num><heading>Disposal events in respect of cushion gas</heading><subsection><num>(1)</num><content>This section applies if expenditure incurred by a person on the provision of cushion gas used in a particular gas storage facility includes both new expenditure and old expenditure.</content></subsection><subsection><num>(2)</num><content>Any disposal event which concerns any of that cushion gas is to be treated for the purposes of this Part as relating to cushion gas which is the subject of the new expenditure before cushion gas which is the subject of the old expenditure.</content></subsection><subsection><num>(3)</num><intro>The result of subsection (2) (including any further application of that subsection) is that a disposal event may be treated as relating—</intro><level class="para1"><num>(a)</num><content>only to cushion gas which is the subject of the new expenditure,</content></level><level class="para1"><num>(b)</num><intro>both to—</intro><level class="para2"><num>(i)</num><content>cushion gas which is the subject of the new expenditure, and</content></level><level class="para2"><num>(ii)</num><content>cushion gas which is the subject of the old expenditure, or</content></level></level><level class="para1"><num>(c)</num><content>only to cushion gas which is the subject of the old expenditure.</content></level></subsection><subsection><num>(4)</num><intro>If a disposal event is treated, as a result of subsection (2), as relating both to—</intro><level class="para1"><num>(a)</num><content>cushion gas which is the subject of the new expenditure, and</content></level><level class="para1"><num>(b)</num><content>cushion gas which is the subject of the old expenditure,</content></level><wrapUp>it is to be treated for the purposes of this Part as two separate disposal events, the first relating to cushion gas within paragraph (a) and the second relating to cushion gas within paragraph (b).</wrapUp></subsection><subsection><num>(5)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-cushion-gas">cushion gas</term>” has the meaning given by section 70J(7),</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-new-expenditure">new expenditure</term>” means expenditure incurred on or after 1 April 2010, and</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-old-expenditure">old expenditure</term>” means expenditure incurred before that date.</content></hcontainer></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-28-8"><num>(8)</num><content>The amendments made by subsections (2) to (5) have effect in relation to leases whose inception (within the meaning given by section 70YI(1) of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001) is on or after 1 April 2010.</content></subsection><subsection eId="section-28-9"><num>(9)</num><content>The amendments made by subsection (6) have effect in relation to expenditure incurred on or after 1 April 2010.</content></subsection><subsection eId="section-28-10"><num>(10)</num><content>The amendment made by subsection (7) has effect in relation to disposal events on or after 1 April 2010.</content></subsection></section><section eId="section-29"><num>29</num><heading>Sale of lessors: consortium relationships</heading><subsection eId="section-29-1"><num>(1)</num><content>Chapters 3 and 4 of Part 9 of CTA 2010 (sales of lessors) are amended as follows.</content></subsection><subsection eId="section-29-2"><num>(2)</num><content>In section 393(7) (qualifying 75% subsidiaries), omit “or 90%”.</content></subsection><subsection eId="section-29-3"><num>(3)</num><intro>In section 394 (consortium relationships)—</intro><level class="para1" eId="section-29-3-a"><num>(a)</num><content><mod>in subsections (1)(b), (4) and (5)(b), for “90%” substitute <quotedText>“ 75% ”</quotedText>, and</mod></content></level><level class="para1" eId="section-29-3-b"><num>(b)</num><content>in subsection (9)(b), omit “or 90%”.</content></level></subsection><subsection eId="section-29-4"><num>(4)</num><intro>In section 398 (qualifying 75% or 90% subsidiary), omit—</intro><level class="para1" eId="section-29-4-a"><num>(a)</num><content>subsections (5) and (6), and</content></level><level class="para1" eId="section-29-4-b"><num>(b)</num><content>in subsection (7)(b), “and “90% subsidiary””,</content></level><wrapUp>and, in the heading, omit “or 90%”.</wrapUp></subsection><subsection eId="section-29-5"><num>(5)</num><content><mod>In section 405(2)(b) and (6) (adjustments to basic amount), for “90%” substitute <quotedText>“ 75% ”</quotedText>.</mod></content></subsection><subsection eId="section-29-6"><num>(6)</num><content><mod>In sections 408(5)(b) and 430(4)(b) (associated company), for “90%” substitute <quotedText>“ 75% ”</quotedText>.</mod></content></subsection><subsection eId="section-29-7"><num>(7)</num><content>In Schedule 4 to CTA 2010, omit the entry relating to “qualifying 90% subsidiary (in Chapters 3 to 6 of Part 9)”.</content></subsection><subsection eId="section-29-8"><num>(8)</num><content>The amendments made by this section have effect where the relevant day is on or after 9 December 2009.</content></subsection><subsection eId="section-29-9"><num>(9)</num><content>Corresponding amendments, having effect where the relevant day is on or after that date, are to be treated as having been made in Schedule 10 to FA 2006.</content></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-24"><num>24</num><heading>Sideways relief <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><content>Schedule 3 contains provision about sideways relief <abbr title="et cetera" xml:lang="la">etc.</abbr></content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-25"><num>25</num><heading>Property loss relief</heading><subsection eId="section-25-1"><num>(1)</num><content>Chapter 4 of Part 4 of ITA 2007 (losses from property businesses) is amended as follows.</content></subsection><subsection eId="section-25-2"><num>(2)</num><content><mod>In section 117 (overview of Chapter), after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content>This Chapter also contains provision restricting relief under this Chapter (see section 127A).</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-25-3"><num>(3)</num><content><mod>In section 120 (deduction of property losses from general income), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7)</num><content>See also section 127A (no relief for tax-generated losses attributable to annual investment allowance).</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-25-4"><num>(4)</num><content><mod>After section 127 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Restrictions on relief</heading><section><num>127A</num><heading>No relief for tax-generated losses attributable to annual investment allowance</heading><subsection><num>(1)</num><intro>This section applies if—</intro><level class="para1"><num>(a)</num><content>in a tax year a person makes a loss in a <abbr class="acronym" title="United Kingdom">UK</abbr> property business or overseas property business (whether carried on alone or in partnership),</content></level><level class="para1"><num>(b)</num><content>the loss has a capital allowances connection (see section 123(2)), and</content></level><level class="para1"><num>(c)</num><content>the loss arises directly or indirectly in consequence of, or otherwise in connection with, relevant tax avoidance arrangements.</content></level></subsection><subsection><num>(2)</num><content>No property loss relief against general income may be given to the person for so much of the applicable amount of the loss as is attributable to an annual investment allowance.</content></subsection><subsection><num>(3)</num><content>For the purposes of subsection (2), the applicable amount of the loss is to be treated as attributable to capital allowances before anything else and to an annual investment allowance before any other capital allowance.</content></subsection><subsection><num>(4)</num><intro>In subsection (1) “<term refersTo="#term-relevant-tax-avoidance-arrangements">relevant tax avoidance arrangements</term>” means arrangements—</intro><level class="para1"><num>(a)</num><content>to which the person is a party, and</content></level><level class="para1"><num>(b)</num><content>the main purpose, or one of the main purposes, of which is being in a position to make use of an annual investment allowance in the obtaining of a reduction in tax liability by means of property loss relief against general income.</content></level></subsection><subsection><num>(5)</num><content>In subsection (4) “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</content></subsection><subsection><num>(6)</num><content>In this section “<term refersTo="#term-the-applicable-amount-of-the-loss">the applicable amount of the loss</term>” has the meaning given by section 122.</content></subsection></section></hcontainer></quotedStructure></mod></content></subsection><subsection eId="section-25-5"><num>(5)</num><intro>The amendments made by this section have effect in relation to a loss if it arises directly or indirectly in consequence of, or otherwise in connection with—</intro><level class="para1" eId="section-25-5-a"><num>(a)</num><content>arrangements which are entered into on or after 24 March 2010, or</content></level><level class="para1" eId="section-25-5-b"><num>(b)</num><content>any transaction forming part of arrangements which is entered into on or after that date.</content></level></subsection><subsection eId="section-25-6"><num>(6)</num><content>But those amendments do not have effect where the arrangements are, or any such transaction is, entered into pursuant to an unconditional obligation in a contract made before that date.</content></subsection><subsection eId="section-25-7"><num>(7)</num><content>“<term refersTo="#term-an-unconditional-obligation" eId="term-an-unconditional-obligation">An unconditional obligation</term>” means an obligation which may not be varied or extinguished by the exercise of a right (whether or not under the contract).</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-25-1"><num>(1)</num><content>Chapter 4 of Part 4 of ITA 2007 (losses from property businesses) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-25-2"><num>(2)</num><content><mod>In section 117 (overview of Chapter), after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content>This Chapter also contains provision restricting relief under this Chapter (see section 127A).</content></subsection></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-25-3"><num>(3)</num><content><mod>In section 120 (deduction of property losses from general income), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7)</num><content>See also section 127A (no relief for tax-generated losses attributable to annual investment allowance).</content></subsection></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-25-4"><num>(4)</num><content><mod>After section 127 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Restrictions on relief</heading><section><num>127A</num><heading>No relief for tax-generated losses attributable to annual investment allowance</heading><subsection><num>(1)</num><intro>This section applies if—</intro><level class="para1"><num>(a)</num><content>in a tax year a person makes a loss in a <abbr class="acronym" title="United Kingdom">UK</abbr> property business or overseas property business (whether carried on alone or in partnership),</content></level><level class="para1"><num>(b)</num><content>the loss has a capital allowances connection (see section 123(2)), and</content></level><level class="para1"><num>(c)</num><content>the loss arises directly or indirectly in consequence of, or otherwise in connection with, relevant tax avoidance arrangements.</content></level></subsection><subsection><num>(2)</num><content>No property loss relief against general income may be given to the person for so much of the applicable amount of the loss as is attributable to an annual investment allowance.</content></subsection><subsection><num>(3)</num><content>For the purposes of subsection (2), the applicable amount of the loss is to be treated as attributable to capital allowances before anything else and to an annual investment allowance before any other capital allowance.</content></subsection><subsection><num>(4)</num><intro>In subsection (1) “<term refersTo="#term-relevant-tax-avoidance-arrangements">relevant tax avoidance arrangements</term>” means arrangements—</intro><level class="para1"><num>(a)</num><content>to which the person is a party, and</content></level><level class="para1"><num>(b)</num><content>the main purpose, or one of the main purposes, of which is being in a position to make use of an annual investment allowance in the obtaining of a reduction in tax liability by means of property loss relief against general income.</content></level></subsection><subsection><num>(5)</num><content>In subsection (4) “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</content></subsection><subsection><num>(6)</num><content>In this section “<term refersTo="#term-the-applicable-amount-of-the-loss">the applicable amount of the loss</term>” has the meaning given by section 122.</content></subsection></section></hcontainer></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-25-5"><num>(5)</num><intro>The amendments made by this section have effect in relation to a loss if it arises directly or indirectly in consequence of, or otherwise in connection with—</intro><level class="para1" eId="section-25-5-a"><num>(a)</num><content>arrangements which are entered into on or after 24 March 2010, or</content></level><level class="para1" eId="section-25-5-b"><num>(b)</num><content>any transaction forming part of arrangements which is entered into on or after that date.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-25-6"><num>(6)</num><content>But those amendments do not have effect where the arrangements are, or any such transaction is, entered into pursuant to an unconditional obligation in a contract made before that date.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-25-7"><num>(7)</num><content>“<term refersTo="#term-an-unconditional-obligation" eId="term-an-unconditional-obligation">An unconditional obligation</term>” means an obligation which may not be varied or extinguished by the exercise of a right (whether or not under the contract).</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-26"><num>26</num><heading>Capital allowance buying</heading><content>Schedule 4 contains provisions about capital allowance buying.</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-27"><num>27</num><heading>Leased assets</heading><content>Schedule 5 contains provisions about leased assets.</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28"><num>28</num><heading>Cushion gas</heading><subsection eId="section-28-1"><num>(1)</num><content>Part 2 of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (plant and machinery allowances) is amended as follows.</content></subsection><subsection eId="section-28-2"><num>(2)</num><content>Section 70J (meaning of “funding lease”) is amended as follows.</content></subsection><subsection eId="section-28-3"><num>(3)</num><content><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content>A plant or machinery lease is also a “funding lease” if the plant or machinery is cushion gas.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-28-4"><num>(4)</num><content><mod>In subsection (2), for “Subsection (1) is” substitute <quotedText>“ Subsections (1) and (1A) are ”</quotedText>.</mod></content></subsection><subsection eId="section-28-5"><num>(5)</num><content><mod>After subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7)</num><content>In this section “<term refersTo="#term-cushion-gas">cushion gas</term>” means gas that functions or is intended to function as plant in a particular gas storage facility.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-28-6"><num>(6)</num><intro>In section 104A(1) (special rate expenditure)—</intro><level class="para1" eId="section-28-6-a"><num>(a)</num><content>omit the “and” at the end of paragraph (d), and</content></level><level class="para1" eId="section-28-6-b"><num>(b)</num><content><mod>after paragraph (e) insert<quotedText startQuote="“">and </quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(f)</num><content>expenditure incurred on or after 1 April 2010 on the provision of cushion gas (within the meaning given by section 70J(7)).</content></level></quotedStructure></mod></content></level></subsection><subsection eId="section-28-7"><num>(7)</num><content><mod>After section 104F insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>104G</num><heading>Disposal events in respect of cushion gas</heading><subsection><num>(1)</num><content>This section applies if expenditure incurred by a person on the provision of cushion gas used in a particular gas storage facility includes both new expenditure and old expenditure.</content></subsection><subsection><num>(2)</num><content>Any disposal event which concerns any of that cushion gas is to be treated for the purposes of this Part as relating to cushion gas which is the subject of the new expenditure before cushion gas which is the subject of the old expenditure.</content></subsection><subsection><num>(3)</num><intro>The result of subsection (2) (including any further application of that subsection) is that a disposal event may be treated as relating—</intro><level class="para1"><num>(a)</num><content>only to cushion gas which is the subject of the new expenditure,</content></level><level class="para1"><num>(b)</num><intro>both to—</intro><level class="para2"><num>(i)</num><content>cushion gas which is the subject of the new expenditure, and</content></level><level class="para2"><num>(ii)</num><content>cushion gas which is the subject of the old expenditure, or</content></level></level><level class="para1"><num>(c)</num><content>only to cushion gas which is the subject of the old expenditure.</content></level></subsection><subsection><num>(4)</num><intro>If a disposal event is treated, as a result of subsection (2), as relating both to—</intro><level class="para1"><num>(a)</num><content>cushion gas which is the subject of the new expenditure, and</content></level><level class="para1"><num>(b)</num><content>cushion gas which is the subject of the old expenditure,</content></level><wrapUp>it is to be treated for the purposes of this Part as two separate disposal events, the first relating to cushion gas within paragraph (a) and the second relating to cushion gas within paragraph (b).</wrapUp></subsection><subsection><num>(5)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-cushion-gas">cushion gas</term>” has the meaning given by section 70J(7),</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-new-expenditure">new expenditure</term>” means expenditure incurred on or after 1 April 2010, and</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-old-expenditure">old expenditure</term>” means expenditure incurred before that date.</content></hcontainer></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-28-8"><num>(8)</num><content>The amendments made by subsections (2) to (5) have effect in relation to leases whose inception (within the meaning given by section 70YI(1) of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001) is on or after 1 April 2010.</content></subsection><subsection eId="section-28-9"><num>(9)</num><content>The amendments made by subsection (6) have effect in relation to expenditure incurred on or after 1 April 2010.</content></subsection><subsection eId="section-28-10"><num>(10)</num><content>The amendment made by subsection (7) has effect in relation to disposal events on or after 1 April 2010.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-1"><num>(1)</num><content>Part 2 of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (plant and machinery allowances) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-2"><num>(2)</num><content>Section 70J (meaning of “funding lease”) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28-3"><num>(3)</num><content><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content>A plant or machinery lease is also a “funding lease” if the plant or machinery is cushion gas.</content></subsection></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-4"><num>(4)</num><content><mod>In subsection (2), for “Subsection (1) is” substitute <quotedText>“ Subsections (1) and (1A) are ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28-5"><num>(5)</num><content><mod>After subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(7)</num><content>In this section “<term refersTo="#term-cushion-gas">cushion gas</term>” means gas that functions or is intended to function as plant in a particular gas storage facility.</content></subsection></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28-6"><num>(6)</num><intro>In section 104A(1) (special rate expenditure)—</intro><level class="para1" eId="section-28-6-a"><num>(a)</num><content>omit the “and” at the end of paragraph (d), and</content></level><level class="para1" eId="section-28-6-b"><num>(b)</num><content><mod>after paragraph (e) insert<quotedText startQuote="“">and </quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(f)</num><content>expenditure incurred on or after 1 April 2010 on the provision of cushion gas (within the meaning given by section 70J(7)).</content></level></quotedStructure></mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-28-7"><num>(7)</num><content><mod>After section 104F insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>104G</num><heading>Disposal events in respect of cushion gas</heading><subsection><num>(1)</num><content>This section applies if expenditure incurred by a person on the provision of cushion gas used in a particular gas storage facility includes both new expenditure and old expenditure.</content></subsection><subsection><num>(2)</num><content>Any disposal event which concerns any of that cushion gas is to be treated for the purposes of this Part as relating to cushion gas which is the subject of the new expenditure before cushion gas which is the subject of the old expenditure.</content></subsection><subsection><num>(3)</num><intro>The result of subsection (2) (including any further application of that subsection) is that a disposal event may be treated as relating—</intro><level class="para1"><num>(a)</num><content>only to cushion gas which is the subject of the new expenditure,</content></level><level class="para1"><num>(b)</num><intro>both to—</intro><level class="para2"><num>(i)</num><content>cushion gas which is the subject of the new expenditure, and</content></level><level class="para2"><num>(ii)</num><content>cushion gas which is the subject of the old expenditure, or</content></level></level><level class="para1"><num>(c)</num><content>only to cushion gas which is the subject of the old expenditure.</content></level></subsection><subsection><num>(4)</num><intro>If a disposal event is treated, as a result of subsection (2), as relating both to—</intro><level class="para1"><num>(a)</num><content>cushion gas which is the subject of the new expenditure, and</content></level><level class="para1"><num>(b)</num><content>cushion gas which is the subject of the old expenditure,</content></level><wrapUp>it is to be treated for the purposes of this Part as two separate disposal events, the first relating to cushion gas within paragraph (a) and the second relating to cushion gas within paragraph (b).</wrapUp></subsection><subsection><num>(5)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-cushion-gas">cushion gas</term>” has the meaning given by section 70J(7),</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-new-expenditure">new expenditure</term>” means expenditure incurred on or after 1 April 2010, and</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-old-expenditure">old expenditure</term>” means expenditure incurred before that date.</content></hcontainer></subsection></section></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-8"><num>(8)</num><content>The amendments made by subsections (2) to (5) have effect in relation to leases whose inception (within the meaning given by section 70YI(1) of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001) is on or after 1 April 2010.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-9"><num>(9)</num><content>The amendments made by subsection (6) have effect in relation to expenditure incurred on or after 1 April 2010.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-28-10"><num>(10)</num><content>The amendment made by subsection (7) has effect in relation to disposal events on or after 1 April 2010.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29"><num>29</num><heading>Sale of lessors: consortium relationships</heading><subsection eId="section-29-1"><num>(1)</num><content>Chapters 3 and 4 of Part 9 of CTA 2010 (sales of lessors) are amended as follows.</content></subsection><subsection eId="section-29-2"><num>(2)</num><content>In section 393(7) (qualifying 75% subsidiaries), omit “or 90%”.</content></subsection><subsection eId="section-29-3"><num>(3)</num><intro>In section 394 (consortium relationships)—</intro><level class="para1" eId="section-29-3-a"><num>(a)</num><content><mod>in subsections (1)(b), (4) and (5)(b), for “90%” substitute <quotedText>“ 75% ”</quotedText>, and</mod></content></level><level class="para1" eId="section-29-3-b"><num>(b)</num><content>in subsection (9)(b), omit “or 90%”.</content></level></subsection><subsection eId="section-29-4"><num>(4)</num><intro>In section 398 (qualifying 75% or 90% subsidiary), omit—</intro><level class="para1" eId="section-29-4-a"><num>(a)</num><content>subsections (5) and (6), and</content></level><level class="para1" eId="section-29-4-b"><num>(b)</num><content>in subsection (7)(b), “and “90% subsidiary””,</content></level><wrapUp>and, in the heading, omit “or 90%”.</wrapUp></subsection><subsection eId="section-29-5"><num>(5)</num><content><mod>In section 405(2)(b) and (6) (adjustments to basic amount), for “90%” substitute <quotedText>“ 75% ”</quotedText>.</mod></content></subsection><subsection eId="section-29-6"><num>(6)</num><content><mod>In sections 408(5)(b) and 430(4)(b) (associated company), for “90%” substitute <quotedText>“ 75% ”</quotedText>.</mod></content></subsection><subsection eId="section-29-7"><num>(7)</num><content>In Schedule 4 to CTA 2010, omit the entry relating to “qualifying 90% subsidiary (in Chapters 3 to 6 of Part 9)”.</content></subsection><subsection eId="section-29-8"><num>(8)</num><content>The amendments made by this section have effect where the relevant day is on or after 9 December 2009.</content></subsection><subsection eId="section-29-9"><num>(9)</num><content>Corresponding amendments, having effect where the relevant day is on or after that date, are to be treated as having been made in Schedule 10 to FA 2006.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-1"><num>(1)</num><content>Chapters 3 and 4 of Part 9 of CTA 2010 (sales of lessors) are amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-2"><num>(2)</num><content>In section 393(7) (qualifying 75% subsidiaries), omit “or 90%”.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-3"><num>(3)</num><intro>In section 394 (consortium relationships)—</intro><level class="para1" eId="section-29-3-a"><num>(a)</num><content><mod>in subsections (1)(b), (4) and (5)(b), for “90%” substitute <quotedText>“ 75% ”</quotedText>, and</mod></content></level><level class="para1" eId="section-29-3-b"><num>(b)</num><content>in subsection (9)(b), omit “or 90%”.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-4"><num>(4)</num><intro>In section 398 (qualifying 75% or 90% subsidiary), omit—</intro><level class="para1" eId="section-29-4-a"><num>(a)</num><content>subsections (5) and (6), and</content></level><level class="para1" eId="section-29-4-b"><num>(b)</num><content>in subsection (7)(b), “and “90% subsidiary””,</content></level><wrapUp>and, in the heading, omit “or 90%”.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-5"><num>(5)</num><content><mod>In section 405(2)(b) and (6) (adjustments to basic amount), for “90%” substitute <quotedText>“ 75% ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-6"><num>(6)</num><content><mod>In sections 408(5)(b) and 430(4)(b) (associated company), for “90%” substitute <quotedText>“ 75% ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-7"><num>(7)</num><content>In Schedule 4 to CTA 2010, omit the entry relating to “qualifying 90% subsidiary (in Chapters 3 to 6 of Part 9)”.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-8"><num>(8)</num><content>The amendments made by this section have effect where the relevant day is on or after 9 December 2009.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-29-9"><num>(9)</num><content>Corresponding amendments, having effect where the relevant day is on or after that date, are to be treated as having been made in Schedule 10 to FA 2006.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-33"><num>33</num><heading>“Relevant person”</heading><subsection eId="section-33-1"><num>(1)</num><content>Section 809M of ITA 2007 (remittance basis: meaning of “relevant person”) is amended as follows.</content></subsection><subsection eId="section-33-2"><num>(2)</num><content><mod>In subsection (2)(f), insert at the end <quotedText>“ or a company which is a 51% subsidiary of such a company, ”</quotedText>.</mod></content></subsection><subsection eId="section-33-3"><num>(3)</num><content><mod>In subsection (3)(ca), for “Act),” substitute <quotedText>“ Act) and, in relation to a company that would be a close company if it were resident in the United Kingdom, means a person who would be such a participator if it were a close company, ”</quotedText>.</mod></content></subsection><subsection eId="section-33-4"><num>(4)</num><content>The amendments made by this section are treated as having come into force on 6 April 2010.</content></subsection></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-34"><num>34</num><heading>Foreign currency bank accounts</heading><content>Schedule 9 contains provision about foreign currency bank accounts.</content></section>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-other-international-matters"><heading>Other international matters</heading><section eId="section-35"><num>35</num><heading>Penalties: offshore income <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-35-1"><num>(1)</num><content>Schedule 10 contains provision about penalties in respect of offshore income <abbr title="et cetera" xml:lang="la">etc.</abbr></content></subsection><subsection eId="section-35-2"><num>(2)</num><content>Schedule 10 comes into force on such day as the Treasury may by order appoint.</content></subsection><subsection eId="section-35-3"><num>(3)</num><intro>An order under subsection (2)—</intro><level class="para1" eId="section-35-3-a"><num>(a)</num><content>may make different provision for different purposes, and</content></level><level class="para1" eId="section-35-3-b"><num>(b)</num><content>may include transitional provisions and savings.</content></level></subsection><subsection eId="section-35-4"><num>(4)</num><content>The Treasury may by order make any incidental, supplemental, consequential, transitional or transitory provision or saving that appears appropriate in consequence of, or otherwise in connection with, Schedule 10.</content></subsection><subsection eId="section-35-5"><num>(5)</num><intro>An order under subsection (4) may—</intro><level class="para1" eId="section-35-5-a"><num>(a)</num><content>make different provision for different purposes, and</content></level><level class="para1" eId="section-35-5-b"><num>(b)</num><content>make provision amending, repealing or revoking an enactment or instrument (whenever passed or made).</content></level></subsection><subsection eId="section-35-6"><num>(6)</num><content>An order under this section is to be made by statutory instrument.</content></subsection><subsection eId="section-35-7"><num>(7)</num><content>A statutory instrument containing an order under subsection (4) is subject to annulment in pursuance of a resolution of the House of Commons.</content></subsection></section><section eId="section-36"><num>36</num><heading>Reliefs and reductions for foreign tax</heading><content>Schedule 11 contains provision about activities designed to increase the amount allowed by way of credit or reduction in respect of foreign tax.</content></section><section eId="section-37"><num>37</num><heading>Asset transfer to non-resident company: recovery of postponed charge</heading><subsection eId="section-37-1"><num>(1)</num><intro>In section 140 of <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 (postponement of charge on transfer of assets to non-resident company)—</intro><level class="para1" eId="section-37-1-a"><num>(a)</num><content><mod>in subsection (4), for “the consideration received by it on the disposal shall be treated as increased by” substitute <quotedText>“ there shall be deemed to accrue to the transferor company as a chargeable gain on that occasion ”</quotedText>, and</mod></content></level><level class="para1" eId="section-37-1-b"><num>(b)</num><content><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content>A chargeable gain which is deemed to accrue under subsection (4) is in addition to any gain or loss that actually accrues to the transferor company on the disposal of the securities.</content></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-37-2"><num>(2)</num><content>In Schedule 7AC to that Act (exemption for disposals by companies with substantial shareholding), omit paragraph 35 (recovery of charge postponed on transfer of asset to non-resident company).</content></subsection><subsection eId="section-37-3"><num>(3)</num><content>The amendments made by this section have effect in relation to disposals of securities on or after 6 January 2010.</content></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35"><num>35</num><heading>Penalties: offshore income <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-35-1"><num>(1)</num><content>Schedule 10 contains provision about penalties in respect of offshore income <abbr title="et cetera" xml:lang="la">etc.</abbr></content></subsection><subsection eId="section-35-2"><num>(2)</num><content>Schedule 10 comes into force on such day as the Treasury may by order appoint.</content></subsection><subsection eId="section-35-3"><num>(3)</num><intro>An order under subsection (2)—</intro><level class="para1" eId="section-35-3-a"><num>(a)</num><content>may make different provision for different purposes, and</content></level><level class="para1" eId="section-35-3-b"><num>(b)</num><content>may include transitional provisions and savings.</content></level></subsection><subsection eId="section-35-4"><num>(4)</num><content>The Treasury may by order make any incidental, supplemental, consequential, transitional or transitory provision or saving that appears appropriate in consequence of, or otherwise in connection with, Schedule 10.</content></subsection><subsection eId="section-35-5"><num>(5)</num><intro>An order under subsection (4) may—</intro><level class="para1" eId="section-35-5-a"><num>(a)</num><content>make different provision for different purposes, and</content></level><level class="para1" eId="section-35-5-b"><num>(b)</num><content>make provision amending, repealing or revoking an enactment or instrument (whenever passed or made).</content></level></subsection><subsection eId="section-35-6"><num>(6)</num><content>An order under this section is to be made by statutory instrument.</content></subsection><subsection eId="section-35-7"><num>(7)</num><content>A statutory instrument containing an order under subsection (4) is subject to annulment in pursuance of a resolution of the House of Commons.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35-1"><num>(1)</num><content>Schedule 10 contains provision about penalties in respect of offshore income <abbr title="et cetera" xml:lang="la">etc.</abbr></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35-2"><num>(2)</num><content>Schedule 10 comes into force on such day as the Treasury may by order appoint.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35-3"><num>(3)</num><intro>An order under subsection (2)—</intro><level class="para1" eId="section-35-3-a"><num>(a)</num><content>may make different provision for different purposes, and</content></level><level class="para1" eId="section-35-3-b"><num>(b)</num><content>may include transitional provisions and savings.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35-4"><num>(4)</num><content>The Treasury may by order make any incidental, supplemental, consequential, transitional or transitory provision or saving that appears appropriate in consequence of, or otherwise in connection with, Schedule 10.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35-5"><num>(5)</num><intro>An order under subsection (4) may—</intro><level class="para1" eId="section-35-5-a"><num>(a)</num><content>make different provision for different purposes, and</content></level><level class="para1" eId="section-35-5-b"><num>(b)</num><content>make provision amending, repealing or revoking an enactment or instrument (whenever passed or made).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35-6"><num>(6)</num><content>An order under this section is to be made by statutory instrument.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-35-7"><num>(7)</num><content>A statutory instrument containing an order under subsection (4) is subject to annulment in pursuance of a resolution of the House of Commons.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-36"><num>36</num><heading>Reliefs and reductions for foreign tax</heading><content>Schedule 11 contains provision about activities designed to increase the amount allowed by way of credit or reduction in respect of foreign tax.</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-37"><num>37</num><heading>Asset transfer to non-resident company: recovery of postponed charge</heading><subsection eId="section-37-1"><num>(1)</num><intro>In section 140 of <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 (postponement of charge on transfer of assets to non-resident company)—</intro><level class="para1" eId="section-37-1-a"><num>(a)</num><content><mod>in subsection (4), for “the consideration received by it on the disposal shall be treated as increased by” substitute <quotedText>“ there shall be deemed to accrue to the transferor company as a chargeable gain on that occasion ”</quotedText>, and</mod></content></level><level class="para1" eId="section-37-1-b"><num>(b)</num><content><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content>A chargeable gain which is deemed to accrue under subsection (4) is in addition to any gain or loss that actually accrues to the transferor company on the disposal of the securities.</content></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-37-2"><num>(2)</num><content>In Schedule 7AC to that Act (exemption for disposals by companies with substantial shareholding), omit paragraph 35 (recovery of charge postponed on transfer of asset to non-resident company).</content></subsection><subsection eId="section-37-3"><num>(3)</num><content>The amendments made by this section have effect in relation to disposals of securities on or after 6 January 2010.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-37-1"><num>(1)</num><intro>In section 140 of <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 (postponement of charge on transfer of assets to non-resident company)—</intro><level class="para1" eId="section-37-1-a"><num>(a)</num><content><mod>in subsection (4), for “the consideration received by it on the disposal shall be treated as increased by” substitute <quotedText>“ there shall be deemed to accrue to the transferor company as a chargeable gain on that occasion ”</quotedText>, and</mod></content></level><level class="para1" eId="section-37-1-b"><num>(b)</num><content><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content>A chargeable gain which is deemed to accrue under subsection (4) is in addition to any gain or loss that actually accrues to the transferor company on the disposal of the securities.</content></subsection></quotedStructure></mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37-2"><num>(2)</num><content>In Schedule 7AC to that Act (exemption for disposals by companies with substantial shareholding), omit paragraph 35 (recovery of charge postponed on transfer of asset to non-resident company).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-37-3"><num>(3)</num><content>The amendments made by this section have effect in relation to disposals of securities on or after 6 January 2010.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-securities-etc"><heading>Securities <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><section eId="section-38"><num>38</num><heading>Transactions in securities</heading><content>Schedule 12 contains provision about transactions in securities.</content></section><section eId="section-39"><num>39</num><heading>Approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> schemes: eligible shares</heading><subsection eId="section-39-1"><num>(1)</num><content>In Part 4 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (shares to which approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> schemes can apply), omit paragraph 17(1)(c) (shares in a company which is under the control of a listed company).</content></subsection><subsection eId="section-39-2"><num>(2)</num><intro>Accordingly, in that Schedule—</intro><level class="para1" eId="section-39-2-a"><num>(a)</num><intro>in paragraph 17—</intro><level class="para2" eId="section-39-2-a-i"><num>(i)</num><content><mod>after sub-paragraph (1)(a) insert <quotedText>“ or ”</quotedText>,</mod></content></level><level class="para2" eId="section-39-2-a-ii"><num>(ii)</num><content>omit “or” at the end of sub-paragraph (1)(b), and</content></level><level class="para2" eId="section-39-2-a-iii"><num>(iii)</num><content>omit sub-paragraph (2), and</content></level></level><level class="para1" eId="section-39-2-b"><num>(b)</num><content>omit paragraph 20(3)(c) (and the “or” before it).</content></level></subsection><subsection eId="section-39-3"><num>(3)</num><intro>The amendments made by this section—</intro><level class="para1" eId="section-39-3-a"><num>(a)</num><content>come into force on 24 September 2010, and</content></level><level class="para1" eId="section-39-3-b"><num>(b)</num><content>have effect in relation to options granted on or after that day.</content></level></subsection><subsection eId="section-39-4"><num>(4)</num><intro>If—</intro><level class="para1" eId="section-39-4-a"><num>(a)</num><content>during the period beginning with 24 March 2010 and ending with 23 September 2010 (“<term refersTo="#term-the-transitional-period" eId="term-the-transitional-period">the transitional period</term>”), a share option is granted to an individual in accordance with the provisions of an approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme, and</content></level><level class="para1" eId="section-39-4-b"><num>(b)</num><content>the shares which may be acquired by the exercise of the option are shares in a company which is under the control of a listed company, other than shares of a class listed on a recognised stock exchange,</content></level><wrapUp>the share option is to be treated for the purposes of the <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> code as not having been granted in accordance with the provisions of an approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme.</wrapUp></subsection><subsection eId="section-39-5"><num>(5)</num><content>An alteration made to a scheme during the transitional period in order to meet the amended paragraph 17 requirement is to be regarded as an alteration made in a key feature of the scheme for the purposes of paragraph 30 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (withdrawal of approval).</content></subsection><subsection eId="section-39-6"><num>(6)</num><content>Where the amended paragraph 17 requirement is not met in respect of an approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme at the end of the transitional period, the requirement is to be treated for the purposes of paragraph 30(2)(a) of that Schedule (disqualifying events) as ceasing to be met immediately after that time.</content></subsection><subsection eId="section-39-7"><num>(7)</num><content>Where, by virtue of subsection (6), approval is withdrawn from a scheme under Part 7 of that Schedule, that withdrawal has effect (from the time determined in accordance with paragraph 30(1) of that Schedule) in relation to options granted on or after 24 September 2010 only.</content></subsection><subsection eId="section-39-8"><num>(8)</num><content>In subsections (3) to (7) references to options having been granted include new share options granted under the terms of a provision included in a scheme under paragraph 26 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (exchange of shares on company reorganisation); but paragraph 27(5) of that Schedule (new share options treated as granted at same time as old share options) does not apply for the purposes of those subsections.</content></subsection><subsection eId="section-39-9"><num>(9)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-amended-paragraph-17-requirement" eId="term-the-amended-paragraph-17-requirement">the amended paragraph 17 requirement</term>” means the requirement of paragraph 17 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 as amended by this section;</content></hcontainer><hcontainer name="definition"><content>“approved” and “<abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme” have the meaning given by section 521 of that Act;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-control" eId="term-control">control</term>” and “<term refersTo="#term-listed-company" eId="term-listed-company">listed company</term>” have the same meaning as in paragraph 17 of Schedule 4 to that Act.</content></hcontainer></subsection></section><section eId="section-40"><num><noteRef href="#key-01ae7194ff30870eabcee8b7f920ab71" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>40</num><heading>Unauthorised unit trusts</heading><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></section><section eId="section-41"><num>41</num><heading>Index-linked gilt-edged securities</heading><content>Schedule 14 contains provision about index-linked gilt-edged securities.</content></section><section eId="section-42"><num>42</num><heading>Approved share incentive plans</heading><subsection eId="section-42-1"><num>(1)</num><content>Paragraph 84(1) of Schedule 2 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (approved share incentive plans) is amended as follows.</content></subsection><subsection eId="section-42-2"><num>(2)</num><content><mod>For paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><intro>an alteration being made—</intro><level class="para2"><num>(i)</num><content>in the share capital of a company any of whose shares are subject to the plan trust, or</content></level><level class="para2"><num>(ii)</num><content>in the rights attaching to any shares of such a company,</content></level><wrapUp>that materially affects the value of shares that are subject to the plan trust;</wrapUp></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-42-3"><num>(3)</num><content><mod>In paragraph (e), for “have been awarded to participants” substitute <quotedText>“ are subject to the plan trust ”</quotedText>.</mod></content></subsection><subsection eId="section-42-4"><num>(4)</num><content>Section 989 of CTA 2009 (deduction for contribution to plan trust) is amended as follows.</content></subsection><subsection eId="section-42-5"><num>(5)</num><content><mod>In subsection (1), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content>the payment is not made pursuant to tax avoidance arrangements,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-42-6"><num>(6)</num><content><mod>After subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro>For the purposes of this section the payment mentioned in subsection (1)(a) is made pursuant to tax avoidance arrangements if—</intro><level class="para1"><num>(a)</num><content>it is made pursuant to arrangements entered into by the paying company, and</content></level><level class="para1"><num>(b)</num><content>the main purpose, or one of the main purposes, of the paying company in entering into the arrangements was to obtain a deduction or an increased deduction.</content></level></subsection><subsection><num>(6B)</num><content>In subsection (6A) “<term refersTo="#term-arrangements">arrangements</term>” includes any arrangements, scheme or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-42-7"><num>(7)</num><content>The amendments made by subsections (1) to (3) have effect in relation to events taking place on or after 24 March 2010.</content></subsection><subsection eId="section-42-8"><num>(8)</num><content>The amendments made by subsections (4) to (6) have effect in relation to payments made on or after that day.</content></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-38"><num>38</num><heading>Transactions in securities</heading><content>Schedule 12 contains provision about transactions in securities.</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39"><num>39</num><heading>Approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> schemes: eligible shares</heading><subsection eId="section-39-1"><num>(1)</num><content>In Part 4 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (shares to which approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> schemes can apply), omit paragraph 17(1)(c) (shares in a company which is under the control of a listed company).</content></subsection><subsection eId="section-39-2"><num>(2)</num><intro>Accordingly, in that Schedule—</intro><level class="para1" eId="section-39-2-a"><num>(a)</num><intro>in paragraph 17—</intro><level class="para2" eId="section-39-2-a-i"><num>(i)</num><content><mod>after sub-paragraph (1)(a) insert <quotedText>“ or ”</quotedText>,</mod></content></level><level class="para2" eId="section-39-2-a-ii"><num>(ii)</num><content>omit “or” at the end of sub-paragraph (1)(b), and</content></level><level class="para2" eId="section-39-2-a-iii"><num>(iii)</num><content>omit sub-paragraph (2), and</content></level></level><level class="para1" eId="section-39-2-b"><num>(b)</num><content>omit paragraph 20(3)(c) (and the “or” before it).</content></level></subsection><subsection eId="section-39-3"><num>(3)</num><intro>The amendments made by this section—</intro><level class="para1" eId="section-39-3-a"><num>(a)</num><content>come into force on 24 September 2010, and</content></level><level class="para1" eId="section-39-3-b"><num>(b)</num><content>have effect in relation to options granted on or after that day.</content></level></subsection><subsection eId="section-39-4"><num>(4)</num><intro>If—</intro><level class="para1" eId="section-39-4-a"><num>(a)</num><content>during the period beginning with 24 March 2010 and ending with 23 September 2010 (“<term refersTo="#term-the-transitional-period" eId="term-the-transitional-period">the transitional period</term>”), a share option is granted to an individual in accordance with the provisions of an approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme, and</content></level><level class="para1" eId="section-39-4-b"><num>(b)</num><content>the shares which may be acquired by the exercise of the option are shares in a company which is under the control of a listed company, other than shares of a class listed on a recognised stock exchange,</content></level><wrapUp>the share option is to be treated for the purposes of the <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> code as not having been granted in accordance with the provisions of an approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme.</wrapUp></subsection><subsection eId="section-39-5"><num>(5)</num><content>An alteration made to a scheme during the transitional period in order to meet the amended paragraph 17 requirement is to be regarded as an alteration made in a key feature of the scheme for the purposes of paragraph 30 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (withdrawal of approval).</content></subsection><subsection eId="section-39-6"><num>(6)</num><content>Where the amended paragraph 17 requirement is not met in respect of an approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme at the end of the transitional period, the requirement is to be treated for the purposes of paragraph 30(2)(a) of that Schedule (disqualifying events) as ceasing to be met immediately after that time.</content></subsection><subsection eId="section-39-7"><num>(7)</num><content>Where, by virtue of subsection (6), approval is withdrawn from a scheme under Part 7 of that Schedule, that withdrawal has effect (from the time determined in accordance with paragraph 30(1) of that Schedule) in relation to options granted on or after 24 September 2010 only.</content></subsection><subsection eId="section-39-8"><num>(8)</num><content>In subsections (3) to (7) references to options having been granted include new share options granted under the terms of a provision included in a scheme under paragraph 26 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (exchange of shares on company reorganisation); but paragraph 27(5) of that Schedule (new share options treated as granted at same time as old share options) does not apply for the purposes of those subsections.</content></subsection><subsection eId="section-39-9"><num>(9)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-amended-paragraph-17-requirement" eId="term-the-amended-paragraph-17-requirement">the amended paragraph 17 requirement</term>” means the requirement of paragraph 17 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 as amended by this section;</content></hcontainer><hcontainer name="definition"><content>“approved” and “<abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme” have the meaning given by section 521 of that Act;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-control" eId="term-control">control</term>” and “<term refersTo="#term-listed-company" eId="term-listed-company">listed company</term>” have the same meaning as in paragraph 17 of Schedule 4 to that Act.</content></hcontainer></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-1"><num>(1)</num><content>In Part 4 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (shares to which approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> schemes can apply), omit paragraph 17(1)(c) (shares in a company which is under the control of a listed company).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-2"><num>(2)</num><intro>Accordingly, in that Schedule—</intro><level class="para1" eId="section-39-2-a"><num>(a)</num><intro>in paragraph 17—</intro><level class="para2" eId="section-39-2-a-i"><num>(i)</num><content><mod>after sub-paragraph (1)(a) insert <quotedText>“ or ”</quotedText>,</mod></content></level><level class="para2" eId="section-39-2-a-ii"><num>(ii)</num><content>omit “or” at the end of sub-paragraph (1)(b), and</content></level><level class="para2" eId="section-39-2-a-iii"><num>(iii)</num><content>omit sub-paragraph (2), and</content></level></level><level class="para1" eId="section-39-2-b"><num>(b)</num><content>omit paragraph 20(3)(c) (and the “or” before it).</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-39-2-a"><num>(a)</num><intro>in paragraph 17—</intro><level class="para2" eId="section-39-2-a-i"><num>(i)</num><content><mod>after sub-paragraph (1)(a) insert <quotedText>“ or ”</quotedText>,</mod></content></level><level class="para2" eId="section-39-2-a-ii"><num>(ii)</num><content>omit “or” at the end of sub-paragraph (1)(b), and</content></level><level class="para2" eId="section-39-2-a-iii"><num>(iii)</num><content>omit sub-paragraph (2), and</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-39-2-b"><num>(b)</num><content>omit paragraph 20(3)(c) (and the “or” before it).</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-3"><num>(3)</num><intro>The amendments made by this section—</intro><level class="para1" eId="section-39-3-a"><num>(a)</num><content>come into force on 24 September 2010, and</content></level><level class="para1" eId="section-39-3-b"><num>(b)</num><content>have effect in relation to options granted on or after that day.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-4"><num>(4)</num><intro>If—</intro><level class="para1" eId="section-39-4-a"><num>(a)</num><content>during the period beginning with 24 March 2010 and ending with 23 September 2010 (“<term refersTo="#term-the-transitional-period" eId="term-the-transitional-period">the transitional period</term>”), a share option is granted to an individual in accordance with the provisions of an approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme, and</content></level><level class="para1" eId="section-39-4-b"><num>(b)</num><content>the shares which may be acquired by the exercise of the option are shares in a company which is under the control of a listed company, other than shares of a class listed on a recognised stock exchange,</content></level><wrapUp>the share option is to be treated for the purposes of the <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> code as not having been granted in accordance with the provisions of an approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme.</wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-5"><num>(5)</num><content>An alteration made to a scheme during the transitional period in order to meet the amended paragraph 17 requirement is to be regarded as an alteration made in a key feature of the scheme for the purposes of paragraph 30 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (withdrawal of approval).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-6"><num>(6)</num><content>Where the amended paragraph 17 requirement is not met in respect of an approved <abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme at the end of the transitional period, the requirement is to be treated for the purposes of paragraph 30(2)(a) of that Schedule (disqualifying events) as ceasing to be met immediately after that time.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-7"><num>(7)</num><content>Where, by virtue of subsection (6), approval is withdrawn from a scheme under Part 7 of that Schedule, that withdrawal has effect (from the time determined in accordance with paragraph 30(1) of that Schedule) in relation to options granted on or after 24 September 2010 only.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-8"><num>(8)</num><content>In subsections (3) to (7) references to options having been granted include new share options granted under the terms of a provision included in a scheme under paragraph 26 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (exchange of shares on company reorganisation); but paragraph 27(5) of that Schedule (new share options treated as granted at same time as old share options) does not apply for the purposes of those subsections.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-39-9"><num>(9)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-amended-paragraph-17-requirement" eId="term-the-amended-paragraph-17-requirement">the amended paragraph 17 requirement</term>” means the requirement of paragraph 17 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 as amended by this section;</content></hcontainer><hcontainer name="definition"><content>“approved” and “<abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme” have the meaning given by section 521 of that Act;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-control" eId="term-control">control</term>” and “<term refersTo="#term-listed-company" eId="term-listed-company">listed company</term>” have the same meaning as in paragraph 17 of Schedule 4 to that Act.</content></hcontainer></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>“Relevant regulated activity”, “capital resources condition”, “excluded company”, “asset management activities”, “linked entity” etc</heading><paragraph eId="schedule-1-paragraph-44" class="schProv1"><num>44</num><subparagraph eId="schedule-1-paragraph-44-1"><num>(1)</num><intro>“Relevant regulated activity” means an activity which is a regulated activity for the purposes of FISMA 2000 by virtue of any of the following provisions of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<ref eId="c00007" href="http://www.legislation.gov.uk/id/uksi/2001/544">S.I. 2001/544</ref>)—</intro><level class="para1" eId="schedule-1-paragraph-44-1-a"><num>(a)</num><content>article 5 (accepting deposits),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-b"><num>(b)</num><content>article 14 (dealing in investments as principal),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-c"><num>(c)</num><content>article 21 (dealing in investments as agent),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-d"><num>(d)</num><content>article 25 (arranging deals in investments),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-e"><num>(e)</num><content>article 40 (safeguarding and administering investments), and</content></level><level class="para1" eId="schedule-1-paragraph-44-1-f"><num>(f)</num><content>article 61 (entering into regulated mortgage contracts).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-2"><num>(2)</num><content>“The capital resources condition” is that the company has a capital resources requirement of at least £100 million.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-3"><num>(3)</num><intro>But if the company is a member of a group, “the capital resources condition” is that the company and—</intro><level class="para1" eId="schedule-1-paragraph-44-3-a"><num>(a)</num><intro>any other companies which—</intro><level class="para2" eId="schedule-1-paragraph-44-3-a-i"><num>(i)</num><content>are members of the group,</content></level><level class="para2" eId="schedule-1-paragraph-44-3-a-ii"><num>(ii)</num><content>meet either of the conditions in sub-paragraph (4),</content></level><level class="para2" eId="schedule-1-paragraph-44-3-a-iii"><num>(iii)</num><content>are not excluded companies, and</content></level><level class="para2" eId="schedule-1-paragraph-44-3-a-iv"><num>(iv)</num><content>are not members of any partnership within paragraph (b), and</content></level></level><level class="para1" eId="schedule-1-paragraph-44-3-b"><num>(b)</num><intro>any partnership—</intro><level class="para2" eId="schedule-1-paragraph-44-3-b-i"><num>(i)</num><content>the members of which are or include one or more companies that are members of the group and not excluded companies, and</content></level><level class="para2" eId="schedule-1-paragraph-44-3-b-ii"><num>(ii)</num><content>which meets either of those conditions,</content></level></level><wrapUp>have (in aggregate) capital resources requirements of at least that amount.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-44-4"><num>(4)</num><intro>The conditions referred to in sub-paragraph (3) are that the company or partnership—</intro><level class="para1" eId="schedule-1-paragraph-44-4-a"><num>(a)</num><content>is both a BIPRU 730k firm and a full scope BIPRU investment firm, or</content></level><level class="para1" eId="schedule-1-paragraph-44-4-b"><num>(b)</num><content>is a company or partnership which carries on in the United Kingdom activities including the relevant regulated activity described in the provision mentioned in sub-paragraph (1)(a).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-5"><num>(5)</num><content>For the purposes of sub-paragraphs (2) and (3) the capital resources requirement of a company or a partnership is that as at the end of the last period of account of the company or partnership ending no later than the end of the chargeable period.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-6"><num>(6)</num><content>In determining whether the company is a UK resident bank or a relevant foreign bank by virtue of paragraph 43(2) or (4), the references in sub-paragraph (2) to the company are to the partnership.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-7"><num>(7)</num><content>If any company or partnership whose capital resources may be material for the purposes of sub-paragraph (2) or (3) prepares its accounts in a currency other than sterling, the amount of its capital resources at the end of the period of account mentioned in that sub-paragraph is to be translated into its sterling equivalent by reference to the average spot rate of exchange on the day on which that period ends.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-8"><num>(8)</num><content>If any company whose capital resources may be material for the purposes of sub-paragraph (2) or (3) carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom, its capital resources are to be determined as they would be for the purposes of corporation tax (see Chapter 4 of Part 2 of CTA 2009).</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-9"><num>(9)</num><intro>“Excluded company” means a company which is—</intro><level class="para1" eId="schedule-1-paragraph-44-9-a"><num>(a)</num><content>an insurance company or an insurance special purpose vehicle,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-b"><num>(b)</num><content>a company which is a member of a group and does not carry on any relevant regulated activities otherwise than on behalf of an insurance company or insurance special purpose vehicle which is a member of the same group,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-c"><num>(c)</num><content>a company which does not carry on any relevant regulated activities otherwise than as the manager of a pension scheme,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-d"><num>(d)</num><content>an investment trust (within the meaning given by section 1158 of CTA 2010),</content></level><level class="para1" eId="schedule-1-paragraph-44-9-e"><num>(e)</num><content>a company which does not carry on any relevant regulated activities other than asset management activities,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-f"><num>(f)</num><content>an exempt BIPRU commodities firm,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-g"><num>(g)</num><content>a company which does not carry on any relevant regulated activities otherwise than for the purpose of trading in commodities or commodity derivatives,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-h"><num>(h)</num><content>a company which does not carry on any relevant regulated activities otherwise than for the purpose of dealing in contracts for differences as principal with persons all or all but an insignificant proportion of whom are retail clients or of dealing in contracts for differences with another person to enable the company or other person to deal in contracts for differences as principal with such persons,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-i"><num>(i)</num><content>a society incorporated under the Friendly Societies Act 1992,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-j"><num>(j)</num><content>a society registered as a credit union under the Industrial and Provident Societies Act 1965 or the Credit Unions (Northern Ireland) Order 1985 (<ref eId="c00008" href="http://www.legislation.gov.uk/id/nisi/1985/1205">S.I. 1985/1205 (NI 12)</ref>), or</content></level><level class="para1" eId="schedule-1-paragraph-44-9-k"><num>(k)</num><content>a building society.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-10"><num>(10)</num><intro>“Asset management activities” means activities which consist (or, if they were carried on in the United Kingdom, would consist) of any or all of the following—</intro><level class="para1" eId="schedule-1-paragraph-44-10-a"><num>(a)</num><content>acting as the operator of a collective investment scheme (within the meaning of Part 17 of FISMA 2000: see sections 235 and 237 of that Act),</content></level><level class="para1" eId="schedule-1-paragraph-44-10-b"><num>(b)</num><content>acting as a discretionary investment manager for clients none of which is a linked entity, and</content></level><level class="para1" eId="schedule-1-paragraph-44-10-c"><num>(c)</num><content>acting as an authorised corporate director.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-11"><num>(11)</num><intro>“Linked entity”, in relation to a company (“C”), means—</intro><level class="para1" eId="schedule-1-paragraph-44-11-a"><num>(a)</num><content>a member of the same group as C,</content></level><level class="para1" eId="schedule-1-paragraph-44-11-b"><num>(b)</num><content>a company in which a company which is a member of the same group as C has a major interest (within the meaning of Part 5 of CTA 2009: see section 473 of that Act), or</content></level><level class="para1" eId="schedule-1-paragraph-44-11-c"><num>(c)</num><intro>a partnership the members of which include a company—</intro><level class="para2" eId="schedule-1-paragraph-44-11-c-i"><num>(i)</num><content>which is a member of the same group as C, and</content></level><level class="para2" eId="schedule-1-paragraph-44-11-c-ii"><num>(ii)</num><content>whose share of the profits or losses of a trade carried on by the partnership for an accounting period of the partnership any part of which falls within the chargeable period is at least a 40% share (see Part 17 of CTA 2009 for provisions about shares of partnership profits and losses).</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-12"><num>(12)</num><intro>The following have the meanings given in the Handbook of Rules and Guidance made by the Financial Services Authority (as that Handbook has effect from time to time)—</intro><hcontainer name="definition"><content>“authorised corporate director”,</content></hcontainer><hcontainer name="definition"><content>“BIPRU 730k firm”,</content></hcontainer><hcontainer name="definition"><content>“capital resources requirement”,</content></hcontainer><hcontainer name="definition"><content>“contracts for differences”,</content></hcontainer><hcontainer name="definition"><content>“discretionary investment manager”,</content></hcontainer><hcontainer name="definition"><content>“exempt BIPRU commodities firm”,</content></hcontainer><hcontainer name="definition"><content>“full scope BIPRU investment firm”,</content></hcontainer><hcontainer name="definition"><content>“pension scheme”,</content></hcontainer><hcontainer name="definition"><content>“principal”, and</content></hcontainer><hcontainer name="definition"><content>“retail clients”.</content></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-44-13"><num>(13)</num><content>A company which would be a BIPRU 730k firm and a full scope BIPRU investment firm by virtue of activities carried on in the United Kingdom but for the fact that its registered office (or, if it does not have a registered office, its head office) is not in the United Kingdom is to be treated as being one.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-14"><num>(14)</num><content>The Treasury may by order amend this paragraph.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-15"><num>(15)</num><content>An order under this paragraph may be made so as to have effect in relation to any time after the beginning of the chargeable period.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-16"><num>(16)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-17"><num>(17)</num><content>An order under this paragraph may not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, the House of Commons.</content></subparagraph></paragraph></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-37" class="schProv1"><num>37</num><subparagraph eId="schedule-1-paragraph-37-1"><num>(1)</num><intro>Schedule 24 to FA 2007 (penalties for errors) has effect as if in the Table in paragraph 1—</intro><level class="para1" eId="schedule-1-paragraph-37-1-a"><num>(a)</num><content>the list of taxes included bank payroll tax, and</content></level><level class="para1" eId="schedule-1-paragraph-37-1-b"><num>(b)</num><content>the list of documents included a bank payroll tax return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-37-2"><num>(2)</num><content>In relation to bank payroll tax, any reference in that Schedule to a tax period is to the chargeable period within the meaning of this Schedule.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-44" class="schProv1"><num>44</num><subparagraph eId="schedule-1-paragraph-44-1"><num>(1)</num><intro>“Relevant regulated activity” means an activity which is a regulated activity for the purposes of FISMA 2000 by virtue of any of the following provisions of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<ref eId="c00007" href="http://www.legislation.gov.uk/id/uksi/2001/544">S.I. 2001/544</ref>)—</intro><level class="para1" eId="schedule-1-paragraph-44-1-a"><num>(a)</num><content>article 5 (accepting deposits),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-b"><num>(b)</num><content>article 14 (dealing in investments as principal),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-c"><num>(c)</num><content>article 21 (dealing in investments as agent),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-d"><num>(d)</num><content>article 25 (arranging deals in investments),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-e"><num>(e)</num><content>article 40 (safeguarding and administering investments), and</content></level><level class="para1" eId="schedule-1-paragraph-44-1-f"><num>(f)</num><content>article 61 (entering into regulated mortgage contracts).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-2"><num>(2)</num><content>“The capital resources condition” is that the company has a capital resources requirement of at least £100 million.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-3"><num>(3)</num><intro>But if the company is a member of a group, “the capital resources condition” is that the company and—</intro><level class="para1" eId="schedule-1-paragraph-44-3-a"><num>(a)</num><intro>any other companies which—</intro><level class="para2" eId="schedule-1-paragraph-44-3-a-i"><num>(i)</num><content>are members of the group,</content></level><level class="para2" eId="schedule-1-paragraph-44-3-a-ii"><num>(ii)</num><content>meet either of the conditions in sub-paragraph (4),</content></level><level class="para2" eId="schedule-1-paragraph-44-3-a-iii"><num>(iii)</num><content>are not excluded companies, and</content></level><level class="para2" eId="schedule-1-paragraph-44-3-a-iv"><num>(iv)</num><content>are not members of any partnership within paragraph (b), and</content></level></level><level class="para1" eId="schedule-1-paragraph-44-3-b"><num>(b)</num><intro>any partnership—</intro><level class="para2" eId="schedule-1-paragraph-44-3-b-i"><num>(i)</num><content>the members of which are or include one or more companies that are members of the group and not excluded companies, and</content></level><level class="para2" eId="schedule-1-paragraph-44-3-b-ii"><num>(ii)</num><content>which meets either of those conditions,</content></level></level><wrapUp>have (in aggregate) capital resources requirements of at least that amount.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-44-4"><num>(4)</num><intro>The conditions referred to in sub-paragraph (3) are that the company or partnership—</intro><level class="para1" eId="schedule-1-paragraph-44-4-a"><num>(a)</num><content>is both a BIPRU 730k firm and a full scope BIPRU investment firm, or</content></level><level class="para1" eId="schedule-1-paragraph-44-4-b"><num>(b)</num><content>is a company or partnership which carries on in the United Kingdom activities including the relevant regulated activity described in the provision mentioned in sub-paragraph (1)(a).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-5"><num>(5)</num><content>For the purposes of sub-paragraphs (2) and (3) the capital resources requirement of a company or a partnership is that as at the end of the last period of account of the company or partnership ending no later than the end of the chargeable period.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-6"><num>(6)</num><content>In determining whether the company is a UK resident bank or a relevant foreign bank by virtue of paragraph 43(2) or (4), the references in sub-paragraph (2) to the company are to the partnership.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-7"><num>(7)</num><content>If any company or partnership whose capital resources may be material for the purposes of sub-paragraph (2) or (3) prepares its accounts in a currency other than sterling, the amount of its capital resources at the end of the period of account mentioned in that sub-paragraph is to be translated into its sterling equivalent by reference to the average spot rate of exchange on the day on which that period ends.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-8"><num>(8)</num><content>If any company whose capital resources may be material for the purposes of sub-paragraph (2) or (3) carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom, its capital resources are to be determined as they would be for the purposes of corporation tax (see Chapter 4 of Part 2 of CTA 2009).</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-9"><num>(9)</num><intro>“Excluded company” means a company which is—</intro><level class="para1" eId="schedule-1-paragraph-44-9-a"><num>(a)</num><content>an insurance company or an insurance special purpose vehicle,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-b"><num>(b)</num><content>a company which is a member of a group and does not carry on any relevant regulated activities otherwise than on behalf of an insurance company or insurance special purpose vehicle which is a member of the same group,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-c"><num>(c)</num><content>a company which does not carry on any relevant regulated activities otherwise than as the manager of a pension scheme,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-d"><num>(d)</num><content>an investment trust (within the meaning given by section 1158 of CTA 2010),</content></level><level class="para1" eId="schedule-1-paragraph-44-9-e"><num>(e)</num><content>a company which does not carry on any relevant regulated activities other than asset management activities,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-f"><num>(f)</num><content>an exempt BIPRU commodities firm,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-g"><num>(g)</num><content>a company which does not carry on any relevant regulated activities otherwise than for the purpose of trading in commodities or commodity derivatives,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-h"><num>(h)</num><content>a company which does not carry on any relevant regulated activities otherwise than for the purpose of dealing in contracts for differences as principal with persons all or all but an insignificant proportion of whom are retail clients or of dealing in contracts for differences with another person to enable the company or other person to deal in contracts for differences as principal with such persons,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-i"><num>(i)</num><content>a society incorporated under the Friendly Societies Act 1992,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-j"><num>(j)</num><content>a society registered as a credit union under the Industrial and Provident Societies Act 1965 or the Credit Unions (Northern Ireland) Order 1985 (<ref eId="c00008" href="http://www.legislation.gov.uk/id/nisi/1985/1205">S.I. 1985/1205 (NI 12)</ref>), or</content></level><level class="para1" eId="schedule-1-paragraph-44-9-k"><num>(k)</num><content>a building society.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-10"><num>(10)</num><intro>“Asset management activities” means activities which consist (or, if they were carried on in the United Kingdom, would consist) of any or all of the following—</intro><level class="para1" eId="schedule-1-paragraph-44-10-a"><num>(a)</num><content>acting as the operator of a collective investment scheme (within the meaning of Part 17 of FISMA 2000: see sections 235 and 237 of that Act),</content></level><level class="para1" eId="schedule-1-paragraph-44-10-b"><num>(b)</num><content>acting as a discretionary investment manager for clients none of which is a linked entity, and</content></level><level class="para1" eId="schedule-1-paragraph-44-10-c"><num>(c)</num><content>acting as an authorised corporate director.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-11"><num>(11)</num><intro>“Linked entity”, in relation to a company (“C”), means—</intro><level class="para1" eId="schedule-1-paragraph-44-11-a"><num>(a)</num><content>a member of the same group as C,</content></level><level class="para1" eId="schedule-1-paragraph-44-11-b"><num>(b)</num><content>a company in which a company which is a member of the same group as C has a major interest (within the meaning of Part 5 of CTA 2009: see section 473 of that Act), or</content></level><level class="para1" eId="schedule-1-paragraph-44-11-c"><num>(c)</num><intro>a partnership the members of which include a company—</intro><level class="para2" eId="schedule-1-paragraph-44-11-c-i"><num>(i)</num><content>which is a member of the same group as C, and</content></level><level class="para2" eId="schedule-1-paragraph-44-11-c-ii"><num>(ii)</num><content>whose share of the profits or losses of a trade carried on by the partnership for an accounting period of the partnership any part of which falls within the chargeable period is at least a 40% share (see Part 17 of CTA 2009 for provisions about shares of partnership profits and losses).</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-12"><num>(12)</num><intro>The following have the meanings given in the Handbook of Rules and Guidance made by the Financial Services Authority (as that Handbook has effect from time to time)—</intro><hcontainer name="definition"><content>“authorised corporate director”,</content></hcontainer><hcontainer name="definition"><content>“BIPRU 730k firm”,</content></hcontainer><hcontainer name="definition"><content>“capital resources requirement”,</content></hcontainer><hcontainer name="definition"><content>“contracts for differences”,</content></hcontainer><hcontainer name="definition"><content>“discretionary investment manager”,</content></hcontainer><hcontainer name="definition"><content>“exempt BIPRU commodities firm”,</content></hcontainer><hcontainer name="definition"><content>“full scope BIPRU investment firm”,</content></hcontainer><hcontainer name="definition"><content>“pension scheme”,</content></hcontainer><hcontainer name="definition"><content>“principal”, and</content></hcontainer><hcontainer name="definition"><content>“retail clients”.</content></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-44-13"><num>(13)</num><content>A company which would be a BIPRU 730k firm and a full scope BIPRU investment firm by virtue of activities carried on in the United Kingdom but for the fact that its registered office (or, if it does not have a registered office, its head office) is not in the United Kingdom is to be treated as being one.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-14"><num>(14)</num><content>The Treasury may by order amend this paragraph.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-15"><num>(15)</num><content>An order under this paragraph may be made so as to have effect in relation to any time after the beginning of the chargeable period.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-16"><num>(16)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-17"><num>(17)</num><content>An order under this paragraph may not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, the House of Commons.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-47" class="schProv1"><num>47</num><subparagraph eId="schedule-1-paragraph-47-1"><num>(1)</num><intro>“Investment company”—</intro><level class="para1" eId="schedule-1-paragraph-47-1-a"><num>(a)</num><content>means a company whose business consists wholly or mainly of, and the principal part of whose income is derived from, the making of investments, and</content></level><level class="para1" eId="schedule-1-paragraph-47-1-b"><num>(b)</num><content>also includes any savings bank or other bank for savings.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-47-2"><num>(2)</num><content>“UK resident investment company” means an investment company which is resident in the United Kingdom.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-1-paragraph-38-1"><num>(1)</num><intro>Schedule 55 to FA 2009 (penalties for failure to make returns <abbr title="Et cetera" xml:lang="la">etc</abbr>) has effect as if—</intro><level class="para1" eId="schedule-1-paragraph-38-1-a"><num>(a)</num><content>a bank payroll tax return were specified in the Table in paragraph 1 (and bank payroll tax were specified in relation to it), and</content></level><level class="para1" eId="schedule-1-paragraph-38-1-b"><num>(b)</num><content>the reference in paragraph 2 to a return falling within certain items in the Table included a reference to a bank payroll tax return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-38-2"><num>(2)</num><content>Schedule 55 to FA 2009 has effect for the purposes of bank payroll tax in accordance with this paragraph whether or not it has come into force for other purposes.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-1-paragraph-39-1"><num>(1)</num><content>Schedule 56 to FA 2009 (penalties for failure to make payments on time <abbr title="Et cetera" xml:lang="la">etc</abbr>) has effect for the purposes of bank payroll tax as follows.</content></subparagraph><subparagraph eId="schedule-1-paragraph-39-2"><num>(2)</num><intro>The part of the Table in paragraph 1 headed “Principal amounts” has effect as if bank payroll tax were specified in column 2 and, in relation to that tax—</intro><level class="para1" eId="schedule-1-paragraph-39-2-a"><num>(a)</num><content>an amount shown (or treated as shown) in a bank payroll tax return were specified in column 3, and</content></level><level class="para1" eId="schedule-1-paragraph-39-2-b"><num>(b)</num><content>31 August 2010 were specified in column 4.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-39-3"><num>(3)</num><intro>The part of that Table headed “Amounts payable in default of a return being made” has effect as if bank payroll tax were specified in column 2 and, in relation to that tax—</intro><level class="para1" eId="schedule-1-paragraph-39-3-a"><num>(a)</num><content>an amount shown in a determination under paragraph 24 of this Schedule were specified in column 3, and</content></level><level class="para1" eId="schedule-1-paragraph-39-3-b"><num>(b)</num><content>31 August 2010 were specified in column 4.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-39-4"><num>(4)</num><intro>The part of that Table headed “Amount shown to be due in other assessments, determinations, <abbr title="Et cetera" xml:lang="la">etc</abbr>” has effect as if—</intro><level class="para1" eId="schedule-1-paragraph-39-4-a"><num>(a)</num><content>bank payroll tax were a tax falling within any of items 1 to 6, 9 or 10, and</content></level><level class="para1" eId="schedule-1-paragraph-39-4-b"><num>(b)</num><content>an amount shown (or treated as shown) in a bank payroll tax return were an amount falling within any of those items.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-39-5"><num>(5)</num><content>Paragraph 2 (assessments and determinations in default of return) has effect as if the reference in paragraph (a) to a return falling within any item in the Table in Schedule 55 included a reference to a bank payroll tax return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-39-6"><num>(6)</num><content>Paragraph 3 (amount of penalty) has effect as if sub-paragraph (1)(a) included a reference to a payment of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-39-7"><num>(7)</num><content>Schedule 56 to FA 2009 has effect for the purposes of bank payroll tax in accordance with this paragraph whether or not it has come into force for other purposes.</content></subparagraph></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-the-fscs" eId="term-the-fscs">the FSCS</term>” means the Financial Services Compensation Scheme (established under Part 15 of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000);</content></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-1-paragraph-5-1"><num>(1)</num><intro>“<term refersTo="#term-excluded-remuneration" eId="term-excluded-remuneration">Excluded remuneration</term>” means—</intro><level class="para1" eId="schedule-1-paragraph-5-1-a"><num>(a)</num><content>anything which is regular salary or wages or a regular benefit,</content></level><level class="para1" eId="schedule-1-paragraph-5-1-b"><num>(b)</num><content>anything in the case of which a contractual obligation to pay or provide it to or in respect of the employee concerned arose before the beginning of the chargeable period,</content></level><level class="para1" eId="schedule-1-paragraph-5-1-c"><num>(c)</num><content>any shares awarded under an approved share incentive plan (within the meaning of section 488 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003), or</content></level><level class="para1" eId="schedule-1-paragraph-5-1-d"><num>(d)</num><content>any share option granted under an approved <abbr class="acronym" title="Save As You Earn">SAYE</abbr> option scheme (within the meaning of section 516 of that Act).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-2"><num>(2)</num><intro>In sub-paragraph (1)(a) “<term refersTo="#term-regular" eId="term-regular">regular</term>”, in relation to salary or wages or a benefit, means so much of the amount of the salary or wages or benefit as cannot vary according to—</intro><level class="para1" eId="schedule-1-paragraph-5-2-a"><num>(a)</num><intro>the performance of, or of any part of—</intro><level class="para2" eId="schedule-1-paragraph-5-2-a-i"><num>(i)</num><content>any business of the taxable company concerned, or</content></level><level class="para2" eId="schedule-1-paragraph-5-2-a-ii"><num>(ii)</num><content>any business of a person connected with the taxable company,</content></level></level><level class="para1" eId="schedule-1-paragraph-5-2-b"><num>(b)</num><content>the contribution made by the employee concerned to the performance of, or of any part of, any business within paragraph (a)(i) or (ii),</content></level><level class="para1" eId="schedule-1-paragraph-5-2-c"><num>(c)</num><content>the performance by the employee of any of the duties of the employment, or</content></level><level class="para1" eId="schedule-1-paragraph-5-2-d"><num>(d)</num><content>any similar considerations.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-3"><num>(3)</num><intro>For the purposes of sub-paragraph (1)(b) a contractual obligation to pay or provide something to or in respect of the employee does not arise until—</intro><level class="para1" eId="schedule-1-paragraph-5-3-a"><num>(a)</num><content>the amount to be paid or provided is fixed or is capable of becoming fixed without the exercise of discretion by any person, or</content></level><level class="para1" eId="schedule-1-paragraph-5-3-b"><num>(b)</num><content>the total amount of things to be paid or provided to or in respect of a number of employees including the employee is fixed or is capable of becoming fixed without the exercise of discretion by any person.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-4"><num>(4)</num><content>A contractual obligation to pay or provide something is taken to arise for those purposes even if payment or provision of it is dependent on compliance by the employee with any conditions.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-8" class="schProv1"><num>8</num><intro>“The chargeable period” is the period—</intro><level class="para1" eId="schedule-1-paragraph-8-a"><num>(a)</num><content>beginning at 12.30 pm on 9 December 2009, and</content></level><level class="para1" eId="schedule-1-paragraph-8-b"><num>(b)</num><content>ending with 5 April 2010.</content></level></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-1-paragraph-11-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-11-1-a"><num>(a)</num><content>an individual personally performs banking services for a taxable company,</content></level><level class="para1" eId="schedule-1-paragraph-11-1-b"><num>(b)</num><content>the banking services are provided not under a contract directly between the individual and the taxable company but under arrangements involving any other person (“the intermediary”), and</content></level><level class="para1" eId="schedule-1-paragraph-11-1-c"><num>(c)</num><content>the circumstances are such that, if the banking services were provided under a contract directly between the taxable company and the individual, the individual would be a relevant banking employee of the taxable company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-11-2"><num>(2)</num><content>The individual is to be regarded as a relevant banking employee of the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-11-3"><num>(3)</num><content>Anything done by the intermediary in relation to the individual which, if the banking services were provided under a contract directly between the taxable company and the individual, would be regarded as the award of relevant remuneration during the chargeable period to or in respect of the individual (as a relevant banking employee) by reason of the employee's employment as a relevant banking employee is to be so regarded.</content></subparagraph><subparagraph eId="schedule-1-paragraph-11-4"><num>(4)</num><content>“<term refersTo="#term-banking-services" eId="term-banking-services">Banking services</term>” means services which are wholly or mainly concerned (whether directly or indirectly) with activities which are activities to which paragraph 9(3) applies.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-1-paragraph-14-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-14-1-a"><num>(a)</num><content>relevant arrangements are entered into by one or more persons during the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-14-1-b"><num>(b)</num><content>the main purpose, or one of the main purposes, of the person, or any of the persons, in entering into the relevant arrangements is a relevant tax avoidance purpose.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-2"><num>(2)</num><intro>“<term refersTo="#term-relevant-arrangements" eId="term-relevant-arrangements">Relevant arrangements</term>” means arrangements involving either or both of the following—</intro><level class="para1" eId="schedule-1-paragraph-14-2-a"><num>(a)</num><content>the making of a payment of money, or the provision of any money's worth or other benefit, otherwise than during the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-14-2-b"><num>(b)</num><content>the giving otherwise than in the form of relevant remuneration of any reward which equates in substance to relevant remuneration.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-3"><num>(3)</num><intro>A “relevant tax avoidance purpose” is the reduction or elimination of a liability to bank payroll tax which would exist if—</intro><level class="para1" eId="schedule-1-paragraph-14-3-a"><num>(a)</num><content>in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money's worth or other benefit provided, during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-14-3-b"><num>(b)</num><content>in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-4"><num>(4)</num><intro>Liability to bank payroll tax is to be determined as it would have been if—</intro><level class="para1" eId="schedule-1-paragraph-14-4-a"><num>(a)</num><content>in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money's worth or other benefit provided, during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-14-4-b"><num>(b)</num><content>in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-17" class="schProv1"><num>17</num><content>Bank payroll tax is payable by taxable companies on or before 31 August 2010.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-1-paragraph-20-1"><num>(1)</num><content>If a taxable company delivers a bank payroll tax return but fails to include a self-assessment, <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may make the assessment on the company's behalf on the basis of the information contained in it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-20-2"><num>(2)</num><content>The assessment is treated for the purposes of this Schedule as a self-assessment and as included in the return.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-1-paragraph-23-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may enquire into a bank payroll tax return if they give notice to the taxable company of their intention to do so within the time allowed.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-2"><num>(2)</num><content>If the return was delivered on or before 31 August 2010, notice of enquiry may be given at any time on or before 31 August 2011.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-3"><num>(3)</num><content>If the return was delivered after 31 August 2010, notice of enquiry may be given at any time up to and including whichever of 31 January, 30 April, 31 July or 31 October next follows the first anniversary of the day on which the return was delivered.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-4"><num>(4)</num><content>An enquiry extends to anything contained in the return or required to be contained in the return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-5"><num>(5)</num><intro>The following provisions of Schedule 18 to FA 1998 apply to an enquiry into a bank payroll tax return under this Schedule as they apply to an enquiry into a company tax return under that Schedule—</intro><level class="para1" eId="schedule-1-paragraph-23-5-a"><num>(a)</num><content>paragraph 24(4) to (5) (notice of enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-b"><num>(b)</num><content>paragraph 25(2) (enquiry following amendment by company) (but as if the reference there to paragraph 24(2) or (3) were to sub-paragraph (2) or (3) of this paragraph),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-c"><num>(c)</num><content>paragraph 31 (amendment of return by company during enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-d"><num>(d)</num><content>paragraphs 31A to 31D (referral of questions to the tribunal during enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-e"><num>(e)</num><content>paragraph 32(1) (completion of enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-f"><num>(f)</num><content>paragraph 33 (direction to complete enquiry), and</content></level><level class="para1" eId="schedule-1-paragraph-23-5-g"><num>(g)</num><content>paragraph 34 (amendment of return after enquiry).</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-9" class="schProv1"><num>9</num><content>In section 46(3) of FA 1983 (Historic Buildings and Monuments Commission for England) for “a body of persons established for charitable purposes only” substitute “a charitable company”.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-12" class="schProv1"><num>12</num><content>In paragraph 4 of Schedule 5 to FA 1989 (employee share ownership trusts), omit sub-paragraph (10).</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-6-paragraph-15-1"><num>(1)</num><content>Schedule 19 to FA 1999 (stamp duty and stamp duty reserve tax: unit trusts) is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-15-2"><num>(2)</num><intro>In paragraph 6(3)—</intro><level class="para1" eId="schedule-6-paragraph-15-2-a"><num>(a)</num><content>in paragraph (a), for “a body of persons established for charitable purposes only” substitute “a charitable company”, and</content></level><level class="para1" eId="schedule-6-paragraph-15-2-b"><num>(b)</num><content>in paragraph (b), for “a trust established for those purposes only” substitute “a charitable trust”.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-15-3"><num>(3)</num><content>In paragraph 15(c), for “bodies of persons established for charitable purposes only or trustees of trusts so established” substitute “charitable companies or trustees of charitable trusts”.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-18" class="schProv1"><num>18</num><content>Schedule 8 to FA 2003 (SDLT: charities relief) is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-1" class="schProv1"><num>1</num><content>Schedule 24 to FA 2007 (penalties for errors) is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-11" class="schProv1"><num>11</num><content><mod>In section 809S of ITA 2007 (remittance basis: anti-avoidance provisions relating to transfers of mixed funds), for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e16555"><num>(4)</num><intro>Income tax advantage” means—</intro><level class="para1" eId="d25e16561"><num>(a)</num><content>a relief from income tax or increased relief from income tax,</content></level><level class="para1" eId="d25e16567"><num>(b)</num><content>a repayment of income tax or increased repayment of income tax,</content></level><level class="para1" eId="d25e16573"><num>(c)</num><content>the avoidance or reduction of a charge to income tax or an assessment to income tax, or</content></level><level class="para1" eId="d25e16579"><num>(d)</num><content>the avoidance of a possible assessment to income tax;</content></level><wrapUp>and for this purpose “relief from income tax” includes a tax credit.</wrapUp></subsection><subsection eId="d25e16587"><num>(4A)</num><intro>For the purposes of subsection (4)(c) and (d) it does not matter whether the avoidance or reduction is effected—</intro><level class="para1" eId="d25e16593"><num>(a)</num><content>by receipts accruing in such a way that the recipient does not pay or bear income tax on them, or</content></level><level class="para1" eId="d25e16599"><num>(b)</num><content>by a deduction in calculating profits or gains.</content></level></subsection></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-14-paragraph-8" class="schProv1"><num>8</num><content>The amendments made by this Schedule have effect in relation to adjustments made under section 400(2) of CTA 2009 in respect of increases in the retail prices index over periods beginning on or after 9 December 2009.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-15-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-15-paragraph-2-1"><num>(1)</num><content>Chapter 6 of Part 5 of CTA 2009 (connected companies relationships: release of debts etc) is amended as follows.</content></subparagraph><subparagraph eId="schedule-15-paragraph-2-2"><num>(2)</num><content>In section 353(2)(b) (introduction to Chapter), for “except where the release is a deemed release under section 361 or 362” substitute “subject to some exceptions”.</content></subparagraph><subparagraph eId="schedule-15-paragraph-2-3"><num>(3)</num><intro>In section 358 (exclusion of credits on release of connected companies debts: general)—</intro><level class="para1" eId="schedule-15-paragraph-2-3-a"><num>(a)</num><content>in subsection (1)(a), for “a company’s debtor relationship is released,” substitute “a debtor relationship of a company (“D”) is released, and”,</content></level><level class="para1" eId="schedule-15-paragraph-2-3-b"><num>(b)</num><content><mod>in subsection (2), for “The company” substitute “D” and for “it is a deemed release” substitute <quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">—<level class="para1" eId="d25e17795"><num>(a)</num><content>it is a deemed release, or</content></level><level class="para1" eId="d25e17801"><num>(b)</num><content>it is a release of relevant rights.</content></level></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-15-paragraph-2-3-c"><num>(c)</num><content><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17816"><num>(4)</num><intro>For the purposes of this section “relevant rights” means rights of a company (“C”) that—</intro><level class="para1" eId="d25e17822"><num>(a)</num><content>were acquired by C in circumstances that, but for the application of the corporate rescue exception or the debt-for-debt exception, would have resulted in a deemed release under section 361(3), or</content></level><level class="para1" eId="d25e17828"><num>(b)</num><content>were acquired by another company in such circumstances and transferred to C by way of an assignment or assignments.</content></level></subsection><subsection eId="d25e17834"><num>(5)</num><intro>The amount of the credit that D is required to bring into account in respect of a release of relevant rights is—</intro><level class="para1" eId="d25e17840"><num>(a)</num><content>the amount of the discount received on the acquisition, less</content></level><level class="para1" eId="d25e17846"><num>(b)</num><content>the sum of any credits brought into account in respect of that amount (whether in the accounting period in which the release takes place or in a previous accounting period) by C or, in a case within subsection (4)(b), by the company that acquired the rights or any company to which the rights were subsequently assigned.</content></level></subsection><subsection eId="d25e17852"><num>(6)</num><content>A reference in subsection <ref href="#d25e17834">(5)</ref> to the amount of the discount received on the acquisition is to the amount that would have been treated as released under section 361(4) on the acquisition, but for the application of the corporate rescue exception or the debt-for-debt exception.</content></subsection></quotedStructure></mod></content></level></subparagraph><subparagraph eId="schedule-15-paragraph-2-4"><num>(4)</num><intro>In section 361 (acquisition of creditor rights by connected company at undervalue)—</intro><level class="para1" eId="schedule-15-paragraph-2-4-a"><num>(a)</num><content><mod>in subsection (1), for paragraph (f) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e17874"><num>(f)</num><content>no relevant exception applies.</content></level></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-15-paragraph-2-4-b"><num>(b)</num><content><mod>for subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17889"><num>(2)</num><intro>In subsection (1) “relevant exception” means—</intro><level class="para1" eId="d25e17895"><num>(a)</num><content>the corporate rescue exception (see section <ref href="#d25e17932">361A</ref>),</content></level><level class="para1" eId="d25e17904"><num>(b)</num><content>the debt-for-debt exception (see section <ref href="#d25e18008">361B</ref>), or</content></level><level class="para1" eId="d25e17913"><num>(c)</num><content>the equity-for-debt exception (see section <ref href="#d25e18105">361C</ref>).</content></level></subsection></quotedStructure></mod></content></level></subparagraph><subparagraph eId="schedule-15-paragraph-2-5"><num>(5)</num><content><mod>After section 361 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e17932"><num>361A</num><heading>The corporate rescue exception</heading><subsection eId="d25e17936"><num>(1)</num><intro>For the purposes of section 361, the “corporate rescue exception” applies if—</intro><level class="para1" eId="d25e17942"><num>(a)</num><content>the acquisition is an arm’s length transaction,</content></level><level class="para1" eId="d25e17948"><num>(b)</num><content>there has been a change in the ownership of D at any time in the period beginning one year before, and ending 60 days after, the date of the acquisition,</content></level><level class="para1" eId="d25e17954"><num>(c)</num><content>it is reasonable to assume that, but for the change in ownership, D would, within one year of the date of the change of ownership, have met one of the insolvency conditions, and</content></level><level class="para1" eId="d25e17960"><num>(d)</num><content>it is reasonable to assume that, but for the change in ownership, the acquisition would not have been made.</content></level></subsection><subsection eId="d25e17966"><num>(2)</num><content>Subject to subsection <ref href="#d25e17975">(3)</ref>, section 769 of ICTA (rules for ascertaining change in ownership of company) applies for the purpose of construing a reference in this section to a change in the ownership of a company.</content></subsection><subsection eId="d25e17975"><num>(3)</num><intro>A reference in this section to a change in the ownership of a company, in the case of a company that is a building society, is a reference to—</intro><level class="para1" eId="d25e17981"><num>(a)</num><content>an amalgamation of two or more building societies under section 93 of the Building Societies Act 1986,</content></level><level class="para1" eId="d25e17987"><num>(b)</num><content>a transfer of all the engagements of one building society to another under section 94 of that Act, or</content></level><level class="para1" eId="d25e17993"><num>(c)</num><content>a transfer of the whole of the business of a building society to a company under section 97 of that Act.</content></level></subsection><subsection eId="d25e17999"><num>(4)</num><content>Sections 322(6) and 323 (insolvency conditions) apply for the purposes of this section.</content></subsection></section><section eId="d25e18008"><num>361B</num><heading>The debt-for-debt exception</heading><subsection eId="d25e18012"><num>(1)</num><content>For the purposes of section 361, the “debt-for-debt exception” applies if condition 1 or 2 is met.</content></subsection><subsection eId="d25e18018"><num>(2)</num><intro>Condition 1 is that—</intro><level class="para1" eId="d25e18024"><num>(a)</num><content>the acquisition is an arm’s length transaction,</content></level><level class="para1" eId="d25e18030"><num>(b)</num><content>the rights that are acquired are rights under a loan relationship that is represented by a security (“the old security”),</content></level><level class="para1" eId="d25e18036"><num>(c)</num><content>the consideration given by C for the acquisition consists only of a security (“the new security”) representing a loan relationship to which C is a party as debtor, and</content></level><level class="para1" eId="d25e18042"><num>(d)</num><intro>the new security—</intro><level class="para2" eId="d25e18048"><num>(i)</num><content>has the same nominal value as the old security, and</content></level><level class="para2" eId="d25e18054"><num>(ii)</num><content>at the time of the acquisition, has substantially the same market value as the old security.</content></level></level></subsection><subsection eId="d25e18060"><num>(3)</num><intro>Condition 2 is that—</intro><level class="para1" eId="d25e18066"><num>(a)</num><content>the acquisition is an arm’s length transaction,</content></level><level class="para1" eId="d25e18072"><num>(b)</num><content>the rights that are acquired are rights under a loan relationship that is represented by an asset other than a security (“the old unsecured loan”),</content></level><level class="para1" eId="d25e18078"><num>(c)</num><content>the consideration given by C for the acquisition consists only of an asset other than a security (“the new unsecured loan”) representing a loan relationship to which C is a party as debtor, and</content></level><level class="para1" eId="d25e18084"><num>(d)</num><content>the amount of the new unsecured loan, and its terms, are substantially the same as those of the old unsecured loan.</content></level></subsection><subsection eId="d25e18090"><num>(4)</num><content>In this section “market value” has the same meaning as in TCGA 1992 (see sections 272 and 273 of that Act).</content></subsection><subsection eId="d25e18096"><num>(5)</num><content>In determining for the purposes of this section the market value of a security in a case in which the security represents a loan relationship to which section 415 (loan relationships with embedded derivatives) applies, rights or liabilities within subsection (1)(b) of that section are to be treated as comprised in the loan relationship.</content></subsection></section><section eId="d25e18105"><num>361C</num><heading>The equity-for-debt exception</heading><subsection eId="d25e18109"><num>(1)</num><content>For the purposes of section 361 the “equity-for-debt exception” applies if the following two conditions are met.</content></subsection><subsection eId="d25e18115"><num>(2)</num><content>The first condition is that the acquisition is an arm’s length transaction.</content></subsection><subsection eId="d25e18121"><num>(3)</num><intro>The second condition is that the consideration given by C for the acquisition consists only of—</intro><level class="para1" eId="d25e18127"><num>(a)</num><content>shares forming part of the ordinary share capital of C,</content></level><level class="para1" eId="d25e18133"><num>(b)</num><content>shares forming part of the ordinary share capital of a company connected with C, or</content></level><level class="para1" eId="d25e18139"><num>(c)</num><content>an entitlement to shares within paragraph (a) or (b).</content></level></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-15-paragraph-2-6"><num>(6)</num><intro>In section 363—</intro><level class="para1" eId="schedule-15-paragraph-2-6-a"><num>(a)</num><content>in the heading, for “and” substitute “to”, and</content></level><level class="para1" eId="schedule-15-paragraph-2-6-b"><num>(b)</num><content>in subsections (1) and (4), for “and” substitute “to”.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-17-paragraph-9" class="schProv1"><num>9</num><content><mod>After section 313B insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e19953"><num>313C</num><heading>Information provided to introducers</heading><subsection eId="d25e19957"><num>(1)</num><intro>Where HMRC suspect—</intro><level class="para1" eId="d25e19963"><num>(a)</num><content>that a person (“P”) is an introducer in relation to a proposal, and</content></level><level class="para1" eId="d25e19969"><num>(b)</num><content>that the proposal may be notifiable,</content></level><wrapUp>they may by written notice require P to provide HMRC with prescribed information in relation to each person who has provided P with any information relating to the proposal.</wrapUp></subsection><subsection eId="d25e19977"><num>(2)</num><content>A notice must specify the proposal to which it relates.</content></subsection><subsection eId="d25e19983"><num>(3)</num><intro>P must comply with a requirement under or by virtue of subsection (1) within—</intro><level class="para1" eId="d25e19989"><num>(a)</num><content>the prescribed period, or</content></level><level class="para1" eId="d25e19995"><num>(b)</num><content>such longer period as HMRC may direct.</content></level></subsection></section></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-19" class="schProv1"><num>19</num><content>In paragraph 1 (charities relief), omit sub-paragraph (4).</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-2" class="schProv1"><num>2</num><content><mod>For paragraph 4 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><paragraph eId="d25e14114" class="schProv1"><num>4</num><subparagraph eId="d25e14118"><num>(1)</num><content>This paragraph sets out the penalty payable under paragraph 1.</content></subparagraph><subparagraph eId="d25e14124"><num>(2)</num><intro>If the inaccuracy is in category 1, the penalty is—</intro><level class="para1" eId="d25e14130"><num>(a)</num><content>for careless action, 30% of the potential lost revenue,</content></level><level class="para1" eId="d25e14136"><num>(b)</num><content>for deliberate but not concealed action, 70% of the potential lost revenue, and</content></level><level class="para1" eId="d25e14142"><num>(c)</num><content>for deliberate and concealed action, 100% of the potential lost revenue.</content></level></subparagraph><subparagraph eId="d25e14148"><num>(3)</num><intro>If the inaccuracy is in category 2, the penalty is—</intro><level class="para1" eId="d25e14154"><num>(a)</num><content>for careless action, 45% of the potential lost revenue,</content></level><level class="para1" eId="d25e14160"><num>(b)</num><content>for deliberate but not concealed action, 105% of the potential lost revenue, and</content></level><level class="para1" eId="d25e14166"><num>(c)</num><content>for deliberate and concealed action, 150% of the potential lost revenue.</content></level></subparagraph><subparagraph eId="d25e14172"><num>(4)</num><intro>If the inaccuracy is in category 3, the penalty is—</intro><level class="para1" eId="d25e14178"><num>(a)</num><content>for careless action, 60% of the potential lost revenue,</content></level><level class="para1" eId="d25e14184"><num>(b)</num><content>for deliberate but not concealed action, 140% of the potential lost revenue, and</content></level><level class="para1" eId="d25e14190"><num>(c)</num><content>for deliberate and concealed action, 200% of the potential lost revenue.</content></level></subparagraph><subparagraph eId="d25e14196"><num>(5)</num><content>Paragraph 4A explains the 3 categories of inaccuracy.</content></subparagraph></paragraph><paragraph eId="d25e14202" class="schProv1"><num>4A</num><subparagraph eId="d25e14206"><num>(1)</num><intro>An inaccuracy is in category 1 if—</intro><level class="para1" eId="d25e14212"><num>(a)</num><content>it involves a domestic matter, or</content></level><level class="para1" eId="d25e14218"><num>(b)</num><intro>it involves an offshore matter and—</intro><level class="para2" eId="d25e14224"><num>(i)</num><content>the territory in question is a category 1 territory, or</content></level><level class="para2" eId="d25e14230"><num>(ii)</num><content>the tax at stake is a tax other than income tax or capital gains tax.</content></level></level></subparagraph><subparagraph eId="d25e14236"><num>(2)</num><intro>An inaccuracy is in category 2 if—</intro><level class="para1" eId="d25e14242"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1" eId="d25e14248"><num>(b)</num><content>the territory in question is a category 2 territory, and</content></level><level class="para1" eId="d25e14254"><num>(c)</num><content>the tax at stake is income tax or capital gains tax.</content></level></subparagraph><subparagraph eId="d25e14260"><num>(3)</num><intro>An inaccuracy is in category 3 if—</intro><level class="para1" eId="d25e14266"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1" eId="d25e14272"><num>(b)</num><content>the territory in question is a category 3 territory, and</content></level><level class="para1" eId="d25e14278"><num>(c)</num><content>the tax at stake is income tax or capital gains tax.</content></level></subparagraph><subparagraph eId="d25e14284"><num>(4)</num><intro>An inaccuracy “involves an offshore matter” if it results in a potential loss of revenue that is charged on or by reference to—</intro><level class="para1" eId="d25e14290"><num>(a)</num><content>income arising from a source in a territory outside the UK,</content></level><level class="para1" eId="d25e14296"><num>(b)</num><content>assets situated or held in a territory outside the UK,</content></level><level class="para1" eId="d25e14302"><num>(c)</num><content>activities carried on wholly or mainly in a territory outside the UK, or</content></level><level class="para1" eId="d25e14308"><num>(d)</num><content>anything having effect as if it were income, assets or activities of a kind described above.</content></level></subparagraph><subparagraph eId="d25e14314"><num>(5)</num><content>An inaccuracy “involves a domestic matter” if it results in a potential loss of revenue that is charged on or by reference to anything not mentioned in sub-paragraph (4)(a) to (d).</content></subparagraph><subparagraph eId="d25e14320"><num>(6)</num><intro>If a single inaccuracy is in more than one category (each referred to as a “relevant category”)—</intro><level class="para1" eId="d25e14326"><num>(a)</num><content>it is to be treated for the purposes of this Schedule as if it were separate inaccuracies, one in each relevant category according to the matters that it involves, and</content></level><level class="para1" eId="d25e14332"><num>(b)</num><content>the potential lost revenue is to be calculated separately in respect of each separate inaccuracy.</content></level></subparagraph><subparagraph eId="d25e14338"><num>(7)</num><content>“Category 1 territory”, “category 2 territory” and “category 3 territory” are defined in paragraph 21A.</content></subparagraph><subparagraph eId="d25e14344"><num>(8)</num><content>“Assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling.</content></subparagraph></paragraph><paragraph eId="d25e14350" class="schProv1"><num>4B</num><content>The penalty payable under paragraph 1A is 100% of the potential lost revenue.</content></paragraph><paragraph eId="d25e14356" class="schProv1"><num>4C</num><content>The penalty payable under paragraph 2 is 30% of the potential lost revenue.</content></paragraph><paragraph eId="d25e14362" class="schProv1"><num>4D</num><content>Paragraphs 5 to 8 define “potential lost revenue”.</content></paragraph></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1999/xhtml" xmlns:fo="http://www.w3.org/1999/XSL/Format" eId="schedule-12-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-12-paragraph-12-1"><num>(1)</num><content>Schedule 4 to that Act (index of defined expressions) is amended as follows.</content></subparagraph><subparagraph eId="schedule-12-paragraph-12-2"><num>(2)</num><content>After the definition of “close company” insert—<tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml" xmlns:leg="http://www.legislation.gov.uk/namespaces/legislation"><default:col span="1" style="width:69%"/><default:col span="1" style="width:31%"/><default:tbody><default:tr><default:td>“close company (in Chapter 1 of Part 13)</default:td><default:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section 713”.</default:td></default:tr></default:tbody></default:table></foreign></tblock></content></subparagraph><subparagraph eId="schedule-12-paragraph-12-3"><num>(3)</num><content>In the entry relating to “income tax advantage (in Chapter 1 of Part 13)”, for “683(1)” substitute “687”.</content></subparagraph><subparagraph eId="schedule-12-paragraph-12-4"><num>(4)</num><content>In the entry relating to “transaction in securities (in Chapter 1 of Part 13)”, for “713” substitute “684(2)”.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-20" class="schProv1"><num>20</num><content>In paragraph 4 (charitable trusts), in sub-paragraph (2), omit “and “charity” has the same meaning as in paragraph 1”.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-13" class="schProv1"><num>13</num><content>In FA 2007, in Schedule 26, omit paragraph 12(11).</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-4" class="schProv1"><num>4</num><content><mod>In paragraph 12 (interaction with other penalties), for sub-paragraph (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e14489"><num>(4)</num><content>Where penalties are imposed under paragraphs 1 and 1A in respect of the same inaccuracy, the aggregate of the amounts of the penalties must not exceed the relevant percentage of the potential lost revenue.</content></subparagraph><subparagraph eId="d25e14495"><num>(5)</num><intro>The relevant percentage is—</intro><level class="para1" eId="d25e14501"><num>(a)</num><content>if the penalty imposed under paragraph 1 is for an inaccuracy in category 1, 100%,</content></level><level class="para1" eId="d25e14507"><num>(b)</num><content>if the penalty imposed under paragraph 1 is for an inaccuracy in category 2, 150%, and</content></level><level class="para1" eId="d25e14513"><num>(c)</num><content>if the penalty imposed under paragraph 1 is for an inaccuracy in category 3, 200%.</content></level></subparagraph></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-14" class="schProv1"><num>14</num><content>In CTA 2010, in Schedule 1, omit paragraphs 545 and 546.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-5" class="schProv1"><num>5</num><content><mod>In Part 5 (general), before the heading “Interpretation” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7" eId="d25e14526"><heading>Classification of territories</heading><paragraph eId="d25e14529" class="schProv1"><num>21A</num><subparagraph eId="d25e14533"><num>(1)</num><content>A category 1 territory is a territory designated as a category 1 territory by order made by the Treasury.</content></subparagraph><subparagraph eId="d25e14539"><num>(2)</num><intro>A category 2 territory is a territory that is neither—</intro><level class="para1" eId="d25e14545"><num>(a)</num><content>a category 1 territory, nor</content></level><level class="para1" eId="d25e14551"><num>(b)</num><content>a category 3 territory.</content></level></subparagraph><subparagraph eId="d25e14557"><num>(3)</num><content>A category 3 territory is a territory designated as a category 3 territory by order made by the Treasury.</content></subparagraph><subparagraph eId="d25e14563"><num>(4)</num><intro>In considering how to classify a territory for the purposes of this paragraph, the Treasury must have regard to—</intro><level class="para1" eId="d25e14569"><num>(a)</num><content>the existence of any arrangements between the UK and that territory for the exchange of information for tax enforcement purposes,</content></level><level class="para1" eId="d25e14575"><num>(b)</num><content>the quality of any such arrangements (in particular, whether they provide for information to be exchanged automatically or on request), and</content></level><level class="para1" eId="d25e14581"><num>(c)</num><content>the benefit that the UK would be likely to obtain from receiving information from that territory, were such arrangements to exist with it.</content></level></subparagraph><subparagraph eId="d25e14587"><num>(5)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph><subparagraph eId="d25e14593"><num>(6)</num><content>Subject to sub-paragraph (7), an instrument containing an order under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.</content></subparagraph><subparagraph eId="d25e14599"><num>(7)</num><intro>If the order is—</intro><level class="para1" eId="d25e14605"><num>(a)</num><content>the first order to be made under sub-paragraph (1), or</content></level><level class="para1" eId="d25e14611"><num>(b)</num><content>the first order to be made under sub-paragraph (3),</content></level><wrapUp>it may not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, the House of Commons.</wrapUp></subparagraph><subparagraph eId="d25e14619"><num>(8)</num><content>An order under this paragraph does not apply to inaccuracies in a document given to HMRC (or, in a case within paragraph 3(2), inaccuracies discovered by P) before the date on which the order comes into force.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e14625"><heading>Location of assets etc</heading><paragraph eId="d25e14628" class="schProv1"><num>21B</num><subparagraph eId="d25e14632"><num>(1)</num><intro>The Treasury may by regulations make provision for determining for the purposes of paragraph 4A where—</intro><level class="para1" eId="d25e14638"><num>(a)</num><content>a source of income is located,</content></level><level class="para1" eId="d25e14644"><num>(b)</num><content>an asset is situated or held, or</content></level><level class="para1" eId="d25e14650"><num>(c)</num><content>activities are wholly or mainly carried on.</content></level></subparagraph><subparagraph eId="d25e14656"><num>(2)</num><content>Different provision may be made for different cases and for income tax and capital gains tax.</content></subparagraph><subparagraph eId="d25e14662"><num>(3)</num><content>Regulations under this paragraph are to be made by statutory instrument.</content></subparagraph><subparagraph eId="d25e14668"><num>(4)</num><content>An instrument containing regulations under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.</content></subparagraph></paragraph></hcontainer></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-6" class="schProv1"><num>6</num><content><mod>After paragraph 23A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><paragraph eId="d25e14681" class="schProv1"><num>23B</num><content>UK” means the United Kingdom, including the territorial sea of the United Kingdom.</content></paragraph></quotedStructure></mod></content></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“control” and “listed company” have the same meaning as in paragraph 17 of Schedule 4 to that Act.</content></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-40"><num><noteRef href="#key-01ae7194ff30870eabcee8b7f920ab71" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>40</num><heading>Unauthorised unit trusts</heading><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-41"><num>41</num><heading>Index-linked gilt-edged securities</heading><content>Schedule 14 contains provision about index-linked gilt-edged securities.</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-42"><num>42</num><heading>Approved share incentive plans</heading><subsection eId="section-42-1"><num>(1)</num><content>Paragraph 84(1) of Schedule 2 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (approved share incentive plans) is amended as follows.</content></subsection><subsection eId="section-42-2"><num>(2)</num><content><mod>For paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><intro>an alteration being made—</intro><level class="para2"><num>(i)</num><content>in the share capital of a company any of whose shares are subject to the plan trust, or</content></level><level class="para2"><num>(ii)</num><content>in the rights attaching to any shares of such a company,</content></level><wrapUp>that materially affects the value of shares that are subject to the plan trust;</wrapUp></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-42-3"><num>(3)</num><content><mod>In paragraph (e), for “have been awarded to participants” substitute <quotedText>“ are subject to the plan trust ”</quotedText>.</mod></content></subsection><subsection eId="section-42-4"><num>(4)</num><content>Section 989 of CTA 2009 (deduction for contribution to plan trust) is amended as follows.</content></subsection><subsection eId="section-42-5"><num>(5)</num><content><mod>In subsection (1), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content>the payment is not made pursuant to tax avoidance arrangements,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-42-6"><num>(6)</num><content><mod>After subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro>For the purposes of this section the payment mentioned in subsection (1)(a) is made pursuant to tax avoidance arrangements if—</intro><level class="para1"><num>(a)</num><content>it is made pursuant to arrangements entered into by the paying company, and</content></level><level class="para1"><num>(b)</num><content>the main purpose, or one of the main purposes, of the paying company in entering into the arrangements was to obtain a deduction or an increased deduction.</content></level></subsection><subsection><num>(6B)</num><content>In subsection (6A) “<term refersTo="#term-arrangements">arrangements</term>” includes any arrangements, scheme or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-42-7"><num>(7)</num><content>The amendments made by subsections (1) to (3) have effect in relation to events taking place on or after 24 March 2010.</content></subsection><subsection eId="section-42-8"><num>(8)</num><content>The amendments made by subsections (4) to (6) have effect in relation to payments made on or after that day.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-1"><num>(1)</num><content>Paragraph 84(1) of Schedule 2 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (approved share incentive plans) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-42-2"><num>(2)</num><content><mod>For paragraph (d) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(d)</num><intro>an alteration being made—</intro><level class="para2"><num>(i)</num><content>in the share capital of a company any of whose shares are subject to the plan trust, or</content></level><level class="para2"><num>(ii)</num><content>in the rights attaching to any shares of such a company,</content></level><wrapUp>that materially affects the value of shares that are subject to the plan trust;</wrapUp></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-3"><num>(3)</num><content><mod>In paragraph (e), for “have been awarded to participants” substitute <quotedText>“ are subject to the plan trust ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-4"><num>(4)</num><content>Section 989 of CTA 2009 (deduction for contribution to plan trust) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-42-5"><num>(5)</num><content><mod>In subsection (1), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content>the payment is not made pursuant to tax avoidance arrangements,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-42-6"><num>(6)</num><content><mod>After subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><intro>For the purposes of this section the payment mentioned in subsection (1)(a) is made pursuant to tax avoidance arrangements if—</intro><level class="para1"><num>(a)</num><content>it is made pursuant to arrangements entered into by the paying company, and</content></level><level class="para1"><num>(b)</num><content>the main purpose, or one of the main purposes, of the paying company in entering into the arrangements was to obtain a deduction or an increased deduction.</content></level></subsection><subsection><num>(6B)</num><content>In subsection (6A) “<term refersTo="#term-arrangements">arrangements</term>” includes any arrangements, scheme or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-7"><num>(7)</num><content>The amendments made by subsections (1) to (3) have effect in relation to events taking place on or after 24 March 2010.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-42-8"><num>(8)</num><content>The amendments made by subsections (4) to (6) have effect in relation to payments made on or after that day.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-loan-relationships-and-derivative-contracts"><heading>Loan relationships and derivative contracts</heading><section eId="section-43"><num>43</num><heading>Close companies: release of loans to participators <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-43-1"><num>(1)</num><content><mod>In CTA 2009, after section 321 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>321A</num><heading>Restriction on debits resulting from release of loans to participators <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><intro>This section applies if—</intro><level class="para1"><num>(a)</num><content>a loan gives rise to a charge to tax under section 455 of CTA 2010 (including a charge by virtue of section 459 or 460 of that Act), and</content></level><level class="para1"><num>(b)</num><content>the whole or a part of the debt in respect of the loan is released or written off.</content></level></subsection><subsection><num>(2)</num><content>No debit is to be brought into account for the purposes of this Part in respect of the release or writing off.</content></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-43-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to debts (or parts of debts) released or written off on or after 24 March 2010.</content></subsection></section><section eId="section-44"><num>44</num><heading>Connected companies: releases of debts</heading><content>Schedule 15 contains provision about releases of debts in cases involving connected companies.</content></section><section eId="section-45"><num>45</num><heading>Relationships treated as loan relationships <abbr title="Et cetera" xml:lang="la">etc</abbr>: repos</heading><subsection eId="section-45-1"><num>(1)</num><content><mod>In paragraph 4 of Schedule 13 to FA 2007 (ignoring effect on borrower of sale of securities), in sub-paragraph (4) omit the “and” at the end of paragraph (a) and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(aa)</num><content>an amount representative of income payable in respect of the securities is not to be ignored as a result of sub-paragraph (3)(b) if it is, in accordance with generally accepted accounting practice, so recognised or taken into account, and</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-45-2"><num>(2)</num><intro>In section 550 of CTA 2009 (ignoring effect on borrower of sale of securities)—</intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><mod>in subsection (4), for “and (6)” substitute <quotedText>“ to (6) ”</quotedText>, and</mod></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><mod>after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro>For the purposes of the charge to corporation tax, an amount representative of income payable in respect of the securities is not to be ignored as a result of subsection (3)(b) if—</intro><level class="para1"><num>(a)</num><content>it is, in accordance with generally accepted accounting practice, recognised in determining the borrower's profit or loss for that or any other period, or</content></level><level class="para1"><num>(b)</num><content>it is taken into account in calculating the amounts which are so recognised.</content></level></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-45-3"><num>(3)</num><content>The amendments made by this section are treated as always having had effect.</content></subsection></section><section eId="section-46"><num>46</num><heading>Risk transfer schemes</heading><content>Schedule 16 contains provision about risk transfer schemes.</content></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-43"><num>43</num><heading>Close companies: release of loans to participators <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-43-1"><num>(1)</num><content><mod>In CTA 2009, after section 321 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>321A</num><heading>Restriction on debits resulting from release of loans to participators <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><intro>This section applies if—</intro><level class="para1"><num>(a)</num><content>a loan gives rise to a charge to tax under section 455 of CTA 2010 (including a charge by virtue of section 459 or 460 of that Act), and</content></level><level class="para1"><num>(b)</num><content>the whole or a part of the debt in respect of the loan is released or written off.</content></level></subsection><subsection><num>(2)</num><content>No debit is to be brought into account for the purposes of this Part in respect of the release or writing off.</content></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-43-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to debts (or parts of debts) released or written off on or after 24 March 2010.</content></subsection></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-44"><num>44</num><heading>Connected companies: releases of debts</heading><content>Schedule 15 contains provision about releases of debts in cases involving connected companies.</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-45"><num>45</num><heading>Relationships treated as loan relationships <abbr title="Et cetera" xml:lang="la">etc</abbr>: repos</heading><subsection eId="section-45-1"><num>(1)</num><content><mod>In paragraph 4 of Schedule 13 to FA 2007 (ignoring effect on borrower of sale of securities), in sub-paragraph (4) omit the “and” at the end of paragraph (a) and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(aa)</num><content>an amount representative of income payable in respect of the securities is not to be ignored as a result of sub-paragraph (3)(b) if it is, in accordance with generally accepted accounting practice, so recognised or taken into account, and</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection><subsection eId="section-45-2"><num>(2)</num><intro>In section 550 of CTA 2009 (ignoring effect on borrower of sale of securities)—</intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><mod>in subsection (4), for “and (6)” substitute <quotedText>“ to (6) ”</quotedText>, and</mod></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><mod>after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro>For the purposes of the charge to corporation tax, an amount representative of income payable in respect of the securities is not to be ignored as a result of subsection (3)(b) if—</intro><level class="para1"><num>(a)</num><content>it is, in accordance with generally accepted accounting practice, recognised in determining the borrower's profit or loss for that or any other period, or</content></level><level class="para1"><num>(b)</num><content>it is taken into account in calculating the amounts which are so recognised.</content></level></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-45-3"><num>(3)</num><content>The amendments made by this section are treated as always having had effect.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-45-1"><num>(1)</num><content><mod>In paragraph 4 of Schedule 13 to FA 2007 (ignoring effect on borrower of sale of securities), in sub-paragraph (4) omit the “and” at the end of paragraph (a) and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><level class="para1"><num>(aa)</num><content>an amount representative of income payable in respect of the securities is not to be ignored as a result of sub-paragraph (3)(b) if it is, in accordance with generally accepted accounting practice, so recognised or taken into account, and</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-45-2"><num>(2)</num><intro>In section 550 of CTA 2009 (ignoring effect on borrower of sale of securities)—</intro><level class="para1" eId="section-45-2-a"><num>(a)</num><content><mod>in subsection (4), for “and (6)” substitute <quotedText>“ to (6) ”</quotedText>, and</mod></content></level><level class="para1" eId="section-45-2-b"><num>(b)</num><content><mod>after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro>For the purposes of the charge to corporation tax, an amount representative of income payable in respect of the securities is not to be ignored as a result of subsection (3)(b) if—</intro><level class="para1"><num>(a)</num><content>it is, in accordance with generally accepted accounting practice, recognised in determining the borrower's profit or loss for that or any other period, or</content></level><level class="para1"><num>(b)</num><content>it is taken into account in calculating the amounts which are so recognised.</content></level></subsection></quotedStructure></mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-45-3"><num>(3)</num><content>The amendments made by this section are treated as always having had effect.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-46"><num>46</num><heading>Risk transfer schemes</heading><content>Schedule 16 contains provision about risk transfer schemes.</content></section>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-insurance-companies"><heading>Insurance companies</heading><section eId="section-47"><num><noteRef href="#key-032aee3decfb220b957de43ce16aed7c" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>47</num><heading>Apportionment of asset value increases</heading><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-47"><num><noteRef href="#key-032aee3decfb220b957de43ce16aed7c" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>47</num><heading>Apportionment of asset value increases</heading><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-47-1"><num>(1)</num><content><mod>In Chapter 1 of Part 12 of ICTA (insurance companies etc), after section 432C insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e3077"><num>432CA</num><heading>Apportionment of asset value increase where line 51 amount decreases</heading><subsection eId="d25e3081"><num>(1)</num><intro>This section applies where—</intro><level class="para1" eId="d25e3087"><num>(a)</num><content>an insurance company is not a non-profit company in relation to a period of account (“the current period of account”),</content></level><level class="para1" eId="d25e3093"><num>(b)</num><content>in the case of any business with which an account of the company for the current period of account is concerned (“the relevant business”), an amount is a relevant brought into account amount for that period of account (see subsection (2)),</content></level><level class="para1" eId="d25e3099"><num>(c)</num><content>section 432C applies for determining the extent to which the relevant brought into account amount is referable to life assurance business or to gross roll-up business, and</content></level><level class="para1" eId="d25e3105"><num>(d)</num><content>the line 51 reduction condition is met (see subsection (3)).</content></level></subsection><subsection eId="d25e3111"><num>(2)</num><intro>An amount is a relevant brought into account amount for a period of account if—</intro><level class="para1" eId="d25e3117"><num>(a)</num><content>it is brought into account as mentioned in subsection (2)(b) of section 83 of the Finance Act 1989 (increases in value of non-linked assets) for that period,</content></level><level class="para1" eId="d25e3123"><num>(b)</num><content>it is deemed to be brought into account for that period by subsection (2B) of that section in consequence of the transfer of non-linked assets, or</content></level><level class="para1" eId="d25e3129"><num>(c)</num><content>it is taken into account under subsection (2) of that section for that period by virtue of section 444AB as being the relevant amount in relation to non-linked assets.</content></level></subsection><subsection eId="d25e3135"><num>(3)</num><intro>The line 51 reduction condition is met if—</intro><level class="para1" eId="d25e3141"><num>(a)</num><content>the amount shown in column 1 of line 51 of Form 14 of the company’s periodical return in respect of the relevant business for the current period of account, is less than</content></level><level class="para1" eId="d25e3147"><num>(b)</num><content>the amount so shown for the period of account immediately before it;</content></level><wrapUp>and the amount of the difference is “the relevant reduction”.</wrapUp></subsection><subsection eId="d25e3155"><num>(4)</num><content>Section 432C applies in relation to so much of the relevant brought into account amount as does not exceed the relevant reduction (“the affected amount”) as if it were brought into account as an increase in the value of assets in the case of the relevant business for the applicable appropriate period of account of the company.</content></subsection><subsection eId="d25e3161"><num>(5)</num><intro>A period of account is an “appropriate period of account” if it ended before the current period of account and—</intro><level class="para1" eId="d25e3167"><num>(a)</num><content>the amount shown in column 1 of line 51 of Form 14 of the company’s periodical return in respect of the relevant business for it, was more than</content></level><level class="para1" eId="d25e3173"><num>(b)</num><content>the amount so shown for the period of account immediately before it;</content></level><wrapUp>and the amount of the difference is “the relevant increase.”</wrapUp></subsection><subsection eId="d25e3181"><num>(6)</num><content>The “applicable” appropriate period of account is the one which ended most recently (“the most recent appropriate period of account”).</content></subsection><subsection eId="d25e3187"><num>(7)</num><content>But if the relevant increase in the case of the most recent appropriate period of account is less than the affected amount, the most recent appropriate period of account is the applicable appropriate period of account in relation to only so much of the affected amount as does not exceed that relevant increase.</content></subsection><subsection eId="d25e3193"><num>(8)</num><content>In that case, the appropriate period of account which ended most recently before the most recent appropriate period of account is the applicable appropriate period of account in relation to so much of the remainder as does not exceed the relevant increase in the case of that appropriate period of account (and, where necessary, so on until the applicable appropriate period of account is established in relation to all of the affected amount or there are no more appropriate periods of account).</content></subsection><subsection eId="d25e3199"><num>(9)</num><content>If the current period of account is not the first in relation to which this section has applied in the case of the business concerned, the amount of the relevant increase in the case of any appropriate period of account (“the period in question”) is to be treated as reduced by the relevant aggregate.</content></subsection><subsection eId="d25e3205"><num>(10)</num><content>The “relevant aggregate” is the aggregate of so much of the affected amount for any period or periods of account earlier than the current period of account as was an amount to which section 432C applied as if it were brought into account as mentioned in subsection (4) for the period in question.</content></subsection><subsection eId="d25e3211"><num>(11)</num><content>For the purposes of this section an insurance company which has elected under section 83YA(9) of the Finance Act 1989 (changes in value of assets brought into account: non-profit companies) to be treated as a non-profit company in relation to a period of account is to be regarded as a non-profit company in relation to the period of account.</content></subsection></section></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-2"><num>(2)</num><content>The amendment made by subsection (1) has effect if the current period of account is a period of account beginning on or after 9 December 2009.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-3"><num>(3)</num><content>No period of account beginning before that date counts as an appropriate period of account for the purposes of section 432CA of ICTA.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-47-4"><num>(4)</num><content>But where the operation of that section does not establish the applicable appropriate period of account in relation to all or any of the affected amount (“the unallocated amount”), section 432C of ICTA applies in relation to the unallocated amount as if it were brought into account as an increase in the value of assets in the case of the relevant business for the last period of account beginning before 9 December 2009.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-pensions"><heading>Pensions</heading><section eId="section-48"><num>48</num><heading>Extension of special annual allowance charge</heading><subsection eId="section-48-1"><num>(1)</num><content>Schedule 35 to FA 2009 (special annual allowance charge) is amended as follows.</content></subsection><subsection eId="section-48-2"><num>(2)</num><intro>In paragraph 1(2) (high-income individual)—</intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content><mod>in the first sentence, for “£150,000” substitute <quotedText>“ £130,000 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-48-2-b"><num>(b)</num><content><mod>insert at the end—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">Paragraph 16A makes special provision about cases in which the individual's relevant income for the tax year 2009-10 is less than £150,000.</quotedStructure></mod></content></level></subsection><subsection eId="section-48-3"><num>(3)</num><intro>In paragraph 2 (calculation of relevant income)—</intro><level class="para1" eId="section-48-3-a"><num>(a)</num><content>in the last sentence of sub-paragraph (1),</content></level><level class="para1" eId="section-48-3-b"><num>(b)</num><content>in sub-paragraph (2) (in each place), and</content></level><level class="para1" eId="section-48-3-c"><num>(c)</num><content>in sub-paragraph (3) (in both places),</content></level><wrapUp><mod>for “£150,000” substitute <quotedText>“ £130,000 ”</quotedText>.</mod></wrapUp></subsection><subsection eId="section-48-4"><num>(4)</num><content><mod>After sub-paragraph (5) of that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(5A)</num><intro>If—</intro><level class="para1"><num>(a)</num><content>the individual's relevant income for the tax year (whether that is the tax year 2009-10 or a later tax year) would (apart from this sub-paragraph) be less than £130,000 if the reference in sub-paragraph (5) to a scheme made on or after 22 April 2009 were to a scheme made on or after 9 December 2009, and</content></level><level class="para1"><num>(b)</num><content>the individual's relevant income for the tax year 2009-10 is less than £150,000,</content></level><wrapUp>the individual's relevant income for the tax year is to be assumed to be less than £130,000.</wrapUp></subsection></quotedStructure></mod></content></subsection><subsection eId="section-48-5"><num>(5)</num><content><mod>In paragraph 11(3)(b), after “22 April” insert <quotedText>“ 2009 ”</quotedText>.</mod></content></subsection><subsection eId="section-48-6"><num>(6)</num><content><mod>After paragraph 16 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><section><num>16A</num><heading>Individuals with relevant income below £150,000 in 2009-10</heading><hcontainer name="wrapper2"><subsection><num>(1)</num><content>This paragraph has effect if the individual's relevant income for the tax year 2009-10 is less than £150,000.</content></subsection><subsection><num>(2)</num><content>References in this Schedule to a pre-22 April 2009 pension input amount are to a pre-9 December 2009 pension input amount.</content></subsection><subsection><num>(3)</num><content>References in this Schedule to noon on 22 April 2009 are to 9 December 2009.</content></subsection><subsection><num>(4)</num><content>Other references in this Schedule to 22 April 2009 (except in paragraph 2) are to 9 December 2009.</content></subsection><subsection><num>(5)</num><content>The reference in paragraph 16(2) to 21 April 2009 is to 8 December 2009.</content></subsection><subsection><num>(6)</num><content>If the amount arrived at in the case of the individual under sub-paragraph (1) of paragraph 2 for the tax year 2009-10 is less than £150,000, take the steps in that sub-paragraph in relation to the tax year 2007-08 and the tax year 2008-09.</content></subsection></hcontainer><hcontainer name="wrapper2"><intro>If the result is £150,000 or more for either or both of those earlier tax years the individual's relevant income for the tax year 2009-10 is to be assumed for the purposes of sub-paragraph (1) to be £150,000.</intro><subsection><num>(7)</num><content>If there is a scheme the main purpose, or one of the main purposes, of which is to secure that the individual's relevant income for the tax year 2009-10 is less than £150,000, it is to be assumed for the purposes of sub-paragraph (1) to be £150,000.</content></subsection></hcontainer></section></quotedStructure></mod></content></subsection><subsection eId="section-48-7"><num>(7)</num><content>The amendments made by this section have effect for the tax year 2009-10 and subsequent tax years (but see paragraph 21(2) of Schedule 35 to FA 2009).</content></subsection></section><section eId="section-49"><num>49</num><heading>Information</heading><content><mod>In section 251(5) of FA 2004 (persons who can be required to provide information to scheme administrators <abbr title="Et cetera" xml:lang="la">etc</abbr>), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content>employers of members of a registered pension scheme,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-48"><num>48</num><heading>Extension of special annual allowance charge</heading><subsection eId="section-48-1"><num>(1)</num><content>Schedule 35 to FA 2009 (special annual allowance charge) is amended as follows.</content></subsection><subsection eId="section-48-2"><num>(2)</num><intro>In paragraph 1(2) (high-income individual)—</intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content><mod>in the first sentence, for “£150,000” substitute <quotedText>“ £130,000 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-48-2-b"><num>(b)</num><content><mod>insert at the end—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">Paragraph 16A makes special provision about cases in which the individual's relevant income for the tax year 2009-10 is less than £150,000.</quotedStructure></mod></content></level></subsection><subsection eId="section-48-3"><num>(3)</num><intro>In paragraph 2 (calculation of relevant income)—</intro><level class="para1" eId="section-48-3-a"><num>(a)</num><content>in the last sentence of sub-paragraph (1),</content></level><level class="para1" eId="section-48-3-b"><num>(b)</num><content>in sub-paragraph (2) (in each place), and</content></level><level class="para1" eId="section-48-3-c"><num>(c)</num><content>in sub-paragraph (3) (in both places),</content></level><wrapUp><mod>for “£150,000” substitute <quotedText>“ £130,000 ”</quotedText>.</mod></wrapUp></subsection><subsection eId="section-48-4"><num>(4)</num><content><mod>After sub-paragraph (5) of that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(5A)</num><intro>If—</intro><level class="para1"><num>(a)</num><content>the individual's relevant income for the tax year (whether that is the tax year 2009-10 or a later tax year) would (apart from this sub-paragraph) be less than £130,000 if the reference in sub-paragraph (5) to a scheme made on or after 22 April 2009 were to a scheme made on or after 9 December 2009, and</content></level><level class="para1"><num>(b)</num><content>the individual's relevant income for the tax year 2009-10 is less than £150,000,</content></level><wrapUp>the individual's relevant income for the tax year is to be assumed to be less than £130,000.</wrapUp></subsection></quotedStructure></mod></content></subsection><subsection eId="section-48-5"><num>(5)</num><content><mod>In paragraph 11(3)(b), after “22 April” insert <quotedText>“ 2009 ”</quotedText>.</mod></content></subsection><subsection eId="section-48-6"><num>(6)</num><content><mod>After paragraph 16 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><section><num>16A</num><heading>Individuals with relevant income below £150,000 in 2009-10</heading><hcontainer name="wrapper2"><subsection><num>(1)</num><content>This paragraph has effect if the individual's relevant income for the tax year 2009-10 is less than £150,000.</content></subsection><subsection><num>(2)</num><content>References in this Schedule to a pre-22 April 2009 pension input amount are to a pre-9 December 2009 pension input amount.</content></subsection><subsection><num>(3)</num><content>References in this Schedule to noon on 22 April 2009 are to 9 December 2009.</content></subsection><subsection><num>(4)</num><content>Other references in this Schedule to 22 April 2009 (except in paragraph 2) are to 9 December 2009.</content></subsection><subsection><num>(5)</num><content>The reference in paragraph 16(2) to 21 April 2009 is to 8 December 2009.</content></subsection><subsection><num>(6)</num><content>If the amount arrived at in the case of the individual under sub-paragraph (1) of paragraph 2 for the tax year 2009-10 is less than £150,000, take the steps in that sub-paragraph in relation to the tax year 2007-08 and the tax year 2008-09.</content></subsection></hcontainer><hcontainer name="wrapper2"><intro>If the result is £150,000 or more for either or both of those earlier tax years the individual's relevant income for the tax year 2009-10 is to be assumed for the purposes of sub-paragraph (1) to be £150,000.</intro><subsection><num>(7)</num><content>If there is a scheme the main purpose, or one of the main purposes, of which is to secure that the individual's relevant income for the tax year 2009-10 is less than £150,000, it is to be assumed for the purposes of sub-paragraph (1) to be £150,000.</content></subsection></hcontainer></section></quotedStructure></mod></content></subsection><subsection eId="section-48-7"><num>(7)</num><content>The amendments made by this section have effect for the tax year 2009-10 and subsequent tax years (but see paragraph 21(2) of Schedule 35 to FA 2009).</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-1"><num>(1)</num><content>Schedule 35 to FA 2009 (special annual allowance charge) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-48-2"><num>(2)</num><intro>In paragraph 1(2) (high-income individual)—</intro><level class="para1" eId="section-48-2-a"><num>(a)</num><content><mod>in the first sentence, for “£150,000” substitute <quotedText>“ £130,000 ”</quotedText>, and</mod></content></level><level class="para1" eId="section-48-2-b"><num>(b)</num><content><mod>insert at the end—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">Paragraph 16A makes special provision about cases in which the individual's relevant income for the tax year 2009-10 is less than £150,000.</quotedStructure></mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-3"><num>(3)</num><intro>In paragraph 2 (calculation of relevant income)—</intro><level class="para1" eId="section-48-3-a"><num>(a)</num><content>in the last sentence of sub-paragraph (1),</content></level><level class="para1" eId="section-48-3-b"><num>(b)</num><content>in sub-paragraph (2) (in each place), and</content></level><level class="para1" eId="section-48-3-c"><num>(c)</num><content>in sub-paragraph (3) (in both places),</content></level><wrapUp><mod>for “£150,000” substitute <quotedText>“ £130,000 ”</quotedText>.</mod></wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-48-4"><num>(4)</num><content><mod>After sub-paragraph (5) of that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(5A)</num><intro>If—</intro><level class="para1"><num>(a)</num><content>the individual's relevant income for the tax year (whether that is the tax year 2009-10 or a later tax year) would (apart from this sub-paragraph) be less than £130,000 if the reference in sub-paragraph (5) to a scheme made on or after 22 April 2009 were to a scheme made on or after 9 December 2009, and</content></level><level class="para1"><num>(b)</num><content>the individual's relevant income for the tax year 2009-10 is less than £150,000,</content></level><wrapUp>the individual's relevant income for the tax year is to be assumed to be less than £130,000.</wrapUp></subsection></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-5"><num>(5)</num><content><mod>In paragraph 11(3)(b), after “22 April” insert <quotedText>“ 2009 ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-48-6"><num>(6)</num><content><mod>After paragraph 16 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><section><num>16A</num><heading>Individuals with relevant income below £150,000 in 2009-10</heading><hcontainer name="wrapper2"><subsection><num>(1)</num><content>This paragraph has effect if the individual's relevant income for the tax year 2009-10 is less than £150,000.</content></subsection><subsection><num>(2)</num><content>References in this Schedule to a pre-22 April 2009 pension input amount are to a pre-9 December 2009 pension input amount.</content></subsection><subsection><num>(3)</num><content>References in this Schedule to noon on 22 April 2009 are to 9 December 2009.</content></subsection><subsection><num>(4)</num><content>Other references in this Schedule to 22 April 2009 (except in paragraph 2) are to 9 December 2009.</content></subsection><subsection><num>(5)</num><content>The reference in paragraph 16(2) to 21 April 2009 is to 8 December 2009.</content></subsection><subsection><num>(6)</num><content>If the amount arrived at in the case of the individual under sub-paragraph (1) of paragraph 2 for the tax year 2009-10 is less than £150,000, take the steps in that sub-paragraph in relation to the tax year 2007-08 and the tax year 2008-09.</content></subsection></hcontainer><hcontainer name="wrapper2"><intro>If the result is £150,000 or more for either or both of those earlier tax years the individual's relevant income for the tax year 2009-10 is to be assumed for the purposes of sub-paragraph (1) to be £150,000.</intro><subsection><num>(7)</num><content>If there is a scheme the main purpose, or one of the main purposes, of which is to secure that the individual's relevant income for the tax year 2009-10 is less than £150,000, it is to be assumed for the purposes of sub-paragraph (1) to be £150,000.</content></subsection></hcontainer></section></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-48-7"><num>(7)</num><content>The amendments made by this section have effect for the tax year 2009-10 and subsequent tax years (but see paragraph 21(2) of Schedule 35 to FA 2009).</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-49"><num>49</num><heading>Information</heading><content><mod>In section 251(5) of FA 2004 (persons who can be required to provide information to scheme administrators <abbr title="Et cetera" xml:lang="la">etc</abbr>), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content>employers of members of a registered pension scheme,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></section>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-value-added-tax-and-insurance-premium-tax"><heading>Value added tax and insurance premium tax</heading><section eId="section-50"><num>50</num><heading>Extension of reverse charge provisions to supplies of services</heading><subsection eId="section-50-1"><num>(1)</num><content><mod>In section 55A of <abbr class="acronym" title="Value Added Tax Act">VATA</abbr> 1994 (customers to account for tax on supplies of goods of a kind used in missing trader intra-community fraud), after “goods” (in each place, including the heading) insert <quotedText>“ or services ”</quotedText>.</mod></content></subsection><subsection eId="section-50-2"><num>(2)</num><content><mod>In paragraph 2(3B) of Schedule 11 to that Act (power to require notifications relating to supplies to which section 55A(6) applies), after “goods” insert <quotedText>“ or services ”</quotedText>.</mod></content></subsection></section><section eId="section-51"><num>51</num><heading>Insurance premium tax: separate contracts</heading><subsection eId="section-51-1"><num>(1)</num><content>Part 3 of FA 1994 (insurance premium tax) is amended as follows.</content></subsection><subsection eId="section-51-2"><num>(2)</num><content>Section 72 (meaning of “premium”) is amended as follows.</content></subsection><subsection eId="section-51-3"><num>(3)</num><content><mod>After subsection (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1AA)</num><content>A contract (“the relevant contract”) is not to be regarded as a separate contract for the purposes of subsection (1A) above if conditions A to D are met.</content></subsection><subsection><num>(1AB)</num><content>Condition A is that the insured is an individual (“I”) and enters into the taxable insurance contract in a personal capacity.</content></subsection><subsection><num>(1AC)</num><intro>Condition B is that I—</intro><level class="para1"><num>(a)</num><content>is required to enter into the relevant contract by, or as a condition of entering into, the taxable insurance contract, or</content></level><level class="para1"><num>(b)</num><content>would be unlikely to enter into the relevant contract without also entering into the taxable insurance contract.</content></level></subsection><subsection><num>(1AD)</num><intro>Condition C is that—</intro><level class="para1"><num>(a)</num><content>the amount charged to I under the relevant contract in respect of any particular services is not open to negotiation by I, or</content></level><level class="para1"><num>(b)</num><content>the other terms on which particular services are to be provided to I under the relevant contract are not open to such negotiation.</content></level></subsection><subsection><num>(1AE)</num><content>Condition D is that the amount charged to I under the taxable insurance contract is arrived at without a comprehensive assessment having been undertaken of the individual circumstances of I which might affect the level of risk.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-51-4"><num>(4)</num><content><mod>After subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9A)</num><content>Provision may be made by order amending subsections (1AA) to (1AE) above.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-51-5"><num>(5)</num><content><mod>In section 74(4) and (6) (orders which need to be approved by House of Commons), for “or 71” substitute <quotedText>“ , 71 or 72 ”</quotedText>.</mod></content></subsection><subsection eId="section-51-6"><num>(6)</num><content>The amendment made by subsection (3) has effect in relation to payments made on or after 24 March 2010.</content></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-50"><num>50</num><heading>Extension of reverse charge provisions to supplies of services</heading><subsection eId="section-50-1"><num>(1)</num><content><mod>In section 55A of <abbr class="acronym" title="Value Added Tax Act">VATA</abbr> 1994 (customers to account for tax on supplies of goods of a kind used in missing trader intra-community fraud), after “goods” (in each place, including the heading) insert <quotedText>“ or services ”</quotedText>.</mod></content></subsection><subsection eId="section-50-2"><num>(2)</num><content><mod>In paragraph 2(3B) of Schedule 11 to that Act (power to require notifications relating to supplies to which section 55A(6) applies), after “goods” insert <quotedText>“ or services ”</quotedText>.</mod></content></subsection></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-51"><num>51</num><heading>Insurance premium tax: separate contracts</heading><subsection eId="section-51-1"><num>(1)</num><content>Part 3 of FA 1994 (insurance premium tax) is amended as follows.</content></subsection><subsection eId="section-51-2"><num>(2)</num><content>Section 72 (meaning of “premium”) is amended as follows.</content></subsection><subsection eId="section-51-3"><num>(3)</num><content><mod>After subsection (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1AA)</num><content>A contract (“the relevant contract”) is not to be regarded as a separate contract for the purposes of subsection (1A) above if conditions A to D are met.</content></subsection><subsection><num>(1AB)</num><content>Condition A is that the insured is an individual (“I”) and enters into the taxable insurance contract in a personal capacity.</content></subsection><subsection><num>(1AC)</num><intro>Condition B is that I—</intro><level class="para1"><num>(a)</num><content>is required to enter into the relevant contract by, or as a condition of entering into, the taxable insurance contract, or</content></level><level class="para1"><num>(b)</num><content>would be unlikely to enter into the relevant contract without also entering into the taxable insurance contract.</content></level></subsection><subsection><num>(1AD)</num><intro>Condition C is that—</intro><level class="para1"><num>(a)</num><content>the amount charged to I under the relevant contract in respect of any particular services is not open to negotiation by I, or</content></level><level class="para1"><num>(b)</num><content>the other terms on which particular services are to be provided to I under the relevant contract are not open to such negotiation.</content></level></subsection><subsection><num>(1AE)</num><content>Condition D is that the amount charged to I under the taxable insurance contract is arrived at without a comprehensive assessment having been undertaken of the individual circumstances of I which might affect the level of risk.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-51-4"><num>(4)</num><content><mod>After subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9A)</num><content>Provision may be made by order amending subsections (1AA) to (1AE) above.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-51-5"><num>(5)</num><content><mod>In section 74(4) and (6) (orders which need to be approved by House of Commons), for “or 71” substitute <quotedText>“ , 71 or 72 ”</quotedText>.</mod></content></subsection><subsection eId="section-51-6"><num>(6)</num><content>The amendment made by subsection (3) has effect in relation to payments made on or after 24 March 2010.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-1"><num>(1)</num><content>Part 3 of FA 1994 (insurance premium tax) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-2"><num>(2)</num><content>Section 72 (meaning of “premium”) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-51-3"><num>(3)</num><content><mod>After subsection (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1AA)</num><content>A contract (“the relevant contract”) is not to be regarded as a separate contract for the purposes of subsection (1A) above if conditions A to D are met.</content></subsection><subsection><num>(1AB)</num><content>Condition A is that the insured is an individual (“I”) and enters into the taxable insurance contract in a personal capacity.</content></subsection><subsection><num>(1AC)</num><intro>Condition B is that I—</intro><level class="para1"><num>(a)</num><content>is required to enter into the relevant contract by, or as a condition of entering into, the taxable insurance contract, or</content></level><level class="para1"><num>(b)</num><content>would be unlikely to enter into the relevant contract without also entering into the taxable insurance contract.</content></level></subsection><subsection><num>(1AD)</num><intro>Condition C is that—</intro><level class="para1"><num>(a)</num><content>the amount charged to I under the relevant contract in respect of any particular services is not open to negotiation by I, or</content></level><level class="para1"><num>(b)</num><content>the other terms on which particular services are to be provided to I under the relevant contract are not open to such negotiation.</content></level></subsection><subsection><num>(1AE)</num><content>Condition D is that the amount charged to I under the taxable insurance contract is arrived at without a comprehensive assessment having been undertaken of the individual circumstances of I which might affect the level of risk.</content></subsection></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-51-4"><num>(4)</num><content><mod>After subsection (9) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(9A)</num><content>Provision may be made by order amending subsections (1AA) to (1AE) above.</content></subsection></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-5"><num>(5)</num><content><mod>In section 74(4) and (6) (orders which need to be approved by House of Commons), for “or 71” substitute <quotedText>“ , 71 or 72 ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-51-6"><num>(6)</num><content>The amendment made by subsection (3) has effect in relation to payments made on or after 24 March 2010.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-inheritance-tax"><heading>Inheritance tax</heading><section eId="section-52"><num>52</num><heading>Reversionary interests of purchaser or settlor <abbr title="Et cetera" xml:lang="la">etc</abbr> in relevant property</heading><subsection eId="section-52-1"><num>(1)</num><content><mod>In <abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984, after section 81 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>81A</num><heading>Reversionary interests in relevant property</heading><subsection><num>(1)</num><intro>Where a reversionary interest in relevant property to which—</intro><level class="para1"><num>(a)</num><content>a person who acquired it for a consideration in money or money's worth, or</content></level><level class="para1"><num>(b)</num><content>the settlor or the spouse or civil partner of the settlor,</content></level><wrapUp>(a “relevant reversioner”) is beneficially entitled comes to an end by reason of the relevant reversioner becoming entitled to an interest in possession in the relevant property, the relevant reversioner is to be treated as having made a disposition of the reversionary interest at that time.</wrapUp></subsection><subsection><num>(2)</num><content>A transfer of value of a reversionary interest in relevant property to which a relevant reversioner is beneficially entitled is to be taken to be a transfer which is not a potentially exempt transfer.</content></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-52-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to reversionary interests to which a relevant reversioner becomes beneficially entitled on or after 9 December 2009.</content></subsection></section><section eId="section-53"><num>53</num><heading>Interests in possession</heading><subsection eId="section-53-1"><num>(1)</num><content><abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984 is amended as follows.</content></subsection><subsection eId="section-53-2"><num>(2)</num><intro>In section 3A (potentially exempt transfers)—</intro><level class="para1" eId="section-53-2-a"><num>(a)</num><content>in subsection (6), omit “other than section 52”, and</content></level><level class="para1" eId="section-53-2-b"><num>(b)</num><content><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><content>The reference in subsection (6) above to any provision of this Act does not include section 52 below except where the transfer of value treated as made by that section is one treated as made on the coming to an end of an interest which falls within section 5(1B) below.</content></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-53-3"><num>(3)</num><intro>In section 5 (meaning of estate)—</intro><level class="para1" eId="section-53-3-a"><num>(a)</num><content><mod>in subsection (1)(a)(ii), after “below” insert <quotedText>“ unless it falls within subsection (1B) below ”</quotedText>, and</mod></content></level><level class="para1" eId="section-53-3-b"><num>(b)</num><content><mod>after subsection (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro>An interest in possession falls within this subsection if the person—</intro><level class="para1"><num>(a)</num><content>was domiciled in the United Kingdom on becoming beneficially entitled to it, and</content></level><level class="para1"><num>(b)</num><content>became beneficially entitled to it by virtue of a disposition which was prevented from being a transfer of value by section 10 below.</content></level></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-53-4"><num>(4)</num><intro>In—</intro><level class="para1" eId="section-53-4-a"><num>(a)</num><content>section 49(1A) (treatment of interests in possession),</content></level><level class="para1" eId="section-53-4-b"><num>(b)</num><content>section 51(1A) (disposal of interest in possession), and</content></level><level class="para1" eId="section-53-4-c"><num>(c)</num><content>section 52(2A) and (3A) (charge on termination of interest in possession),</content></level><wrapUp>insert at the end (not as part of paragraph (c))—<mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">or falls within section 5(1B) above.</quotedStructure></mod></wrapUp></subsection><subsection eId="section-53-5"><num>(5)</num><content><mod>In section 57A(1A) (relief where property enters maintenance fund), insert at the end (not as part of paragraph (c))—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">or fell within section 5(1B) above.</quotedStructure></mod></content></subsection><subsection eId="section-53-6"><num>(6)</num><content><mod>In section 100(1A) (alterations of capital <abbr title="Et cetera" xml:lang="la">etc</abbr> where participators are trustees), insert at the end (not as part of paragraph (c))—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">or falls within section 5(1B) above.</quotedStructure></mod></content></subsection><subsection eId="section-53-7"><num>(7)</num><content><mod>In section 101(1A) (companies' interests in settled property), insert at the end (not as part of paragraph (b))—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">or falls within section 5(1B) above.</quotedStructure></mod></content></subsection><subsection eId="section-53-8"><num>(8)</num><content><mod>In section 102ZA(1)(b)(ii) of FA 1986 (gifts with reservation: termination of interests in possession), after “serial interest” insert <quotedText>“ or falls within section 5(1B) of the 1984 Act ”</quotedText>.</mod></content></subsection><subsection eId="section-53-9"><num>(9)</num><content>In F(No.2)A 1987, omit section 96(2)(c).</content></subsection><subsection eId="section-53-10"><num>(10)</num><content>The amendments made by this section have effect in relation to an interest in possession to which a person is beneficially entitled if the person becomes beneficially entitled to it on or after 9 December 2009.</content></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-52"><num>52</num><heading>Reversionary interests of purchaser or settlor <abbr title="Et cetera" xml:lang="la">etc</abbr> in relevant property</heading><subsection eId="section-52-1"><num>(1)</num><content><mod>In <abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984, after section 81 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>81A</num><heading>Reversionary interests in relevant property</heading><subsection><num>(1)</num><intro>Where a reversionary interest in relevant property to which—</intro><level class="para1"><num>(a)</num><content>a person who acquired it for a consideration in money or money's worth, or</content></level><level class="para1"><num>(b)</num><content>the settlor or the spouse or civil partner of the settlor,</content></level><wrapUp>(a “relevant reversioner”) is beneficially entitled comes to an end by reason of the relevant reversioner becoming entitled to an interest in possession in the relevant property, the relevant reversioner is to be treated as having made a disposition of the reversionary interest at that time.</wrapUp></subsection><subsection><num>(2)</num><content>A transfer of value of a reversionary interest in relevant property to which a relevant reversioner is beneficially entitled is to be taken to be a transfer which is not a potentially exempt transfer.</content></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-52-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to reversionary interests to which a relevant reversioner becomes beneficially entitled on or after 9 December 2009.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-52-1"><num>(1)</num><content><mod>In <abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984, after section 81 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>81A</num><heading>Reversionary interests in relevant property</heading><subsection><num>(1)</num><intro>Where a reversionary interest in relevant property to which—</intro><level class="para1"><num>(a)</num><content>a person who acquired it for a consideration in money or money's worth, or</content></level><level class="para1"><num>(b)</num><content>the settlor or the spouse or civil partner of the settlor,</content></level><wrapUp>(a “relevant reversioner”) is beneficially entitled comes to an end by reason of the relevant reversioner becoming entitled to an interest in possession in the relevant property, the relevant reversioner is to be treated as having made a disposition of the reversionary interest at that time.</wrapUp></subsection><subsection><num>(2)</num><content>A transfer of value of a reversionary interest in relevant property to which a relevant reversioner is beneficially entitled is to be taken to be a transfer which is not a potentially exempt transfer.</content></subsection></section></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-52-2"><num>(2)</num><content>The amendment made by subsection (1) has effect in relation to reversionary interests to which a relevant reversioner becomes beneficially entitled on or after 9 December 2009.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-53"><num>53</num><heading>Interests in possession</heading><subsection eId="section-53-1"><num>(1)</num><content><abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984 is amended as follows.</content></subsection><subsection eId="section-53-2"><num>(2)</num><intro>In section 3A (potentially exempt transfers)—</intro><level class="para1" eId="section-53-2-a"><num>(a)</num><content>in subsection (6), omit “other than section 52”, and</content></level><level class="para1" eId="section-53-2-b"><num>(b)</num><content><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><content>The reference in subsection (6) above to any provision of this Act does not include section 52 below except where the transfer of value treated as made by that section is one treated as made on the coming to an end of an interest which falls within section 5(1B) below.</content></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-53-3"><num>(3)</num><intro>In section 5 (meaning of estate)—</intro><level class="para1" eId="section-53-3-a"><num>(a)</num><content><mod>in subsection (1)(a)(ii), after “below” insert <quotedText>“ unless it falls within subsection (1B) below ”</quotedText>, and</mod></content></level><level class="para1" eId="section-53-3-b"><num>(b)</num><content><mod>after subsection (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro>An interest in possession falls within this subsection if the person—</intro><level class="para1"><num>(a)</num><content>was domiciled in the United Kingdom on becoming beneficially entitled to it, and</content></level><level class="para1"><num>(b)</num><content>became beneficially entitled to it by virtue of a disposition which was prevented from being a transfer of value by section 10 below.</content></level></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-53-4"><num>(4)</num><intro>In—</intro><level class="para1" eId="section-53-4-a"><num>(a)</num><content>section 49(1A) (treatment of interests in possession),</content></level><level class="para1" eId="section-53-4-b"><num>(b)</num><content>section 51(1A) (disposal of interest in possession), and</content></level><level class="para1" eId="section-53-4-c"><num>(c)</num><content>section 52(2A) and (3A) (charge on termination of interest in possession),</content></level><wrapUp>insert at the end (not as part of paragraph (c))—<mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">or falls within section 5(1B) above.</quotedStructure></mod></wrapUp></subsection><subsection eId="section-53-5"><num>(5)</num><content><mod>In section 57A(1A) (relief where property enters maintenance fund), insert at the end (not as part of paragraph (c))—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">or fell within section 5(1B) above.</quotedStructure></mod></content></subsection><subsection eId="section-53-6"><num>(6)</num><content><mod>In section 100(1A) (alterations of capital <abbr title="Et cetera" xml:lang="la">etc</abbr> where participators are trustees), insert at the end (not as part of paragraph (c))—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">or falls within section 5(1B) above.</quotedStructure></mod></content></subsection><subsection eId="section-53-7"><num>(7)</num><content><mod>In section 101(1A) (companies' interests in settled property), insert at the end (not as part of paragraph (b))—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">or falls within section 5(1B) above.</quotedStructure></mod></content></subsection><subsection eId="section-53-8"><num>(8)</num><content><mod>In section 102ZA(1)(b)(ii) of FA 1986 (gifts with reservation: termination of interests in possession), after “serial interest” insert <quotedText>“ or falls within section 5(1B) of the 1984 Act ”</quotedText>.</mod></content></subsection><subsection eId="section-53-9"><num>(9)</num><content>In F(No.2)A 1987, omit section 96(2)(c).</content></subsection><subsection eId="section-53-10"><num>(10)</num><content>The amendments made by this section have effect in relation to an interest in possession to which a person is beneficially entitled if the person becomes beneficially entitled to it on or after 9 December 2009.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-1"><num>(1)</num><content><abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984 is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-53-2"><num>(2)</num><intro>In section 3A (potentially exempt transfers)—</intro><level class="para1" eId="section-53-2-a"><num>(a)</num><content>in subsection (6), omit “other than section 52”, and</content></level><level class="para1" eId="section-53-2-b"><num>(b)</num><content><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><content>The reference in subsection (6) above to any provision of this Act does not include section 52 below except where the transfer of value treated as made by that section is one treated as made on the coming to an end of an interest which falls within section 5(1B) below.</content></subsection></quotedStructure></mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-53-3"><num>(3)</num><intro>In section 5 (meaning of estate)—</intro><level class="para1" eId="section-53-3-a"><num>(a)</num><content><mod>in subsection (1)(a)(ii), after “below” insert <quotedText>“ unless it falls within subsection (1B) below ”</quotedText>, and</mod></content></level><level class="para1" eId="section-53-3-b"><num>(b)</num><content><mod>after subsection (1A) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1B)</num><intro>An interest in possession falls within this subsection if the person—</intro><level class="para1"><num>(a)</num><content>was domiciled in the United Kingdom on becoming beneficially entitled to it, and</content></level><level class="para1"><num>(b)</num><content>became beneficially entitled to it by virtue of a disposition which was prevented from being a transfer of value by section 10 below.</content></level></subsection></quotedStructure></mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-53-4"><num>(4)</num><intro>In—</intro><level class="para1" eId="section-53-4-a"><num>(a)</num><content>section 49(1A) (treatment of interests in possession),</content></level><level class="para1" eId="section-53-4-b"><num>(b)</num><content>section 51(1A) (disposal of interest in possession), and</content></level><level class="para1" eId="section-53-4-c"><num>(c)</num><content>section 52(2A) and (3A) (charge on termination of interest in possession),</content></level><wrapUp>insert at the end (not as part of paragraph (c))—<mod><quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">or falls within section 5(1B) above.</quotedStructure></mod></wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-53-5"><num>(5)</num><content><mod>In section 57A(1A) (relief where property enters maintenance fund), insert at the end (not as part of paragraph (c))—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">or fell within section 5(1B) above.</quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-53-6"><num>(6)</num><content><mod>In section 100(1A) (alterations of capital <abbr title="Et cetera" xml:lang="la">etc</abbr> where participators are trustees), insert at the end (not as part of paragraph (c))—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">or falls within section 5(1B) above.</quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-53-7"><num>(7)</num><content><mod>In section 101(1A) (companies' interests in settled property), insert at the end (not as part of paragraph (b))—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">or falls within section 5(1B) above.</quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-8"><num>(8)</num><content><mod>In section 102ZA(1)(b)(ii) of FA 1986 (gifts with reservation: termination of interests in possession), after “serial interest” insert <quotedText>“ or falls within section 5(1B) of the 1984 Act ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-9"><num>(9)</num><content>In F(No.2)A 1987, omit section 96(2)(c).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-53-10"><num>(10)</num><content>The amendments made by this section have effect in relation to an interest in possession to which a person is beneficially entitled if the person becomes beneficially entitled to it on or after 9 December 2009.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-2-crossheading-stamp-taxes"><heading>Stamp taxes</heading><section eId="section-54"><num>54</num><heading>SDRT: depositary receipt systems and clearance services systems</heading><subsection eId="section-54-1"><num>(1)</num><content>Part 4 of FA 1986 (stamp duty reserve tax) is amended as follows.</content></subsection><subsection eId="section-54-2"><num>(2)</num><content><mod>In section 95(1) (depositary receipts: exceptions), before “there shall be” insert <quotedText>“ subject to section 97C, ”</quotedText>.</mod></content></subsection><subsection eId="section-54-3"><num>(3)</num><content><mod>In section 97(1) (clearance services: exceptions), before “there shall be” insert <quotedText>“ subject to section 97C, ”</quotedText>.</mod></content></subsection><subsection eId="section-54-4"><num>(4)</num><content><mod>In section 97B (transfer between depositary receipt system and clearance system), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content>Subsection (1) is subject to section 97C.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-54-5"><num>(5)</num><content><mod>After that section insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>97C</num><heading>Transfers to non-EU depositary receipt and clearance services systems</heading><subsection><num>(1)</num><intro>This section applies where arrangements are made in accordance with which chargeable securities are—</intro><level class="para1"><num>(a)</num><content>issued to an <abbr class="acronym" title="European Union">EU</abbr> system, and</content></level><level class="para1"><num>(b)</num><content>subsequently transferred from an <abbr class="acronym" title="European Union">EU</abbr> system to a non-EU system.</content></level></subsection><subsection><num>(2)</num><intro>Nothing in section 95(1), 97(1) or 97B(1) disapplies a charge to tax under section 93 or 96 in respect of that transfer if—</intro><level class="para1"><num>(a)</num><content>the chargeable securities have not previously been transferred, or</content></level><level class="para1"><num>(b)</num><content>where they have previously been transferred, the transfer (or, if more than one, each of them) was an exempt transfer.</content></level></subsection><subsection><num>(3)</num><intro>For the purposes of subsection (1)(a) chargeable securities are issued to an <abbr class="acronym" title="European Union">EU</abbr> system if—</intro><level class="para1"><num>(a)</num><content>pursuant to an arrangement of the kind mentioned in section 93(1), they are issued to a nominee in respect of an <abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer, or</content></level><level class="para1"><num>(b)</num><content>pursuant to an arrangement of the kind mentioned in section 96(1), they are issued to a nominee in respect of an <abbr class="acronym" title="European Union">EU</abbr> clearance service operator.</content></level></subsection><subsection><num>(4)</num><intro>For the purposes of subsection (1)(b)—</intro><level class="para1"><num>(a)</num><content>a transfer is from an <abbr class="acronym" title="European Union">EU</abbr> system if it is from a company which is incorporated under the law of a member State and at the time of the transfer falls within section 67(6) or 70(6), and</content></level><level class="para1"><num>(b)</num><content>a transfer is to a non-EU system if it is to a company which is not incorporated under the law of a member State and at the time of the transfer falls within section 67(6) or 70(6).</content></level></subsection><subsection><num>(5)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-eu-clearance-service-operator"><abbr class="acronym" title="European Union">EU</abbr> clearance service operator</term>” means a person—</intro><level class="para1"><num>(a)</num><content>whose business is or includes the provision of clearance services for the purchase and sale of chargeable securities, and</content></level><level class="para1"><num>(b)</num><content>who—<blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num>if it is a company, is incorporated under the law of a member State, and</item><item><num>(ii)</num>in any other case, is resident in a member State;</item></blockList></content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-eu-depositary-receipt-issuer"><abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer</term>” means a person—</intro><level class="para1"><num>(a)</num><content>whose business is or includes issuing depositary receipts for chargeable securities, and</content></level><level class="para1"><num>(b)</num><content>who—<blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num>if it is a company, is incorporated under the law of a member State, and</item><item><num>(ii)</num>in any other case, is resident in a member State;</item></blockList></content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-exempt-transfer">exempt transfer</term>” means a transfer in respect of which, by reason of section 90(5), 95(1), 97(1) or 97B(1), no charge to stamp duty reserve tax arises;</content></hcontainer><hcontainer name="definition"><intro>“nominee”—</intro><level class="para1"><num>(a)</num><content>in respect of an <abbr class="acronym" title="European Union">EU</abbr> clearance service operator, means a person whose business is or includes holding chargeable securities as nominee for the <abbr class="acronym" title="European Union">EU</abbr> clearance service operator, and</content></level><level class="para1"><num>(b)</num><content>in respect of an <abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer, means a person whose business is or includes holding chargeable securities as nominee or agent for the <abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer.</content></level></hcontainer></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-54-6"><num>(6)</num><content>The amendments made by this section have effect in relation to transfers of chargeable securities on or after 1 October 2009.</content></subsection></section><section eId="section-55"><num>55</num><heading><abbr class="acronym" title="Stamp Duty Land Tax">SDLT</abbr>: partnerships</heading><subsection eId="section-55-1"><num>(1)</num><intro>In section 75C of FA 2003 (<abbr class="acronym" title="Stamp Duty Land Tax">SDLT</abbr> anti-avoidance: supplemental)—</intro><level class="para1" eId="section-55-1-a"><num>(a)</num><content>in subsection (8), omit paragraph (b) (and the “and” before it), and</content></level><level class="para1" eId="section-55-1-b"><num>(b)</num><content><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><content>Nothing in Part 3 of Schedule 15 applies to the notional transaction under section 75A.</content></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-55-2"><num>(2)</num><content>The amendments made by subsection (1) have effect in relation to any notional transaction of which the effective date is on or after 24 March 2010.</content></subsection><subsection eId="section-55-3"><num>(3)</num><intro>But those amendments do not have effect in relation to a notional transaction if any scheme transaction is—</intro><level class="para1" eId="section-55-3-a"><num>(a)</num><content>completed before that date,</content></level><level class="para1" eId="section-55-3-b"><num>(b)</num><content>effected in pursuance of a contract entered into and substantially performed before that date, or</content></level><level class="para1" eId="section-55-3-c"><num>(c)</num><content>effected in pursuance of a contract entered into before that date and not excluded by subsection (4).</content></level></subsection><subsection eId="section-55-4"><num>(4)</num><intro>A scheme transaction effected in pursuance of a contract entered into before 24 March 2010 is excluded by this subsection if—</intro><level class="para1" eId="section-55-4-a"><num>(a)</num><content>there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 24 March 2010,</content></level><level class="para1" eId="section-55-4-b"><num>(b)</num><content>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</content></level><level class="para1" eId="section-55-4-c"><num>(c)</num><content>it is a land transaction and on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</content></level></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-54"><num>54</num><heading>SDRT: depositary receipt systems and clearance services systems</heading><subsection eId="section-54-1"><num>(1)</num><content>Part 4 of FA 1986 (stamp duty reserve tax) is amended as follows.</content></subsection><subsection eId="section-54-2"><num>(2)</num><content><mod>In section 95(1) (depositary receipts: exceptions), before “there shall be” insert <quotedText>“ subject to section 97C, ”</quotedText>.</mod></content></subsection><subsection eId="section-54-3"><num>(3)</num><content><mod>In section 97(1) (clearance services: exceptions), before “there shall be” insert <quotedText>“ subject to section 97C, ”</quotedText>.</mod></content></subsection><subsection eId="section-54-4"><num>(4)</num><content><mod>In section 97B (transfer between depositary receipt system and clearance system), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content>Subsection (1) is subject to section 97C.</content></subsection></quotedStructure></mod></content></subsection><subsection eId="section-54-5"><num>(5)</num><content><mod>After that section insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>97C</num><heading>Transfers to non-EU depositary receipt and clearance services systems</heading><subsection><num>(1)</num><intro>This section applies where arrangements are made in accordance with which chargeable securities are—</intro><level class="para1"><num>(a)</num><content>issued to an <abbr class="acronym" title="European Union">EU</abbr> system, and</content></level><level class="para1"><num>(b)</num><content>subsequently transferred from an <abbr class="acronym" title="European Union">EU</abbr> system to a non-EU system.</content></level></subsection><subsection><num>(2)</num><intro>Nothing in section 95(1), 97(1) or 97B(1) disapplies a charge to tax under section 93 or 96 in respect of that transfer if—</intro><level class="para1"><num>(a)</num><content>the chargeable securities have not previously been transferred, or</content></level><level class="para1"><num>(b)</num><content>where they have previously been transferred, the transfer (or, if more than one, each of them) was an exempt transfer.</content></level></subsection><subsection><num>(3)</num><intro>For the purposes of subsection (1)(a) chargeable securities are issued to an <abbr class="acronym" title="European Union">EU</abbr> system if—</intro><level class="para1"><num>(a)</num><content>pursuant to an arrangement of the kind mentioned in section 93(1), they are issued to a nominee in respect of an <abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer, or</content></level><level class="para1"><num>(b)</num><content>pursuant to an arrangement of the kind mentioned in section 96(1), they are issued to a nominee in respect of an <abbr class="acronym" title="European Union">EU</abbr> clearance service operator.</content></level></subsection><subsection><num>(4)</num><intro>For the purposes of subsection (1)(b)—</intro><level class="para1"><num>(a)</num><content>a transfer is from an <abbr class="acronym" title="European Union">EU</abbr> system if it is from a company which is incorporated under the law of a member State and at the time of the transfer falls within section 67(6) or 70(6), and</content></level><level class="para1"><num>(b)</num><content>a transfer is to a non-EU system if it is to a company which is not incorporated under the law of a member State and at the time of the transfer falls within section 67(6) or 70(6).</content></level></subsection><subsection><num>(5)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-eu-clearance-service-operator"><abbr class="acronym" title="European Union">EU</abbr> clearance service operator</term>” means a person—</intro><level class="para1"><num>(a)</num><content>whose business is or includes the provision of clearance services for the purchase and sale of chargeable securities, and</content></level><level class="para1"><num>(b)</num><content>who—<blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num>if it is a company, is incorporated under the law of a member State, and</item><item><num>(ii)</num>in any other case, is resident in a member State;</item></blockList></content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-eu-depositary-receipt-issuer"><abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer</term>” means a person—</intro><level class="para1"><num>(a)</num><content>whose business is or includes issuing depositary receipts for chargeable securities, and</content></level><level class="para1"><num>(b)</num><content>who—<blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num>if it is a company, is incorporated under the law of a member State, and</item><item><num>(ii)</num>in any other case, is resident in a member State;</item></blockList></content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-exempt-transfer">exempt transfer</term>” means a transfer in respect of which, by reason of section 90(5), 95(1), 97(1) or 97B(1), no charge to stamp duty reserve tax arises;</content></hcontainer><hcontainer name="definition"><intro>“nominee”—</intro><level class="para1"><num>(a)</num><content>in respect of an <abbr class="acronym" title="European Union">EU</abbr> clearance service operator, means a person whose business is or includes holding chargeable securities as nominee for the <abbr class="acronym" title="European Union">EU</abbr> clearance service operator, and</content></level><level class="para1"><num>(b)</num><content>in respect of an <abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer, means a person whose business is or includes holding chargeable securities as nominee or agent for the <abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer.</content></level></hcontainer></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-54-6"><num>(6)</num><content>The amendments made by this section have effect in relation to transfers of chargeable securities on or after 1 October 2009.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-1"><num>(1)</num><content>Part 4 of FA 1986 (stamp duty reserve tax) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-2"><num>(2)</num><content><mod>In section 95(1) (depositary receipts: exceptions), before “there shall be” insert <quotedText>“ subject to section 97C, ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-3"><num>(3)</num><content><mod>In section 97(1) (clearance services: exceptions), before “there shall be” insert <quotedText>“ subject to section 97C, ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-54-4"><num>(4)</num><content><mod>In section 97B (transfer between depositary receipt system and clearance system), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content>Subsection (1) is subject to section 97C.</content></subsection></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-54-5"><num>(5)</num><content><mod>After that section insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>97C</num><heading>Transfers to non-EU depositary receipt and clearance services systems</heading><subsection><num>(1)</num><intro>This section applies where arrangements are made in accordance with which chargeable securities are—</intro><level class="para1"><num>(a)</num><content>issued to an <abbr class="acronym" title="European Union">EU</abbr> system, and</content></level><level class="para1"><num>(b)</num><content>subsequently transferred from an <abbr class="acronym" title="European Union">EU</abbr> system to a non-EU system.</content></level></subsection><subsection><num>(2)</num><intro>Nothing in section 95(1), 97(1) or 97B(1) disapplies a charge to tax under section 93 or 96 in respect of that transfer if—</intro><level class="para1"><num>(a)</num><content>the chargeable securities have not previously been transferred, or</content></level><level class="para1"><num>(b)</num><content>where they have previously been transferred, the transfer (or, if more than one, each of them) was an exempt transfer.</content></level></subsection><subsection><num>(3)</num><intro>For the purposes of subsection (1)(a) chargeable securities are issued to an <abbr class="acronym" title="European Union">EU</abbr> system if—</intro><level class="para1"><num>(a)</num><content>pursuant to an arrangement of the kind mentioned in section 93(1), they are issued to a nominee in respect of an <abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer, or</content></level><level class="para1"><num>(b)</num><content>pursuant to an arrangement of the kind mentioned in section 96(1), they are issued to a nominee in respect of an <abbr class="acronym" title="European Union">EU</abbr> clearance service operator.</content></level></subsection><subsection><num>(4)</num><intro>For the purposes of subsection (1)(b)—</intro><level class="para1"><num>(a)</num><content>a transfer is from an <abbr class="acronym" title="European Union">EU</abbr> system if it is from a company which is incorporated under the law of a member State and at the time of the transfer falls within section 67(6) or 70(6), and</content></level><level class="para1"><num>(b)</num><content>a transfer is to a non-EU system if it is to a company which is not incorporated under the law of a member State and at the time of the transfer falls within section 67(6) or 70(6).</content></level></subsection><subsection><num>(5)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-eu-clearance-service-operator"><abbr class="acronym" title="European Union">EU</abbr> clearance service operator</term>” means a person—</intro><level class="para1"><num>(a)</num><content>whose business is or includes the provision of clearance services for the purchase and sale of chargeable securities, and</content></level><level class="para1"><num>(b)</num><content>who—<blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num>if it is a company, is incorporated under the law of a member State, and</item><item><num>(ii)</num>in any other case, is resident in a member State;</item></blockList></content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-eu-depositary-receipt-issuer"><abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer</term>” means a person—</intro><level class="para1"><num>(a)</num><content>whose business is or includes issuing depositary receipts for chargeable securities, and</content></level><level class="para1"><num>(b)</num><content>who—<blockList class="ordered roman parens" ukl:Name="OrderedList" ukl:Type="roman" ukl:Decoration="parens"><item><num>(i)</num>if it is a company, is incorporated under the law of a member State, and</item><item><num>(ii)</num>in any other case, is resident in a member State;</item></blockList></content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-exempt-transfer">exempt transfer</term>” means a transfer in respect of which, by reason of section 90(5), 95(1), 97(1) or 97B(1), no charge to stamp duty reserve tax arises;</content></hcontainer><hcontainer name="definition"><intro>“nominee”—</intro><level class="para1"><num>(a)</num><content>in respect of an <abbr class="acronym" title="European Union">EU</abbr> clearance service operator, means a person whose business is or includes holding chargeable securities as nominee for the <abbr class="acronym" title="European Union">EU</abbr> clearance service operator, and</content></level><level class="para1"><num>(b)</num><content>in respect of an <abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer, means a person whose business is or includes holding chargeable securities as nominee or agent for the <abbr class="acronym" title="European Union">EU</abbr> depositary receipt issuer.</content></level></hcontainer></subsection></section></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-54-6"><num>(6)</num><content>The amendments made by this section have effect in relation to transfers of chargeable securities on or after 1 October 2009.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-55"><num>55</num><heading><abbr class="acronym" title="Stamp Duty Land Tax">SDLT</abbr>: partnerships</heading><subsection eId="section-55-1"><num>(1)</num><intro>In section 75C of FA 2003 (<abbr class="acronym" title="Stamp Duty Land Tax">SDLT</abbr> anti-avoidance: supplemental)—</intro><level class="para1" eId="section-55-1-a"><num>(a)</num><content>in subsection (8), omit paragraph (b) (and the “and” before it), and</content></level><level class="para1" eId="section-55-1-b"><num>(b)</num><content><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><content>Nothing in Part 3 of Schedule 15 applies to the notional transaction under section 75A.</content></subsection></quotedStructure></mod></content></level></subsection><subsection eId="section-55-2"><num>(2)</num><content>The amendments made by subsection (1) have effect in relation to any notional transaction of which the effective date is on or after 24 March 2010.</content></subsection><subsection eId="section-55-3"><num>(3)</num><intro>But those amendments do not have effect in relation to a notional transaction if any scheme transaction is—</intro><level class="para1" eId="section-55-3-a"><num>(a)</num><content>completed before that date,</content></level><level class="para1" eId="section-55-3-b"><num>(b)</num><content>effected in pursuance of a contract entered into and substantially performed before that date, or</content></level><level class="para1" eId="section-55-3-c"><num>(c)</num><content>effected in pursuance of a contract entered into before that date and not excluded by subsection (4).</content></level></subsection><subsection eId="section-55-4"><num>(4)</num><intro>A scheme transaction effected in pursuance of a contract entered into before 24 March 2010 is excluded by this subsection if—</intro><level class="para1" eId="section-55-4-a"><num>(a)</num><content>there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 24 March 2010,</content></level><level class="para1" eId="section-55-4-b"><num>(b)</num><content>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</content></level><level class="para1" eId="section-55-4-c"><num>(c)</num><content>it is a land transaction and on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</content></level></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-55-1"><num>(1)</num><intro>In section 75C of FA 2003 (<abbr class="acronym" title="Stamp Duty Land Tax">SDLT</abbr> anti-avoidance: supplemental)—</intro><level class="para1" eId="section-55-1-a"><num>(a)</num><content>in subsection (8), omit paragraph (b) (and the “and” before it), and</content></level><level class="para1" eId="section-55-1-b"><num>(b)</num><content><mod>after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><content>Nothing in Part 3 of Schedule 15 applies to the notional transaction under section 75A.</content></subsection></quotedStructure></mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-2"><num>(2)</num><content>The amendments made by subsection (1) have effect in relation to any notional transaction of which the effective date is on or after 24 March 2010.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-3"><num>(3)</num><intro>But those amendments do not have effect in relation to a notional transaction if any scheme transaction is—</intro><level class="para1" eId="section-55-3-a"><num>(a)</num><content>completed before that date,</content></level><level class="para1" eId="section-55-3-b"><num>(b)</num><content>effected in pursuance of a contract entered into and substantially performed before that date, or</content></level><level class="para1" eId="section-55-3-c"><num>(c)</num><content>effected in pursuance of a contract entered into before that date and not excluded by subsection (4).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-55-4"><num>(4)</num><intro>A scheme transaction effected in pursuance of a contract entered into before 24 March 2010 is excluded by this subsection if—</intro><level class="para1" eId="section-55-4-a"><num>(a)</num><content>there is any variation of the contract, or assignment (or assignation) of rights under the contract, on or after 24 March 2010,</content></level><level class="para1" eId="section-55-4-b"><num>(b)</num><content>the transaction is effected in consequence of the exercise on or after that date of any option, right of pre-emption or similar right, or</content></level><level class="para1" eId="section-55-4-c"><num>(c)</num><content>it is a land transaction and on or after that date there is an assignment (or assignation), subsale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.</content></level></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-56"><num>56</num><heading>Disclosure of tax avoidance schemes</heading><content>Schedule 17 contains amendments of the provisions relating to the disclosure of tax avoidance schemes.</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-57"><num>57</num><heading>Opening of postal packets</heading><subsection eId="section-57-1"><num>(1)</num><content>Section 106 of the Postal Services Act 2000 (power to detain postal packets containing contraband) is amended as follows.</content></subsection><subsection eId="section-57-2"><num>(2)</num><content><mod>In subsection (4), for paragraphs (a) and (b) substitute <quotedText>“ in the presence of a representative of the postal operator ”</quotedText>.</mod></content></subsection><subsection eId="section-57-3"><num>(3)</num><content>Omit subsection (5).</content></subsection><subsection eId="section-57-4"><num>(4)</num><content>In subsection (7)(b), omit “if he is absent”.</content></subsection></section>

<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1999/xhtml" eId="part-3"><num>Part 3</num><heading>Other provisions</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-income-tax-benefits-in-kind"><heading>Income tax: benefits in kind</heading><section eId="section-58"><num>58</num><heading>Zero and low emission vehicles</heading><subsection eId="section-58-1"><num>(1)</num><content>Chapter 6 of Part 3 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (taxable benefits: cars, vans and related benefits) is amended as follows.</content></subsection><subsection eId="section-58-2"><num>(2)</num><content><noteRef href="#c2125240" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subsection><subsection eId="section-58-3"><num>(3)</num><content><noteRef href="#c2125240" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subsection><subsection eId="section-58-4"><num>(4)</num><content><noteRef href="#c2125240" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subsection><subsection eId="section-58-5"><num>(5)</num><content><noteRef href="#c2125240" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subsection><subsection eId="section-58-6"><num>(6)</num><content>Omit subsection (5A).</content></subsection><subsection eId="section-58-7"><num>(7)</num><content>Section 140 (cars first registered in 1998 or later without emissions figure) is amended as follows.</content></subsection><subsection eId="section-58-8"><num>(8)</num><content><mod>In subsection (3), for the words after “year is” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content>the special percentage if the car cannot in any circumstances emit CO2 by being driven, and</content></level><level class="para1"><num>(b)</num><content>35% in any other case.</content></level></quotedStructure></mod></content></subsection><subsection eId="section-58-9"><num>(9)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro>The special percentage is—</intro><level class="para1"><num>(a)</num><content>for the tax years 2010-11 to 2014-15, 0%, and</content></level><level class="para1"><num>(b)</num><content>for the tax year 2015-16 and subsequent tax years, 9%.</content></level></subsection></quotedStructure></mod></content></subsection><subsection eId="section-58-10"><num>(10)</num><content>Omit subsection (4).</content></subsection><subsection eId="section-58-11"><num>(11)</num><content><mod>In section 149(4) (car fuel benefit), for “for an electrically propelled vehicle” substitute <quotedText>“ or any energy for a car which cannot in any circumstances emit CO2 by being driven. ”</quotedText></mod></content></subsection><subsection eId="section-58-12"><num>(12)</num><content><mod>In section 155 (vans), for subsections (1) to (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro>The cash equivalent of the benefit of a van for a tax year is—</intro><level class="para1"><num>(a)</num><content>nil in a case to which subsection (2) applies, and</content></level><level class="para1"><num>(b)</num><content>£3,000 in any other case.</content></level></subsection><subsection><num>(2)</num><intro>This subsection applies if—</intro><level class="para1"><num>(a)</num><content>the restricted private use condition is met in relation to the van for the tax year, or</content></level><level class="para1"><num>(b)</num><content>the van cannot in any circumstances emit CO2 by being driven and the tax year is any of the tax years 2010-11 to 2014-15.</content></level></subsection></quotedStructure></mod></content></subsection><subsection eId="section-58-13"><num>(13)</num><intro>In—</intro><level class="para1" eId="section-58-13-a"><num>(a)</num><content>section 156(1) (reduction for periods when van unavailable), and</content></level><level class="para1" eId="section-58-13-b"><num>(b)</num><content>section 158(1) (reduction for payments for private use),</content></level><wrapUp><mod>for “155(2)(a) or (b)” substitute <quotedText>“ 155(1) ”</quotedText>.</mod></wrapUp></subsection><subsection eId="section-58-14"><num>(14)</num><intro>In section 160 (van fuel benefit)—</intro><level class="para1" eId="section-58-14-a"><num>(a)</num><content><mod>in subsection (1), for “155(2)(b)” substitute <quotedText>“ 155(1)(b) ”</quotedText>, and</mod></content></level><level class="para1" eId="section-58-14-b"><num>(b)</num><content>omit subsection (4).</content></level></subsection><subsection eId="section-58-15"><num>(15)</num><intro>In section 170(1A) (power to amend section 155(2)(a) and (3)(b))—</intro><level class="para1" eId="section-58-15-a"><num>(a)</num><content><mod>in paragraph (a), for “155(2)(a)” substitute <quotedText>“ 155(1)(a) ”</quotedText> and after “employee” insert <quotedText>“ or a zero-emission van ”</quotedText>, and</mod></content></level><level class="para1" eId="section-58-15-b"><num>(b)</num><content><mod>in paragraph (b), for “155(3)(b)” substitute <quotedText>“ 155(1)(b) ”</quotedText>.</mod></content></level></subsection><subsection eId="section-58-16"><num>(16)</num><content>In FA 2006, in section 59, omit subsection (7).</content></subsection><subsection eId="section-58-17"><num>(17)</num><content>In FA 2009, in Schedule 28, omit paragraph 7.</content></subsection><subsection eId="section-58-18"><num>(18)</num><content>The amendments made by subsections (2) to (16) have effect for the tax year 2010-11 and subsequent tax years.</content></subsection><subsection eId="section-58-19"><num>(19)</num><content>The amendment made by subsection (17) is treated as always having had effect.</content></subsection><subsection eId="section-58-20"><num>(20)</num><content>The amendment of section 142 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 made by paragraph 8 of Schedule 28 to FA 2009 has effect for the tax year 2010-11 (as well as for the tax year 2011-12 and subsequent tax years).</content></subsection></section><section eId="section-59"><num>59</num><heading>Cars with CO2 emissions figure</heading><subsection eId="section-59-1"><num>(1)</num><content>Chapter 6 of Part 3 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (taxable benefits: cars, vans and related benefits) is further amended as follows.</content></subsection><subsection eId="section-59-2"><num>(2)</num><content><mod>For section 139 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>139</num><heading>Cars with a CO2 emissions figure: the appropriate percentage</heading><subsection><num>(1)</num><content>The appropriate percentage for a year for a car with a CO2 emissions figure depends on the car's CO2 emissions figure.</content></subsection><subsection><num>(2)</num><intro>If the car's CO2 emissions figure is less than the relevant threshold for the year, the appropriate percentage for the year is—</intro><level class="para1"><num>(a)</num><content>if the year is 2012-13, 2013-14 or 2014-15 and the car's CO2 emissions figure for the year does not exceed 75 grams per kilometre driven, 5%, and</content></level><level class="para1"><num>(b)</num><content>otherwise, 10%.</content></level></subsection><subsection><num>(3)</num><content>If the car's CO2 emissions figure is equal to the relevant threshold for the year, the appropriate percentage for the year is 11% (“the threshold percentage”).</content></subsection><subsection><num>(4)</num><intro>If the car's CO2 emissions figure exceeds the relevant threshold for the year, the appropriate percentage for the year is whichever is the lesser of—</intro><level class="para1"><num>(a)</num><content>the threshold percentage increased by one percentage point for each 5 grams per kilometre driven by which the CO2 emissions figure exceeds the relevant threshold for the year, and</content></level><level class="para1"><num>(b)</num><content>35%.</content></level></subsection><subsection><num>(5)</num><content>The relevant threshold is 100 grams per kilometre driven.</content></subsection><subsection><num>(6)</num><content>If the car's CO2 emissions figure is not a multiple of 5, it is to be rounded down to the nearest multiple of 5 for the purposes of subsections (3) and (4)(a).</content></subsection><subsection><num>(7)</num><intro>This section is subject to—</intro><level class="para1"><num>(a)</num><content>section 141 (diesel cars), and</content></level><level class="para1"><num>(b)</num><content>any regulations made by the Treasury under section 170(4) (power to reduce the appropriate percentage).</content></level></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-59-3"><num>(3)</num><intro>In section 170 (Treasury orders and regulations varying various amounts)—</intro><level class="para1" eId="section-59-3-a"><num>(a)</num><content>omit subsection (2A) (power to vary limit in section 139(3A)), and</content></level><level class="para1" eId="section-59-3-b"><num>(b)</num><intro>in subsection (3)—</intro><level class="para2" eId="section-59-3-b-i"><num>(i)</num><content><mod>for “ “lower” substitute “ <quotedText>“ relevant ”</quotedText>,</mod></content></level><level class="para2" eId="section-59-3-b-ii"><num>(ii)</num><content><mod>for “the Table in section 139(4)” substitute <quotedText>“ section 139(5) ”</quotedText>, and</mod></content></level><level class="para2" eId="section-59-3-b-iii"><num>(iii)</num><content><mod>for “2006” substitute <quotedText>“ 2013 ”</quotedText>.</mod></content></level></level></subsection><subsection eId="section-59-4"><num>(4)</num><intro>In consequence of the amendments made by subsections (2) and (3), omit—</intro><level class="para1" eId="section-59-4-a"><num>(a)</num><content>in FA 2006, section 59,</content></level><level class="para1" eId="section-59-4-b"><num>(b)</num><content>in FA 2009, in Schedule 28, paragraphs 6, 9 and 10(1), and</content></level><level class="para1" eId="section-59-4-c"><num>(c)</num><content>in this Act, section 58(2) to (5).</content></level></subsection><subsection eId="section-59-5"><num>(5)</num><content>The amendments made by this section have effect for the tax year 2012-13 and subsequent tax years.</content></subsection></section><section eId="section-60"><num>60</num><heading>Subsidised meals for employees: salary sacrifice <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-60-1"><num>(1)</num><content>Section 317 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (exemption from income tax in respect of provision for employees by employer of free or subsidised meals) is amended as follows.</content></subsection><subsection eId="section-60-2"><num>(2)</num><content><mod>In subsection (1), for “C” substitute <quotedText>“ D ”</quotedText>.</mod></content></subsection><subsection eId="section-60-3"><num>(3)</num><content><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro>Condition D is that the provision is not pursuant to—</intro><level class="para1"><num>(a)</num><content>relevant salary sacrifice arrangements, or</content></level><level class="para1"><num>(b)</num><content>relevant flexible remuneration arrangements.</content></level></subsection></quotedStructure></mod></content></subsection><subsection eId="section-60-4"><num>(4)</num><content><mod>After subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-relevant-salary-sacrifice-arrangements">relevant salary sacrifice arrangements</term>” means arrangements (whenever made, whether before or after the employment began) under which the employee gives up the right to receive an amount of general earnings or specific employment income in return for the provision of free or subsidised meals;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-relevant-flexible-remuneration-arrangements">relevant flexible remuneration arrangements</term>” means arrangements (whenever made, whether before or after the employment began) under which the employee and employer agree that the employee is to be provided with free or subsidised meals rather than receive some other description of employment income.</content></hcontainer></subsection></quotedStructure></mod></content></subsection><subsection eId="section-60-5"><num>(5)</num><content>The amendments made by this section have effect for the tax year 2011-12 and subsequent tax years.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-corporation-tax"><heading>Corporation tax</heading><section eId="section-61"><num>61</num><heading>Sale of lessors: election out of charge</heading><content>Schedule 18 contains provision amending Chapter 3 of Part 9 of CTA 2010 (and corresponding earlier provision) to introduce a system for electing out of the charge on a qualifying change.</content></section><section eId="section-62"><num>62</num><heading>Accounting standards: loan relationships and derivative contracts</heading><content>Schedule 19 contains provision conferring powers on the Treasury to make regulations about cases where, in consequence of a change in accounting standards in relation to loan relationships or derivative contracts, there is a change in the way in which a company is permitted or required for accounting purposes to recognise amounts.</content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-miscellaneous"><heading>Miscellaneous</heading><section eId="section-63"><num>63</num><heading>Champions League final</heading><content>Schedule 20 contains provision exempting certain persons from income tax in respect of certain income arising in connection with the 2011 Champions League final.</content></section><section eId="section-64"><num>64</num><heading>FSCS intervention in relation to insurance contracts</heading><subsection eId="section-64-1"><num>(1)</num><content>The Treasury may by regulations make provision for and in connection with the application of the relevant taxes in relation to circumstances in which there is relevant intervention under the FSCS.</content></subsection><subsection eId="section-64-2"><num>(2)</num><intro>“<term refersTo="#term-relevant-intervention" eId="term-relevant-intervention">Relevant intervention</term>” means—</intro><level class="para1" eId="section-64-2-a"><num>(a)</num><content>anything done under, or while seeking to make, arrangements for securing continuity of insurance in connection with protected contracts of insurance,</content></level><level class="para1" eId="section-64-2-b"><num>(b)</num><content>anything done as part of measures for safeguarding policyholders in connection with protected contracts of insurance, or</content></level><level class="para1" eId="section-64-2-c"><num>(c)</num><content>the payment of compensation in connection with protected contracts of insurance.</content></level></subsection><subsection eId="section-64-3"><num>(3)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-fscs" eId="term-the-fscs">the FSCS</term>” means the Financial Services Compensation Scheme (established under Part 15 of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-protected-contracts-of-insurance" eId="term-protected-contracts-of-insurance">protected contracts of insurance</term>” has the same meaning as in the <ins class="substitution first last" ukl:ChangeId="key-2faaa7d4156c916d360ca2a381a8212b-1502968900955" ukl:CommentaryRef="key-2faaa7d4156c916d360ca2a381a8212b"><noteRef uk:name="commentary" href="#key-2faaa7d4156c916d360ca2a381a8212b" class="commentary"/>PRA Handbook made by the Prudential Regulation Authority</ins> under that Act as it has effect from time to time.</content></hcontainer></subsection><subsection eId="section-64-4"><num>(4)</num><content>The provision that may be made by regulations under this section includes provision imposing any of the relevant taxes (as well as provisions for exemptions or reliefs).</content></subsection><subsection eId="section-64-5"><num>(5)</num><intro>The relevant taxes are—</intro><level class="para1" eId="section-64-5-a"><num>(a)</num><content>income tax,</content></level><level class="para1" eId="section-64-5-b"><num>(b)</num><content>capital gains tax,</content></level><level class="para1" eId="section-64-5-c"><num>(c)</num><content>corporation tax,</content></level><level class="para1" eId="section-64-5-d"><num>(d)</num><content>inheritance tax,</content></level><level class="para1" eId="section-64-5-e"><num>(e)</num><content>stamp duty land tax,</content></level><level class="para1" eId="section-64-5-f"><num>(f)</num><content>stamp duty,</content></level><level class="para1" eId="section-64-5-g"><num>(g)</num><content>stamp duty reserve tax, and</content></level><level class="para1" eId="section-64-5-h"><num>(h)</num><content>insurance premium tax.</content></level></subsection><subsection eId="section-64-6"><num>(6)</num><content>Regulations under this section may include provision having effect in relation to any time before they are made if the provision does not increase any person's liability to tax.</content></subsection><subsection eId="section-64-7"><num>(7)</num><content>The provision made by regulations under this section may be framed as provision modifying, or applying with appropriate modifications, provisions having effect in relation to protected contracts of insurance.</content></subsection><subsection eId="section-64-8"><num>(8)</num><intro>Regulations under this section may, in particular—</intro><level class="para1" eId="section-64-8-a"><num>(a)</num><content>amend, repeal or revoke or otherwise modify any enactment or instrument (whenever passed or made),</content></level><level class="para1" eId="section-64-8-b"><num>(b)</num><content>make different provision for different cases or otherwise for different purposes, and</content></level><level class="para1" eId="section-64-8-c"><num>(c)</num><content>make incidental, consequential, supplementary or transitional provision.</content></level></subsection><subsection eId="section-64-9"><num>(9)</num><content>Regulations under this section are to be made by statutory instrument.</content></subsection><subsection eId="section-64-10"><num>(10)</num><content>A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.</content></subsection></section><section eId="section-65"><num>65</num><heading>Stamp duty and SDRT: clearing houses</heading><subsection eId="section-65-1"><num>(1)</num><content><mod>In sections 116(1)(b) and 117(1)(b) of FA 1991 (investment exchanges and clearing houses: stamp duty and SDRT), for the words after “description) of such an exchange” substitute <quotedText>“ or clearing house, or a nominee (or nominee of a prescribed description) of a member of such an exchange or clearing house, and ”</quotedText>.</mod></content></subsection><subsection eId="section-65-2"><num>(2)</num><content>The amendments made by subsection (1) are treated as always having had effect.</content></subsection></section><section eId="section-66"><num>66</num><heading>Alcoholic liquor duties: power to amend definition of “cider”</heading><content><mod>In section 1 of <abbr class="acronym" title="Alcoholic Liquor Duties Act">ALDA</abbr> 1979 (dutiable alcoholic liquors), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><content>The Treasury may by order made by statutory instrument amend subsection (6) above.</content></subsection><subsection><num>(6B)</num><intro>An order under subsection (6A) above may make—</intro><level class="para1"><num>(a)</num><content>consequential amendments in this Act or any other enactment,</content></level><level class="para1"><num>(b)</num><content>other consequential provision, and</content></level><level class="para1"><num>(c)</num><content>supplementary, incidental and transitional provision.</content></level></subsection><subsection><num>(6C)</num><content>A statutory instrument containing an order under subsection (6A) above is to be laid before the House of Commons after being made; and, unless it is approved by that House before the end of the period of 28 days beginning with the date on which it is made, ceases to have effect at the end of that period (but without that affecting anything previously done under it or the making of a new order).</content></subsection><subsection><num>(6D)</num><intro>In reckoning that period no account is to be taken of any time—</intro><level class="para1"><num>(a)</num><content>during which Parliament is dissolved or prorogued, or</content></level><level class="para1"><num>(b)</num><content>during which the House of Commons is adjourned for more than 4 days.</content></level></subsection></quotedStructure></mod></content></section><section eId="section-67"><num>67</num><heading>Climate change levy: compatible state aid</heading><content><mod>In paragraph 42 of Schedule 6 to FA 2000 (amount payable by way of levy), after sub-paragraph (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(3)</num><content>If a reduced-rate supply is part of an aid scheme within Article 25 of Commission Regulation <ref eId="c00001" href="http://www.legislation.gov.uk/european/regulation/2008/0800">(<abbr class="acronym" title="European Community">EC</abbr>) <abbr title="Number">No.</abbr> 800/2008</ref>, sub-paragraph (4) cites the title and publication reference of that Regulation for the purpose of complying with Article 3(1) of that Regulation.</content></subparagraph><subparagraph><num>(4)</num><content>That citation is Commission Regulation <ref eId="c00002" href="http://www.legislation.gov.uk/european/regulation/2008/0800">(<abbr class="acronym" title="European Community">EC</abbr>) <abbr title="Number">No.</abbr> 800/2008</ref> of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General block exemption Regulation) (O.J. 2008 <abbr title="Number">No.</abbr> L214/3) (with the reference to Articles 87 and 88 being read, as a result of the Treaty of Lisbon, as a reference to Articles 107 and 108 of the Treaty on the Functioning of the European Union).</content></subparagraph></quotedStructure></mod></content></section></hcontainer><section eId="section-68"><num>68</num><heading>Pensions: minor corrections</heading><subsection eId="section-68-1"><num>(1)</num><content>Section 280(2) of FA 2004 (Part 4: index) is amended as follows.</content></subsection><subsection eId="section-68-2"><num>(2)</num><content><mod>After the definition of “active membership period (in sections 221 to 223)” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:46%"/><default:col span="1" style="width:54%"/></default:colgroup><default:tbody><default:tr><default:td>additional rate</default:td><default:td>section 6(2) of ITA 2007 (as applied by section 989 of that Act)</default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></content></subsection><subsection eId="section-68-3"><num>(3)</num><content><mod>In the definition of “basic rate limit”, for “20(2)” substitute <quotedText>“ 10 ”</quotedText>.</mod></content></subsection><subsection eId="section-68-4"><num>(4)</num><content><mod>After the entry relating to “higher rate” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default:table xmlns="http://www.w3.org/1999/xhtml"><default:colgroup span="1"><default:col span="1" style="width:46%"/><default:col span="1" style="width:54%"/></default:colgroup><default:tbody><default:tr><default:td>higher rate limit</default:td><default:td>section 10 of ITA 2007</default:td></default:tr></default:tbody></default:table></foreign></tblock></quotedStructure></mod></content></subsection><subsection eId="section-68-5"><num>(5)</num><content>The amendments made by subsections (2) and (4) have effect for the tax year 2010-11 and subsequent tax years.</content></subsection><subsection eId="section-68-6"><num>(6)</num><content>The amendment made by subsection (3) has effect for the tax year 2008-09 and subsequent tax years.</content></subsection></section><hcontainer name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-final-provisions"><heading>Final provisions</heading><section eId="section-69"><num>69</num><heading>Interpretation</heading><subsection eId="section-69-1"><num>(1)</num><intro>In this Act—</intro><hcontainer name="definition"><content>“<term refersTo="#term-alda-1979" eId="term-alda-1979"><abbr class="acronym" title="Alcoholic Liquor Duties Act">ALDA</abbr> 1979</term>” means the Alcoholic Liquor Duties Act 1979;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-bgda-1981" eId="term-bgda-1981">BGDA 1981</term>” means the Betting and Gaming Duties Act 1981;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-caa-2001" eId="term-caa-2001"><abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001</term>” means the Capital Allowances Act 2001;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-cta-2009" eId="term-cta-2009">CTA 2009</term>” means the Corporation Tax Act 2009;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-cta-2010" eId="term-cta-2010">CTA 2010</term>” means the Corporation Tax Act 2010;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fisma-2000" eId="term-fisma-2000"><abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000</term>” means the Financial Services and Markets Act 2000;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-hoda-1979" eId="term-hoda-1979"><abbr class="acronym" title="Hydrocarbon Oil Duties Act">HODA</abbr> 1979</term>” means the Hydrocarbon Oil Duties Act 1979;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-icta" eId="term-icta"><abbr class="acronym" title="Income and Corporation Taxes Act">ICTA</abbr></term>” means the Income and Corporation Taxes Act 1988;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-ihta-1984" eId="term-ihta-1984"><abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984</term>” means the Inheritance Tax Act 1984;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-ita-2007" eId="term-ita-2007">ITA 2007</term>” means the Income Tax Act 2007;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-itepa-2003" eId="term-itepa-2003"><abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003</term>” means the Income Tax (Earnings and Pensions) Act 2003;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-ittoia-2005" eId="term-ittoia-2005"><abbr class="acronym" title="Income Tax (Trading and Other Income) Act">ITTOIA</abbr> 2005</term>” means the Income Tax (Trading and Other Income) Act 2005;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tcga-1992" eId="term-tcga-1992"><abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992</term>” means the Taxation of Chargeable Gains Act 1992;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tiopa-2010" eId="term-tiopa-2010">TIOPA 2010</term>” means the Taxation (International and Other Provisions) Act 2010;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tma-1970" eId="term-tma-1970"><abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970</term>” means the Taxes Management Act 1970;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tpda-1979" eId="term-tpda-1979">TPDA 1979</term>” means the Tobacco Products Duty Act 1979;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vata-1994" eId="term-vata-1994"><abbr class="acronym" title="Value Added Tax Act">VATA</abbr> 1994</term>” means the Value Added Tax Act 1994;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vera-1994" eId="term-vera-1994"><abbr class="acronym" title="Vehicle Excise and Registration Act">VERA</abbr> 1994</term>” means the Vehicle Excise and Registration Act 1994.</content></hcontainer></subsection><subsection eId="section-69-2"><num>(2)</num><content>In this Act—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>“FA”, followed by a year, means the Finance Act of that year;</item><item>“F(No.2)A”, followed by a year, means the Finance (No.2) Act of that year.</item></blockList></content></subsection></section><section eId="section-70"><num>70</num><heading>Short title</heading><content>This Act may be cited as the Finance Act 2010.</content></section></hcontainer></part>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-income-tax-benefits-in-kind"><heading>Income tax: benefits in kind</heading><section eId="section-58"><num>58</num><heading>Zero and low emission vehicles</heading><subsection eId="section-58-1"><num>(1)</num><content>Chapter 6 of Part 3 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (taxable benefits: cars, vans and related benefits) is amended as follows.</content></subsection><subsection eId="section-58-2"><num>(2)</num><content><noteRef href="#c2125240" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subsection><subsection eId="section-58-3"><num>(3)</num><content><noteRef href="#c2125240" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subsection><subsection eId="section-58-4"><num>(4)</num><content><noteRef href="#c2125240" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subsection><subsection eId="section-58-5"><num>(5)</num><content><noteRef href="#c2125240" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subsection><subsection eId="section-58-6"><num>(6)</num><content>Omit subsection (5A).</content></subsection><subsection eId="section-58-7"><num>(7)</num><content>Section 140 (cars first registered in 1998 or later without emissions figure) is amended as follows.</content></subsection><subsection eId="section-58-8"><num>(8)</num><content><mod>In subsection (3), for the words after “year is” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content>the special percentage if the car cannot in any circumstances emit CO2 by being driven, and</content></level><level class="para1"><num>(b)</num><content>35% in any other case.</content></level></quotedStructure></mod></content></subsection><subsection eId="section-58-9"><num>(9)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro>The special percentage is—</intro><level class="para1"><num>(a)</num><content>for the tax years 2010-11 to 2014-15, 0%, and</content></level><level class="para1"><num>(b)</num><content>for the tax year 2015-16 and subsequent tax years, 9%.</content></level></subsection></quotedStructure></mod></content></subsection><subsection eId="section-58-10"><num>(10)</num><content>Omit subsection (4).</content></subsection><subsection eId="section-58-11"><num>(11)</num><content><mod>In section 149(4) (car fuel benefit), for “for an electrically propelled vehicle” substitute <quotedText>“ or any energy for a car which cannot in any circumstances emit CO2 by being driven. ”</quotedText></mod></content></subsection><subsection eId="section-58-12"><num>(12)</num><content><mod>In section 155 (vans), for subsections (1) to (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro>The cash equivalent of the benefit of a van for a tax year is—</intro><level class="para1"><num>(a)</num><content>nil in a case to which subsection (2) applies, and</content></level><level class="para1"><num>(b)</num><content>£3,000 in any other case.</content></level></subsection><subsection><num>(2)</num><intro>This subsection applies if—</intro><level class="para1"><num>(a)</num><content>the restricted private use condition is met in relation to the van for the tax year, or</content></level><level class="para1"><num>(b)</num><content>the van cannot in any circumstances emit CO2 by being driven and the tax year is any of the tax years 2010-11 to 2014-15.</content></level></subsection></quotedStructure></mod></content></subsection><subsection eId="section-58-13"><num>(13)</num><intro>In—</intro><level class="para1" eId="section-58-13-a"><num>(a)</num><content>section 156(1) (reduction for periods when van unavailable), and</content></level><level class="para1" eId="section-58-13-b"><num>(b)</num><content>section 158(1) (reduction for payments for private use),</content></level><wrapUp><mod>for “155(2)(a) or (b)” substitute <quotedText>“ 155(1) ”</quotedText>.</mod></wrapUp></subsection><subsection eId="section-58-14"><num>(14)</num><intro>In section 160 (van fuel benefit)—</intro><level class="para1" eId="section-58-14-a"><num>(a)</num><content><mod>in subsection (1), for “155(2)(b)” substitute <quotedText>“ 155(1)(b) ”</quotedText>, and</mod></content></level><level class="para1" eId="section-58-14-b"><num>(b)</num><content>omit subsection (4).</content></level></subsection><subsection eId="section-58-15"><num>(15)</num><intro>In section 170(1A) (power to amend section 155(2)(a) and (3)(b))—</intro><level class="para1" eId="section-58-15-a"><num>(a)</num><content><mod>in paragraph (a), for “155(2)(a)” substitute <quotedText>“ 155(1)(a) ”</quotedText> and after “employee” insert <quotedText>“ or a zero-emission van ”</quotedText>, and</mod></content></level><level class="para1" eId="section-58-15-b"><num>(b)</num><content><mod>in paragraph (b), for “155(3)(b)” substitute <quotedText>“ 155(1)(b) ”</quotedText>.</mod></content></level></subsection><subsection eId="section-58-16"><num>(16)</num><content>In FA 2006, in section 59, omit subsection (7).</content></subsection><subsection eId="section-58-17"><num>(17)</num><content>In FA 2009, in Schedule 28, omit paragraph 7.</content></subsection><subsection eId="section-58-18"><num>(18)</num><content>The amendments made by subsections (2) to (16) have effect for the tax year 2010-11 and subsequent tax years.</content></subsection><subsection eId="section-58-19"><num>(19)</num><content>The amendment made by subsection (17) is treated as always having had effect.</content></subsection><subsection eId="section-58-20"><num>(20)</num><content>The amendment of section 142 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 made by paragraph 8 of Schedule 28 to FA 2009 has effect for the tax year 2010-11 (as well as for the tax year 2011-12 and subsequent tax years).</content></subsection></section><section eId="section-59"><num>59</num><heading>Cars with CO2 emissions figure</heading><subsection eId="section-59-1"><num>(1)</num><content>Chapter 6 of Part 3 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (taxable benefits: cars, vans and related benefits) is further amended as follows.</content></subsection><subsection eId="section-59-2"><num>(2)</num><content><mod>For section 139 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>139</num><heading>Cars with a CO2 emissions figure: the appropriate percentage</heading><subsection><num>(1)</num><content>The appropriate percentage for a year for a car with a CO2 emissions figure depends on the car's CO2 emissions figure.</content></subsection><subsection><num>(2)</num><intro>If the car's CO2 emissions figure is less than the relevant threshold for the year, the appropriate percentage for the year is—</intro><level class="para1"><num>(a)</num><content>if the year is 2012-13, 2013-14 or 2014-15 and the car's CO2 emissions figure for the year does not exceed 75 grams per kilometre driven, 5%, and</content></level><level class="para1"><num>(b)</num><content>otherwise, 10%.</content></level></subsection><subsection><num>(3)</num><content>If the car's CO2 emissions figure is equal to the relevant threshold for the year, the appropriate percentage for the year is 11% (“the threshold percentage”).</content></subsection><subsection><num>(4)</num><intro>If the car's CO2 emissions figure exceeds the relevant threshold for the year, the appropriate percentage for the year is whichever is the lesser of—</intro><level class="para1"><num>(a)</num><content>the threshold percentage increased by one percentage point for each 5 grams per kilometre driven by which the CO2 emissions figure exceeds the relevant threshold for the year, and</content></level><level class="para1"><num>(b)</num><content>35%.</content></level></subsection><subsection><num>(5)</num><content>The relevant threshold is 100 grams per kilometre driven.</content></subsection><subsection><num>(6)</num><content>If the car's CO2 emissions figure is not a multiple of 5, it is to be rounded down to the nearest multiple of 5 for the purposes of subsections (3) and (4)(a).</content></subsection><subsection><num>(7)</num><intro>This section is subject to—</intro><level class="para1"><num>(a)</num><content>section 141 (diesel cars), and</content></level><level class="para1"><num>(b)</num><content>any regulations made by the Treasury under section 170(4) (power to reduce the appropriate percentage).</content></level></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-59-3"><num>(3)</num><intro>In section 170 (Treasury orders and regulations varying various amounts)—</intro><level class="para1" eId="section-59-3-a"><num>(a)</num><content>omit subsection (2A) (power to vary limit in section 139(3A)), and</content></level><level class="para1" eId="section-59-3-b"><num>(b)</num><intro>in subsection (3)—</intro><level class="para2" eId="section-59-3-b-i"><num>(i)</num><content><mod>for “ “lower” substitute “ <quotedText>“ relevant ”</quotedText>,</mod></content></level><level class="para2" eId="section-59-3-b-ii"><num>(ii)</num><content><mod>for “the Table in section 139(4)” substitute <quotedText>“ section 139(5) ”</quotedText>, and</mod></content></level><level class="para2" eId="section-59-3-b-iii"><num>(iii)</num><content><mod>for “2006” substitute <quotedText>“ 2013 ”</quotedText>.</mod></content></level></level></subsection><subsection eId="section-59-4"><num>(4)</num><intro>In consequence of the amendments made by subsections (2) and (3), omit—</intro><level class="para1" eId="section-59-4-a"><num>(a)</num><content>in FA 2006, section 59,</content></level><level class="para1" eId="section-59-4-b"><num>(b)</num><content>in FA 2009, in Schedule 28, paragraphs 6, 9 and 10(1), and</content></level><level class="para1" eId="section-59-4-c"><num>(c)</num><content>in this Act, section 58(2) to (5).</content></level></subsection><subsection eId="section-59-5"><num>(5)</num><content>The amendments made by this section have effect for the tax year 2012-13 and subsequent tax years.</content></subsection></section><section eId="section-60"><num>60</num><heading>Subsidised meals for employees: salary sacrifice <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-60-1"><num>(1)</num><content>Section 317 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (exemption from income tax in respect of provision for employees by employer of free or subsidised meals) is amended as follows.</content></subsection><subsection eId="section-60-2"><num>(2)</num><content><mod>In subsection (1), for “C” substitute <quotedText>“ D ”</quotedText>.</mod></content></subsection><subsection eId="section-60-3"><num>(3)</num><content><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro>Condition D is that the provision is not pursuant to—</intro><level class="para1"><num>(a)</num><content>relevant salary sacrifice arrangements, or</content></level><level class="para1"><num>(b)</num><content>relevant flexible remuneration arrangements.</content></level></subsection></quotedStructure></mod></content></subsection><subsection eId="section-60-4"><num>(4)</num><content><mod>After subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-relevant-salary-sacrifice-arrangements">relevant salary sacrifice arrangements</term>” means arrangements (whenever made, whether before or after the employment began) under which the employee gives up the right to receive an amount of general earnings or specific employment income in return for the provision of free or subsidised meals;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-relevant-flexible-remuneration-arrangements">relevant flexible remuneration arrangements</term>” means arrangements (whenever made, whether before or after the employment began) under which the employee and employer agree that the employee is to be provided with free or subsidised meals rather than receive some other description of employment income.</content></hcontainer></subsection></quotedStructure></mod></content></subsection><subsection eId="section-60-5"><num>(5)</num><content>The amendments made by this section have effect for the tax year 2011-12 and subsequent tax years.</content></subsection></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-58"><num>58</num><heading>Zero and low emission vehicles</heading><subsection eId="section-58-1"><num>(1)</num><content>Chapter 6 of Part 3 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (taxable benefits: cars, vans and related benefits) is amended as follows.</content></subsection><subsection eId="section-58-2"><num>(2)</num><content><noteRef href="#c2125240" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subsection><subsection eId="section-58-3"><num>(3)</num><content><noteRef href="#c2125240" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subsection><subsection eId="section-58-4"><num>(4)</num><content><noteRef href="#c2125240" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subsection><subsection eId="section-58-5"><num>(5)</num><content><noteRef href="#c2125240" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subsection><subsection eId="section-58-6"><num>(6)</num><content>Omit subsection (5A).</content></subsection><subsection eId="section-58-7"><num>(7)</num><content>Section 140 (cars first registered in 1998 or later without emissions figure) is amended as follows.</content></subsection><subsection eId="section-58-8"><num>(8)</num><content><mod>In subsection (3), for the words after “year is” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content>the special percentage if the car cannot in any circumstances emit CO2 by being driven, and</content></level><level class="para1"><num>(b)</num><content>35% in any other case.</content></level></quotedStructure></mod></content></subsection><subsection eId="section-58-9"><num>(9)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro>The special percentage is—</intro><level class="para1"><num>(a)</num><content>for the tax years 2010-11 to 2014-15, 0%, and</content></level><level class="para1"><num>(b)</num><content>for the tax year 2015-16 and subsequent tax years, 9%.</content></level></subsection></quotedStructure></mod></content></subsection><subsection eId="section-58-10"><num>(10)</num><content>Omit subsection (4).</content></subsection><subsection eId="section-58-11"><num>(11)</num><content><mod>In section 149(4) (car fuel benefit), for “for an electrically propelled vehicle” substitute <quotedText>“ or any energy for a car which cannot in any circumstances emit CO2 by being driven. ”</quotedText></mod></content></subsection><subsection eId="section-58-12"><num>(12)</num><content><mod>In section 155 (vans), for subsections (1) to (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro>The cash equivalent of the benefit of a van for a tax year is—</intro><level class="para1"><num>(a)</num><content>nil in a case to which subsection (2) applies, and</content></level><level class="para1"><num>(b)</num><content>£3,000 in any other case.</content></level></subsection><subsection><num>(2)</num><intro>This subsection applies if—</intro><level class="para1"><num>(a)</num><content>the restricted private use condition is met in relation to the van for the tax year, or</content></level><level class="para1"><num>(b)</num><content>the van cannot in any circumstances emit CO2 by being driven and the tax year is any of the tax years 2010-11 to 2014-15.</content></level></subsection></quotedStructure></mod></content></subsection><subsection eId="section-58-13"><num>(13)</num><intro>In—</intro><level class="para1" eId="section-58-13-a"><num>(a)</num><content>section 156(1) (reduction for periods when van unavailable), and</content></level><level class="para1" eId="section-58-13-b"><num>(b)</num><content>section 158(1) (reduction for payments for private use),</content></level><wrapUp><mod>for “155(2)(a) or (b)” substitute <quotedText>“ 155(1) ”</quotedText>.</mod></wrapUp></subsection><subsection eId="section-58-14"><num>(14)</num><intro>In section 160 (van fuel benefit)—</intro><level class="para1" eId="section-58-14-a"><num>(a)</num><content><mod>in subsection (1), for “155(2)(b)” substitute <quotedText>“ 155(1)(b) ”</quotedText>, and</mod></content></level><level class="para1" eId="section-58-14-b"><num>(b)</num><content>omit subsection (4).</content></level></subsection><subsection eId="section-58-15"><num>(15)</num><intro>In section 170(1A) (power to amend section 155(2)(a) and (3)(b))—</intro><level class="para1" eId="section-58-15-a"><num>(a)</num><content><mod>in paragraph (a), for “155(2)(a)” substitute <quotedText>“ 155(1)(a) ”</quotedText> and after “employee” insert <quotedText>“ or a zero-emission van ”</quotedText>, and</mod></content></level><level class="para1" eId="section-58-15-b"><num>(b)</num><content><mod>in paragraph (b), for “155(3)(b)” substitute <quotedText>“ 155(1)(b) ”</quotedText>.</mod></content></level></subsection><subsection eId="section-58-16"><num>(16)</num><content>In FA 2006, in section 59, omit subsection (7).</content></subsection><subsection eId="section-58-17"><num>(17)</num><content>In FA 2009, in Schedule 28, omit paragraph 7.</content></subsection><subsection eId="section-58-18"><num>(18)</num><content>The amendments made by subsections (2) to (16) have effect for the tax year 2010-11 and subsequent tax years.</content></subsection><subsection eId="section-58-19"><num>(19)</num><content>The amendment made by subsection (17) is treated as always having had effect.</content></subsection><subsection eId="section-58-20"><num>(20)</num><content>The amendment of section 142 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 made by paragraph 8 of Schedule 28 to FA 2009 has effect for the tax year 2010-11 (as well as for the tax year 2011-12 and subsequent tax years).</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-1"><num>(1)</num><content>Chapter 6 of Part 3 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (taxable benefits: cars, vans and related benefits) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-6"><num>(6)</num><content>Omit subsection (5A).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-7"><num>(7)</num><content>Section 140 (cars first registered in 1998 or later without emissions figure) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-58-8"><num>(8)</num><content><mod>In subsection (3), for the words after “year is” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content>the special percentage if the car cannot in any circumstances emit CO2 by being driven, and</content></level><level class="para1"><num>(b)</num><content>35% in any other case.</content></level></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-58-9"><num>(9)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><intro>The special percentage is—</intro><level class="para1"><num>(a)</num><content>for the tax years 2010-11 to 2014-15, 0%, and</content></level><level class="para1"><num>(b)</num><content>for the tax year 2015-16 and subsequent tax years, 9%.</content></level></subsection></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-10"><num>(10)</num><content>Omit subsection (4).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-11"><num>(11)</num><content><mod>In section 149(4) (car fuel benefit), for “for an electrically propelled vehicle” substitute <quotedText>“ or any energy for a car which cannot in any circumstances emit CO2 by being driven. ”</quotedText></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-58-12"><num>(12)</num><content><mod>In section 155 (vans), for subsections (1) to (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1)</num><intro>The cash equivalent of the benefit of a van for a tax year is—</intro><level class="para1"><num>(a)</num><content>nil in a case to which subsection (2) applies, and</content></level><level class="para1"><num>(b)</num><content>£3,000 in any other case.</content></level></subsection><subsection><num>(2)</num><intro>This subsection applies if—</intro><level class="para1"><num>(a)</num><content>the restricted private use condition is met in relation to the van for the tax year, or</content></level><level class="para1"><num>(b)</num><content>the van cannot in any circumstances emit CO2 by being driven and the tax year is any of the tax years 2010-11 to 2014-15.</content></level></subsection></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-13"><num>(13)</num><intro>In—</intro><level class="para1" eId="section-58-13-a"><num>(a)</num><content>section 156(1) (reduction for periods when van unavailable), and</content></level><level class="para1" eId="section-58-13-b"><num>(b)</num><content>section 158(1) (reduction for payments for private use),</content></level><wrapUp><mod>for “155(2)(a) or (b)” substitute <quotedText>“ 155(1) ”</quotedText>.</mod></wrapUp></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-14"><num>(14)</num><intro>In section 160 (van fuel benefit)—</intro><level class="para1" eId="section-58-14-a"><num>(a)</num><content><mod>in subsection (1), for “155(2)(b)” substitute <quotedText>“ 155(1)(b) ”</quotedText>, and</mod></content></level><level class="para1" eId="section-58-14-b"><num>(b)</num><content>omit subsection (4).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-15"><num>(15)</num><intro>In section 170(1A) (power to amend section 155(2)(a) and (3)(b))—</intro><level class="para1" eId="section-58-15-a"><num>(a)</num><content><mod>in paragraph (a), for “155(2)(a)” substitute <quotedText>“ 155(1)(a) ”</quotedText> and after “employee” insert <quotedText>“ or a zero-emission van ”</quotedText>, and</mod></content></level><level class="para1" eId="section-58-15-b"><num>(b)</num><content><mod>in paragraph (b), for “155(3)(b)” substitute <quotedText>“ 155(1)(b) ”</quotedText>.</mod></content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-16"><num>(16)</num><content>In FA 2006, in section 59, omit subsection (7).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-17"><num>(17)</num><content>In FA 2009, in Schedule 28, omit paragraph 7.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-18"><num>(18)</num><content>The amendments made by subsections (2) to (16) have effect for the tax year 2010-11 and subsequent tax years.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-19"><num>(19)</num><content>The amendment made by subsection (17) is treated as always having had effect.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-58-20"><num>(20)</num><content>The amendment of section 142 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 made by paragraph 8 of Schedule 28 to FA 2009 has effect for the tax year 2010-11 (as well as for the tax year 2011-12 and subsequent tax years).</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-59"><num>59</num><heading>Cars with CO2 emissions figure</heading><subsection eId="section-59-1"><num>(1)</num><content>Chapter 6 of Part 3 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (taxable benefits: cars, vans and related benefits) is further amended as follows.</content></subsection><subsection eId="section-59-2"><num>(2)</num><content><mod>For section 139 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>139</num><heading>Cars with a CO2 emissions figure: the appropriate percentage</heading><subsection><num>(1)</num><content>The appropriate percentage for a year for a car with a CO2 emissions figure depends on the car's CO2 emissions figure.</content></subsection><subsection><num>(2)</num><intro>If the car's CO2 emissions figure is less than the relevant threshold for the year, the appropriate percentage for the year is—</intro><level class="para1"><num>(a)</num><content>if the year is 2012-13, 2013-14 or 2014-15 and the car's CO2 emissions figure for the year does not exceed 75 grams per kilometre driven, 5%, and</content></level><level class="para1"><num>(b)</num><content>otherwise, 10%.</content></level></subsection><subsection><num>(3)</num><content>If the car's CO2 emissions figure is equal to the relevant threshold for the year, the appropriate percentage for the year is 11% (“the threshold percentage”).</content></subsection><subsection><num>(4)</num><intro>If the car's CO2 emissions figure exceeds the relevant threshold for the year, the appropriate percentage for the year is whichever is the lesser of—</intro><level class="para1"><num>(a)</num><content>the threshold percentage increased by one percentage point for each 5 grams per kilometre driven by which the CO2 emissions figure exceeds the relevant threshold for the year, and</content></level><level class="para1"><num>(b)</num><content>35%.</content></level></subsection><subsection><num>(5)</num><content>The relevant threshold is 100 grams per kilometre driven.</content></subsection><subsection><num>(6)</num><content>If the car's CO2 emissions figure is not a multiple of 5, it is to be rounded down to the nearest multiple of 5 for the purposes of subsections (3) and (4)(a).</content></subsection><subsection><num>(7)</num><intro>This section is subject to—</intro><level class="para1"><num>(a)</num><content>section 141 (diesel cars), and</content></level><level class="para1"><num>(b)</num><content>any regulations made by the Treasury under section 170(4) (power to reduce the appropriate percentage).</content></level></subsection></section></quotedStructure></mod></content></subsection><subsection eId="section-59-3"><num>(3)</num><intro>In section 170 (Treasury orders and regulations varying various amounts)—</intro><level class="para1" eId="section-59-3-a"><num>(a)</num><content>omit subsection (2A) (power to vary limit in section 139(3A)), and</content></level><level class="para1" eId="section-59-3-b"><num>(b)</num><intro>in subsection (3)—</intro><level class="para2" eId="section-59-3-b-i"><num>(i)</num><content><mod>for “ “lower” substitute “ <quotedText>“ relevant ”</quotedText>,</mod></content></level><level class="para2" eId="section-59-3-b-ii"><num>(ii)</num><content><mod>for “the Table in section 139(4)” substitute <quotedText>“ section 139(5) ”</quotedText>, and</mod></content></level><level class="para2" eId="section-59-3-b-iii"><num>(iii)</num><content><mod>for “2006” substitute <quotedText>“ 2013 ”</quotedText>.</mod></content></level></level></subsection><subsection eId="section-59-4"><num>(4)</num><intro>In consequence of the amendments made by subsections (2) and (3), omit—</intro><level class="para1" eId="section-59-4-a"><num>(a)</num><content>in FA 2006, section 59,</content></level><level class="para1" eId="section-59-4-b"><num>(b)</num><content>in FA 2009, in Schedule 28, paragraphs 6, 9 and 10(1), and</content></level><level class="para1" eId="section-59-4-c"><num>(c)</num><content>in this Act, section 58(2) to (5).</content></level></subsection><subsection eId="section-59-5"><num>(5)</num><content>The amendments made by this section have effect for the tax year 2012-13 and subsequent tax years.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-1"><num>(1)</num><content>Chapter 6 of Part 3 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (taxable benefits: cars, vans and related benefits) is further amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-59-2"><num>(2)</num><content><mod>For section 139 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>139</num><heading>Cars with a CO2 emissions figure: the appropriate percentage</heading><subsection><num>(1)</num><content>The appropriate percentage for a year for a car with a CO2 emissions figure depends on the car's CO2 emissions figure.</content></subsection><subsection><num>(2)</num><intro>If the car's CO2 emissions figure is less than the relevant threshold for the year, the appropriate percentage for the year is—</intro><level class="para1"><num>(a)</num><content>if the year is 2012-13, 2013-14 or 2014-15 and the car's CO2 emissions figure for the year does not exceed 75 grams per kilometre driven, 5%, and</content></level><level class="para1"><num>(b)</num><content>otherwise, 10%.</content></level></subsection><subsection><num>(3)</num><content>If the car's CO2 emissions figure is equal to the relevant threshold for the year, the appropriate percentage for the year is 11% (“the threshold percentage”).</content></subsection><subsection><num>(4)</num><intro>If the car's CO2 emissions figure exceeds the relevant threshold for the year, the appropriate percentage for the year is whichever is the lesser of—</intro><level class="para1"><num>(a)</num><content>the threshold percentage increased by one percentage point for each 5 grams per kilometre driven by which the CO2 emissions figure exceeds the relevant threshold for the year, and</content></level><level class="para1"><num>(b)</num><content>35%.</content></level></subsection><subsection><num>(5)</num><content>The relevant threshold is 100 grams per kilometre driven.</content></subsection><subsection><num>(6)</num><content>If the car's CO2 emissions figure is not a multiple of 5, it is to be rounded down to the nearest multiple of 5 for the purposes of subsections (3) and (4)(a).</content></subsection><subsection><num>(7)</num><intro>This section is subject to—</intro><level class="para1"><num>(a)</num><content>section 141 (diesel cars), and</content></level><level class="para1"><num>(b)</num><content>any regulations made by the Treasury under section 170(4) (power to reduce the appropriate percentage).</content></level></subsection></section></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-3"><num>(3)</num><intro>In section 170 (Treasury orders and regulations varying various amounts)—</intro><level class="para1" eId="section-59-3-a"><num>(a)</num><content>omit subsection (2A) (power to vary limit in section 139(3A)), and</content></level><level class="para1" eId="section-59-3-b"><num>(b)</num><intro>in subsection (3)—</intro><level class="para2" eId="section-59-3-b-i"><num>(i)</num><content><mod>for “ “lower” substitute “ <quotedText>“ relevant ”</quotedText>,</mod></content></level><level class="para2" eId="section-59-3-b-ii"><num>(ii)</num><content><mod>for “the Table in section 139(4)” substitute <quotedText>“ section 139(5) ”</quotedText>, and</mod></content></level><level class="para2" eId="section-59-3-b-iii"><num>(iii)</num><content><mod>for “2006” substitute <quotedText>“ 2013 ”</quotedText>.</mod></content></level></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-3-a"><num>(a)</num><content>omit subsection (2A) (power to vary limit in section 139(3A)), and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-59-3-b"><num>(b)</num><intro>in subsection (3)—</intro><level class="para2" eId="section-59-3-b-i"><num>(i)</num><content><mod>for “ “lower” substitute “ <quotedText>“ relevant ”</quotedText>,</mod></content></level><level class="para2" eId="section-59-3-b-ii"><num>(ii)</num><content><mod>for “the Table in section 139(4)” substitute <quotedText>“ section 139(5) ”</quotedText>, and</mod></content></level><level class="para2" eId="section-59-3-b-iii"><num>(iii)</num><content><mod>for “2006” substitute <quotedText>“ 2013 ”</quotedText>.</mod></content></level></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-4"><num>(4)</num><intro>In consequence of the amendments made by subsections (2) and (3), omit—</intro><level class="para1" eId="section-59-4-a"><num>(a)</num><content>in FA 2006, section 59,</content></level><level class="para1" eId="section-59-4-b"><num>(b)</num><content>in FA 2009, in Schedule 28, paragraphs 6, 9 and 10(1), and</content></level><level class="para1" eId="section-59-4-c"><num>(c)</num><content>in this Act, section 58(2) to (5).</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-59-5"><num>(5)</num><content>The amendments made by this section have effect for the tax year 2012-13 and subsequent tax years.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-60"><num>60</num><heading>Subsidised meals for employees: salary sacrifice <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection eId="section-60-1"><num>(1)</num><content>Section 317 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (exemption from income tax in respect of provision for employees by employer of free or subsidised meals) is amended as follows.</content></subsection><subsection eId="section-60-2"><num>(2)</num><content><mod>In subsection (1), for “C” substitute <quotedText>“ D ”</quotedText>.</mod></content></subsection><subsection eId="section-60-3"><num>(3)</num><content><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro>Condition D is that the provision is not pursuant to—</intro><level class="para1"><num>(a)</num><content>relevant salary sacrifice arrangements, or</content></level><level class="para1"><num>(b)</num><content>relevant flexible remuneration arrangements.</content></level></subsection></quotedStructure></mod></content></subsection><subsection eId="section-60-4"><num>(4)</num><content><mod>After subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-relevant-salary-sacrifice-arrangements">relevant salary sacrifice arrangements</term>” means arrangements (whenever made, whether before or after the employment began) under which the employee gives up the right to receive an amount of general earnings or specific employment income in return for the provision of free or subsidised meals;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-relevant-flexible-remuneration-arrangements">relevant flexible remuneration arrangements</term>” means arrangements (whenever made, whether before or after the employment began) under which the employee and employer agree that the employee is to be provided with free or subsidised meals rather than receive some other description of employment income.</content></hcontainer></subsection></quotedStructure></mod></content></subsection><subsection eId="section-60-5"><num>(5)</num><content>The amendments made by this section have effect for the tax year 2011-12 and subsequent tax years.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-1"><num>(1)</num><content>Section 317 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (exemption from income tax in respect of provision for employees by employer of free or subsidised meals) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-2"><num>(2)</num><content><mod>In subsection (1), for “C” substitute <quotedText>“ D ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-60-3"><num>(3)</num><content><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><intro>Condition D is that the provision is not pursuant to—</intro><level class="para1"><num>(a)</num><content>relevant salary sacrifice arrangements, or</content></level><level class="para1"><num>(b)</num><content>relevant flexible remuneration arrangements.</content></level></subsection></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-60-4"><num>(4)</num><content><mod>After subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(5A)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-relevant-salary-sacrifice-arrangements">relevant salary sacrifice arrangements</term>” means arrangements (whenever made, whether before or after the employment began) under which the employee gives up the right to receive an amount of general earnings or specific employment income in return for the provision of free or subsidised meals;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-relevant-flexible-remuneration-arrangements">relevant flexible remuneration arrangements</term>” means arrangements (whenever made, whether before or after the employment began) under which the employee and employer agree that the employee is to be provided with free or subsidised meals rather than receive some other description of employment income.</content></hcontainer></subsection></quotedStructure></mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-60-5"><num>(5)</num><content>The amendments made by this section have effect for the tax year 2011-12 and subsequent tax years.</content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="crossheading" ukl:Name="Pblock" eId="part-3-crossheading-miscellaneous"><heading>Miscellaneous</heading><section eId="section-63"><num>63</num><heading>Champions League final</heading><content>Schedule 20 contains provision exempting certain persons from income tax in respect of certain income arising in connection with the 2011 Champions League final.</content></section><section eId="section-64"><num>64</num><heading>FSCS intervention in relation to insurance contracts</heading><subsection eId="section-64-1"><num>(1)</num><content>The Treasury may by regulations make provision for and in connection with the application of the relevant taxes in relation to circumstances in which there is relevant intervention under the FSCS.</content></subsection><subsection eId="section-64-2"><num>(2)</num><intro>“<term refersTo="#term-relevant-intervention" eId="term-relevant-intervention">Relevant intervention</term>” means—</intro><level class="para1" eId="section-64-2-a"><num>(a)</num><content>anything done under, or while seeking to make, arrangements for securing continuity of insurance in connection with protected contracts of insurance,</content></level><level class="para1" eId="section-64-2-b"><num>(b)</num><content>anything done as part of measures for safeguarding policyholders in connection with protected contracts of insurance, or</content></level><level class="para1" eId="section-64-2-c"><num>(c)</num><content>the payment of compensation in connection with protected contracts of insurance.</content></level></subsection><subsection eId="section-64-3"><num>(3)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-fscs" eId="term-the-fscs">the FSCS</term>” means the Financial Services Compensation Scheme (established under Part 15 of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-protected-contracts-of-insurance" eId="term-protected-contracts-of-insurance">protected contracts of insurance</term>” has the same meaning as in the <ins class="substitution first last" ukl:ChangeId="key-2faaa7d4156c916d360ca2a381a8212b-1502968900955" ukl:CommentaryRef="key-2faaa7d4156c916d360ca2a381a8212b"><noteRef uk:name="commentary" href="#key-2faaa7d4156c916d360ca2a381a8212b" class="commentary"/>PRA Handbook made by the Prudential Regulation Authority</ins> under that Act as it has effect from time to time.</content></hcontainer></subsection><subsection eId="section-64-4"><num>(4)</num><content>The provision that may be made by regulations under this section includes provision imposing any of the relevant taxes (as well as provisions for exemptions or reliefs).</content></subsection><subsection eId="section-64-5"><num>(5)</num><intro>The relevant taxes are—</intro><level class="para1" eId="section-64-5-a"><num>(a)</num><content>income tax,</content></level><level class="para1" eId="section-64-5-b"><num>(b)</num><content>capital gains tax,</content></level><level class="para1" eId="section-64-5-c"><num>(c)</num><content>corporation tax,</content></level><level class="para1" eId="section-64-5-d"><num>(d)</num><content>inheritance tax,</content></level><level class="para1" eId="section-64-5-e"><num>(e)</num><content>stamp duty land tax,</content></level><level class="para1" eId="section-64-5-f"><num>(f)</num><content>stamp duty,</content></level><level class="para1" eId="section-64-5-g"><num>(g)</num><content>stamp duty reserve tax, and</content></level><level class="para1" eId="section-64-5-h"><num>(h)</num><content>insurance premium tax.</content></level></subsection><subsection eId="section-64-6"><num>(6)</num><content>Regulations under this section may include provision having effect in relation to any time before they are made if the provision does not increase any person's liability to tax.</content></subsection><subsection eId="section-64-7"><num>(7)</num><content>The provision made by regulations under this section may be framed as provision modifying, or applying with appropriate modifications, provisions having effect in relation to protected contracts of insurance.</content></subsection><subsection eId="section-64-8"><num>(8)</num><intro>Regulations under this section may, in particular—</intro><level class="para1" eId="section-64-8-a"><num>(a)</num><content>amend, repeal or revoke or otherwise modify any enactment or instrument (whenever passed or made),</content></level><level class="para1" eId="section-64-8-b"><num>(b)</num><content>make different provision for different cases or otherwise for different purposes, and</content></level><level class="para1" eId="section-64-8-c"><num>(c)</num><content>make incidental, consequential, supplementary or transitional provision.</content></level></subsection><subsection eId="section-64-9"><num>(9)</num><content>Regulations under this section are to be made by statutory instrument.</content></subsection><subsection eId="section-64-10"><num>(10)</num><content>A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.</content></subsection></section><section eId="section-65"><num>65</num><heading>Stamp duty and SDRT: clearing houses</heading><subsection eId="section-65-1"><num>(1)</num><content><mod>In sections 116(1)(b) and 117(1)(b) of FA 1991 (investment exchanges and clearing houses: stamp duty and SDRT), for the words after “description) of such an exchange” substitute <quotedText>“ or clearing house, or a nominee (or nominee of a prescribed description) of a member of such an exchange or clearing house, and ”</quotedText>.</mod></content></subsection><subsection eId="section-65-2"><num>(2)</num><content>The amendments made by subsection (1) are treated as always having had effect.</content></subsection></section><section eId="section-66"><num>66</num><heading>Alcoholic liquor duties: power to amend definition of “cider”</heading><content><mod>In section 1 of <abbr class="acronym" title="Alcoholic Liquor Duties Act">ALDA</abbr> 1979 (dutiable alcoholic liquors), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><content>The Treasury may by order made by statutory instrument amend subsection (6) above.</content></subsection><subsection><num>(6B)</num><intro>An order under subsection (6A) above may make—</intro><level class="para1"><num>(a)</num><content>consequential amendments in this Act or any other enactment,</content></level><level class="para1"><num>(b)</num><content>other consequential provision, and</content></level><level class="para1"><num>(c)</num><content>supplementary, incidental and transitional provision.</content></level></subsection><subsection><num>(6C)</num><content>A statutory instrument containing an order under subsection (6A) above is to be laid before the House of Commons after being made; and, unless it is approved by that House before the end of the period of 28 days beginning with the date on which it is made, ceases to have effect at the end of that period (but without that affecting anything previously done under it or the making of a new order).</content></subsection><subsection><num>(6D)</num><intro>In reckoning that period no account is to be taken of any time—</intro><level class="para1"><num>(a)</num><content>during which Parliament is dissolved or prorogued, or</content></level><level class="para1"><num>(b)</num><content>during which the House of Commons is adjourned for more than 4 days.</content></level></subsection></quotedStructure></mod></content></section><section eId="section-67"><num>67</num><heading>Climate change levy: compatible state aid</heading><content><mod>In paragraph 42 of Schedule 6 to FA 2000 (amount payable by way of levy), after sub-paragraph (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(3)</num><content>If a reduced-rate supply is part of an aid scheme within Article 25 of Commission Regulation <ref eId="c00001" href="http://www.legislation.gov.uk/european/regulation/2008/0800">(<abbr class="acronym" title="European Community">EC</abbr>) <abbr title="Number">No.</abbr> 800/2008</ref>, sub-paragraph (4) cites the title and publication reference of that Regulation for the purpose of complying with Article 3(1) of that Regulation.</content></subparagraph><subparagraph><num>(4)</num><content>That citation is Commission Regulation <ref eId="c00002" href="http://www.legislation.gov.uk/european/regulation/2008/0800">(<abbr class="acronym" title="European Community">EC</abbr>) <abbr title="Number">No.</abbr> 800/2008</ref> of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General block exemption Regulation) (O.J. 2008 <abbr title="Number">No.</abbr> L214/3) (with the reference to Articles 87 and 88 being read, as a result of the Treaty of Lisbon, as a reference to Articles 107 and 108 of the Treaty on the Functioning of the European Union).</content></subparagraph></quotedStructure></mod></content></section></hcontainer>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-63"><num>63</num><heading>Champions League final</heading><content>Schedule 20 contains provision exempting certain persons from income tax in respect of certain income arising in connection with the 2011 Champions League final.</content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-64"><num>64</num><heading>FSCS intervention in relation to insurance contracts</heading><subsection eId="section-64-1"><num>(1)</num><content>The Treasury may by regulations make provision for and in connection with the application of the relevant taxes in relation to circumstances in which there is relevant intervention under the FSCS.</content></subsection><subsection eId="section-64-2"><num>(2)</num><intro>“<term refersTo="#term-relevant-intervention" eId="term-relevant-intervention">Relevant intervention</term>” means—</intro><level class="para1" eId="section-64-2-a"><num>(a)</num><content>anything done under, or while seeking to make, arrangements for securing continuity of insurance in connection with protected contracts of insurance,</content></level><level class="para1" eId="section-64-2-b"><num>(b)</num><content>anything done as part of measures for safeguarding policyholders in connection with protected contracts of insurance, or</content></level><level class="para1" eId="section-64-2-c"><num>(c)</num><content>the payment of compensation in connection with protected contracts of insurance.</content></level></subsection><subsection eId="section-64-3"><num>(3)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-fscs" eId="term-the-fscs">the FSCS</term>” means the Financial Services Compensation Scheme (established under Part 15 of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-protected-contracts-of-insurance" eId="term-protected-contracts-of-insurance">protected contracts of insurance</term>” has the same meaning as in the <ins class="substitution first last" ukl:ChangeId="key-2faaa7d4156c916d360ca2a381a8212b-1502968900955" ukl:CommentaryRef="key-2faaa7d4156c916d360ca2a381a8212b"><noteRef uk:name="commentary" href="#key-2faaa7d4156c916d360ca2a381a8212b" class="commentary"/>PRA Handbook made by the Prudential Regulation Authority</ins> under that Act as it has effect from time to time.</content></hcontainer></subsection><subsection eId="section-64-4"><num>(4)</num><content>The provision that may be made by regulations under this section includes provision imposing any of the relevant taxes (as well as provisions for exemptions or reliefs).</content></subsection><subsection eId="section-64-5"><num>(5)</num><intro>The relevant taxes are—</intro><level class="para1" eId="section-64-5-a"><num>(a)</num><content>income tax,</content></level><level class="para1" eId="section-64-5-b"><num>(b)</num><content>capital gains tax,</content></level><level class="para1" eId="section-64-5-c"><num>(c)</num><content>corporation tax,</content></level><level class="para1" eId="section-64-5-d"><num>(d)</num><content>inheritance tax,</content></level><level class="para1" eId="section-64-5-e"><num>(e)</num><content>stamp duty land tax,</content></level><level class="para1" eId="section-64-5-f"><num>(f)</num><content>stamp duty,</content></level><level class="para1" eId="section-64-5-g"><num>(g)</num><content>stamp duty reserve tax, and</content></level><level class="para1" eId="section-64-5-h"><num>(h)</num><content>insurance premium tax.</content></level></subsection><subsection eId="section-64-6"><num>(6)</num><content>Regulations under this section may include provision having effect in relation to any time before they are made if the provision does not increase any person's liability to tax.</content></subsection><subsection eId="section-64-7"><num>(7)</num><content>The provision made by regulations under this section may be framed as provision modifying, or applying with appropriate modifications, provisions having effect in relation to protected contracts of insurance.</content></subsection><subsection eId="section-64-8"><num>(8)</num><intro>Regulations under this section may, in particular—</intro><level class="para1" eId="section-64-8-a"><num>(a)</num><content>amend, repeal or revoke or otherwise modify any enactment or instrument (whenever passed or made),</content></level><level class="para1" eId="section-64-8-b"><num>(b)</num><content>make different provision for different cases or otherwise for different purposes, and</content></level><level class="para1" eId="section-64-8-c"><num>(c)</num><content>make incidental, consequential, supplementary or transitional provision.</content></level></subsection><subsection eId="section-64-9"><num>(9)</num><content>Regulations under this section are to be made by statutory instrument.</content></subsection><subsection eId="section-64-10"><num>(10)</num><content>A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.</content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-1"><num>(1)</num><content>The Treasury may by regulations make provision for and in connection with the application of the relevant taxes in relation to circumstances in which there is relevant intervention under the FSCS.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-2"><num>(2)</num><intro>“<term refersTo="#term-relevant-intervention" eId="term-relevant-intervention">Relevant intervention</term>” means—</intro><level class="para1" eId="section-64-2-a"><num>(a)</num><content>anything done under, or while seeking to make, arrangements for securing continuity of insurance in connection with protected contracts of insurance,</content></level><level class="para1" eId="section-64-2-b"><num>(b)</num><content>anything done as part of measures for safeguarding policyholders in connection with protected contracts of insurance, or</content></level><level class="para1" eId="section-64-2-c"><num>(c)</num><content>the payment of compensation in connection with protected contracts of insurance.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" eId="section-64-3"><num>(3)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-fscs" eId="term-the-fscs">the FSCS</term>” means the Financial Services Compensation Scheme (established under Part 15 of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-protected-contracts-of-insurance" eId="term-protected-contracts-of-insurance">protected contracts of insurance</term>” has the same meaning as in the <ins class="substitution first last" ukl:ChangeId="key-2faaa7d4156c916d360ca2a381a8212b-1502968900955" ukl:CommentaryRef="key-2faaa7d4156c916d360ca2a381a8212b"><noteRef uk:name="commentary" href="#key-2faaa7d4156c916d360ca2a381a8212b" class="commentary"/>PRA Handbook made by the Prudential Regulation Authority</ins> under that Act as it has effect from time to time.</content></hcontainer></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-vera-1994" eId="term-vera-1994"><abbr class="acronym" title="Vehicle Excise and Registration Act">VERA</abbr> 1994</term>” means the Vehicle Excise and Registration Act 1994.</content></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-1-paragraph-29-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may publish requirements as to the method or methods of payment to be used by taxable companies for paying bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-29-2"><num>(2)</num><content>Part 6 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (collection and recovery) applies in relation to a charge to bank payroll tax as it applies in relation to a charge to corporation tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-29-3"><num>(3)</num><content>See also Chapter 5 of Part 7 of FA 2008 (which makes general provision about payment and enforcement).</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-32" class="schProv1"><num>32</num><subparagraph eId="schedule-1-paragraph-32-1"><num>(1)</num><content>Part 5 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (appeals and other proceedings) applies in relation to an appeal against a discovery assessment to bank payroll tax as it applies in relation to an appeal against an assessment to corporation tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-32-2"><num>(2)</num><content>References in that Part to tax are to be read accordingly.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-6-paragraph-4-1"><num>(1)</num><content>A body of persons or trust meets the management condition if its managers are fit and proper persons to be managers of the body or trust.</content></subparagraph><subparagraph eId="schedule-6-paragraph-4-2"><num>(2)</num><content>In this paragraph “managers”, in relation to a body of persons or trust, means the persons having the general control and management of the administration of the body or trust.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-7" class="schProv1"><num>7</num><intro>The enactments to which this Part applies are the enactments relating to—</intro><level class="para1" eId="schedule-6-paragraph-7-a"><num>(a)</num><content>income tax</content></level><level class="para1" eId="schedule-6-paragraph-7-b"><num>(b)</num><content>capital gains tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-c"><num>(c)</num><content>corporation tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-d"><num>(d)</num><content>value added tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-e"><num>(e)</num><content>inheritance tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-f"><num>(f)</num><content>stamp duty,</content></level><level class="para1" eId="schedule-6-paragraph-7-g"><num>(g)</num><content>stamp duty land tax, and</content></level><level class="para1" eId="schedule-6-paragraph-7-h"><num>(h)</num><content>stamp duty reserve tax.</content></level></paragraph>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-7-a"><num>(a)</num><content>income tax</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-7-b"><num>(b)</num><content>capital gains tax,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-7-c"><num>(c)</num><content>corporation tax,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-7-d"><num>(d)</num><content>value added tax,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-7-e"><num>(e)</num><content>inheritance tax,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-7-f"><num>(f)</num><content>stamp duty,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-7-g"><num>(g)</num><content>stamp duty land tax, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-6-paragraph-7-h"><num>(h)</num><content>stamp duty reserve tax.</content></level>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-5" class="schProv1"><num>5</num><content>Chapter 3 of Part 6 of CTA 2010 (charitable donations relief: amounts treated as qualifying charitable donations) is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-8-paragraph-2-1"><num>(1)</num><content>In section 547(b) of ITA 2007 (payments by charitable trusts to bodies outside the UK), after “such steps as” insert “the Commissioners for Her Majesty’s Revenue and Customs consider”.</content></subparagraph><subparagraph eId="schedule-8-paragraph-2-2"><num>(2)</num><content>In section 500(b) of CTA 2010 (payments by charitable companies to bodies outside the UK), after “such steps as” insert “the Commissioners for Her Majesty’s Revenue and Customs consider”.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-10" class="schProv1"><num>10</num><content>Schedule 55 to FA 2009 (penalties for failure to make returns etc) is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-15-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-15-paragraph-1-1"><num>(1)</num><content>Section 322 of CTA 2009 (release of debts: cases where credits not required to be brought into account) is amended as follows.</content></subparagraph><subparagraph eId="schedule-15-paragraph-1-2"><num>(2)</num><content>In subsection (4), after “release is” insert “not a release of relevant rights and is”.</content></subparagraph><subparagraph eId="schedule-15-paragraph-1-3"><num>(3)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17748"><num>(4A)</num><content>Relevant rights” has the same meaning for the purposes of this section as it has for the purposes of section 358.</content></subsection></quotedStructure></mod></content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-15-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-15-paragraph-4-1"><num>(1)</num><intro>The amendments made by this Schedule do not have effect in relation to a relevant acquisition that is made on or after 14 October 2009, or to a release of rights acquired by way of such an acquisition, if—</intro><level class="para1" eId="schedule-15-paragraph-4-1-a"><num>(a)</num><content>the acquisition is made pursuant to an agreement entered into before 14 October 2009, or</content></level><level class="para1" eId="schedule-15-paragraph-4-1-b"><num>(b)</num><content>the acquisition is made during the transitional period and condition A, B or C is met.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-2"><num>(2)</num><intro>Condition A is that, before 14 October 2009—</intro><level class="para1" eId="schedule-15-paragraph-4-2-a"><num>(a)</num><content>the original creditor received a proposal from the new creditor that the acquisition should be made, or</content></level><level class="para1" eId="schedule-15-paragraph-4-2-b"><num>(b)</num><content>the new creditor received a proposal from the original creditor that the acquisition should be made.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-3"><num>(3)</num><intro>Condition B is that—</intro><level class="para1" eId="schedule-15-paragraph-4-3-a"><num>(a)</num><content>the acquisition is of rights under a loan relationship that is represented by a security,</content></level><level class="para1" eId="schedule-15-paragraph-4-3-b"><num>(b)</num><content>during the transitional period the new creditor acquires rights under other loan relationships represented by securities, and</content></level><level class="para1" eId="schedule-15-paragraph-4-3-c"><num>(c)</num><intro>before 14 October 2009, either—</intro><level class="para2" eId="schedule-15-paragraph-4-3-c-i"><num>(i)</num><content>persons together holding more than 50% by value of the securities referred to in paragraphs (a) and (b) (“the bought-back securities”) received proposals from the new creditor that the acquisitions should be made, or</content></level><level class="para2" eId="schedule-15-paragraph-4-3-c-ii"><num>(ii)</num><content>the new creditor received proposals from persons together holding more than 50% by value of the bought-back securities that the acquisitions should be made.</content></level></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-4"><num>(4)</num><intro>In sub-paragraphs <ref href="#schedule-15-paragraph-4-2">(2)</ref> and <ref href="#schedule-15-paragraph-4-3">(3)</ref>—</intro><level class="para1" eId="schedule-15-paragraph-4-4-a"><num>(a)</num><content>a reference to the original creditor includes any person acting on behalf of, or who controls, the original creditor,</content></level><level class="para1" eId="schedule-15-paragraph-4-4-b"><num>(b)</num><content>a reference to the new creditor includes any person acting on behalf of, or who controls, the new creditor, and</content></level><level class="para1" eId="schedule-15-paragraph-4-4-c"><num>(c)</num><content>a reference to a person holding a security includes any person acting on behalf of, or who controls, the person holding the security.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-5"><num>(5)</num><intro>Condition C is that—</intro><level class="para1" eId="schedule-15-paragraph-4-5-a"><num>(a)</num><content>before 14 October 2009, the Financial Services Authority gave its agreement (“the FSA agreement”) to the acquisition being made (and had not withdrawn that agreement),</content></level><level class="para1" eId="schedule-15-paragraph-4-5-b"><num>(b)</num><content>if the FSA agreement was given subject to the agreement of any other person, the agreement of that other person was also given (and not withdrawn) before that date, and</content></level><level class="para1" eId="schedule-15-paragraph-4-5-c"><num>(c)</num><content>condition A or B would have been met but for the compliance by the original creditor or the new creditor with any other term on which the FSA agreement was given.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-6"><num>(6)</num><intro>In this paragraph—</intro><level class="para1" eId="schedule-15-paragraph-4-6-a"><num>(a)</num><content>“the original creditor”, in relation to a relevant acquisition, means the person from whom the rights are acquired, and</content></level><level class="para1" eId="schedule-15-paragraph-4-6-b"><num>(b)</num><content>“the new creditor”, in relation to a relevant acquisition, means the person who acquires the rights.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-7"><num>(7)</num><intro>In this paragraph “the transitional period” means the period—</intro><level class="para1" eId="schedule-15-paragraph-4-7-a"><num>(a)</num><content>beginning with 14 October 2009, and</content></level><level class="para1" eId="schedule-15-paragraph-4-7-b"><num>(b)</num><content>ending with 31 January 2010.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-8"><num>(8)</num><content>Section 472 of CTA 2009 (meaning of “control”) applies for the purposes of this paragraph.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-20-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-20-paragraph-1-1"><num>(1)</num><content>This paragraph applies if an employee or contractor of an overseas team which competes in the 2011 Champions League final (“the final”) is neither UK resident nor ordinarily UK resident at the time of the final.</content></subparagraph><subparagraph eId="schedule-20-paragraph-1-2"><num>(2)</num><content>That person is not liable to income tax in respect of any income arising to the person which is related to duties or services performed by the person in the United Kingdom in connection with the final.</content></subparagraph><subparagraph eId="schedule-20-paragraph-1-3"><num>(3)</num><content>This paragraph is subject to paragraphs 2 and 3.</content></subparagraph><subparagraph eId="schedule-20-paragraph-1-4"><num>(4)</num><content>For the meaning of some expressions used in this paragraph, see paragraphs 5 and 6.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-20-paragraph-4" class="schProv1"><num>4</num><content>Section 966 of ITA 2007 (duty to deduct and account for sums representing income tax) does not apply to any payment or transfer which gives rise to income within paragraph 1(2).</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-1-paragraph-33-1"><num>(1)</num><content>Where a provision of FA 1998 is applied by this Part of this Schedule, a reference in section 46D of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (questions to be determined by the relevant tribunal) to that provision includes a reference to that provision as so applied.</content></subparagraph><subparagraph eId="schedule-1-paragraph-33-2"><num>(2)</num><content>A reference in section 48 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (application to appeals and other proceedings) to the Taxes Acts includes a reference to those Acts as applied by this Part of this Schedule.</content></subparagraph><subparagraph eId="schedule-1-paragraph-33-3"><num>(3)</num><intro>Where a provision of FA 1998 is applied by this Part of this Schedule—</intro><level class="para1" eId="schedule-1-paragraph-33-3-a"><num>(a)</num><content>a reference in section 55 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (recovery of tax not postponed) to that provision includes a reference to that provision as so applied, and</content></level><level class="para1" eId="schedule-1-paragraph-33-3-b"><num>(b)</num><content>references in that section to tax are to be read accordingly.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-7-paragraph-6-1"><num>(1)</num><content>Section 209 (value of net benefit to charity) is amended as follows.</content></subparagraph><subparagraph eId="schedule-7-paragraph-6-2"><num>(2)</num><content>In subsection (1), for “market” (in both places) substitute “relevant”.</content></subparagraph><subparagraph eId="schedule-7-paragraph-6-3"><num>(3)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e13174"><num>(1A)</num><intro>In subsection (1) “relevant value” means—</intro><level class="para1" eId="d25e13180"><num>(a)</num><content>where subsection (1B) applies, the lower of the market value and the acquisition value, and</content></level><level class="para1" eId="d25e13186"><num>(b)</num><content>otherwise, the market value.</content></level></subsection><subsection eId="d25e13192"><num>(1B)</num><intro>This subsection applies where—</intro><level class="para1" eId="d25e13198"><num>(a)</num><content>the qualifying investment, or anything from which it derives or which it represents (whether in whole or in part and whether directly or indirectly), was acquired by the company making the disposal within the period of 4 years ending with the day on which the disposal is made,</content></level><level class="para1" eId="d25e13204"><num>(b)</num><content>the acquisition was made as part of a scheme, and</content></level><level class="para1" eId="d25e13210"><num>(c)</num><content>the main purpose, or one of the main purposes, of the company in entering into the scheme was to obtain relief, or an increased amount of relief, as a result of this Chapter.</content></level></subsection><subsection eId="d25e13216"><num>(1C)</num><content>In subsection (1B) “scheme” includes any scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-4"><num>(4)</num><content><mod>In subsection (2), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e13229"><num>(aa)</num><content>section 210A (acquisition value of qualifying investments),</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-10-paragraph-11-1"><num>(1)</num><content>Paragraph 6 (amount of penalty if failure continues more than 12 months) is amended as follows.</content></subparagraph><subparagraph eId="schedule-10-paragraph-11-2"><num>(2)</num><content>In sub-paragraph (3)(a), for “100%” substitute “the relevant percentage”.</content></subparagraph><subparagraph eId="schedule-10-paragraph-11-3"><num>(3)</num><content><mod>After sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e15178"><num>(3A)</num><intro>For the purposes of sub-paragraph (3)(a), the relevant percentage is—</intro><level class="para1" eId="d25e15184"><num>(a)</num><content>for the withholding of category 1 information, 100%,</content></level><level class="para1" eId="d25e15190"><num>(b)</num><content>for the withholding of category 2 information, 150%, and</content></level><level class="para1" eId="d25e15196"><num>(c)</num><content>for the withholding of category 3 information, 200%.</content></level></subparagraph></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-4"><num>(4)</num><content>In sub-paragraph (4)(a), for “70%” substitute “the relevant percentage”.</content></subparagraph><subparagraph eId="schedule-10-paragraph-11-5"><num>(5)</num><content><mod>After sub-paragraph (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e15215"><num>(4A)</num><intro>For the purposes of sub-paragraph (4)(a), the relevant percentage is—</intro><level class="para1" eId="d25e15221"><num>(a)</num><content>for the withholding of category 1 information, 70%,</content></level><level class="para1" eId="d25e15227"><num>(b)</num><content>for the withholding of category 2 information, 105%, and</content></level><level class="para1" eId="d25e15233"><num>(c)</num><content>for the withholding of category 3 information, 140%.</content></level></subparagraph></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-6"><num>(6)</num><content><mod>After sub-paragraph (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e15246"><num>(6)</num><content>Paragraph 6A explains the 3 categories of information.</content></subparagraph></quotedStructure></mod></content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-7" class="schProv1"><num>7</num><content><mod>After section 210 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13247"><num>210A</num><heading>Acquisition value of qualifying investments</heading><subsection eId="d25e13251"><num>(1)</num><intro>For the purposes of this Chapter the acquisition value of a qualifying investment disposed of by a company is—</intro><level class="para1" eId="d25e13257"><num>(a)</num><content>where the qualifying investment was acquired by the company within the period of 4 years ending with the day on which the disposal is made, the cost to the company of acquiring it, or</content></level><level class="para1" eId="d25e13263"><num>(b)</num><content>where something from which the qualifying investment derives or which it represents was so acquired, such proportion of the cost to the company of acquiring that thing as is just and reasonable to attribute to the qualifying investment.</content></level></subsection><subsection eId="d25e13269"><num>(2)</num><intro>A reference in subsection (1) to the cost to the company of an acquisition is to—</intro><level class="para1" eId="d25e13275"><num>(a)</num><content>the consideration given by the company for the acquisition, less</content></level><level class="para1" eId="d25e13281"><num>(b)</num><content>any amount that is received in connection with the acquisition, by the company or a person connected with it, as part of the scheme in question.</content></level></subsection></section></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-12" class="schProv1"><num>12</num><content><mod>After paragraph 6 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><paragraph eId="d25e15259" class="schProv1"><num>6A</num><subparagraph eId="d25e15263"><num>(1)</num><intro>Information is category 1 information if—</intro><level class="para1" eId="d25e15269"><num>(a)</num><content>it involves a domestic matter, or</content></level><level class="para1" eId="d25e15275"><num>(b)</num><intro>it involves an offshore matter and—</intro><level class="para2" eId="d25e15281"><num>(i)</num><content>the territory in question is a category 1 territory, or</content></level><level class="para2" eId="d25e15287"><num>(ii)</num><content>it is information which would enable or assist HMRC to assess P’s liability to a tax other than income tax or capital gains tax.</content></level></level></subparagraph><subparagraph eId="d25e15293"><num>(2)</num><intro>Information is category 2 information if—</intro><level class="para1" eId="d25e15299"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1" eId="d25e15305"><num>(b)</num><content>the territory in question is a category 2 territory, and</content></level><level class="para1" eId="d25e15311"><num>(c)</num><content>it is information which would enable or assist HMRC to assess P’s liability to income tax or capital gains tax.</content></level></subparagraph><subparagraph eId="d25e15317"><num>(3)</num><intro>Information is category 3 information if—</intro><level class="para1" eId="d25e15323"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1" eId="d25e15329"><num>(b)</num><content>the territory in question is a category 3 territory, and</content></level><level class="para1" eId="d25e15335"><num>(c)</num><content>it is information which would enable or assist HMRC to assess P’s liability to income tax or capital gains tax.</content></level></subparagraph><subparagraph eId="d25e15341"><num>(4)</num><intro>Information “involves an offshore matter” if the liability to tax which would have been shown in the return includes a liability to tax charged on or by reference to—</intro><level class="para1" eId="d25e15347"><num>(a)</num><content>income arising from a source in a territory outside the UK,</content></level><level class="para1" eId="d25e15353"><num>(b)</num><content>assets situated or held in a territory outside the UK,</content></level><level class="para1" eId="d25e15359"><num>(c)</num><content>activities carried on wholly or mainly in a territory outside the UK, or</content></level><level class="para1" eId="d25e15365"><num>(d)</num><content>anything having effect as if it were income, assets or activities of a kind described above.</content></level></subparagraph><subparagraph eId="d25e15371"><num>(5)</num><content>Information “involves a domestic matter” if the liability to tax which would have been shown in the return includes a liability to tax charged on or by reference to anything not mentioned in sub-paragraph (4)(a) to (d).</content></subparagraph><subparagraph eId="d25e15377"><num>(6)</num><intro>If the information which P withholds falls into more than one category—</intro><level class="para1" eId="d25e15383"><num>(a)</num><content>P’s failure to make the return is to be treated for the purposes of this Schedule as if it were separate failures, one for each category of information according to the matters which the information involves, and</content></level><level class="para1" eId="d25e15389"><num>(b)</num><content>for each separate failure, the liability to tax which would have been shown in the return in question is taken to be such share of the liability to tax which would have been shown in the return mentioned in paragraph (a) as is just and reasonable.</content></level></subparagraph><subparagraph eId="d25e15395"><num>(7)</num><intro>For the purposes of this Schedule—</intro><level class="para1" eId="d25e15401"><num>(a)</num><content>paragraph 21A of Schedule 24 to FA 2007 (classification of territories) has effect, but</content></level><level class="para1" eId="d25e15407"><num>(b)</num><content>an order under that paragraph does not apply to a failure if the filing date is before the date on which the order comes into force.</content></level></subparagraph><subparagraph eId="d25e15413"><num>(8)</num><content>Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets etc) apply for the purposes of paragraph 6A of this Schedule as they apply for the purposes of paragraph 4A of that Schedule.</content></subparagraph><subparagraph eId="d25e15419"><num>(9)</num><intro>In this paragraph—</intro><hcontainer name="definition"><content>“assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling;</content></hcontainer><hcontainer name="definition"><content>“UK” means the United Kingdom, including the territorial sea of the United Kingdom.</content></hcontainer></subparagraph></paragraph></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-14" class="schProv1"><num>14</num><intro>In paragraph 17 (interaction with other penalties)—</intro><level class="para1" eId="schedule-10-paragraph-14-a"><num>(a)</num><content>in sub-paragraph (3), for “100%” substitute “the relevant percentage”, and</content></level><level class="para1" eId="schedule-10-paragraph-14-b"><num>(b)</num><content><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e15558"><num>(4)</num><intro>The relevant percentage is—</intro><level class="para1" eId="d25e15564"><num>(a)</num><content>if one of the penalties is a penalty under paragraph 6(3) or (4) and the information withheld is category 3 information, 200%,</content></level><level class="para1" eId="d25e15570"><num>(b)</num><content>if one of the penalties is a penalty under paragraph 6(3) or (4) and the information withheld is category 2 information, 150%, and</content></level><level class="para1" eId="d25e15576"><num>(c)</num><content>in all other cases, 100%.</content></level></subparagraph></quotedStructure></mod></content></level></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>Commencement of Part 3</heading><paragraph eId="schedule-6-paragraph-35" class="schProv1"><num>35</num><content>The amendments made by Part <ref href="#schedule-6-part-3">3</ref> are treated as having come into force on 6 April 2010.</content></paragraph></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-6-paragraph-23-1"><num>(1)</num><content>ITA 2007 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-2"><num>(2)</num><content>In section 479(1)(b) (special rates for trustees’ income), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-3"><num>(3)</num><content>In section 481(1)(c) (other special rates for trustees), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-4"><num>(4)</num><content>Omit section 519 (meaning of “charitable trust”).</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-5"><num>(5)</num><content>In section 873(2) (discretionary or accumulation settlements), in paragraphs (a) and (b), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-6"><num>(6)</num><content>In section 989 (definitions), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-7"><num>(7)</num><intro>In Schedule 4 (index of defined expressions)—</intro><level class="para1" eId="schedule-6-paragraph-23-7-a"><num>(a)</num><intro>in the entry for “charitable trust (in Part 10)”—</intro><level class="para2" eId="schedule-6-paragraph-23-7-a-i"><num>(i)</num><content>omit “(in Part 10)”, and</content></level><level class="para2" eId="schedule-6-paragraph-23-7-a-ii"><num>(ii)</num><content>for “section 519” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”, and</content></level></level><level class="para1" eId="schedule-6-paragraph-23-7-b"><num>(b)</num><content>in the entries for “charity”, “charity (in Chapter 2 of Part 8)” and “charity (in Chapter 3 of Part 8)”, for “section 989” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-26" class="schProv1"><num>26</num><content>In paragraph 8 of Schedule 49 to FA 2009 (general interpretation), omit the definition of “charity”.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-6-paragraph-29-1"><num>(1)</num><content>The Commissioners for Her Majesty’s Revenue and Customs may by order make such further consequential, incidental, supplemental, transitional or transitory provision or saving as appears appropriate in consequence of, or otherwise in connection with, Part <ref href="#schedule-6-part-1">1</ref>.</content></subparagraph><subparagraph eId="schedule-6-paragraph-29-2"><num>(2)</num><intro>An order under this paragraph may—</intro><level class="para1" eId="schedule-6-paragraph-29-2-a"><num>(a)</num><content>make different provision for different purposes, and</content></level><level class="para1" eId="schedule-6-paragraph-29-2-b"><num>(b)</num><content>make provision repealing, revoking or otherwise amending any enactment or instrument (whenever passed or made).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-29-3"><num>(3)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph><subparagraph eId="schedule-6-paragraph-29-4"><num>(4)</num><content>A statutory instrument containing an order under this paragraph is subject to annulment in pursuance of an order of the House of Commons.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-35" class="schProv1"><num>35</num><content>The amendments made by Part <ref href="#schedule-6-part-3">3</ref> are treated as having come into force on 6 April 2010.</content></paragraph>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-4"><num>(4)</num><content>The provision that may be made by regulations under this section includes provision imposing any of the relevant taxes (as well as provisions for exemptions or reliefs).</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-5"><num>(5)</num><intro>The relevant taxes are—</intro><level class="para1" eId="section-64-5-a"><num>(a)</num><content>income tax,</content></level><level class="para1" eId="section-64-5-b"><num>(b)</num><content>capital gains tax,</content></level><level class="para1" eId="section-64-5-c"><num>(c)</num><content>corporation tax,</content></level><level class="para1" eId="section-64-5-d"><num>(d)</num><content>inheritance tax,</content></level><level class="para1" eId="section-64-5-e"><num>(e)</num><content>stamp duty land tax,</content></level><level class="para1" eId="section-64-5-f"><num>(f)</num><content>stamp duty,</content></level><level class="para1" eId="section-64-5-g"><num>(g)</num><content>stamp duty reserve tax, and</content></level><level class="para1" eId="section-64-5-h"><num>(h)</num><content>insurance premium tax.</content></level></subsection>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-5-a"><num>(a)</num><content>income tax,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-5-b"><num>(b)</num><content>capital gains tax,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-5-c"><num>(c)</num><content>corporation tax,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-5-d"><num>(d)</num><content>inheritance tax,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-5-e"><num>(e)</num><content>stamp duty land tax,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-5-f"><num>(f)</num><content>stamp duty,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-5-g"><num>(g)</num><content>stamp duty reserve tax, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="section-64-5-h"><num>(h)</num><content>insurance premium tax.</content></level>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-6"><num>(6)</num><content>Regulations under this section may include provision having effect in relation to any time before they are made if the provision does not increase any person's liability to tax.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-7"><num>(7)</num><content>The provision made by regulations under this section may be framed as provision modifying, or applying with appropriate modifications, provisions having effect in relation to protected contracts of insurance.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-8"><num>(8)</num><intro>Regulations under this section may, in particular—</intro><level class="para1" eId="section-64-8-a"><num>(a)</num><content>amend, repeal or revoke or otherwise modify any enactment or instrument (whenever passed or made),</content></level><level class="para1" eId="section-64-8-b"><num>(b)</num><content>make different provision for different cases or otherwise for different purposes, and</content></level><level class="para1" eId="section-64-8-c"><num>(c)</num><content>make incidental, consequential, supplementary or transitional provision.</content></level></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-9"><num>(9)</num><content>Regulations under this section are to be made by statutory instrument.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-64-10"><num>(10)</num><content>A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-65"><num>65</num><heading>Stamp duty and SDRT: clearing houses</heading><subsection eId="section-65-1"><num>(1)</num><content><mod>In sections 116(1)(b) and 117(1)(b) of FA 1991 (investment exchanges and clearing houses: stamp duty and SDRT), for the words after “description) of such an exchange” substitute <quotedText>“ or clearing house, or a nominee (or nominee of a prescribed description) of a member of such an exchange or clearing house, and ”</quotedText>.</mod></content></subsection><subsection eId="section-65-2"><num>(2)</num><content>The amendments made by subsection (1) are treated as always having had effect.</content></subsection></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-66"><num>66</num><heading>Alcoholic liquor duties: power to amend definition of “cider”</heading><content><mod>In section 1 of <abbr class="acronym" title="Alcoholic Liquor Duties Act">ALDA</abbr> 1979 (dutiable alcoholic liquors), after subsection (6) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(6A)</num><content>The Treasury may by order made by statutory instrument amend subsection (6) above.</content></subsection><subsection><num>(6B)</num><intro>An order under subsection (6A) above may make—</intro><level class="para1"><num>(a)</num><content>consequential amendments in this Act or any other enactment,</content></level><level class="para1"><num>(b)</num><content>other consequential provision, and</content></level><level class="para1"><num>(c)</num><content>supplementary, incidental and transitional provision.</content></level></subsection><subsection><num>(6C)</num><content>A statutory instrument containing an order under subsection (6A) above is to be laid before the House of Commons after being made; and, unless it is approved by that House before the end of the period of 28 days beginning with the date on which it is made, ceases to have effect at the end of that period (but without that affecting anything previously done under it or the making of a new order).</content></subsection><subsection><num>(6D)</num><intro>In reckoning that period no account is to be taken of any time—</intro><level class="para1"><num>(a)</num><content>during which Parliament is dissolved or prorogued, or</content></level><level class="para1"><num>(b)</num><content>during which the House of Commons is adjourned for more than 4 days.</content></level></subsection></quotedStructure></mod></content></section>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-67"><num>67</num><heading>Climate change levy: compatible state aid</heading><content><mod>In paragraph 42 of Schedule 6 to FA 2000 (amount payable by way of levy), after sub-paragraph (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><subparagraph><num>(3)</num><content>If a reduced-rate supply is part of an aid scheme within Article 25 of Commission Regulation <ref eId="c00001" href="http://www.legislation.gov.uk/european/regulation/2008/0800">(<abbr class="acronym" title="European Community">EC</abbr>) <abbr title="Number">No.</abbr> 800/2008</ref>, sub-paragraph (4) cites the title and publication reference of that Regulation for the purpose of complying with Article 3(1) of that Regulation.</content></subparagraph><subparagraph><num>(4)</num><content>That citation is Commission Regulation <ref eId="c00002" href="http://www.legislation.gov.uk/european/regulation/2008/0800">(<abbr class="acronym" title="European Community">EC</abbr>) <abbr title="Number">No.</abbr> 800/2008</ref> of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General block exemption Regulation) (O.J. 2008 <abbr title="Number">No.</abbr> L214/3) (with the reference to Articles 87 and 88 being read, as a result of the Treaty of Lisbon, as a reference to Articles 107 and 108 of the Treaty on the Functioning of the European Union).</content></subparagraph></quotedStructure></mod></content></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-1"><num>(1)</num><content>Section 280(2) of FA 2004 (Part 4: index) is amended as follows.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-3"><num>(3)</num><content><mod>In the definition of “basic rate limit”, for “20(2)” substitute <quotedText>“ 10 ”</quotedText>.</mod></content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-5"><num>(5)</num><content>The amendments made by subsections (2) and (4) have effect for the tax year 2010-11 and subsequent tax years.</content></subsection>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-68-6"><num>(6)</num><content>The amendment made by subsection (3) has effect for the tax year 2008-09 and subsequent tax years.</content></subsection>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-69"><num>69</num><heading>Interpretation</heading><subsection eId="section-69-1"><num>(1)</num><intro>In this Act—</intro><hcontainer name="definition"><content>“<term refersTo="#term-alda-1979" eId="term-alda-1979"><abbr class="acronym" title="Alcoholic Liquor Duties Act">ALDA</abbr> 1979</term>” means the Alcoholic Liquor Duties Act 1979;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-bgda-1981" eId="term-bgda-1981">BGDA 1981</term>” means the Betting and Gaming Duties Act 1981;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-caa-2001" eId="term-caa-2001"><abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001</term>” means the Capital Allowances Act 2001;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-cta-2009" eId="term-cta-2009">CTA 2009</term>” means the Corporation Tax Act 2009;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-cta-2010" eId="term-cta-2010">CTA 2010</term>” means the Corporation Tax Act 2010;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fisma-2000" eId="term-fisma-2000"><abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000</term>” means the Financial Services and Markets Act 2000;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-hoda-1979" eId="term-hoda-1979"><abbr class="acronym" title="Hydrocarbon Oil Duties Act">HODA</abbr> 1979</term>” means the Hydrocarbon Oil Duties Act 1979;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-icta" eId="term-icta"><abbr class="acronym" title="Income and Corporation Taxes Act">ICTA</abbr></term>” means the Income and Corporation Taxes Act 1988;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-ihta-1984" eId="term-ihta-1984"><abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984</term>” means the Inheritance Tax Act 1984;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-ita-2007" eId="term-ita-2007">ITA 2007</term>” means the Income Tax Act 2007;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-itepa-2003" eId="term-itepa-2003"><abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003</term>” means the Income Tax (Earnings and Pensions) Act 2003;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-ittoia-2005" eId="term-ittoia-2005"><abbr class="acronym" title="Income Tax (Trading and Other Income) Act">ITTOIA</abbr> 2005</term>” means the Income Tax (Trading and Other Income) Act 2005;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tcga-1992" eId="term-tcga-1992"><abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992</term>” means the Taxation of Chargeable Gains Act 1992;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tiopa-2010" eId="term-tiopa-2010">TIOPA 2010</term>” means the Taxation (International and Other Provisions) Act 2010;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tma-1970" eId="term-tma-1970"><abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970</term>” means the Taxes Management Act 1970;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tpda-1979" eId="term-tpda-1979">TPDA 1979</term>” means the Tobacco Products Duty Act 1979;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vata-1994" eId="term-vata-1994"><abbr class="acronym" title="Value Added Tax Act">VATA</abbr> 1994</term>” means the Value Added Tax Act 1994;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vera-1994" eId="term-vera-1994"><abbr class="acronym" title="Vehicle Excise and Registration Act">VERA</abbr> 1994</term>” means the Vehicle Excise and Registration Act 1994.</content></hcontainer></subsection><subsection eId="section-69-2"><num>(2)</num><content>In this Act—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>“FA”, followed by a year, means the Finance Act of that year;</item><item>“F(No.2)A”, followed by a year, means the Finance (No.2) Act of that year.</item></blockList></content></subsection></section>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-69-1"><num>(1)</num><intro>In this Act—</intro><hcontainer name="definition"><content>“<term refersTo="#term-alda-1979" eId="term-alda-1979"><abbr class="acronym" title="Alcoholic Liquor Duties Act">ALDA</abbr> 1979</term>” means the Alcoholic Liquor Duties Act 1979;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-bgda-1981" eId="term-bgda-1981">BGDA 1981</term>” means the Betting and Gaming Duties Act 1981;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-caa-2001" eId="term-caa-2001"><abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001</term>” means the Capital Allowances Act 2001;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-cta-2009" eId="term-cta-2009">CTA 2009</term>” means the Corporation Tax Act 2009;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-cta-2010" eId="term-cta-2010">CTA 2010</term>” means the Corporation Tax Act 2010;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-fisma-2000" eId="term-fisma-2000"><abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000</term>” means the Financial Services and Markets Act 2000;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-hoda-1979" eId="term-hoda-1979"><abbr class="acronym" title="Hydrocarbon Oil Duties Act">HODA</abbr> 1979</term>” means the Hydrocarbon Oil Duties Act 1979;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-icta" eId="term-icta"><abbr class="acronym" title="Income and Corporation Taxes Act">ICTA</abbr></term>” means the Income and Corporation Taxes Act 1988;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-ihta-1984" eId="term-ihta-1984"><abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984</term>” means the Inheritance Tax Act 1984;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-ita-2007" eId="term-ita-2007">ITA 2007</term>” means the Income Tax Act 2007;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-itepa-2003" eId="term-itepa-2003"><abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003</term>” means the Income Tax (Earnings and Pensions) Act 2003;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-ittoia-2005" eId="term-ittoia-2005"><abbr class="acronym" title="Income Tax (Trading and Other Income) Act">ITTOIA</abbr> 2005</term>” means the Income Tax (Trading and Other Income) Act 2005;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tcga-1992" eId="term-tcga-1992"><abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992</term>” means the Taxation of Chargeable Gains Act 1992;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tiopa-2010" eId="term-tiopa-2010">TIOPA 2010</term>” means the Taxation (International and Other Provisions) Act 2010;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tma-1970" eId="term-tma-1970"><abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970</term>” means the Taxes Management Act 1970;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tpda-1979" eId="term-tpda-1979">TPDA 1979</term>” means the Tobacco Products Duty Act 1979;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vata-1994" eId="term-vata-1994"><abbr class="acronym" title="Value Added Tax Act">VATA</abbr> 1994</term>” means the Value Added Tax Act 1994;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-vera-1994" eId="term-vera-1994"><abbr class="acronym" title="Vehicle Excise and Registration Act">VERA</abbr> 1994</term>” means the Vehicle Excise and Registration Act 1994.</content></hcontainer></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>No deduction in computing profits</heading><paragraph eId="schedule-1-paragraph-15" class="schProv1"><num>15</num><content>No amount of bank payroll tax is to be taken into account in calculating profits or losses for the purposes of income tax or corporation tax.</content></paragraph></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-2" class="schProv1"><num>2</num><content>Bank payroll tax is charged at the rate of 50%.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-1-paragraph-6-1"><num>(1)</num><intro>Relevant remuneration is “awarded” during the chargeable period if—</intro><level class="para1" eId="schedule-1-paragraph-6-1-a"><num>(a)</num><content>a contractual obligation to pay or provide it arises during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-6-1-b"><num>(b)</num><content>the relevant remuneration is paid or provided during the chargeable period without any such obligation having arisen during the chargeable period,</content></level><wrapUp>but subject to sub-paragraph (3).</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-6-2"><num>(2)</num><content>Sub-paragraph (3)(a) of paragraph 5 applies for the purposes of sub-paragraph (1) as for the purposes of sub-paragraph (1)(b) of that paragraph.</content></subparagraph><subparagraph eId="schedule-1-paragraph-6-3"><num>(3)</num><intro>Relevant remuneration is not to be taken to be awarded during the chargeable period by virtue of sub-paragraph (1)(a) if—</intro><level class="para1" eId="schedule-1-paragraph-6-3-a"><num>(a)</num><content>it is required to be paid or provided at intervals,</content></level><level class="para1" eId="schedule-1-paragraph-6-3-b"><num>(b)</num><content>it is to be paid or provided in respect of contribution, performance or similar considerations only for times after the end of the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-6-3-c"><num>(c)</num><content>the reduction or elimination of a liability to bank payroll tax is not the main purpose or one of the main purposes of any person in assuming the obligation to pay or provide it.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-6-4"><num>(4)</num><content>Sub-paragraph (4) of paragraph 5 applies for the purposes of this paragraph as for the purposes of sub-paragraph (1)(b) of that paragraph.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-1-paragraph-9-1"><num>(1)</num><intro>An employee of a taxable company is a relevant banking employee of the taxable company if—</intro><level class="para1" eId="schedule-1-paragraph-9-1-a"><num>(a)</num><content>the employment in which the employee is employed by the taxable company is a banking employment, and</content></level><level class="para1" eId="schedule-1-paragraph-9-1-b"><num>(b)</num><intro>either—</intro><level class="para2" eId="schedule-1-paragraph-9-1-b-i"><num>(i)</num><content>the employee is resident in the United Kingdom in the tax year 2009-10, or</content></level><level class="para2" eId="schedule-1-paragraph-9-1-b-ii"><num>(ii)</num><content>the duties of the banking employment are at any time in that tax year performed wholly or partly in the United Kingdom.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-2"><num>(2)</num><content>“<term refersTo="#term-banking-employment" eId="term-banking-employment">Banking employment</term>” means an employment the duties of which are wholly or mainly concerned (whether directly or indirectly) with activities to which sub-paragraph (3) applies.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-3"><num>(3)</num><intro>This sub-paragraph applies to activities which are—</intro><level class="para1" eId="schedule-1-paragraph-9-3-a"><num>(a)</num><content>listed regulated activities, or</content></level><level class="para1" eId="schedule-1-paragraph-9-3-b"><num>(b)</num><content>activities which are not listed regulated activities but consist of the lending of money or of dealing in currency or commodities as principal.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-4"><num>(4)</num><intro>“<term refersTo="#term-listed-regulated-activity" eId="term-listed-regulated-activity">Listed regulated activity</term>” means an activity which is a regulated activity for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 by virtue of any of the following provisions of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2001/544)—</intro><level class="para1" eId="schedule-1-paragraph-9-4-a"><num>(a)</num><content>article 5 (accepting deposits),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-b"><num>(b)</num><content>article 14 (dealing in investments as principal),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-c"><num>(c)</num><content>article 21 (dealing in investments as agent),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-d"><num>(d)</num><content>article 25 (arranging deals in investments),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-e"><num>(e)</num><content>article 40 (safeguarding and administering investments),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-f"><num>(f)</num><content>article 53 (advising on investments), and</content></level><level class="para1" eId="schedule-1-paragraph-9-4-g"><num>(g)</num><content>article 61 (entering into regulated mortgage contracts).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-5"><num>(5)</num><intro>But an activity is not a listed regulated activity in relation to an employee of a taxable company if—</intro><level class="para1" eId="schedule-1-paragraph-9-5-a"><num>(a)</num><content>the taxable company is an insurance company, or a member of the same group as an insurance company, and the activity is carried on wholly on behalf of the insurance company, or</content></level><level class="para1" eId="schedule-1-paragraph-9-5-b"><num>(b)</num><intro>it—</intro><level class="para2" eId="schedule-1-paragraph-9-5-b-i"><num>(i)</num><content>is either of the activities described in the provisions mentioned in sub-paragraph (4)(c) and (d), and</content></level><level class="para2" eId="schedule-1-paragraph-9-5-b-ii"><num>(ii)</num><content>is carried on as part of, or wholly in support of, activities of the taxable company, or of a company which is a member of the same group as the taxable company, and the activities consist of acting as discretionary investment manager for clients none of which is a linked entity.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-6"><num>(6)</num><content>An employee of a taxable company who spends no more than 60 days in the United Kingdom in the tax year 2009-10 is to be treated as not being a relevant banking employee of the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-7"><num>(7)</num><content>In determining for the purposes of sub-paragraph (6) whether an individual spends no more than 60 days in the United Kingdom treat a day as a day spent by the individual in the United Kingdom if (and only if) the individual is present in the United Kingdom at the end of the day.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-8"><num>(8)</num><intro>But in determining that issue for those purposes do not treat as a day spent by the individual in the United Kingdom any day on which the individual arrives in the United Kingdom as a passenger if—</intro><level class="para1" eId="schedule-1-paragraph-9-8-a"><num>(a)</num><content>the individual departs from the United Kingdom on the next day, and</content></level><level class="para1" eId="schedule-1-paragraph-9-8-b"><num>(b)</num><content>during the time between arrival and departure the individual does not engage in activities which are to a substantial extent unrelated to the individual's passage through the United Kingdom.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-1-paragraph-12-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-12-1-a"><num>(a)</num><content>arrangements are made during the chargeable period by reason of an employee's employment as a relevant banking employee of a taxable company,</content></level><level class="para1" eId="schedule-1-paragraph-12-1-b"><num>(b)</num><content>the arrangements make provision under which money may be paid, or any money's worth or other benefit provided, to or in respect of the employee in accordance with the arrangements, and</content></level><level class="para1" eId="schedule-1-paragraph-12-1-c"><num>(c)</num><content>were the money so paid, or the money's worth or other benefit so provided, during the chargeable period, it would be relevant remuneration awarded to or in respect of the employee during the chargeable period.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-12-2"><num>(2)</num><content>The making of the arrangements is to be regarded as the awarding of relevant remuneration to or in respect of the relevant banking employee by reason of the employment; and the amount of the relevant remuneration is to regarded as the amount of any money which it is reasonable to assume will be paid, and any money's worth or other benefit which it is reasonable to assume will be provided, as mentioned in sub-paragraph (1).</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-15" class="schProv1"><num>15</num><content>No amount of bank payroll tax is to be taken into account in calculating profits or losses for the purposes of income tax or corporation tax.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-34" class="schProv1"><num>34</num><subparagraph eId="schedule-6-paragraph-34-1"><num>(1)</num><intro>The repeal of the definition of “charity” in section 989 of ITA 2007 made by paragraph <ref href="#schedule-6-paragraph-23-6">23(6)</ref> above has effect—</intro><level class="para1" eId="schedule-6-paragraph-34-1-a"><num>(a)</num><content>so far as it applies for the purposes of Chapter 2 of Part 8 of that Act (gift aid), in relation to gifts made on or after 6 April 2010, and</content></level><level class="para1" eId="schedule-6-paragraph-34-1-b"><num>(b)</num><content>so far as it applies for other purposes, in accordance with such provision as the Treasury may make by order.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-34-2"><num>(2)</num><content>The other amendments made by Part <ref href="#schedule-6-part-2">2</ref> come into force in accordance with such provision as the Treasury may make by order.</content></subparagraph><subparagraph eId="schedule-6-paragraph-34-3"><num>(3)</num><intro>An order under this paragraph may—</intro><level class="para1" eId="schedule-6-paragraph-34-3-a"><num>(a)</num><content>make different provision for different purposes, and</content></level><level class="para1" eId="schedule-6-paragraph-34-3-b"><num>(b)</num><content>include transitional provision and savings.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-34-4"><num>(4)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-8-paragraph-3-1"><num>(1)</num><content>Chapter 2 of Part 8 of ITA 2007 (gift aid) is amended as follows.</content></subparagraph><subparagraph eId="schedule-8-paragraph-3-2"><num>(2)</num><intro>In section 416 (meaning of “qualifying donation”)—</intro><level class="para1" eId="schedule-8-paragraph-3-2-a"><num>(a)</num><content>in subsection (1)(a) for “G” substitute “F”, and</content></level><level class="para1" eId="schedule-8-paragraph-3-2-b"><num>(b)</num><content>omit subsection (8).</content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-3"><num>(3)</num><content>Omit section 422 (disqualified overseas gifts).</content></subparagraph><subparagraph eId="schedule-8-paragraph-3-4"><num>(4)</num><content>In section 429(3) (giving through self-assessment return), for “G” substitute “F”.</content></subparagraph></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-itepa-2003" eId="term-itepa-2003"><abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003</term>” means the Income Tax (Earnings and Pensions) Act 2003;</content></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“CTA 2009” means the Corporation Tax Act 2009;</content></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-1-paragraph-1-1"><num>(1)</num><content>This Schedule makes provision for taxable companies to be charged to a tax to be known as “<term refersTo="#term-bank-payroll-tax" eId="term-bank-payroll-tax">bank payroll tax</term>”.</content></subparagraph><subparagraph eId="schedule-1-paragraph-1-2"><num>(2)</num><content>Bank payroll tax is chargeable on the aggregate of the amounts of chargeable relevant remuneration awarded during the chargeable period to or in respect of relevant banking employees of a taxable company by reason of their employment as relevant banking employees.</content></subparagraph><subparagraph eId="schedule-1-paragraph-1-3"><num>(3)</num><content>Relevant remuneration awarded during the chargeable period to or in respect of a relevant banking employee of a taxable company by reason of the employee's employment as a relevant banking employee is “chargeable” relevant remuneration only if and to the extent that its amount exceeds £25,000.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-36" class="schProv1"><num>36</num><subparagraph eId="schedule-1-paragraph-36-1"><num>(1)</num><content>Schedule 36 to FA 2008 (information and inspection powers) has effect as if the definition of tax in paragraph 63(1) included bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-36-2"><num>(2)</num><intro>Paragraph 21 of that Schedule (taxpayer notices) applies where a taxable company has made a bank payroll tax return as it applies where a person has made a company tax return and, in relation to bank payroll tax—</intro><level class="para1" eId="schedule-1-paragraph-36-2-a"><num>(a)</num><content>a reference in that paragraph to a chargeable period is to the chargeable period within the meaning of this Schedule, and</content></level><level class="para1" eId="schedule-1-paragraph-36-2-b"><num>(b)</num><content>a reference in that paragraph to a notice of enquiry is to a notice of enquiry under paragraph 23 of this Schedule.</content></level></subparagraph></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“TCGA 1992” means the Taxation of Chargeable Gains Act 1992;</content></hcontainer>

<subsection xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="section-69-2"><num>(2)</num><content>In this Act—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>“FA”, followed by a year, means the Finance Act of that year;</item><item>“F(No.2)A”, followed by a year, means the Finance (No.2) Act of that year.</item></blockList></content></subsection>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-the-amended-paragraph-17-requirement" eId="term-the-amended-paragraph-17-requirement">the amended paragraph 17 requirement</term>” means the requirement of paragraph 17 of Schedule 4 to <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 as amended by this section;</content></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-8" class="schProv1"><num>8</num><content>Part 15 of CTA 2010 (transactions in securities: corporation tax advantages) is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-3" class="schProv1"><num>3</num><content>The amendments made by this Schedule have effect in relation to payments treated under section 941(2) of ITA 2007 as made on or after 21 October 2009.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-14-paragraph-7" class="schProv1"><num>7</num><content>In section 317(5)(g) of CTA 2009 (carrying value), for “and 400” substitute “to <ref href="#d25e17542">400C</ref>”.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-15-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-15-paragraph-3-1"><num>(1)</num><content>The amendments made by paragraph <ref href="#schedule-15-paragraph-1">1</ref> have effect in relation to a release of rights that takes place on or after 9 November 2009.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-2"><num>(2)</num><content>The amendments made by paragraph <ref href="#schedule-15-paragraph-2-2">2(2)</ref> and <ref href="#schedule-15-paragraph-2-4">(4)</ref> to <ref href="#schedule-15-paragraph-2-6">(6)</ref> have effect in relation to a relevant acquisition that is made on or after 14 October 2009.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-3"><num>(3)</num><content>The amendments made by paragraph <ref href="#schedule-15-paragraph-2-3">2(3)</ref> have effect in relation to a release of rights that takes place on or after 14 October 2009.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-4"><num>(4)</num><content>Sub-paragraphs <ref href="#schedule-15-paragraph-3-1">(1)</ref> to <ref href="#schedule-15-paragraph-3-3">(3)</ref> are subject to paragraph <ref href="#schedule-15-paragraph-4">4</ref>.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-5"><num>(5)</num><content>In this paragraph and paragraph <ref href="#schedule-15-paragraph-4">4</ref> “relevant acquisition” means an acquisition of rights within subsection (1)(a) to (e) of section 361 of CTA 2009 (acquisition of creditor rights by connected company at an undervalue).</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-19-paragraph-3" class="schProv1"><num>3</num><content><mod>In section 1310(4) of CTA 2009 (orders and regulations subject to affirmative resolution of House of Commons), before paragraph (za) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e21086"><num>(zza)</num><content>section 465A or 701A (powers to make regulations where accounting standards change),</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-9" class="schProv1"><num>9</num><content>In section 733(2) (company liable to counteraction of corporation tax advantage), omit the entry relating to section 735.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-10" class="schProv1"><num>10</num><content>Omit section 735 (abnormal dividends used for exemptions or reliefs).</content></paragraph>

<section xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="section-70"><num>70</num><heading>Short title</heading><content>This Act may be cited as the Finance Act 2010.</content></section>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1998/Math/MathML" xmlns:default1="http://www.w3.org/1999/xhtml" xmlns:fo="http://www.w3.org/1999/XSL/Format" name="schedules"><heading>SCHEDULES</heading><hcontainer name="schedule" eId="schedule-1"><num>SCHEDULE 1<authorialNote class="referenceNote">Section 22</authorialNote></num><heading>Bank payroll tax</heading><part eId="schedule-1-part-1"><num>Part 1</num><heading>The tax</heading><hcontainer name="crossheading" class="schGroup7"><heading>The tax</heading><paragraph eId="schedule-1-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-1-paragraph-1-1"><num>(1)</num><content>This Schedule makes provision for taxable companies to be charged to a tax to be known as “bank payroll tax”.</content></subparagraph><subparagraph eId="schedule-1-paragraph-1-2"><num>(2)</num><content>Bank payroll tax is chargeable on the aggregate of the amounts of chargeable relevant remuneration awarded during the chargeable period to or in respect of relevant banking employees of a taxable company by reason of their employment as relevant banking employees.</content></subparagraph><subparagraph eId="schedule-1-paragraph-1-3"><num>(3)</num><content>Relevant remuneration awarded during the chargeable period to or in respect of a relevant banking employee of a taxable company by reason of the employee’s employment as a relevant banking employee is “chargeable” relevant remuneration only if and to the extent that its amount exceeds £25,000.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Rate</heading><paragraph eId="schedule-1-paragraph-2" class="schProv1"><num>2</num><content>Bank payroll tax is charged at the rate of 50%.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>“Taxable company”</heading><paragraph eId="schedule-1-paragraph-3" class="schProv1"><num>3</num><intro>“Taxable company” means a company which—</intro><level class="para1" eId="schedule-1-paragraph-3-a"><num>(a)</num><content>is a UK resident bank or a relevant foreign bank,</content></level><level class="para1" eId="schedule-1-paragraph-3-b"><num>(b)</num><intro>is a company not within paragraph (a) which is a member of a banking group and—</intro><level class="para2" eId="schedule-1-paragraph-3-b-i"><num>(i)</num><content>is a UK resident investment company or a UK resident financial trading company, or</content></level><level class="para2" eId="schedule-1-paragraph-3-b-ii"><num>(ii)</num><content>is a relevant foreign financial trading company, or</content></level></level><level class="para1" eId="schedule-1-paragraph-3-c"><num>(c)</num><content>is a building society or is a UK resident investment company, or a UK resident financial trading company, which is a member of the same group as a building society.</content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>“Relevant remuneration”</heading><paragraph eId="schedule-1-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-1-paragraph-4-1"><num>(1)</num><intro>“Relevant remuneration”, in relation to a relevant banking employee of a taxable company, means anything that—</intro><level class="para1" eId="schedule-1-paragraph-4-1-a"><num>(a)</num><content>constitutes earnings (within the meaning of section 62 of ITEPA 2003) in relation to the employee’s employment by the taxable company as a relevant banking employee, or</content></level><level class="para1" eId="schedule-1-paragraph-4-1-b"><num>(b)</num><content>while not constituting earnings, constitutes a benefit provided by reason of that employment.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-4-2"><num>(2)</num><content>Whether or not the relevant banking employee is chargeable to income tax in respect of anything is irrelevant in determining whether or not it is relevant remuneration.</content></subparagraph><subparagraph eId="schedule-1-paragraph-4-3"><num>(3)</num><content>Excluded remuneration is not relevant remuneration.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>“Excluded remuneration”</heading><paragraph eId="schedule-1-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-1-paragraph-5-1"><num>(1)</num><intro>“Excluded remuneration” means—</intro><level class="para1" eId="schedule-1-paragraph-5-1-a"><num>(a)</num><content>anything which is regular salary or wages or a regular benefit,</content></level><level class="para1" eId="schedule-1-paragraph-5-1-b"><num>(b)</num><content>anything in the case of which a contractual obligation to pay or provide it to or in respect of the employee concerned arose before the beginning of the chargeable period,</content></level><level class="para1" eId="schedule-1-paragraph-5-1-c"><num>(c)</num><content>any shares awarded under an approved share incentive plan (within the meaning of section 488 of ITEPA 2003), or</content></level><level class="para1" eId="schedule-1-paragraph-5-1-d"><num>(d)</num><content>any share option granted under an approved SAYE option scheme (within the meaning of section 516 of that Act).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-2"><num>(2)</num><intro>In sub-paragraph (1)(a) “regular”, in relation to salary or wages or a benefit, means so much of the amount of the salary or wages or benefit as cannot vary according to—</intro><level class="para1" eId="schedule-1-paragraph-5-2-a"><num>(a)</num><intro>the performance of, or of any part of—</intro><level class="para2" eId="schedule-1-paragraph-5-2-a-i"><num>(i)</num><content>any business of the taxable company concerned, or</content></level><level class="para2" eId="schedule-1-paragraph-5-2-a-ii"><num>(ii)</num><content>any business of a person connected with the taxable company,</content></level></level><level class="para1" eId="schedule-1-paragraph-5-2-b"><num>(b)</num><content>the contribution made by the employee concerned to the performance of, or of any part of, any business within paragraph (a)(i) or (ii),</content></level><level class="para1" eId="schedule-1-paragraph-5-2-c"><num>(c)</num><content>the performance by the employee of any of the duties of the employment, or</content></level><level class="para1" eId="schedule-1-paragraph-5-2-d"><num>(d)</num><content>any similar considerations.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-3"><num>(3)</num><intro>For the purposes of sub-paragraph (1)(b) a contractual obligation to pay or provide something to or in respect of the employee does not arise until—</intro><level class="para1" eId="schedule-1-paragraph-5-3-a"><num>(a)</num><content>the amount to be paid or provided is fixed or is capable of becoming fixed without the exercise of discretion by any person, or</content></level><level class="para1" eId="schedule-1-paragraph-5-3-b"><num>(b)</num><content>the total amount of things to be paid or provided to or in respect of a number of employees including the employee is fixed or is capable of becoming fixed without the exercise of discretion by any person.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-4"><num>(4)</num><content>A contractual obligation to pay or provide something is taken to arise for those purposes even if payment or provision of it is dependent on compliance by the employee with any conditions.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>“Awarded”</heading><paragraph eId="schedule-1-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-1-paragraph-6-1"><num>(1)</num><intro>Relevant remuneration is “awarded” during the chargeable period if—</intro><level class="para1" eId="schedule-1-paragraph-6-1-a"><num>(a)</num><content>a contractual obligation to pay or provide it arises during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-6-1-b"><num>(b)</num><content>the relevant remuneration is paid or provided during the chargeable period without any such obligation having arisen during the chargeable period,</content></level><wrapUp>but subject to sub-paragraph (3).</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-6-2"><num>(2)</num><content>Sub-paragraph (3)(a) of paragraph 5 applies for the purposes of sub-paragraph (1) as for the purposes of sub-paragraph (1)(b) of that paragraph.</content></subparagraph><subparagraph eId="schedule-1-paragraph-6-3"><num>(3)</num><intro>Relevant remuneration is not to be taken to be awarded during the chargeable period by virtue of sub-paragraph (1)(a) if—</intro><level class="para1" eId="schedule-1-paragraph-6-3-a"><num>(a)</num><content>it is required to be paid or provided at intervals,</content></level><level class="para1" eId="schedule-1-paragraph-6-3-b"><num>(b)</num><content>it is to be paid or provided in respect of contribution, performance or similar considerations only for times after the end of the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-6-3-c"><num>(c)</num><content>the reduction or elimination of a liability to bank payroll tax is not the main purpose or one of the main purposes of any person in assuming the obligation to pay or provide it.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-6-4"><num>(4)</num><content>Sub-paragraph (4) of paragraph 5 applies for the purposes of this paragraph as for the purposes of sub-paragraph (1)(b) of that paragraph.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>“Amount” of remuneration</heading><paragraph eId="schedule-1-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-1-paragraph-7-1"><num>(1)</num><intro>Subject to sub-paragraphs (2) to (4), the amount of any relevant remuneration is—</intro><level class="para1" eId="schedule-1-paragraph-7-1-a"><num>(a)</num><content>if it is money, its amount when awarded,</content></level><level class="para1" eId="schedule-1-paragraph-7-1-b"><num>(b)</num><content>if it is money’s worth, the amount of the money’s worth when awarded, or</content></level><level class="para1" eId="schedule-1-paragraph-7-1-c"><num>(c)</num><content>if it is a benefit not constituting earnings, the cost of providing it.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-7-2"><num>(2)</num><content>Where relevant remuneration is awarded to or in respect of an employee by virtue of paragraph 6(1)(a) and its amount is not fixed when it is awarded, its amount is such as it is reasonable at that time to assume would be its amount (in accordance with sub-paragraph (1)) if and when paid or provided.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-3"><num>(3)</num><content>Where the market value of any relevant remuneration at the time it is awarded exceeds, or would exceed, what would otherwise be its amount, its amount is that market value.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-4"><num>(4)</num><content>Where anything constituting relevant remuneration is or would be, when awarded, subject to any restriction or restrictions, the restriction is, or restrictions are, to be ignored in arriving at its amount.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-5"><num>(5)</num><content>For this purpose “restriction” means any condition, restriction or other similar provision which causes the value of the relevant remuneration to be less than it otherwise would be.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>“The chargeable period”</heading><paragraph eId="schedule-1-paragraph-8" class="schProv1"><num>8</num><intro>“The chargeable period” is the period—</intro><level class="para1" eId="schedule-1-paragraph-8-a"><num>(a)</num><content>beginning at 12.30 pm on 9 December 2009, and</content></level><level class="para1" eId="schedule-1-paragraph-8-b"><num>(b)</num><content>ending with 5 April 2010.</content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>“Relevant banking employee”</heading><paragraph eId="schedule-1-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-1-paragraph-9-1"><num>(1)</num><intro>An employee of a taxable company is a relevant banking employee of the taxable company if—</intro><level class="para1" eId="schedule-1-paragraph-9-1-a"><num>(a)</num><content>the employment in which the employee is employed by the taxable company is a banking employment, and</content></level><level class="para1" eId="schedule-1-paragraph-9-1-b"><num>(b)</num><intro>either—</intro><level class="para2" eId="schedule-1-paragraph-9-1-b-i"><num>(i)</num><content>the employee is resident in the United Kingdom in the tax year 2009-10, or</content></level><level class="para2" eId="schedule-1-paragraph-9-1-b-ii"><num>(ii)</num><content>the duties of the banking employment are at any time in that tax year performed wholly or partly in the United Kingdom.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-2"><num>(2)</num><content>“Banking employment” means an employment the duties of which are wholly or mainly concerned (whether directly or indirectly) with activities to which sub-paragraph (3) applies.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-3"><num>(3)</num><intro>This sub-paragraph applies to activities which are—</intro><level class="para1" eId="schedule-1-paragraph-9-3-a"><num>(a)</num><content>listed regulated activities, or</content></level><level class="para1" eId="schedule-1-paragraph-9-3-b"><num>(b)</num><content>activities which are not listed regulated activities but consist of the lending of money or of dealing in currency or commodities as principal.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-4"><num>(4)</num><intro>“Listed regulated activity” means an activity which is a regulated activity for the purposes of FISMA 2000 by virtue of any of the following provisions of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<ref eId="c00006" href="http://www.legislation.gov.uk/id/uksi/2001/544">S.I. 2001/544</ref>)—</intro><level class="para1" eId="schedule-1-paragraph-9-4-a"><num>(a)</num><content>article 5 (accepting deposits),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-b"><num>(b)</num><content>article 14 (dealing in investments as principal),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-c"><num>(c)</num><content>article 21 (dealing in investments as agent),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-d"><num>(d)</num><content>article 25 (arranging deals in investments),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-e"><num>(e)</num><content>article 40 (safeguarding and administering investments),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-f"><num>(f)</num><content>article 53 (advising on investments), and</content></level><level class="para1" eId="schedule-1-paragraph-9-4-g"><num>(g)</num><content>article 61 (entering into regulated mortgage contracts).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-5"><num>(5)</num><intro>But an activity is not a listed regulated activity in relation to an employee of a taxable company if—</intro><level class="para1" eId="schedule-1-paragraph-9-5-a"><num>(a)</num><content>the taxable company is an insurance company, or a member of the same group as an insurance company, and the activity is carried on wholly on behalf of the insurance company, or</content></level><level class="para1" eId="schedule-1-paragraph-9-5-b"><num>(b)</num><intro>it—</intro><level class="para2" eId="schedule-1-paragraph-9-5-b-i"><num>(i)</num><content>is either of the activities described in the provisions mentioned in sub-paragraph (4)(c) and (d), and</content></level><level class="para2" eId="schedule-1-paragraph-9-5-b-ii"><num>(ii)</num><content>is carried on as part of, or wholly in support of, activities of the taxable company, or of a company which is a member of the same group as the taxable company, and the activities consist of acting as discretionary investment manager for clients none of which is a linked entity.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-6"><num>(6)</num><content>An employee of a taxable company who spends no more than 60 days in the United Kingdom in the tax year 2009-10 is to be treated as not being a relevant banking employee of the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-7"><num>(7)</num><content>In determining for the purposes of sub-paragraph (6) whether an individual spends no more than 60 days in the United Kingdom treat a day as a day spent by the individual in the United Kingdom if (and only if) the individual is present in the United Kingdom at the end of the day.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-8"><num>(8)</num><intro>But in determining that issue for those purposes do not treat as a day spent by the individual in the United Kingdom any day on which the individual arrives in the United Kingdom as a passenger if—</intro><level class="para1" eId="schedule-1-paragraph-9-8-a"><num>(a)</num><content>the individual departs from the United Kingdom on the next day, and</content></level><level class="para1" eId="schedule-1-paragraph-9-8-b"><num>(b)</num><content>during the time between arrival and departure the individual does not engage in activities which are to a substantial extent unrelated to the individual’s passage through the United Kingdom.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Multiple employments</heading><paragraph eId="schedule-1-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-1-paragraph-10-1"><num>(1)</num><content>The threshold of £25,000 in paragraph 1(3) applies whether or not an employee has more than one employment as a relevant banking employee with a taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-10-2"><num>(2)</num><content>If relevant remuneration is awarded during the chargeable period to or in respect of a relevant banking employee by reason of the employee’s employment as such by a number of associated taxable companies, the threshold in paragraph 1(3) in relation to each of the taxable companies is £25,000 divided by the number of the taxable companies.</content></subparagraph><subparagraph eId="schedule-1-paragraph-10-3"><num>(3)</num><intro>For this purpose taxable companies are associated if—</intro><level class="para1" eId="schedule-1-paragraph-10-3-a"><num>(a)</num><content>one of them is under the control of the other, or</content></level><level class="para1" eId="schedule-1-paragraph-10-3-b"><num>(b)</num><content>one of them is under the control of a third person who controls or is under the control of the other.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Payments etc to intermediaries</heading><paragraph eId="schedule-1-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-1-paragraph-11-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-11-1-a"><num>(a)</num><content>an individual personally performs banking services for a taxable company,</content></level><level class="para1" eId="schedule-1-paragraph-11-1-b"><num>(b)</num><content>the banking services are provided not under a contract directly between the individual and the taxable company but under arrangements involving any other person (“the intermediary”), and</content></level><level class="para1" eId="schedule-1-paragraph-11-1-c"><num>(c)</num><content>the circumstances are such that, if the banking services were provided under a contract directly between the taxable company and the individual, the individual would be a relevant banking employee of the taxable company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-11-2"><num>(2)</num><content>The individual is to be regarded as a relevant banking employee of the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-11-3"><num>(3)</num><content>Anything done by the intermediary in relation to the individual which, if the banking services were provided under a contract directly between the taxable company and the individual, would be regarded as the award of relevant remuneration during the chargeable period to or in respect of the individual (as a relevant banking employee) by reason of the employee’s employment as a relevant banking employee is to be so regarded.</content></subparagraph><subparagraph eId="schedule-1-paragraph-11-4"><num>(4)</num><content>“Banking services” means services which are wholly or mainly concerned (whether directly or indirectly) with activities which are activities to which paragraph 9(3) applies.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Arrangements for future payments etc</heading><paragraph eId="schedule-1-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-1-paragraph-12-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-12-1-a"><num>(a)</num><content>arrangements are made during the chargeable period by reason of an employee’s employment as a relevant banking employee of a taxable company,</content></level><level class="para1" eId="schedule-1-paragraph-12-1-b"><num>(b)</num><content>the arrangements make provision under which money may be paid, or any money’s worth or other benefit provided, to or in respect of the employee in accordance with the arrangements, and</content></level><level class="para1" eId="schedule-1-paragraph-12-1-c"><num>(c)</num><content>were the money so paid, or the money’s worth or other benefit so provided, during the chargeable period, it would be relevant remuneration awarded to or in respect of the employee during the chargeable period.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-12-2"><num>(2)</num><content>The making of the arrangements is to be regarded as the awarding of relevant remuneration to or in respect of the relevant banking employee by reason of the employment; and the amount of the relevant remuneration is to regarded as the amount of any money which it is reasonable to assume will be paid, and any money’s worth or other benefit which it is reasonable to assume will be provided, as mentioned in sub-paragraph (1).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Loans</heading><paragraph eId="schedule-1-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-1-paragraph-13-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-13-1-a"><num>(a)</num><content>at any time during the chargeable period a relevant loan is provided to or in respect of a relevant banking employee of a taxable company by reason of the employee’s employment as a relevant banking employee otherwise than pursuant to a contractual obligation arising before the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-13-1-b"><num>(b)</num><content>at any time during the chargeable period there arises a contractual obligation to provide a relevant loan to or in respect of the employee by reason of the employee’s employment as a relevant banking employee of the taxable company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-13-2"><num>(2)</num><content>A loan is a “relevant” loan if the main purpose, or one of the main purposes, of providing it, or undertaking to provide it, is the reduction or elimination of a liability to bank payroll tax or any other tax or national insurance contributions.</content></subparagraph><subparagraph eId="schedule-1-paragraph-13-3"><num>(3)</num><content>The loan is to be regarded as relevant remuneration awarded during the chargeable period to or in respect of the relevant banking employee by reason of the employee’s employment as a relevant banking employee; and the amount of the relevant remuneration is to be regarded as the amount which is loaned or (where the amount of the loan is not fixed) the amount which it is reasonable to assume will be loaned.</content></subparagraph><subparagraph eId="schedule-1-paragraph-13-4"><num>(4)</num><content>A contractual obligation to provide a relevant loan is taken to arise for the purposes of this paragraph even if provision of it is dependent on compliance by the relevant banking employee with any conditions.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Anti-avoidance</heading><paragraph eId="schedule-1-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-1-paragraph-14-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-14-1-a"><num>(a)</num><content>relevant arrangements are entered into by one or more persons during the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-14-1-b"><num>(b)</num><content>the main purpose, or one of the main purposes, of the person, or any of the persons, in entering into the relevant arrangements is a relevant tax avoidance purpose.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-2"><num>(2)</num><intro>“Relevant arrangements” means arrangements involving either or both of the following—</intro><level class="para1" eId="schedule-1-paragraph-14-2-a"><num>(a)</num><content>the making of a payment of money, or the provision of any money’s worth or other benefit, otherwise than during the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-14-2-b"><num>(b)</num><content>the giving otherwise than in the form of relevant remuneration of any reward which equates in substance to relevant remuneration.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-3"><num>(3)</num><intro>A “relevant tax avoidance purpose” is the reduction or elimination of a liability to bank payroll tax which would exist if—</intro><level class="para1" eId="schedule-1-paragraph-14-3-a"><num>(a)</num><content>in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money’s worth or other benefit provided, during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-14-3-b"><num>(b)</num><content>in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-4"><num>(4)</num><intro>Liability to bank payroll tax is to be determined as it would have been if—</intro><level class="para1" eId="schedule-1-paragraph-14-4-a"><num>(a)</num><content>in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money’s worth or other benefit provided, during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-14-4-b"><num>(b)</num><content>in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>No deduction in computing profits</heading><paragraph eId="schedule-1-paragraph-15" class="schProv1"><num>15</num><content>No amount of bank payroll tax is to be taken into account in calculating profits or losses for the purposes of income tax or corporation tax.</content></paragraph></hcontainer></part><part eId="schedule-1-part-2"><num>Part 2</num><heading>Collection and management of tax</heading><hcontainer name="crossheading" class="schGroup7"><heading>Responsibility for collection and management</heading><paragraph eId="schedule-1-paragraph-16" class="schProv1"><num>16</num><content>The Commissioners are responsible for the collection and management of bank payroll tax.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Due date for payment</heading><paragraph eId="schedule-1-paragraph-17" class="schProv1"><num>17</num><content>Bank payroll tax is payable by taxable companies on or before 31 August 2010.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Obligation to deliver return</heading><paragraph eId="schedule-1-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-1-paragraph-18-1"><num>(1)</num><content>In order to establish the amount of bank payroll tax payable by it, every taxable company must deliver a return to HMRC.</content></subparagraph><subparagraph eId="schedule-1-paragraph-18-2"><num>(2)</num><content>The return must be delivered on or before 31 August 2010.</content></subparagraph><subparagraph eId="schedule-1-paragraph-18-3"><num>(3)</num><content>A return under this paragraph is referred to as a bank payroll tax return.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Content etc of return</heading><paragraph eId="schedule-1-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-1-paragraph-19-1"><num>(1)</num><intro>HMRC may publish requirements as to—</intro><level class="para1" eId="schedule-1-paragraph-19-1-a"><num>(a)</num><content>the information to be contained in bank payroll tax returns,</content></level><level class="para1" eId="schedule-1-paragraph-19-1-b"><num>(b)</num><content>the form in which they must be made,</content></level><level class="para1" eId="schedule-1-paragraph-19-1-c"><num>(c)</num><content>the manner in which they must be delivered, and</content></level><level class="para1" eId="schedule-1-paragraph-19-1-d"><num>(d)</num><content>the documents to be delivered with them.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-19-2"><num>(2)</num><intro>A bank payroll tax return must include—</intro><level class="para1" eId="schedule-1-paragraph-19-2-a"><num>(a)</num><content>an assessment (a “self-assessment”) of the amount of bank payroll tax payable by the taxable company on the basis of the information contained in it, and</content></level><level class="para1" eId="schedule-1-paragraph-19-2-b"><num>(b)</num><content>a declaration by the person making it that, to the best of that person’s knowledge, it is correct and complete.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Failure to include self-assessment</heading><paragraph eId="schedule-1-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-1-paragraph-20-1"><num>(1)</num><content>If a taxable company delivers a bank payroll tax return but fails to include a self-assessment, HMRC may make the assessment on the company’s behalf on the basis of the information contained in it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-20-2"><num>(2)</num><content>The assessment is treated for the purposes of this Schedule as a self-assessment and as included in the return.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Amendment of return by company</heading><paragraph eId="schedule-1-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-1-paragraph-21-1"><num>(1)</num><content>A taxable company may amend its bank payroll tax return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-2"><num>(2)</num><content>An amendment under this paragraph is made by notice to HMRC in such form, and accompanied by such information, as HMRC may reasonably require.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-3"><num>(3)</num><content>No such amendment may be made after 31 August 2011.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-4"><num>(4)</num><content>Nothing in sub-paragraph (1) permits a taxable company to amend its return to revise an amount determined under paragraph 7(2), 12(2) or 13(3) merely because the amount determined under that provision differs from the amount which is actually paid or provided (or loaned).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Correction of return by HMRC</heading><paragraph eId="schedule-1-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-1-paragraph-22-1"><num>(1)</num><content>HMRC may amend a bank payroll tax return so as to correct obvious errors or omissions in it (whether errors of principle, arithmetical mistakes or otherwise).</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-2"><num>(2)</num><content>A correction under this paragraph is made by notice to the taxable company concerned.</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-3"><num>(3)</num><intro>No such correction may be made more than 9 months after—</intro><level class="para1" eId="schedule-1-paragraph-22-3-a"><num>(a)</num><content>the day on which the return was delivered, or</content></level><level class="para1" eId="schedule-1-paragraph-22-3-b"><num>(b)</num><content>if the correction is required in consequence of an amendment made under paragraph 21, the day on which that amendment was made.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-22-4"><num>(4)</num><content>A correction under this paragraph is of no effect if the taxable company gives notice rejecting it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-5"><num>(5)</num><intro>Notice of rejection must be given—</intro><level class="para1" eId="schedule-1-paragraph-22-5-a"><num>(a)</num><content>to the officer of Revenue and Customs by whom the correction notice was given, and</content></level><level class="para1" eId="schedule-1-paragraph-22-5-b"><num>(b)</num><content>before the end of the period of 30 days beginning with the date on which the correction notice was given.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Enquiry into return</heading><paragraph eId="schedule-1-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-1-paragraph-23-1"><num>(1)</num><content>HMRC may enquire into a bank payroll tax return if they give notice to the taxable company of their intention to do so within the time allowed.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-2"><num>(2)</num><content>If the return was delivered on or before 31 August 2010, notice of enquiry may be given at any time on or before 31 August 2011.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-3"><num>(3)</num><content>If the return was delivered after 31 August 2010, notice of enquiry may be given at any time up to and including whichever of 31 January, 30 April, 31 July or 31 October next follows the first anniversary of the day on which the return was delivered.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-4"><num>(4)</num><content>An enquiry extends to anything contained in the return or required to be contained in the return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-5"><num>(5)</num><intro>The following provisions of Schedule 18 to FA 1998 apply to an enquiry into a bank payroll tax return under this Schedule as they apply to an enquiry into a company tax return under that Schedule—</intro><level class="para1" eId="schedule-1-paragraph-23-5-a"><num>(a)</num><content>paragraph 24(4) to (5) (notice of enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-b"><num>(b)</num><content>paragraph 25(2) (enquiry following amendment by company) (but as if the reference there to paragraph 24(2) or (3) were to sub-paragraph (2) or (3) of this paragraph),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-c"><num>(c)</num><content>paragraph 31 (amendment of return by company during enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-d"><num>(d)</num><content>paragraphs 31A to 31D (referral of questions to the tribunal during enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-e"><num>(e)</num><content>paragraph 32(1) (completion of enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-f"><num>(f)</num><content>paragraph 33 (direction to complete enquiry), and</content></level><level class="para1" eId="schedule-1-paragraph-23-5-g"><num>(g)</num><content>paragraph 34 (amendment of return after enquiry).</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Determination by HMRC</heading><paragraph eId="schedule-1-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-1-paragraph-24-1"><num>(1)</num><content>HMRC may determine to the best of their knowledge and belief the amount of bank payroll tax payable by a taxable company if the company has not delivered a bank payroll tax return on or before 31 August 2010.</content></subparagraph><subparagraph eId="schedule-1-paragraph-24-2"><num>(2)</num><intro>Notice of the determination—</intro><level class="para1" eId="schedule-1-paragraph-24-2-a"><num>(a)</num><content>must be served on the company, and</content></level><level class="para1" eId="schedule-1-paragraph-24-2-b"><num>(b)</num><content>must state the date on which it is given.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-24-3"><num>(3)</num><content>The amount determined by HMRC is taken to be the amount payable by the company (in the same way as if it were an assessment) unless and until the determination is superseded by a relevant assessment.</content></subparagraph><subparagraph eId="schedule-1-paragraph-24-4"><num>(4)</num><intro>A relevant assessment is an assessment—</intro><level class="para1" eId="schedule-1-paragraph-24-4-a"><num>(a)</num><content>included in a bank payroll tax return delivered by the company within the period of 12 months beginning with the date on which notice of the determination was given, or</content></level><level class="para1" eId="schedule-1-paragraph-24-4-b"><num>(b)</num><content>made by HMRC under paragraph 20 following delivery of such a return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-24-5"><num>(5)</num><intro>If—</intro><level class="para1" eId="schedule-1-paragraph-24-5-a"><num>(a)</num><content>proceedings have been commenced for the recovery of an amount determined by HMRC under this paragraph, and</content></level><level class="para1" eId="schedule-1-paragraph-24-5-b"><num>(b)</num><content>before the proceedings are concluded, the determination is superseded by a relevant assessment,</content></level><wrapUp>the proceedings may be continued as if they were proceedings for the recovery of so much of the tax shown in the assessment as has not been paid.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-24-6"><num>(6)</num><content>No determination may be made under this paragraph after 31 August 2013.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Discovery assessment by HMRC</heading><paragraph eId="schedule-1-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-1-paragraph-25-1"><num>(1)</num><intro>This paragraph applies if HMRC discover, with respect to a taxable company, any of the following situations—</intro><level class="para1" eId="schedule-1-paragraph-25-1-a"><num>(a)</num><content>an amount which ought to have been assessed to bank payroll tax has not been assessed,</content></level><level class="para1" eId="schedule-1-paragraph-25-1-b"><num>(b)</num><content>an assessment to bank payroll tax is insufficient, or</content></level><level class="para1" eId="schedule-1-paragraph-25-1-c"><num>(c)</num><content>an amount of bank payroll tax has been repaid which ought not to have been repaid.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-25-2"><num>(2)</num><content>HMRC may make an assessment (a “discovery assessment”) in the amount or further amount which ought in their opinion to be charged or recovered in order to make good to the Crown the loss of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-3"><num>(3)</num><content>If the company has delivered a bank payroll tax return, HMRC may only make a discovery assessment if condition A or condition B is met.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-4"><num>(4)</num><content>Condition A is that the situation discovered by HMRC was brought about carelessly or deliberately by the company or a person acting on its behalf.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-5"><num>(5)</num><intro>Condition B is that HMRC could not reasonably have been expected to be aware of the situation at the time when they—</intro><level class="para1" eId="schedule-1-paragraph-25-5-a"><num>(a)</num><content>ceased to be entitled to give notice of enquiry into the return, or</content></level><level class="para1" eId="schedule-1-paragraph-25-5-b"><num>(b)</num><content>completed their enquiries into the return.</content></level></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-26" class="schProv1"><num>26</num><intro>Notice of a discovery assessment—</intro><level class="para1" eId="schedule-1-paragraph-26-a"><num>(a)</num><content>must be served on the taxable company, and</content></level><level class="para1" eId="schedule-1-paragraph-26-b"><num>(b)</num><content>must state the date on which it is given and the time by which an appeal may be brought against it.</content></level></paragraph><paragraph eId="schedule-1-paragraph-27" class="schProv1"><num>27</num><subparagraph eId="schedule-1-paragraph-27-1"><num>(1)</num><content>No discovery assessment may be made after the relevant deadline.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-2"><num>(2)</num><intro>The relevant deadline is 5 April 2030 if the situation—</intro><level class="para1" eId="schedule-1-paragraph-27-2-a"><num>(a)</num><content>was brought about deliberately by the taxable company, or</content></level><level class="para1" eId="schedule-1-paragraph-27-2-b"><num>(b)</num><content>was attributable to the taxable company’s careless failure to deliver a bank payroll tax return on or before 31 August 2010.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-27-3"><num>(3)</num><content>Subject to sub-paragraph (2)(b), the relevant deadline is 5 April 2016 if the situation was brought about carelessly by the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-4"><num>(4)</num><content>In all other cases, the relevant deadline is 5 April 2014.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-5"><num>(5)</num><intro>In this paragraph—</intro><level class="para1" eId="schedule-1-paragraph-27-5-a"><num>(a)</num><content>references to the situation are to the one discovered by HMRC, and</content></level><level class="para1" eId="schedule-1-paragraph-27-5-b"><num>(b)</num><content>references to the taxable company include a person acting on the company’s behalf.</content></level></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-1-paragraph-28-1"><num>(1)</num><content>If a discovery assessment is made with respect to a taxable company, the company may appeal against it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-28-2"><num>(2)</num><intro>Notice of appeal must be given—</intro><level class="para1" eId="schedule-1-paragraph-28-2-a"><num>(a)</num><content>in writing,</content></level><level class="para1" eId="schedule-1-paragraph-28-2-b"><num>(b)</num><content>within the period of 30 days beginning with the date on which notice of the assessment was given, and</content></level><level class="para1" eId="schedule-1-paragraph-28-2-c"><num>(c)</num><content>to the officer of Revenue and Customs by whom notice of the assessment was given.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-28-3"><num>(3)</num><content>Any objection to a discovery assessment on the ground that paragraph 25, 26 or 27 was not complied with can only be made on an appeal against the assessment under this paragraph.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Collection and recovery</heading><paragraph eId="schedule-1-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-1-paragraph-29-1"><num>(1)</num><content>HMRC may publish requirements as to the method or methods of payment to be used by taxable companies for paying bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-29-2"><num>(2)</num><content>Part 6 of TMA 1970 (collection and recovery) applies in relation to a charge to bank payroll tax as it applies in relation to a charge to corporation tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-29-3"><num>(3)</num><content>See also Chapter 5 of Part 7 of FA 2008 (which makes general provision about payment and enforcement).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Interest on late payments and repayments</heading><paragraph eId="schedule-1-paragraph-30" class="schProv1"><num>30</num><subparagraph eId="schedule-1-paragraph-30-1"><num>(1)</num><content>This paragraph applies if an order is made under section 104(3) of FA 2009 appointing a day on which sections 101 to 103 of that Act are to come into force for the purposes of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-30-2"><num>(2)</num><intro>Part 2 of Schedule 53 to that Act (which makes special provision about the late payment interest start date) has effect for those purposes as if—</intro><level class="para1" eId="schedule-1-paragraph-30-2-a"><num>(a)</num><content>the reference in paragraph 4(1) to income tax or capital gains tax included a reference to bank payroll tax, and</content></level><level class="para1" eId="schedule-1-paragraph-30-2-b"><num>(b)</num><content>the Part included a provision that the late payment interest start date in respect of an amount of bank payroll tax assessed and recoverable under paragraph 25(1)(c) of this Schedule is 31 August 2010.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-30-3"><num>(3)</num><content>Interest charged under section 101 of FA 2009 on an amount of bank payroll tax may be enforced as if it were an amount of bank payroll tax payable by the taxable company.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Overpaid tax etc</heading><paragraph eId="schedule-1-paragraph-31" class="schProv1"><num>31</num><subparagraph eId="schedule-1-paragraph-31-1"><num>(1)</num><content>Paragraphs 50 to 51G of Schedule 18 to FA 1998 (overpaid tax etc) apply (so far as relevant) to bank payroll tax assessable for the chargeable period as they apply to corporation tax assessable for an accounting period, subject to the following modifications.</content></subparagraph><subparagraph eId="schedule-1-paragraph-31-2"><num>(2)</num><content>With respect to bank payroll tax, a claim under paragraph 51 may not be made after 31 August 2014.</content></subparagraph><subparagraph eId="schedule-1-paragraph-31-3"><num>(3)</num><intro>For the purposes of paragraph 51E, the relevant restrictions for making a discovery assessment under this Schedule are—</intro><level class="para1" eId="schedule-1-paragraph-31-3-a"><num>(a)</num><content>the conditions mentioned in paragraph 25(3), and</content></level><level class="para1" eId="schedule-1-paragraph-31-3-b"><num>(b)</num><content>expiry of the relevant deadline as defined in paragraph 27.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-31-4"><num>(4)</num><content>Nothing in sub-paragraph (1) permits a taxable company to make a claim under paragraph 51 of Schedule 18 to FA 1998 with respect to bank payroll tax merely because an amount determined under paragraph 7(2), 12(2) or 13(3) differs from the amount which is actually paid or provided (or loaned).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Appeals and other proceedings</heading><paragraph eId="schedule-1-paragraph-32" class="schProv1"><num>32</num><subparagraph eId="schedule-1-paragraph-32-1"><num>(1)</num><content>Part 5 of TMA 1970 (appeals and other proceedings) applies in relation to an appeal against a discovery assessment to bank payroll tax as it applies in relation to an appeal against an assessment to corporation tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-32-2"><num>(2)</num><content>References in that Part to tax are to be read accordingly.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-1-paragraph-33-1"><num>(1)</num><content>Where a provision of FA 1998 is applied by this Part of this Schedule, a reference in section 46D of TMA 1970 (questions to be determined by the relevant tribunal) to that provision includes a reference to that provision as so applied.</content></subparagraph><subparagraph eId="schedule-1-paragraph-33-2"><num>(2)</num><content>A reference in section 48 of TMA 1970 (application to appeals and other proceedings) to the Taxes Acts includes a reference to those Acts as applied by this Part of this Schedule.</content></subparagraph><subparagraph eId="schedule-1-paragraph-33-3"><num>(3)</num><intro>Where a provision of FA 1998 is applied by this Part of this Schedule—</intro><level class="para1" eId="schedule-1-paragraph-33-3-a"><num>(a)</num><content>a reference in section 55 of TMA 1970 (recovery of tax not postponed) to that provision includes a reference to that provision as so applied, and</content></level><level class="para1" eId="schedule-1-paragraph-33-3-b"><num>(b)</num><content>references in that section to tax are to be read accordingly.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Obligation to preserve records</heading><paragraph eId="schedule-1-paragraph-34" class="schProv1"><num>34</num><subparagraph eId="schedule-1-paragraph-34-1"><num>(1)</num><intro>Each taxable company must—</intro><level class="para1" eId="schedule-1-paragraph-34-1-a"><num>(a)</num><content>keep such records as may be needed to enable it to establish and verify the amount of bank payroll tax payable by it and to deliver a correct and complete bank payroll tax return, and</content></level><level class="para1" eId="schedule-1-paragraph-34-1-b"><num>(b)</num><content>preserve those records, and any other relevant records, until the end of 31 August 2016.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-2"><num>(2)</num><intro>Other relevant records are records that—</intro><level class="para1" eId="schedule-1-paragraph-34-2-a"><num>(a)</num><content>may be needed for a purpose mentioned in sub-paragraph (1)(a), and</content></level><level class="para1" eId="schedule-1-paragraph-34-2-b"><num>(b)</num><content>are in the company’s possession or power immediately before the commencement of this Schedule.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-3"><num>(3)</num><intro>The obligation under sub-paragraph (1)(b) may be discharged by—</intro><level class="para1" eId="schedule-1-paragraph-34-3-a"><num>(a)</num><content>preserving the records in any form and by any means, or</content></level><level class="para1" eId="schedule-1-paragraph-34-3-b"><num>(b)</num><content>preserving the information contained in them in any form and by any means.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-4"><num>(4)</num><content>The obligation under sub-paragraph (1)(b) includes an obligation to preserve supporting documents (such as contracts, accounts and correspondence).</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-1-paragraph-35-1"><num>(1)</num><content>A taxable company which fails to comply with paragraph 34 is liable to a penalty of an amount not exceeding £3,000.</content></subparagraph><subparagraph eId="schedule-1-paragraph-35-2"><num>(2)</num><content>Sections 100 to 102 of TMA 1970 apply to a penalty under this paragraph as they apply to a penalty under section 12B(5) of that Act.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Information powers</heading><paragraph eId="schedule-1-paragraph-36" class="schProv1"><num>36</num><subparagraph eId="schedule-1-paragraph-36-1"><num>(1)</num><content>Schedule 36 to FA 2008 (information and inspection powers) has effect as if the definition of tax in paragraph 63(1) included bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-36-2"><num>(2)</num><intro>Paragraph 21 of that Schedule (taxpayer notices) applies where a taxable company has made a bank payroll tax return as it applies where a person has made a company tax return and, in relation to bank payroll tax—</intro><level class="para1" eId="schedule-1-paragraph-36-2-a"><num>(a)</num><content>a reference in that paragraph to a chargeable period is to the chargeable period within the meaning of this Schedule, and</content></level><level class="para1" eId="schedule-1-paragraph-36-2-b"><num>(b)</num><content>a reference in that paragraph to a notice of enquiry is to a notice of enquiry under paragraph 23 of this Schedule.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Penalties</heading><paragraph eId="schedule-1-paragraph-37" class="schProv1"><num>37</num><subparagraph eId="schedule-1-paragraph-37-1"><num>(1)</num><intro>Schedule 24 to FA 2007 (penalties for errors) has effect as if in the Table in paragraph 1—</intro><level class="para1" eId="schedule-1-paragraph-37-1-a"><num>(a)</num><content>the list of taxes included bank payroll tax, and</content></level><level class="para1" eId="schedule-1-paragraph-37-1-b"><num>(b)</num><content>the list of documents included a bank payroll tax return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-37-2"><num>(2)</num><content>In relation to bank payroll tax, any reference in that Schedule to a tax period is to the chargeable period within the meaning of this Schedule.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-1-paragraph-38-1"><num>(1)</num><intro>Schedule 55 to FA 2009 (penalties for failure to make returns etc) has effect as if—</intro><level class="para1" eId="schedule-1-paragraph-38-1-a"><num>(a)</num><content>a bank payroll tax return were specified in the Table in paragraph 1 (and bank payroll tax were specified in relation to it), and</content></level><level class="para1" eId="schedule-1-paragraph-38-1-b"><num>(b)</num><content>the reference in paragraph 2 to a return falling within certain items in the Table included a reference to a bank payroll tax return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-38-2"><num>(2)</num><content>Schedule 55 to FA 2009 has effect for the purposes of bank payroll tax in accordance with this paragraph whether or not it has come into force for other purposes.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-1-paragraph-39-1"><num>(1)</num><content>Schedule 56 to FA 2009 (penalties for failure to make payments on time etc) has effect for the purposes of bank payroll tax as follows.</content></subparagraph><subparagraph eId="schedule-1-paragraph-39-2"><num>(2)</num><intro>The part of the Table in paragraph 1 headed “Principal amounts” has effect as if bank payroll tax were specified in column 2 and, in relation to that tax—</intro><level class="para1" eId="schedule-1-paragraph-39-2-a"><num>(a)</num><content>an amount shown (or treated as shown) in a bank payroll tax return were specified in column 3, and</content></level><level class="para1" eId="schedule-1-paragraph-39-2-b"><num>(b)</num><content>31 August 2010 were specified in column 4.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-39-3"><num>(3)</num><intro>The part of that Table headed “Amounts payable in default of a return being made” has effect as if bank payroll tax were specified in column 2 and, in relation to that tax—</intro><level class="para1" eId="schedule-1-paragraph-39-3-a"><num>(a)</num><content>an amount shown in a determination under paragraph 24 of this Schedule were specified in column 3, and</content></level><level class="para1" eId="schedule-1-paragraph-39-3-b"><num>(b)</num><content>31 August 2010 were specified in column 4.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-39-4"><num>(4)</num><intro>The part of that Table headed “Amount shown to be due in other assessments, determinations, etc” has effect as if—</intro><level class="para1" eId="schedule-1-paragraph-39-4-a"><num>(a)</num><content>bank payroll tax were a tax falling within any of items 1 to 6, 9 or 10, and</content></level><level class="para1" eId="schedule-1-paragraph-39-4-b"><num>(b)</num><content>an amount shown (or treated as shown) in a bank payroll tax return were an amount falling within any of those items.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-39-5"><num>(5)</num><content>Paragraph 2 (assessments and determinations in default of return) has effect as if the reference in paragraph (a) to a return falling within any item in the Table in Schedule 55 included a reference to a bank payroll tax return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-39-6"><num>(6)</num><content>Paragraph 3 (amount of penalty) has effect as if sub-paragraph (1)(a) included a reference to a payment of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-39-7"><num>(7)</num><content>Schedule 56 to FA 2009 has effect for the purposes of bank payroll tax in accordance with this paragraph whether or not it has come into force for other purposes.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Miscellaneous</heading><paragraph eId="schedule-1-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-1-paragraph-40-1"><num>(1)</num><intro>The following provisions of TMA 1970 apply for the purposes of bank payroll tax and this Schedule as they apply for the purposes of corporation tax and the Taxes Acts—</intro><level class="para1" eId="schedule-1-paragraph-40-1-a"><num>(a)</num><content>section 108 (responsibility of company officers),</content></level><level class="para1" eId="schedule-1-paragraph-40-1-b"><num>(b)</num><content>section 112 (loss, destruction or damage to assessments, returns etc),</content></level><level class="para1" eId="schedule-1-paragraph-40-1-c"><num>(c)</num><content>section 114 (want of form), and</content></level><level class="para1" eId="schedule-1-paragraph-40-1-d"><num>(d)</num><content>section 115 (delivery and service of documents).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-40-2"><num>(2)</num><content>The application of section 115 of TMA 1970 in relation to the delivery of bank payroll tax returns is subject to any requirements published under paragraph 19(1) of this Schedule.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-41" class="schProv1"><num>41</num><content>Chapter 6 of Part 22 of CTA 2010 (collection etc of tax from UK representatives of non-UK resident companies) applies to this Part of this Schedule as it applies to enactments relating to corporation tax.</content></paragraph><paragraph eId="schedule-1-paragraph-42" class="schProv1"><num>42</num><content>Section 118(5) to (7) of TMA 1970 (meaning of carelessly etc) applies for the interpretation of this Part of this Schedule, with references to tax being read as references to bank payroll tax.</content></paragraph></hcontainer></part><part eId="schedule-1-part-3"><num>Part 3</num><heading>Definitions</heading><hcontainer name="crossheading" class="schGroup7"><heading>“UK resident bank” and “relevant foreign bank”</heading><paragraph eId="schedule-1-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-1-paragraph-43-1"><num>(1)</num><content>“UK resident bank” means a company which—</content></subparagraph><level class="para1" eId="schedule-1-paragraph-43-a"><num>(a)</num><content>is resident in the United Kingdom,</content></level><level class="para1" eId="schedule-1-paragraph-43-b"><num>(b)</num><content>is an authorised person for the purposes of FISMA 2000 (see section 31 of that Act),</content></level><level class="para1" eId="schedule-1-paragraph-43-c"><num>(c)</num><intro>is a person—</intro><level class="para2" eId="schedule-1-paragraph-43-c-i"><num>(i)</num><content>whose activities include the relevant regulated activity described in the provision mentioned in paragraph 44(1)(a), or</content></level><level class="para2" eId="schedule-1-paragraph-43-c-ii"><num>(ii)</num><content>which is both a BIPRU 730k firm and a full scope BIPRU investment firm, whose activities consist wholly or mainly of any of the relevant regulated activities described in the provisions mentioned in paragraph 44(1)(b) to (f) and which meets the capital resources condition,</content></level></level><level class="para1" eId="schedule-1-paragraph-43-d"><num>(d)</num><content>carries on that relevant regulated activity, or those relevant regulated activities, wholly or mainly in the course of trade, and</content></level><level class="para1" eId="schedule-1-paragraph-43-e"><num>(e)</num><content>is not an excluded company.</content></level><subparagraph eId="schedule-1-paragraph-43-2"><num>(2)</num><intro>“UK resident bank” also includes a company which—</intro><level class="para1" eId="schedule-1-paragraph-43-2-a"><num>(a)</num><content>meets the conditions in sub-paragraph (1)(a) and (e), and</content></level><level class="para1" eId="schedule-1-paragraph-43-2-b"><num>(b)</num><content>is a member of a partnership which meets the conditions in sub-paragraph (1)(b) to (d).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-43-3"><num>(3)</num><intro>“Relevant foreign bank” means a company which—</intro><level class="para1" eId="schedule-1-paragraph-43-3-a"><num>(a)</num><content>is not resident in the United Kingdom,</content></level><level class="para1" eId="schedule-1-paragraph-43-3-b"><num>(b)</num><content>is an authorised person for the purposes of FISMA 2000 (see section 31 of that Act),</content></level><level class="para1" eId="schedule-1-paragraph-43-3-c"><num>(c)</num><intro>is a person which carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom and—</intro><level class="para2" eId="schedule-1-paragraph-43-3-c-i"><num>(i)</num><content>whose activities include the relevant regulated activity described in the provision mentioned in paragraph 44(1)(a), or</content></level><level class="para2" eId="schedule-1-paragraph-43-3-c-ii"><num>(ii)</num><content>which is both a BIPRU 730k firm and a full scope BIPRU investment firm, whose activities consist wholly or mainly of any of the relevant regulated activities described in the provisions mentioned in paragraph 44(1)(b) to (f) and which meets the capital resources condition,</content></level></level><level class="para1" eId="schedule-1-paragraph-43-3-d"><num>(d)</num><content>carries on that relevant regulated activity, or those relevant regulated activities, wholly or mainly in the course of that trade, and</content></level><level class="para1" eId="schedule-1-paragraph-43-3-e"><num>(e)</num><content>is not an excluded company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-43-4"><num>(4)</num><intro>“Relevant foreign bank” also includes a company which—</intro><level class="para1" eId="schedule-1-paragraph-43-4-a"><num>(a)</num><content>meets the conditions in sub-paragraph (3)(a) and (e), and</content></level><level class="para1" eId="schedule-1-paragraph-43-4-b"><num>(b)</num><content>is a member of a partnership which meets the conditions in sub-paragraph (1)(b) to (d).</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>“Relevant regulated activity”, “capital resources condition”, “excluded company”, “asset management activities”, “linked entity” etc</heading><paragraph eId="schedule-1-paragraph-44" class="schProv1"><num>44</num><subparagraph eId="schedule-1-paragraph-44-1"><num>(1)</num><intro>“Relevant regulated activity” means an activity which is a regulated activity for the purposes of FISMA 2000 by virtue of any of the following provisions of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<ref eId="c00007" href="http://www.legislation.gov.uk/id/uksi/2001/544">S.I. 2001/544</ref>)—</intro><level class="para1" eId="schedule-1-paragraph-44-1-a"><num>(a)</num><content>article 5 (accepting deposits),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-b"><num>(b)</num><content>article 14 (dealing in investments as principal),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-c"><num>(c)</num><content>article 21 (dealing in investments as agent),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-d"><num>(d)</num><content>article 25 (arranging deals in investments),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-e"><num>(e)</num><content>article 40 (safeguarding and administering investments), and</content></level><level class="para1" eId="schedule-1-paragraph-44-1-f"><num>(f)</num><content>article 61 (entering into regulated mortgage contracts).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-2"><num>(2)</num><content>“The capital resources condition” is that the company has a capital resources requirement of at least £100 million.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-3"><num>(3)</num><intro>But if the company is a member of a group, “the capital resources condition” is that the company and—</intro><level class="para1" eId="schedule-1-paragraph-44-3-a"><num>(a)</num><intro>any other companies which—</intro><level class="para2" eId="schedule-1-paragraph-44-3-a-i"><num>(i)</num><content>are members of the group,</content></level><level class="para2" eId="schedule-1-paragraph-44-3-a-ii"><num>(ii)</num><content>meet either of the conditions in sub-paragraph (4),</content></level><level class="para2" eId="schedule-1-paragraph-44-3-a-iii"><num>(iii)</num><content>are not excluded companies, and</content></level><level class="para2" eId="schedule-1-paragraph-44-3-a-iv"><num>(iv)</num><content>are not members of any partnership within paragraph (b), and</content></level></level><level class="para1" eId="schedule-1-paragraph-44-3-b"><num>(b)</num><intro>any partnership—</intro><level class="para2" eId="schedule-1-paragraph-44-3-b-i"><num>(i)</num><content>the members of which are or include one or more companies that are members of the group and not excluded companies, and</content></level><level class="para2" eId="schedule-1-paragraph-44-3-b-ii"><num>(ii)</num><content>which meets either of those conditions,</content></level></level><wrapUp>have (in aggregate) capital resources requirements of at least that amount.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-44-4"><num>(4)</num><intro>The conditions referred to in sub-paragraph (3) are that the company or partnership—</intro><level class="para1" eId="schedule-1-paragraph-44-4-a"><num>(a)</num><content>is both a BIPRU 730k firm and a full scope BIPRU investment firm, or</content></level><level class="para1" eId="schedule-1-paragraph-44-4-b"><num>(b)</num><content>is a company or partnership which carries on in the United Kingdom activities including the relevant regulated activity described in the provision mentioned in sub-paragraph (1)(a).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-5"><num>(5)</num><content>For the purposes of sub-paragraphs (2) and (3) the capital resources requirement of a company or a partnership is that as at the end of the last period of account of the company or partnership ending no later than the end of the chargeable period.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-6"><num>(6)</num><content>In determining whether the company is a UK resident bank or a relevant foreign bank by virtue of paragraph 43(2) or (4), the references in sub-paragraph (2) to the company are to the partnership.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-7"><num>(7)</num><content>If any company or partnership whose capital resources may be material for the purposes of sub-paragraph (2) or (3) prepares its accounts in a currency other than sterling, the amount of its capital resources at the end of the period of account mentioned in that sub-paragraph is to be translated into its sterling equivalent by reference to the average spot rate of exchange on the day on which that period ends.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-8"><num>(8)</num><content>If any company whose capital resources may be material for the purposes of sub-paragraph (2) or (3) carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom, its capital resources are to be determined as they would be for the purposes of corporation tax (see Chapter 4 of Part 2 of CTA 2009).</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-9"><num>(9)</num><intro>“Excluded company” means a company which is—</intro><level class="para1" eId="schedule-1-paragraph-44-9-a"><num>(a)</num><content>an insurance company or an insurance special purpose vehicle,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-b"><num>(b)</num><content>a company which is a member of a group and does not carry on any relevant regulated activities otherwise than on behalf of an insurance company or insurance special purpose vehicle which is a member of the same group,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-c"><num>(c)</num><content>a company which does not carry on any relevant regulated activities otherwise than as the manager of a pension scheme,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-d"><num>(d)</num><content>an investment trust (within the meaning given by section 1158 of CTA 2010),</content></level><level class="para1" eId="schedule-1-paragraph-44-9-e"><num>(e)</num><content>a company which does not carry on any relevant regulated activities other than asset management activities,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-f"><num>(f)</num><content>an exempt BIPRU commodities firm,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-g"><num>(g)</num><content>a company which does not carry on any relevant regulated activities otherwise than for the purpose of trading in commodities or commodity derivatives,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-h"><num>(h)</num><content>a company which does not carry on any relevant regulated activities otherwise than for the purpose of dealing in contracts for differences as principal with persons all or all but an insignificant proportion of whom are retail clients or of dealing in contracts for differences with another person to enable the company or other person to deal in contracts for differences as principal with such persons,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-i"><num>(i)</num><content>a society incorporated under the Friendly Societies Act 1992,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-j"><num>(j)</num><content>a society registered as a credit union under the Industrial and Provident Societies Act 1965 or the Credit Unions (Northern Ireland) Order 1985 (<ref eId="c00008" href="http://www.legislation.gov.uk/id/nisi/1985/1205">S.I. 1985/1205 (NI 12)</ref>), or</content></level><level class="para1" eId="schedule-1-paragraph-44-9-k"><num>(k)</num><content>a building society.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-10"><num>(10)</num><intro>“Asset management activities” means activities which consist (or, if they were carried on in the United Kingdom, would consist) of any or all of the following—</intro><level class="para1" eId="schedule-1-paragraph-44-10-a"><num>(a)</num><content>acting as the operator of a collective investment scheme (within the meaning of Part 17 of FISMA 2000: see sections 235 and 237 of that Act),</content></level><level class="para1" eId="schedule-1-paragraph-44-10-b"><num>(b)</num><content>acting as a discretionary investment manager for clients none of which is a linked entity, and</content></level><level class="para1" eId="schedule-1-paragraph-44-10-c"><num>(c)</num><content>acting as an authorised corporate director.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-11"><num>(11)</num><intro>“Linked entity”, in relation to a company (“C”), means—</intro><level class="para1" eId="schedule-1-paragraph-44-11-a"><num>(a)</num><content>a member of the same group as C,</content></level><level class="para1" eId="schedule-1-paragraph-44-11-b"><num>(b)</num><content>a company in which a company which is a member of the same group as C has a major interest (within the meaning of Part 5 of CTA 2009: see section 473 of that Act), or</content></level><level class="para1" eId="schedule-1-paragraph-44-11-c"><num>(c)</num><intro>a partnership the members of which include a company—</intro><level class="para2" eId="schedule-1-paragraph-44-11-c-i"><num>(i)</num><content>which is a member of the same group as C, and</content></level><level class="para2" eId="schedule-1-paragraph-44-11-c-ii"><num>(ii)</num><content>whose share of the profits or losses of a trade carried on by the partnership for an accounting period of the partnership any part of which falls within the chargeable period is at least a 40% share (see Part 17 of CTA 2009 for provisions about shares of partnership profits and losses).</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-12"><num>(12)</num><intro>The following have the meanings given in the Handbook of Rules and Guidance made by the Financial Services Authority (as that Handbook has effect from time to time)—</intro><hcontainer name="definition"><content>“authorised corporate director”,</content></hcontainer><hcontainer name="definition"><content>“BIPRU 730k firm”,</content></hcontainer><hcontainer name="definition"><content>“capital resources requirement”,</content></hcontainer><hcontainer name="definition"><content>“contracts for differences”,</content></hcontainer><hcontainer name="definition"><content>“discretionary investment manager”,</content></hcontainer><hcontainer name="definition"><content>“exempt BIPRU commodities firm”,</content></hcontainer><hcontainer name="definition"><content>“full scope BIPRU investment firm”,</content></hcontainer><hcontainer name="definition"><content>“pension scheme”,</content></hcontainer><hcontainer name="definition"><content>“principal”, and</content></hcontainer><hcontainer name="definition"><content>“retail clients”.</content></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-44-13"><num>(13)</num><content>A company which would be a BIPRU 730k firm and a full scope BIPRU investment firm by virtue of activities carried on in the United Kingdom but for the fact that its registered office (or, if it does not have a registered office, its head office) is not in the United Kingdom is to be treated as being one.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-14"><num>(14)</num><content>The Treasury may by order amend this paragraph.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-15"><num>(15)</num><content>An order under this paragraph may be made so as to have effect in relation to any time after the beginning of the chargeable period.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-16"><num>(16)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-17"><num>(17)</num><content>An order under this paragraph may not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, the House of Commons.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>“Member of a banking group”</heading><paragraph eId="schedule-1-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-1-paragraph-45-1"><num>(1)</num><intro>A company is a “member of a banking group” at any time if—</intro><level class="para1" eId="schedule-1-paragraph-45-1-a"><num>(a)</num><content>it is within sub-paragraph (2) at that time, or</content></level><level class="para1" eId="schedule-1-paragraph-45-1-b"><num>(b)</num><content>it was within that sub-paragraph immediately before the chargeable period.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-2"><num>(2)</num><intro>A company is within this sub-paragraph if—</intro><level class="para1" eId="schedule-1-paragraph-45-2-a"><num>(a)</num><content>it is a member of a group,</content></level><level class="para1" eId="schedule-1-paragraph-45-2-b"><num>(b)</num><content>any of conditions A to C is met, and</content></level><level class="para1" eId="schedule-1-paragraph-45-2-c"><num>(c)</num><content>the group does not meet the exempt activities test.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-3"><num>(3)</num><content>Condition A is that the principal company of the group is a UK resident bank or a relevant foreign bank.</content></subparagraph><subparagraph eId="schedule-1-paragraph-45-4"><num>(4)</num><intro>Condition B is that—</intro><level class="para1" eId="schedule-1-paragraph-45-4-a"><num>(a)</num><content>the principal company of the group is a company which is not resident in the United Kingdom but which (if it were so resident) would be a UK resident bank, or</content></level><level class="para1" eId="schedule-1-paragraph-45-4-b"><num>(b)</num><content>the principal company of the group is a company which is not resident in the United Kingdom, and is a member of a partnership which is not so resident, but which (if both the company and the partnership were so resident) would be a UK resident bank,</content></level><wrapUp>and (in either case) any member of the group is a UK resident bank or a relevant foreign bank.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-45-5"><num>(5)</num><intro>Condition C is that—</intro><level class="para1" eId="schedule-1-paragraph-45-5-a"><num>(a)</num><content>the principal company is the holding company of another company, and</content></level><level class="para1" eId="schedule-1-paragraph-45-5-b"><num>(b)</num><content>if that other company were the principal company of the group, condition A or B would be met.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-6"><num>(6)</num><intro>For the purposes of condition C a company (“H”) is a “holding company” of another company (“S”) if—</intro><level class="para1" eId="schedule-1-paragraph-45-6-a"><num>(a)</num><content>H is an investment company, and</content></level><level class="para1" eId="schedule-1-paragraph-45-6-b"><num>(b)</num><intro>S is—</intro><level class="para2" eId="schedule-1-paragraph-45-6-b-i"><num>(i)</num><content>an effective 51% subsidiary of H, and</content></level><level class="para2" eId="schedule-1-paragraph-45-6-b-ii"><num>(ii)</num><content>not an effective 51% subsidiary of any company which is not an investment company.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-7"><num>(7)</num><content>A group meets the exempt activities test if at least 90% of the trading income of the group for the relevant period is derived from exempt activities.</content></subparagraph><subparagraph eId="schedule-1-paragraph-45-8"><num>(8)</num><intro>For this purpose—</intro><hcontainer name="definition"><intro>“exempt activities” means—</intro><level class="para1"><num>(a)</num><content>insurance activities, asset management activities and related activities, and</content></level><level class="para1"><num>(b)</num><content>activities carried on by a company which is not a financial trading company (or a company which would be a financial trading company if it were resident in the United Kingdom) other than lending activities or dealing on own account,</content></level></hcontainer><hcontainer name="definition"><content>“the relevant period”, in relation to a group, means the last period of account of the group ending no later than the end of the chargeable period, and</content></hcontainer><hcontainer name="definition"><content>“the trading income of the group” for the relevant period is to be calculated in accordance with paragraph 46.</content></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-45-9"><num>(9)</num><intro>In sub-paragraph (8)—</intro><hcontainer name="definition"><intro>“insurance activities” means—</intro><level class="para1"><num>(a)</num><content>the effecting or carrying out of contracts of insurance by a regulated insurer, and</content></level><level class="para1"><num>(b)</num><content>investment business that arises directly from activities falling within paragraph (a);</content></level></hcontainer><hcontainer name="definition"><intro>“lending activities” means—</intro><level class="para1"><num>(a)</num><content>acceptance of deposits or other repayable funds,</content></level><level class="para1"><num>(b)</num><content>lending of money, including consumer credit, mortgage credit, factoring (with or without recourse) and financing of commercial transactions (including forfeiting),</content></level><level class="para1"><num>(c)</num><content>finance leasing (as lessor),</content></level><level class="para1"><num>(d)</num><content>issuing and administering means of payment,</content></level><level class="para1"><num>(e)</num><content>provision of guarantees or commitments to provide money,</content></level><level class="para1"><num>(f)</num><content>money transmission services,</content></level><level class="para1"><num>(g)</num><content>provision of alternative finance arrangements, and</content></level><level class="para1"><num>(h)</num><content>other activities carried on in connection with activities falling within any of paragraphs (a) to (g);</content></level></hcontainer><hcontainer name="definition"><intro>“related activities” means—</intro><level class="para1"><num>(a)</num><content>activities which are ancillary to insurance activities or asset management activities of any company which is a member of the group (whether or not the company carrying on the insurance activities or asset management activities), and</content></level><level class="para1"><num>(b)</num><content>activities which would not be carried on but for such insurance activities or asset management activities being carried on,</content></level><wrapUp>but does not include dealing on own account.</wrapUp></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-45-10"><num>(10)</num><intro>In sub-paragraph (9)—</intro><hcontainer name="definition"><content>“activities” includes buying, holding, managing and selling assets;</content></hcontainer><hcontainer name="definition"><intro>“regulated insurer”, in relation to a group, means a member of the group that—</intro><level class="para1"><num>(a)</num><content>is authorised under the law of any territory to carry on insurance business, or</content></level><level class="para1"><num>(b)</num><content>is a member of a body or organisation which is so authorised.</content></level></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-45-11"><num>(11)</num><intro>A company which is a member of a banking group ceases to be a member of a banking group when it ceases to be within sub-paragraph (2), but only if it ceases to be within that provision as a result of—</intro><level class="para1" eId="schedule-1-paragraph-45-11-a"><num>(a)</num><content>an arm’s length transaction undertaken for wholly commercial purposes, or</content></level><level class="para1" eId="schedule-1-paragraph-45-11-b"><num>(b)</num><content>following a recommendation of a relevant regulatory body.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-12"><num>(12)</num><content>For the purposes of sub-paragraph (11) obtaining a tax advantage is not a commercial purpose.</content></subparagraph><subparagraph eId="schedule-1-paragraph-45-13"><num>(13)</num><intro>“Tax advantage” means—</intro><level class="para1" eId="schedule-1-paragraph-45-13-a"><num>(a)</num><content>a relief from tax or increased relief from tax (relief here including a tax credit),</content></level><level class="para1" eId="schedule-1-paragraph-45-13-b"><num>(b)</num><content>a repayment of tax or increased repayment of tax,</content></level><level class="para1" eId="schedule-1-paragraph-45-13-c"><num>(c)</num><content>the avoidance or reduction of a charge to tax or an assessment to tax (obtained in any way), or</content></level><level class="para1" eId="schedule-1-paragraph-45-13-d"><num>(d)</num><content>the avoidance of a possible assessment to tax (so obtained),</content></level><wrapUp>and, for this purpose, “tax” includes bank payroll tax and any other tax.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-45-14"><num>(14)</num><intro>In sub-paragraph (11) “relevant regulatory body” means—</intro><level class="para1" eId="schedule-1-paragraph-45-14-a"><num>(a)</num><content>the Financial Services Authority, or</content></level><level class="para1" eId="schedule-1-paragraph-45-14-b"><num>(b)</num><content>a body discharging functions under the law of a country or territory outside the United Kingdom corresponding to functions discharged by the Financial Services Authority.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-15"><num>(15)</num><content>In this paragraph “dealing on own account” has the same meaning as in Directive <ref eId="c00009" href="http://www.legislation.gov.uk/european/directive/2004/0039">2004/39/EC</ref> of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (see Article 4(1)(6)).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>“The trading income of the group” for the relevant period</heading><paragraph eId="schedule-1-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-1-paragraph-46-1"><num>(1)</num><content>This paragraph applies for calculating the “trading income of the group” for the relevant period for the purposes of paragraph 45.</content></subparagraph><subparagraph eId="schedule-1-paragraph-46-2"><num>(2)</num><intro>The trading income for the group for the relevant period is the aggregate of—</intro><level class="para1" eId="schedule-1-paragraph-46-2-a"><num>(a)</num><content>the gross income calculated in accordance with sub-paragraph (3), and</content></level><level class="para1" eId="schedule-1-paragraph-46-2-b"><num>(b)</num><content>the net income calculated in accordance with sub-paragraph (4).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-46-3"><num>(3)</num><intro>The income referred to in sub-paragraph (2)(a) is the gross income—</intro><level class="para1" eId="schedule-1-paragraph-46-3-a"><num>(a)</num><content>arising from the activities of the group (other than net-basis activities), and</content></level><level class="para1" eId="schedule-1-paragraph-46-3-b"><num>(b)</num><content>disclosed as such in the financial statements of the group,</content></level><wrapUp>without taking account of any deductions (whether for expenses or otherwise).</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-46-4"><num>(4)</num><intro>The income referred to in sub-paragraph (2)(b) is the net income arising from the net-basis activities of the group that—</intro><level class="para1" eId="schedule-1-paragraph-46-4-a"><num>(a)</num><content>is accounted for as such under international accounting standards or in accordance with practice which is generally accepted accounting practice in the territory in which the principal company of the group is resident, or</content></level><level class="para1" eId="schedule-1-paragraph-46-4-b"><num>(b)</num><content>would be accounted for as such if income arising from such activities were accounted for under such standards or in accordance with such practice.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-46-5"><num>(5)</num><content>In this paragraph “net-basis activities” means activities normally reported on a net basis in financial statements prepared in accordance with such standards or practice.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>“Investment company” etc</heading><paragraph eId="schedule-1-paragraph-47" class="schProv1"><num>47</num><subparagraph eId="schedule-1-paragraph-47-1"><num>(1)</num><intro>“Investment company”—</intro><level class="para1" eId="schedule-1-paragraph-47-1-a"><num>(a)</num><content>means a company whose business consists wholly or mainly of, and the principal part of whose income is derived from, the making of investments, and</content></level><level class="para1" eId="schedule-1-paragraph-47-1-b"><num>(b)</num><content>also includes any savings bank or other bank for savings.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-47-2"><num>(2)</num><content>“UK resident investment company” means an investment company which is resident in the United Kingdom.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>“Financial trading company” etc</heading><paragraph eId="schedule-1-paragraph-48" class="schProv1"><num>48</num><subparagraph eId="schedule-1-paragraph-48-1"><num>(1)</num><intro>“Financial trading company” means a company which—</intro><level class="para1" eId="schedule-1-paragraph-48-1-a"><num>(a)</num><content>is an authorised person for the purposes of FISMA 2000 (see section 31 of that Act), or</content></level><level class="para1" eId="schedule-1-paragraph-48-1-b"><num>(b)</num><content>is not within paragraph (a) but carries on a trade consisting wholly or partly in dealing in securities.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-48-2"><num>(2)</num><content>“UK resident financial trading company” means a financial trading company which is resident in the United Kingdom.</content></subparagraph><subparagraph eId="schedule-1-paragraph-48-3"><num>(3)</num><content>“Relevant foreign financial trading company” means a company which meets conditions A and B.</content></subparagraph><subparagraph eId="schedule-1-paragraph-48-4"><num>(4)</num><intro>Condition A is that the company—</intro><level class="para1" eId="schedule-1-paragraph-48-4-a"><num>(a)</num><content>is not resident in the United Kingdom, and</content></level><level class="para1" eId="schedule-1-paragraph-48-4-b"><num>(b)</num><content>carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-48-5"><num>(5)</num><content>Condition B is that, disregarding any activities of the company other than those carried on through that permanent establishment, the company is a financial trading company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-48-6"><num>(6)</num><intro>In this paragraph “securities” includes—</intro><level class="para1" eId="schedule-1-paragraph-48-6-a"><num>(a)</num><content>shares,</content></level><level class="para1" eId="schedule-1-paragraph-48-6-b"><num>(b)</num><content>rights of unit holders in unit trust schemes to which TCGA 1992 applies as a result of section 99 of that Act, and</content></level><level class="para1" eId="schedule-1-paragraph-48-6-c"><num>(c)</num><content>in the case of a company with no share capital, interests in the company possessed by members of the company.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Other interpretative provisions</heading><paragraph eId="schedule-1-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-1-paragraph-49-1"><num>(1)</num><intro>In this Schedule—</intro><hcontainer name="definition"><content>“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);</content></hcontainer><hcontainer name="definition"><content>“benefit” includes a facility of any kind;</content></hcontainer><hcontainer name="definition"><content>“building society” means a building society within the meaning of the Building Societies Act 1986;</content></hcontainer><hcontainer name="definition"><content>“the Commissioners” means the Commissioners of Her Majesty’s Revenue and Customs;</content></hcontainer><hcontainer name="definition"><content>“contract of insurance” has the meaning given by section 431(2) of ICTA;</content></hcontainer><hcontainer name="definition"><content>“control” has the meaning given by section 995 of ITA 2007;</content></hcontainer><hcontainer name="definition"><content>“employment”, “employee” and “employer” have the same meaning as in the employment income Parts of ITEPA 2003 (see sections 4 and 5 of that Act);</content></hcontainer><hcontainer name="definition"><content>“enactment” includes an enactment or instrument (whenever passed or made);</content></hcontainer><hcontainer name="definition"><content>“HMRC” means Her Majesty’s Revenue and Customs;</content></hcontainer><hcontainer name="definition"><content>“insurance company” and “insurance special purpose vehicle” have the meaning given by section 431(2) of ICTA;</content></hcontainer><hcontainer name="definition"><content>“market value” has the same meaning it has for the purposes of TCGA 1992 by virtue of Part 8 of that Act;</content></hcontainer><hcontainer name="definition"><content>“money’s worth” has the meaning given by section 62(3) of ITEPA 2003;</content></hcontainer><hcontainer name="definition"><intro>“partnership” includes—</intro><level class="para1"><num>(a)</num><content>a limited liability partnership, and</content></level><level class="para1"><num>(b)</num><content>an entity established under the law of a territory outside the United Kingdom of a similar character to a partnership (and “member”, in relation to a partnership, is to be read accordingly);</content></level></hcontainer><hcontainer name="definition"><content>“period of account” and “permanent establishment” have the meaning given by section 1119 of CTA 2010;</content></hcontainer><hcontainer name="definition"><content>“the tax year 2009-10” has the same meaning as in the Income Tax Acts (see section 989 of ITA 2007).</content></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-49-2"><num>(2)</num><content>Section 170(2) to (11) of TCGA 1992 (“group”, “principal company”, “effective 51% subsidiary”, “company” etc) has effect for the interpretation of this Schedule as for the interpretation of sections 171 to 181 of that Act.</content></subparagraph><subparagraph eId="schedule-1-paragraph-49-3"><num>(3)</num><content>Section 993 of ITA 2007 (meaning of “connected” persons) applies for the purposes of this Schedule.</content></subparagraph><subparagraph eId="schedule-1-paragraph-49-4"><num>(4)</num><content>For the purposes of this Schedule the territory in which a company is resident is to be determined as for the purposes of the Corporation Tax Acts.</content></subparagraph></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-2"><num>SCHEDULE 2<authorialNote class="referenceNote">Section 23</authorialNote></num><heading>Pensions: high income excess relief charge</heading><paragraph eId="schedule-2-paragraph-1" class="schProv1"><num>1</num><content>Part 4 of FA 2004 (pension schemes etc) is amended as follows.</content></paragraph><paragraph eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><content><mod>After section 213 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e8107"><heading>High income excess relief charge</heading><section eId="d25e8113"><num>213A</num><heading>High income excess relief charge</heading><subsection eId="d25e8117"><num>(1)</num><intro>A charge to income tax, to be known as the high income excess relief charge, arises where—</intro><level class="para1" eId="d25e8123"><num>(a)</num><content>an individual who is a member of one or more registered pension schemes has a high income for a tax year, and</content></level><level class="para1" eId="d25e8129"><num>(b)</num><content>there is a total pension savings amount in the case of the individual for the tax year.</content></level></subsection><subsection eId="d25e8135"><num>(2)</num><content>The person liable to the high income excess relief charge is the individual.</content></subsection><subsection eId="d25e8141"><num>(3)</num><intro>The individual is liable to the high income excess relief charge whether or not—</intro><level class="para1" eId="d25e8147"><num>(a)</num><content>the individual, and</content></level><level class="para1" eId="d25e8153"><num>(b)</num><content>the scheme administrator of the pension scheme or schemes concerned,</content></level><wrapUp>are UK resident, ordinarily UK resident or domiciled in the United Kingdom.</wrapUp></subsection><subsection eId="d25e8161"><num>(4)</num><content>The high income excess relief charge is a charge at the appropriate rate in respect of the total pension savings amount.</content></subsection><subsection eId="d25e8167"><num>(5)</num><content>The total pension savings amount is not to be treated as income for any purpose of the Tax Acts apart from this Part.</content></subsection><subsection eId="d25e8173"><num>(6)</num><content>In calculating the individual’s liability to income tax for the tax year the amount of any income tax to which the individual is liable under this section is to be added at Step 7 of the calculation in section 23 of ITA 2007 (which applies as if this section were a provision listed in section 30 of that Act).</content></subsection><subsection eId="d25e8179"><num>(7)</num><intro>The following sections make further provision about the high income excess relief charge—</intro><level class="para1" eId="d25e8185"><num>(a)</num><content>sections 213B to 213D (high income),</content></level><level class="para1" eId="d25e8191"><num>(b)</num><content>section 213E (the appropriate rate),</content></level><level class="para1" eId="d25e8197"><num>(c)</num><content>sections 213F to 213N (total pension savings amount),</content></level><level class="para1" eId="d25e8203"><num>(d)</num><content>section 213O (anti-avoidance), and</content></level><level class="para1" eId="d25e8209"><num>(e)</num><content>section 213P (power to amend).</content></level></subsection></section><section eId="d25e8218"><num>213B</num><heading>High income</heading><intro>An individual has a high income for a tax year if—</intro><level class="para1" eId="d25e8224"><num>(a)</num><content>the individual’s gross income for the tax year is £150,000 or more, and</content></level><level class="para1" eId="d25e8230"><num>(b)</num><content>the individual’s relevant income for the tax year is not less than £130,000.</content></level></section><section eId="d25e8239"><num>213C</num><heading>Gross income</heading><content>To find the individual’s gross income for a tax year take the following steps—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>Step 1Identify the individual’s total income for the tax year.</item><item>Step 2Add the amount of any deductions made from any employment income of the individual for the tax year under Part 12 of ITEPA 2003 (payroll giving), under section 193(2) of this Act or under Chapter 2 of Part 5 of ITEPA 2003 (employee’s expenses) in accordance with paragraph 51 of Schedule 36 to this Act.</item><item>Step 3Deduct the amount of any relief under the provisions listed in section 24 of ITA 2007, other than Chapter 3 of Part 8 of that Act (gifts of shares, securities or real property to charity) and sections 193(4) and 194(1) of this Act, to which the individual is entitled for the tax year.</item><item>Step 4Add so much of the amount that is the total pension savings amount in the case of the individual for the tax year as remains after deducting from it the amount of any relievable pension contributions paid by or on behalf of the individual during the tax year.</item></blockList></content></section><section eId="d25e8277"><num>213D</num><heading>Relevant income</heading><subsection eId="d25e8281"><num>(1)</num><content>To find the individual’s relevant income for a tax year take the following steps—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>Step 1Identify the individual’s total income for the tax year.</item><item>Step 2Add the amount of any deductions made from any employment income of the individual for the tax year under Part 12 of ITEPA 2003 (payroll giving), under section 193(2) of this Act or under Chapter 2 of Part 5 of ITEPA 2003 (employee’s expenses) in accordance with paragraph 51 of Schedule 36 to this Act.</item><item>Step 3Deduct the amount of any relief under the provisions listed in section 24 of ITA 2007, other than Chapter 3 of Part 8 of that Act (gifts of shares, securities or real property to charity) and sections 193(4) and 194(1) of this Act, to which the individual is entitled for the tax year.</item><item>Step 4Add any amount by which what would otherwise be general earnings or specific employment income of the individual for the tax year has been reduced by relevant salary sacrifice arrangements or relevant flexible remuneration arrangements.</item></blockList>The result is the individual’s relevant income for the tax year.</content></subsection><subsection eId="d25e8319"><num>(2)</num><intro>In subsection (1)—</intro><hcontainer name="definition"><content>“relevant salary sacrifice arrangements” means arrangements under which the individual gives up the right to receive general earnings or specific employment income in return for the making of relevant pension provision and which are made on or after 22 April 2009 (whether before or after the employment in question began);</content></hcontainer><hcontainer name="definition"><content>“relevant flexible remuneration arrangements” means arrangements under which the individual and an employer of the individual agree that relevant pension provision is to be made rather than the individual receive some description of employment income and which are made on or after 22 April 2009 (whether before or after the employment in question began).</content></hcontainer></subsection><subsection eId="d25e8334"><num>(3)</num><content>In subsection (2) “relevant pension provision” means the payment of contributions (or additional contributions) to a pension scheme in respect of the individual or otherwise (by an employer of the individual or any other person) to secure an increase in the amount of benefits to which the individual or any person who is a dependant of, or is connected with, the individual is actually or prospectively entitled under a pension scheme.</content></subsection><subsection eId="d25e8340"><num>(4)</num><content>Section 993 of ITA 2007 (meaning of “connected” persons) applies for the purposes of subsection (3).</content></subsection></section><section eId="d25e8349"><num>213E</num><heading>The appropriate rate</heading><subsection eId="d25e8353"><num>(1)</num><intro>“The appropriate rate”, in relation to the total pension savings amount in the case of the individual for a tax year, is—</intro><level class="para1" eId="d25e8359"><num>(a)</num><content>0% in relation to so much (if any) of that amount as, when added to the individual’s reduced net income for the tax year, does not exceed the basic rate limit,</content></level><level class="para1" eId="d25e8365"><num>(b)</num><content>20% in relation to so much (if any) of that amount as, when so added, exceeds the basic rate limit but does not exceed the higher rate limit, and</content></level><level class="para1" eId="d25e8371"><num>(c)</num><content>30% in relation to so much (if any) of that amount as, when so added, exceeds the higher rate limit.</content></level></subsection><subsection eId="d25e8377"><num>(2)</num><content>But where the individual’s gross income for the tax year is less than £180,000, the percentages in subsection (1)(b) and (c) are each reduced (but to no less than 0%) by 1 percentage point for every £1,000 by which it is less than £180,000.</content></subsection><subsection eId="d25e8383"><num>(3)</num><content>The individual’s reduced net income for the tax year is the amount after taking step 3 in section 23 of ITA 2007 in the case of the individual for the tax year.</content></subsection><subsection eId="d25e8389"><num>(4)</num><content>Where the basic rate limit or the higher rate limit for the tax year is (in accordance with section 192 of this Act and section 414 of ITA 2007) increased in the case of the individual, the references to the limit in subsection (1) are to the limit as so increased.</content></subsection></section><section eId="d25e8398"><num>213F</num><heading>Total pension savings amount</heading><subsection eId="d25e8402"><num>(1)</num><content>The total pension savings amount in the case of an individual for a tax year is arrived at by aggregating the pension savings amounts in respect of each arrangement relating to the individual under a registered pension scheme of which the individual is a member.</content></subsection><subsection eId="d25e8408"><num>(2)</num><intro>The pension savings amount in respect of an arrangement—</intro><level class="para1" eId="d25e8414"><num>(a)</num><content>is the amount arrived at under section 213G if it is a money purchase arrangement other than a cash balance arrangement,</content></level><level class="para1" eId="d25e8420"><num>(b)</num><content>is the amount arrived at under section 213H if it is a cash balance arrangement,</content></level><level class="para1" eId="d25e8426"><num>(c)</num><content>is the amount arrived at under section 213J if it is a defined benefits arrangement, and</content></level><level class="para1" eId="d25e8432"><num>(d)</num><content>is the amount arrived at under section 213N if it is a hybrid arrangement.</content></level></subsection><subsection eId="d25e8438"><num>(3)</num><content>Where the pension savings amount in respect of an arrangement would otherwise be a negative amount it is to be taken to be nil.</content></subsection><subsection eId="d25e8444"><num>(4)</num><intro>Where—</intro><level class="para1" eId="d25e8450"><num>(a)</num><content>the total pension input amount in the case of the individual under section 229 for the tax year, exceeds</content></level><level class="para1" eId="d25e8456"><num>(b)</num><content>the amount of the annual allowance for the tax year,</content></level><wrapUp>the total pension savings amount in the case of the individual for the tax year is reduced by the amount of the excess.</wrapUp></subsection><subsection eId="d25e8464"><num>(5)</num><intro>The Treasury may by regulations make provision—</intro><level class="para1" eId="d25e8470"><num>(a)</num><content>for an arrangement relating to the individual to be left out of account in arriving at the total pension savings amount in the case of the individual for a tax year if the individual meets the condition in subsection (6) throughout the tax year and such conditions as are prescribed by the regulations are met, and</content></level><level class="para1" eId="d25e8476"><num>(b)</num><content>for modifying the operation of any of the provisions relating to the high income excess relief charge in relation to an arrangement relating to the individual for a tax year if the individual meets the condition in subsection (6) for only part of the tax year and such conditions as are prescribed by the regulations are met.</content></level></subsection><subsection eId="d25e8482"><num>(6)</num><content>The condition in this subsection, in relation to the individual and an arrangement under a pension scheme, is that the individual is a deferred member of the pension scheme (or would be if it were the only arrangement under the pension scheme relating to the individual).</content></subsection></section><section eId="d25e8491"><num>213G</num><heading>Money purchase arrangements other than cash balance arrangements</heading><subsection eId="d25e8495"><num>(1)</num><intro>The pension savings amount in respect of a money purchase arrangement other than a cash balance arrangement is the total of—</intro><level class="para1" eId="d25e8501"><num>(a)</num><content>any relievable pension contributions paid by or on behalf of the individual under the arrangement, and</content></level><level class="para1" eId="d25e8507"><num>(b)</num><content>contributions paid in respect of the individual under the arrangement by an employer of the individual,</content></level><wrapUp>during the tax year.</wrapUp></subsection><subsection eId="d25e8515"><num>(2)</num><intro>The references to contributions in subsection (1)(a) and (b) do not include minimum payments under—</intro><level class="para1" eId="d25e8521"><num>(a)</num><content>section 8 of the Pension Schemes Act 1993, or</content></level><level class="para1" eId="d25e8527"><num>(b)</num><content>section 4 of the Pension Schemes (Northern Ireland) Act 1993,</content></level><wrapUp>or any amount recovered under regulations made under subsection (3) of either of those sections.</wrapUp></subsection><subsection eId="d25e8535"><num>(3)</num><content>When at any time contributions paid under a pension scheme by an employer otherwise than in respect of any individual become held for the purposes of the provision under an arrangement under the pension scheme of benefits to or in respect of an individual, they are to be treated as being contributions paid at that time in respect of the individual under the arrangement.</content></subsection><subsection eId="d25e8541"><num>(4)</num><content>If during the tax year the individual becomes entitled to a serious ill-health lump sum under the arrangement or dies, the pension savings amount in the case of the individual in respect of the arrangement is nil.</content></subsection></section><section eId="d25e8550"><num>213H</num><heading>Cash balance arrangements</heading><subsection eId="d25e8554"><num>(1)</num><content>The pension savings amount in respect of a cash balance arrangement is the appropriate increase.</content></subsection><subsection eId="d25e8560"><num>(2)</num><content>The appropriate increase is—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_001"><default:mo>(</default:mo><default:mrow><default:mrow><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">C</default:mi><default:mi mathvariant="normal">R</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">C</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">F</default:mi></default:mrow></default:mrow><default:mo>)</default:mo><default:mo>−</default:mo><default:mo>(</default:mo><default:mrow><default:mrow><default:mi mathvariant="normal">U</default:mi><default:mi mathvariant="normal">O</default:mi><default:mi mathvariant="normal">R</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">O</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">F</default:mi></default:mrow></default:mrow><default:mo>)</default:mo></default:math></foreign><blockContainer class="where">where—<tblock class="definition">ACR is the amount of the closing rights (see subsection (3)), adjusted in accordance with section 213I,</tblock><tblock class="definition">CARARF is the factor which is the appropriate age-related factor (see section 213L) in relation to the closing rights,</tblock><tblock class="definition">UOR is the amount of the opening rights (see subsection (4)), uprated in accordance with section 213M, and</tblock><tblock class="definition">OARARF is the factor which is the appropriate age-related factor (see section 213L) in relation to the opening rights.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e8645"><num>(3)</num><content>The amount of the closing rights is the amount which would, on the relevant assumptions, be available for the provision of benefits to or in respect of the individual under the arrangement if the individual became entitled to the benefits at the end of the tax year.</content></subsection><subsection eId="d25e8651"><num>(4)</num><content>The amount of the opening rights is the amount which would, on the relevant assumptions, be available for the provision of benefits to or in respect of the individual under the arrangement if the individual became entitled to the benefits at the end of the preceding tax year.</content></subsection><subsection eId="d25e8657"><num>(5)</num><intro>If, during the tax year, minimum payments are made under—</intro><level class="para1" eId="d25e8663"><num>(a)</num><content>section 8 of the Pension Schemes Act 1993, or</content></level><level class="para1" eId="d25e8669"><num>(b)</num><content>section 4 of the Pension Schemes (Northern Ireland) Act 1993,</content></level><wrapUp>in relation to the individual in connection with a cash balance arrangement, the amount is to be subtracted from what would otherwise be the pension savings amount in the case of the individual in respect of the arrangement.</wrapUp></subsection><subsection eId="d25e8677"><num>(6)</num><content>If during the tax year the individual becomes entitled to a serious ill-health lump sum under the arrangement or dies, the pension savings amount in the case of the individual in respect of the arrangement is nil.</content></subsection><subsection eId="d25e8683"><num>(7)</num><intro>In this section and section 213J “the relevant assumptions” means—</intro><level class="para1" eId="d25e8689"><num>(a)</num><content>the valuation assumptions (see section 277) as modified by regulations made by the Treasury, and</content></level><level class="para1" eId="d25e8695"><num>(b)</num><content>such other assumptions as the Treasury may by regulations prescribe.</content></level></subsection></section><section eId="d25e8704"><num>213I</num><heading>Adjustment of closing rights</heading><subsection eId="d25e8708"><num>(1)</num><content>This section applies for adjusting ACR under section 213H.</content></subsection><subsection eId="d25e8714"><num>(2)</num><content>If, during the tax year, the rights of the individual under the arrangement have been reduced by having become subject to a pension debit, the amount of the reduction is to be added to ACR.</content></subsection><subsection eId="d25e8720"><num>(3)</num><content>If, during the tax year, the rights of the individual under the arrangement have been increased by the individual having become entitled to a pension credit deriving from the same or another registered pension scheme, the amount of the increase is to be subtracted from ACR.</content></subsection><subsection eId="d25e8726"><num>(4)</num><intro>If, during the tax year, the rights of the individual under the arrangement have been reduced by reason of a transfer relating to the individual of any sums or assets held for the purposes of, or representing accrued rights under, the arrangement so as to become held for the purposes of, or to represent rights under, any other pension scheme that is—</intro><level class="para1" eId="d25e8732"><num>(a)</num><content>a registered pension scheme, or</content></level><level class="para1" eId="d25e8738"><num>(b)</num><content>a qualifying recognised overseas pension scheme,</content></level><wrapUp>the amount of the reduction is to be added to ACR.</wrapUp></subsection><subsection eId="d25e8746"><num>(5)</num><content>If, during the tax year, the rights of the individual under the arrangement have been increased by reason of a transfer relating to the individual of any sums or assets held for the purposes of, or representing accrued rights under, any pension scheme so as to become held for the purposes of, or to represent rights under, the arrangement, the amount of the increase is to be subtracted from ACR.</content></subsection><subsection eId="d25e8752"><num>(6)</num><content>If, during the tax year, the rights of the individual under the arrangement have been reduced by any surrender made, or similar action taken, pursuant to an option available to the individual under the arrangement, the amount of the reduction is to be added to ACR.</content></subsection><subsection eId="d25e8758"><num>(7)</num><intro>If, during the tax year—</intro><level class="para1" eId="d25e8764"><num>(a)</num><content>benefit crystallisation event 1, 2, 3, or 4 occurs in relation to the individual and the arrangement,</content></level><level class="para1" eId="d25e8770"><num>(b)</num><content>benefit crystallisation event 6 so occurs by virtue of the individual becoming entitled to a pension commencement lump sum or a lifetime allowance excess lump sum, or</content></level><level class="para1" eId="d25e8776"><num>(c)</num><content>there is an allocation of rights of the individual under the arrangement (not falling within paragraph (a)),</content></level><wrapUp>the amount of the reduction in the amount of the rights available for the provision of benefits to or in respect of the individual occurring by reason of the event or allocation is to be added to ACR.</wrapUp></subsection></section><section eId="d25e8787"><num>213J</num><heading>Defined benefits arrangements</heading><subsection eId="d25e8791"><num>(1)</num><intro>The pension savings amount in respect of a defined benefits arrangement is the aggregate of—</intro><level class="para1" eId="d25e8797"><num>(a)</num><content>the appropriate pension increase (see subsection (2)), and</content></level><level class="para1" eId="d25e8803"><num>(b)</num><content>the appropriate lump sum increase (see subsection (5)).</content></level></subsection><subsection eId="d25e8809"><num>(2)</num><content>The appropriate pension increase is—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_002"><default:mo>(</default:mo><default:mrow><default:mrow><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">C</default:mi><default:mi mathvariant="normal">P</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">C</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">P</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">F</default:mi></default:mrow></default:mrow><default:mo>)</default:mo><default:mo>−</default:mo><default:mo>(</default:mo><default:mrow><default:mrow><default:mi mathvariant="normal">U</default:mi><default:mi mathvariant="normal">O</default:mi><default:mi mathvariant="normal">P</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">O</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">P</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">F</default:mi></default:mrow></default:mrow><default:mo>)</default:mo></default:math></foreign><blockContainer class="where">where—<tblock class="definition">ACP is the amount of the closing pension (see subsection (3)), adjusted in accordance with section 213K,</tblock><tblock class="definition">CAPARF is the factor which is the appropriate age-related factor (see section 213L) in relation to the closing pension,</tblock><tblock class="definition">UOP is the amount of the opening pension (see subsection (4)), uprated in accordance with section 213M, and</tblock><tblock class="definition">OAPARF is the factor which is the appropriate age-related factor (see section 213L) in relation to the opening pension.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e8894"><num>(3)</num><content>The amount of the closing pension is the annual rate of the pension to which the individual would, on the relevant assumptions, be entitled under the arrangement if the individual became entitled to it at the end of the tax year.</content></subsection><subsection eId="d25e8900"><num>(4)</num><content>The amount of the opening pension is the annual rate of the pension to which the individual would, on the relevant assumptions, be entitled under the arrangement if the individual became entitled to it at the end of the preceding tax year.</content></subsection><subsection eId="d25e8906"><num>(5)</num><content>The appropriate lump sum increase is—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_003"><default:mo>(</default:mo><default:mrow><default:mrow><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">C</default:mi><default:mi mathvariant="normal">L</default:mi><default:mi mathvariant="normal">S</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">C</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">L</default:mi><default:mi mathvariant="normal">S</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">F</default:mi></default:mrow></default:mrow><default:mo>)</default:mo><default:mo>−</default:mo><default:mo>(</default:mo><default:mrow><default:mi mathvariant="normal">U</default:mi><default:mi mathvariant="normal">O</default:mi><default:mi mathvariant="normal">L</default:mi><default:mrow><default:mi mathvariant="normal">S</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">O</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">L</default:mi><default:mi mathvariant="normal">S</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">F</default:mi></default:mrow></default:mrow><default:mo>)</default:mo></default:math></foreign><blockContainer class="where">where—<tblock class="definition">ACLS is the amount of the closing lump sum (see subsection (6)), adjusted in accordance with section 213K,</tblock><tblock class="definition">CALSARF is the factor which is the appropriate age-related factor (see section 213L) in relation to the closing lump sum,</tblock><tblock class="definition">UOLS is the amount of the opening lump sum (see subsection (7)), uprated in accordance with section 213M, and</tblock><tblock class="definition">OALSARF is the factor which is the appropriate age-related factor (see section 213L) in relation to the opening lump sum.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e8999"><num>(6)</num><content>The amount of the closing lump sum is the amount of the lump sum to which the individual would, on the relevant assumptions, be entitled under the arrangement if the individual became entitled to it at the end of the tax year.</content></subsection><subsection eId="d25e9005"><num>(7)</num><content>The amount of the opening lump sum is the amount of the lump sum to which the individual would, on the relevant assumptions, be entitled under the arrangement if the individual became entitled to it at the end of the preceding tax year.</content></subsection><subsection eId="d25e9011"><num>(8)</num><intro>If, during the tax year, minimum payments are made under—</intro><level class="para1" eId="d25e9017"><num>(a)</num><content>section 8 of the Pension Schemes Act 1993, or</content></level><level class="para1" eId="d25e9023"><num>(b)</num><content>section 4 of the Pension Schemes (Northern Ireland) Act 1993,</content></level><wrapUp>in relation to the individual in connection with a defined benefits arrangement, the amount is to be subtracted from what would otherwise be the pension savings amount in the case of the individual in respect of the arrangement.</wrapUp></subsection><subsection eId="d25e9031"><num>(9)</num><content>If during the tax year the individual becomes entitled to a serious ill-health lump sum under the arrangement or dies, the pension savings amount in the case of the individual in respect of the arrangement is nil.</content></subsection></section><section eId="d25e9041"><num>213K</num><heading>Adjustment of closing pension and lump sum</heading><subsection eId="d25e9045"><num>(1)</num><content>This section applies for adjusting ACP and ACLS under section 213J.</content></subsection><subsection eId="d25e9051"><num>(2)</num><content>If, during the tax year, the annual rate of the pension, or the amount of the lump sum, to which the individual would be entitled under the arrangement has been reduced by having become subject to a pension debit, the amount of the reduction is to be added to ACP or ACLS.</content></subsection><subsection eId="d25e9057"><num>(3)</num><content>If, during the tax year, the annual rate of the pension, or the amount of the lump sum, to which the individual would be entitled under the arrangement has been increased by the individual having become entitled to a pension credit deriving from the same or another registered pension scheme, the amount of the increase is to be subtracted from ACP or ACLS.</content></subsection><subsection eId="d25e9063"><num>(4)</num><intro>If, during the tax year, the annual rate of the pension, or the amount of the lump sum, to which the individual would be entitled under the arrangement has been reduced by reason of a transfer relating to the individual of any sums or assets held for the purposes of, or representing accrued rights under, the arrangement so as to become held for the purposes of, or to represent rights under, any other pension scheme that is—</intro><level class="para1" eId="d25e9069"><num>(a)</num><content>a registered pension scheme, or</content></level><level class="para1" eId="d25e9075"><num>(b)</num><content>a qualifying recognised overseas pension scheme,</content></level><wrapUp>the amount of the reduction is to be added to ACP or ACLS.</wrapUp></subsection><subsection eId="d25e9083"><num>(5)</num><content>If, during the tax year, the annual rate of the pension, or the amount of the lump sum, to which the individual would be entitled under the arrangement has been increased by reason of a transfer relating to the individual of any sums or assets held for the purposes of, or representing accrued rights under, any pension scheme so as to become held for the purposes of, or to represent rights under, the arrangement, the amount of the increase is to be subtracted from ACP or ACLS.</content></subsection><subsection eId="d25e9089"><num>(6)</num><content>If, during the tax year, the annual rate of the pension, or the amount of the lump sum, to which the individual would be entitled under the arrangement has been reduced by any commutation, allocation or surrender made, or similar action taken, pursuant to an option available to the individual under the arrangement, the amount of the reduction is to be added to ACP or ACLS.</content></subsection><subsection eId="d25e9095"><num>(7)</num><intro>If, during the tax year—</intro><level class="para1" eId="d25e9101"><num>(a)</num><content>benefit crystallisation event 2 or 3 occurs in relation to the individual and the arrangement, or</content></level><level class="para1" eId="d25e9107"><num>(b)</num><content>benefit crystallisation event 6 occurs in relation to the individual and the arrangement by virtue of the individual becoming entitled to a pension commencement lump sum or a lifetime allowance excess lump sum,</content></level><wrapUp>the annual rate of the pension, or the amount of the lump sum, to which the individual became entitled (otherwise than by commutation of lump sum or of pension) is to be added to ACP or ACLS.</wrapUp></subsection></section><section eId="d25e9118"><num>213L</num><heading>Age-related factors</heading><subsection eId="d25e9122"><num>(1)</num><content>The Treasury must make regulations about age-related factors.</content></subsection><subsection eId="d25e9128"><num>(2)</num><content>Different provision may be made in relation to rights age-related factors and lump sum age-related factors, on the one hand, and pension age-related factors on the other.</content></subsection><subsection eId="d25e9134"><num>(3)</num><content>For the purposes of sections 213H and 213J the “appropriate” age-related factor is the age-related factor which applies in the case of the individual, and the amount of the rights or lump sum, or rate of the pension, in accordance with the regulations.</content></subsection><subsection eId="d25e9140"><num>(4)</num><intro>Regulations under subsection (1) must make provision for the age-related factor or factors applying in the case of the individual to be arrived at by reference to—</intro><level class="para1" eId="d25e9146"><num>(a)</num><content>the age of the individual, and</content></level><level class="para1" eId="d25e9152"><num>(b)</num><content>the relevant normal pension age,</content></level><wrapUp>at the relevant time.</wrapUp></subsection><subsection eId="d25e9160"><num>(5)</num><content>The relevant time, in relation to factors for a tax year, is the end of the tax year unless the case is one in which there is a change in the relevant normal pension age during the tax year.</content></subsection><subsection eId="d25e9166"><num>(6)</num><content>In that case, the relevant time, in relation to the relevant normal pension age and the opening rights, opening pension or opening lump sum for the tax year, is the end of the previous tax year.</content></subsection><subsection eId="d25e9172"><num>(7)</num><content>Regulations under subsection (1) may make provision for the age-related factor or factors applying in the case of an individual and an arrangement to vary according to the nature and extent of the benefits which may be provided to or in respect of the individual under the arrangement.</content></subsection><subsection eId="d25e9178"><num>(8)</num><content>Before making the first regulations under subsection (1) the Treasury must seek advice from the Government Actuary or the Deputy Government Actuary.</content></subsection><subsection eId="d25e9184"><num>(9)</num><content>Before making any other regulations under subsection (1) the Treasury must carry out a review of the provision made by the regulations for the time being in force under this section; and when conducting such a review the Treasury must seek advice from the Government Actuary or the Deputy Government Actuary.</content></subsection><subsection eId="d25e9190"><num>(10)</num><intro>The Treasury must carry out a review of the provision made by the regulations for the time being in force under subsection (1)—</intro><level class="para1" eId="d25e9196"><num>(a)</num><content>no later than the end of the period of 5 years beginning with the day on which the first regulations are made under this section, and</content></level><level class="para1" eId="d25e9202"><num>(b)</num><content>no later than the end of the period of 5 years beginning with the last review of the provision made by the regulations for the time being in force under this section.</content></level></subsection><subsection eId="d25e9208"><num>(11)</num><content>In this section “the relevant normal pension age”, in relation to an individual and an arrangement, means the age at which the individual would be unconditionally entitled to benefits under the arrangement without any reduction on account of age (assuming that the individual were a deferred member of the pension scheme under which it is an arrangement and it were the only arrangement under the pension scheme relating to the individual).</content></subsection><subsection eId="d25e9215"><num>(12)</num><content>But the Treasury may by regulations make provision for the relevant normal pension age to be the age specified in, or determined in accordance with, the regulations in cases of such descriptions as are specified in the regulations.</content></subsection><subsection eId="d25e9221"><num>(13)</num><content>The Treasury may by regulations make provision modifying the operation of sections 213H to 213K in relation to cases where the relevant normal pension age in relation to an individual and an arrangement is not the same in relation to all the rights or benefits under the arrangement.</content></subsection></section><section eId="d25e9230"><num>213M</num><heading>Uprating of opening rights, pension and lump sum</heading><subsection eId="d25e9234"><num>(1)</num><content>This section applies for uprating UOR under section 213H and UOP and UOLS under section 213J.</content></subsection><subsection eId="d25e9240"><num>(2)</num><content>Each is to be increased by the appropriate percentage.</content></subsection><subsection eId="d25e9246"><num>(3)</num><content>The appropriate percentage for a tax year is the percentage arrived at for the tax year in accordance with provision made by order made by the Treasury.</content></subsection><subsection eId="d25e9252"><num>(4)</num><intro>An order under subsection (3)—</intro><level class="para1" eId="d25e9258"><num>(a)</num><content>must make provision for securing that the appropriate percentage for a tax year reflects any decrease in the value of money over a specified period, and</content></level><level class="para1" eId="d25e9264"><num>(b)</num><content>may do so by reference to any movement in a specified index, or an average of any movements in specified indices, over a specified period.</content></level></subsection><subsection eId="d25e9270"><num>(5)</num><content>If an order is made under subsection (3) which amends any provision included in an order by virtue of subsection (4)(b), the Treasury must as soon as reasonably practicable after the making of the order carry out a review of the provision made by the regulations for the time being in force under section 213L(1).</content></subsection></section><section eId="d25e9279"><num>213N</num><heading>Hybrid arrangements</heading><subsection eId="d25e9283"><num>(1)</num><content>The pension savings amount in respect of a hybrid arrangement is the greater or greatest of such of amounts A, B and C as are relevant amounts.</content></subsection><subsection eId="d25e9289"><num>(2)</num><content>An amount is a relevant amount in the case of a hybrid arrangement if, in any circumstances, the benefits that may be provided to or in respect of the individual under the arrangement may be benefits of the variety mentioned in the definition of that amount.</content></subsection><subsection eId="d25e9295"><num>(3)</num><content>Amount A is what would be the pension savings amount under section 213G if the benefits provided to or in respect of the individual under the arrangement were money purchase benefits other than cash balance benefits.</content></subsection><subsection eId="d25e9301"><num>(4)</num><content>Amount B is what would be the pension savings amount under section 213H if the benefits provided to or in respect of the individual under the arrangement were cash balance benefits.</content></subsection><subsection eId="d25e9307"><num>(5)</num><content>Amount C is what would be the pension savings amount under section 213J if the benefits provided to or in respect of the individual under the arrangement were defined benefits.</content></subsection></section><section eId="d25e9316"><num>213O</num><heading>Anti-avoidance</heading><subsection eId="d25e9320"><num>(1)</num><content>This section applies if a high income excess relief charge scheme applies in the case of the individual for the tax year.</content></subsection><subsection eId="d25e9326"><num>(2)</num><content>A scheme is a high income excess relief charge scheme if in the case of the individual for the tax year conditions A to C are met.</content></subsection><subsection eId="d25e9332"><num>(3)</num><content>Condition A is that it is reasonable to assume that the main purpose, or one of the main purposes, of the scheme is to avoid the whole or any part of the liability of the individual to the high income excess relief charge for the tax year.</content></subsection><subsection eId="d25e9338"><num>(4)</num><intro>Condition B is that the scheme involves either or both of the following—</intro><level class="para1" eId="d25e9344"><num>(a)</num><content>reducing the individual’s gross income or relevant income for the tax year, and</content></level><level class="para1" eId="d25e9350"><num>(b)</num><content>reducing the total pension savings amount in the case of the individual for the tax year.</content></level></subsection><subsection eId="d25e9356"><num>(5)</num><intro>Condition C is that the scheme involves the reduction, or any of the reductions, being redressed by—</intro><level class="para1" eId="d25e9362"><num>(a)</num><content>an increase in the individual’s gross income or relevant income, or the total pension savings amount in the case of the individual, for a different tax year, or</content></level><level class="para1" eId="d25e9368"><num>(b)</num><content>the provision at any time of some other benefit to or for the benefit of the individual or any person who is a dependant of, or is connected with, the individual.</content></level></subsection><subsection eId="d25e9374"><num>(6)</num><intro>The individual is to be treated for the purposes of the high income excess relief charge as if—</intro><level class="para1" eId="d25e9380"><num>(a)</num><content>the individual’s gross income and relevant income for the tax year, and</content></level><level class="para1" eId="d25e9386"><num>(b)</num><content>the total pension savings amount in the case of the individual for the tax year,</content></level><wrapUp>were what they would be apart from the scheme.</wrapUp></subsection><subsection eId="d25e9394"><num>(7)</num><content>In this section “scheme” includes any arrangement, agreement, understanding, transaction or series of transactions (whether or not legally enforceable).</content></subsection><subsection eId="d25e9400"><num>(8)</num><content>Section 993 of ITA 2007 (meaning of “connected” persons) applies for the purposes of subsection (5).</content></subsection></section><section eId="d25e9409"><num>213P</num><heading>Power to make regulations about charge</heading><subsection eId="d25e9413"><num>(1)</num><content>The Treasury may by regulations make provision about the high income excess relief charge.</content></subsection><subsection eId="d25e9419"><num>(2)</num><content>The provision may include modifications of any provision made in sections 213A to 213O.</content></subsection><subsection eId="d25e9425"><num>(3)</num><content>The provision may include provision consequential on, or supplementary or incidental to, the provision made by those sections and transitional provisions (including provision making modifications of enactments).</content></subsection><subsection eId="d25e9431"><num>(4)</num><content>The provision may not include provision increasing any person’s liability to tax.</content></subsection><subsection eId="d25e9437"><num>(5)</num><content>“Modifications” includes amendments.</content></subsection></section></hcontainer></quotedStructure></mod></content></paragraph><paragraph eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-2-paragraph-3-1"><num>(1)</num><content>Section 282 (orders and regulations) is amended as follows.</content></subparagraph><subparagraph eId="schedule-2-paragraph-3-2"><num>(2)</num><content><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9460"><num>(1A)</num><content>The first regulations under section 213L(1) may not be made unless a draft of the instrument containing them has been laid before, and approved by a resolution of, the House of Commons.</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-2-paragraph-3-3"><num>(3)</num><content>In subsection (2), after “Part” insert “(other than one of which a draft has been approved by a resolution of the House of Commons)”.</content></subparagraph></paragraph><paragraph eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><content><mod>In Schedule 34 (non-UK schemes: application of certain charges), after paragraph 7A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7" eId="d25e9479"><heading>High income excess relief charge</heading><paragraph eId="d25e9482" class="schProv1"><num>7B</num><subparagraph eId="d25e9486"><num>(1)</num><content>The Commissioners for Her Majesty’s Revenue and Customs may by regulations make provision for the provisions of this Part of this Act relating to the high income excess relief charge to apply in relation to individuals who are or have been members of a currently-relieved non-UK pension scheme subject to modifications contained in the regulations.</content></subparagraph><subparagraph eId="d25e9492"><num>(2)</num><intro>Regulations under sub-paragraph (1) may—</intro><level class="para1" eId="d25e9498"><num>(a)</num><content>include provision having effect in relation to times before they are made,</content></level><level class="para1" eId="d25e9504"><num>(b)</num><content>confer discretion on the Commissioners for Her Majesty’s Revenue and Customs or officers of Revenue and Customs, and</content></level><level class="para1" eId="d25e9510"><num>(c)</num><content>make different provision for different cases.</content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></content></paragraph><paragraph eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><content>The amendments made by this Schedule have effect for the tax year 2011-12 and subsequent tax years.</content></paragraph></hcontainer><hcontainer name="schedule" eId="schedule-3"><num>SCHEDULE 3<authorialNote class="referenceNote">Section 24</authorialNote></num><heading>Sideways relief etc</heading><hcontainer name="crossheading" class="schGroup7"><heading>Amendments of Chapter 2 of Part 4 of ITA 2007</heading><paragraph eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><content>Chapter 2 of Part 4 of ITA 2007 (trade losses) is amended as follows.</content></paragraph><paragraph eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><content>In section 60(1)(c) (overview of Chapter), for “(see sections 75” substitute “and capital gains relief (see sections 74ZA”.</content></paragraph><paragraph eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><intro>In section 64(8) (deduction of losses from general income)—</intro><level class="para1" eId="schedule-3-paragraph-3-a"><num>(a)</num><content>in paragraph (ba), for “74A” substitute “74ZA”,</content></level><level class="para1" eId="schedule-3-paragraph-3-b"><num>(b)</num><content>at the end of paragraph (c), insert “and”, and</content></level><level class="para1" eId="schedule-3-paragraph-3-c"><num>(c)</num><content>omit paragraph (e).</content></level></paragraph><paragraph eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><intro>In section 72(5) (relief for individuals for losses in first 4 years of trade)—</intro><level class="para1" eId="schedule-3-paragraph-4-a"><num>(a)</num><content>in paragraph (ba), for “74A” substitute “74ZA”,</content></level><level class="para1" eId="schedule-3-paragraph-4-b"><num>(b)</num><content>at the end of paragraph (c), insert “and”, and</content></level><level class="para1" eId="schedule-3-paragraph-4-c"><num>(c)</num><content>omit paragraph (e).</content></level></paragraph><paragraph eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><content><mod>Before section 74A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e9604"><num>74ZA</num><heading>No relief for tax-generated losses</heading><subsection eId="d25e9608"><num>(1)</num><intro>This section applies if—</intro><level class="para1" eId="d25e9614"><num>(a)</num><content>during a tax year a person carries on (alone or in partnership) a trade, profession or vocation (“the relevant activity”),</content></level><level class="para1" eId="d25e9620"><num>(b)</num><content>the person makes a loss in the relevant activity in that tax year, and</content></level><level class="para1" eId="d25e9626"><num>(c)</num><content>the loss arises directly or indirectly in consequence of, or otherwise in connection with, relevant tax avoidance arrangements.</content></level></subsection><subsection eId="d25e9632"><num>(2)</num><content>No sideways relief or capital gains relief may be given to the person for the loss (but subject to subsection (5)).</content></subsection><subsection eId="d25e9638"><num>(3)</num><intro>In subsection (1) “relevant tax avoidance arrangements” means arrangements—</intro><level class="para1" eId="d25e9644"><num>(a)</num><content>to which the person is a party, and</content></level><level class="para1" eId="d25e9650"><num>(b)</num><content>the main purpose, or one of the main purposes, of which is the obtaining of a reduction in tax liability by means of sideways relief or capital gains relief.</content></level></subsection><subsection eId="d25e9656"><num>(4)</num><content>In subsection (3) “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</content></subsection><subsection eId="d25e9662"><num>(5)</num><content>This section has no effect in relation to any loss that derives wholly from qualifying film expenditure (see section 74D).</content></subsection><subsection eId="d25e9668"><num>(6)</num><intro>For the purposes of this section—</intro><level class="para1" eId="d25e9674"><num>(a)</num><content>capital gains relief is, in relation to a loss, the treatment of a loss as an allowable loss by virtue of section 261B of TCGA 1992 (use of trading loss as a CGT loss), and</content></level><level class="para1" eId="d25e9680"><num>(b)</num><content>capital gains relief is given for a loss when it is so treated.</content></level></subsection></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><content>Omit section 74B (no relief for tax-generated losses in case of non-active individuals carrying on trade).</content></paragraph><paragraph eId="schedule-3-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-3-paragraph-7-1"><num>(1)</num><content>Section 74C (meaning of “non-active capacity” for purposes of sections 74A and 74B etc) is amended as follows.</content></subparagraph><subparagraph eId="schedule-3-paragraph-7-2"><num>(2)</num><content>In subsection (1), for “sections 74A and 74B” substitute “section 74A”.</content></subparagraph><subparagraph eId="schedule-3-paragraph-7-3"><num>(3)</num><content>In the heading, for “sections 74A and 74B” substitute “section 74A”.</content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-3-paragraph-8-1"><num>(1)</num><content>Section 74D (meaning of “qualifying film expenditure” for purposes of sections 74A and 74B) is amended as follows.</content></subparagraph><subparagraph eId="schedule-3-paragraph-8-2"><num>(2)</num><content>In subsections (1) and (4), for “74A and 74B” substitute “74ZA and 74A”.</content></subparagraph><subparagraph eId="schedule-3-paragraph-8-3"><num>(3)</num><content>In the heading, for “74A and 74B” substitute “74ZA and 74A”.</content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-9" class="schProv1"><num>9</num><content>Omit section 81 (dealings in commodity futures).</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Other amendments</heading><paragraph eId="schedule-3-paragraph-10" class="schProv1"><num>10</num><intro>In FA 2009, in Schedule 6, in paragraph 1(11)—</intro><level class="para1" eId="schedule-3-paragraph-10-a"><num>(a)</num><content>in paragraph (b), for “74B” substitute “74ZA”,</content></level><level class="para1" eId="schedule-3-paragraph-10-b"><num>(b)</num><content>at the end of paragraph (c), insert “and”, and</content></level><level class="para1" eId="schedule-3-paragraph-10-c"><num>(c)</num><content>omit paragraph (e) (and the “and” before it).</content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-3-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-3-paragraph-11-1"><num>(1)</num><intro>The amendments made by this Schedule have effect in relation to a loss if it arises directly or indirectly in consequence of, or otherwise in connection with—</intro><level class="para1" eId="schedule-3-paragraph-11-1-a"><num>(a)</num><content>arrangements which are entered into on or after 21 October 2009, or</content></level><level class="para1" eId="schedule-3-paragraph-11-1-b"><num>(b)</num><content>any transaction forming part of arrangements which is entered into on or after that date.</content></level></subparagraph><subparagraph eId="schedule-3-paragraph-11-2"><num>(2)</num><content>But those amendments do not have effect where the arrangements are, or any such transaction is, entered into pursuant to an unconditional obligation in a contract made before that date.</content></subparagraph><subparagraph eId="schedule-3-paragraph-11-3"><num>(3)</num><content>“An unconditional obligation” means an obligation which may not be varied or extinguished by the exercise of a right (whether or not under the contract).</content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-4"><num>SCHEDULE 4<authorialNote class="referenceNote">Section 26</authorialNote></num><heading>Capital allowance buying</heading><paragraph eId="schedule-4-paragraph-1" class="schProv1"><num>1</num><content>Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.</content></paragraph><paragraph eId="schedule-4-paragraph-2" class="schProv1"><num>2</num><content><mod>After Chapter 16 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter eId="d25e9840"><num>Chapter 16A</num><heading>Avoidance involving allowance buying</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e9845"><heading>Introduction</heading><section eId="d25e9851"><num>212A</num><heading>Scope of Chapter</heading><content>This Chapter provides for restrictions on the ways in which effect may be given to an allowance in certain circumstances where there has been a qualifying change in relation to a company (“C”).</content></section><section eId="d25e9860"><num>212B</num><heading>Where Chapter applies</heading><subsection eId="d25e9864"><num>(1)</num><intro>This Chapter applies where—</intro><level class="para1" eId="d25e9870"><num>(a)</num><content>C carries on a trade (“the relevant trade”) (whether or not in partnership with another person or other persons),</content></level><level class="para1" eId="d25e9876"><num>(b)</num><content>there is a qualifying change in relation to C on any day (“the relevant day”),</content></level><level class="para1" eId="d25e9882"><num>(c)</num><content>C, or (where the relevant trade is carried on in partnership) the partnership (“P”), has a relevant excess of allowances in relation to the relevant trade, and</content></level><level class="para1" eId="d25e9888"><num>(d)</num><content>the qualifying change has an unallowable purpose.</content></level></subsection><subsection eId="d25e9894"><num>(2)</num><content>Sections 212C to 212I specify when there is a qualifying change in relation to C on the relevant day.</content></subsection><subsection eId="d25e9900"><num>(3)</num><content>Sections 212J to 212L specify when C or P has a relevant excess of allowances in relation to the relevant trade.</content></subsection><subsection eId="d25e9906"><num>(4)</num><content>Section 212M specifies when the qualifying change has an unallowable purpose.</content></subsection><subsection eId="d25e9912"><num>(5)</num><content>Sections 212N to 212S make provision about what happens when this Chapter applies.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e9918"><heading>Qualifying change</heading><section eId="d25e9924"><num>212C</num><heading>When there is qualifying change in relation to C</heading><subsection eId="d25e9928"><num>(1)</num><content>There is a qualifying change in relation to C on the relevant day if one or more of conditions A to D is met.</content></subsection><subsection eId="d25e9934"><num>(2)</num><intro>Condition A is that—</intro><level class="para1" eId="d25e9940"><num>(a)</num><content>the principal company or companies of C at the beginning of the relevant day is not, or are not, the same as at the end of that day, or</content></level><level class="para1" eId="d25e9946"><num>(b)</num><content>there is no principal company of C at the beginning of the relevant day but there is one, or are more than one, at the end of the relevant day.</content></level></subsection><subsection eId="d25e9952"><num>(3)</num><intro>Condition B is that—</intro><level class="para1" eId="d25e9958"><num>(a)</num><content>any principal company of C is a consortium principal company (“CPC”), and</content></level><level class="para1" eId="d25e9964"><num>(b)</num><content>CPC’s ownership proportion at the end of the relevant day is more than at the beginning of the relevant day.</content></level></subsection><subsection eId="d25e9970"><num>(4)</num><intro>Condition C is that on the relevant day—</intro><level class="para1" eId="d25e9976"><num>(a)</num><content>C ceases to carry on the whole or part of the relevant trade, and</content></level><level class="para1" eId="d25e9982"><num>(b)</num><content>it begins to be carried on in partnership by two or more companies,</content></level><wrapUp>in circumstances in which Chapter 1 of Part 22 of CTA 2010 (transfers of trade without change of ownership) applies in relation to the transfer of the relevant trade.</wrapUp></subsection><subsection eId="d25e9990"><num>(5)</num><intro>Condition D is that—</intro><level class="para1" eId="d25e9996"><num>(a)</num><content>the relevant trade is, at the beginning of the relevant day, carried on by C in partnership, and</content></level><level class="para1" eId="d25e10002"><num>(b)</num><content>C’s relevant percentage share in the relevant trade at the end of the relevant day is less than at the beginning of the relevant day (or is nil).</content></level></subsection></section><section eId="d25e10011"><num>212D</num><heading>Guide to sections explaining section 212C</heading><subsection eId="d25e10015"><num>(1)</num><intro>Section 212E explains—</intro><level class="para1" eId="d25e10021"><num>(a)</num><content>what are principal companies of C, and</content></level><level class="para1" eId="d25e10027"><num>(b)</num><content>which are consortium principal companies of C,</content></level><wrapUp>for the purposes of section 212C(2) and (3).</wrapUp></subsection><subsection eId="d25e10035"><num>(2)</num><intro>Section 212F explains—</intro><level class="para1" eId="d25e10041"><num>(a)</num><content>when a company is owned by a consortium, and</content></level><level class="para1" eId="d25e10047"><num>(b)</num><content>who are the members of the consortium,</content></level><wrapUp>for the purposes of section 212E.</wrapUp></subsection><subsection eId="d25e10055"><num>(3)</num><content>Section 212G explains the meaning of “qualifying 75% subsidiary” for the purposes of sections 212E and 212F.</content></subsection><subsection eId="d25e10061"><num>(4)</num><content>Section 212H explains the meaning of “ownership proportion” in section 212C(3).</content></subsection><subsection eId="d25e10067"><num>(5)</num><content>Section 212I explains the meaning of “relevant percentage share” in section 212C(5).</content></subsection></section><section eId="d25e10076"><num>212E</num><heading>Principal companies</heading><subsection eId="d25e10080"><num>(1)</num><intro>A company (“U”) is a principal company of C if—</intro><level class="para1" eId="d25e10086"><num>(a)</num><content>C is a qualifying 75% subsidiary of U, and</content></level><level class="para1" eId="d25e10092"><num>(b)</num><content>U is not a qualifying 75% subsidiary of another company.</content></level></subsection><subsection eId="d25e10098"><num>(2)</num><intro>A company (“V”) is a principal company of C if—</intro><level class="para1" eId="d25e10104"><num>(a)</num><content>C is a qualifying 75% subsidiary of U,</content></level><level class="para1" eId="d25e10110"><num>(b)</num><content>U is a qualifying 75% subsidiary of V, and</content></level><level class="para1" eId="d25e10116"><num>(c)</num><content>V is not a qualifying 75% subsidiary of another company.</content></level></subsection><subsection eId="d25e10122"><num>(3)</num><content>If V is a qualifying 75% subsidiary of another company (“W”), W is a principal company of C unless W is a qualifying 75% subsidiary of another company, and so on.</content></subsection><subsection eId="d25e10128"><num>(4)</num><intro>A company (“X”) is a principal company of C if—</intro><level class="para1" eId="d25e10134"><num>(a)</num><content>C is owned by a consortium of which X is a member, or</content></level><level class="para1" eId="d25e10140"><num>(b)</num><content>C is a qualifying 75% subsidiary of a company owned by a consortium of which X is a member,</content></level><wrapUp>and X is not a qualifying 75% subsidiary of another company.</wrapUp></subsection><subsection eId="d25e10148"><num>(5)</num><intro>A company (“Y”) is a principal company of C if—</intro><level class="para1" eId="d25e10154"><num>(a)</num><content>C is owned by a consortium of which X is a member, or</content></level><level class="para1" eId="d25e10160"><num>(b)</num><content>C is a qualifying 75% subsidiary of a company owned by a consortium of which X is a member,</content></level><wrapUp>and X is a qualifying 75% subsidiary of Y but Y is not a qualifying 75% subsidiary of another company.</wrapUp></subsection><subsection eId="d25e10168"><num>(6)</num><content>If Y is a qualifying 75% subsidiary of another company (“Z”), Z is a principal company of C unless Z is a qualifying 75% subsidiary of another company, and so on.</content></subsection><subsection eId="d25e10174"><num>(7)</num><content>A company that is a principal company of C by virtue of any of subsections (4) to (6) is a consortium principal company of C.</content></subsection></section><section eId="d25e10183"><num>212F</num><heading>When company is owned by consortium and consortium members</heading><subsection eId="d25e10187"><num>(1)</num><content>This section defines what a company being owned by, or a member of, a consortium means for the purposes of section 212E.</content></subsection><subsection eId="d25e10193"><num>(2)</num><intro>A company is owned by a consortium if—</intro><level class="para1" eId="d25e10199"><num>(a)</num><content>it is not a qualifying 75% subsidiary of another company,</content></level><level class="para1" eId="d25e10205"><num>(b)</num><content>at least 75% of its ordinary share capital is beneficially owned between them by other companies, and</content></level><level class="para1" eId="d25e10211"><num>(c)</num><content>none of those other companies owns less than 5% of that capital.</content></level></subsection><subsection eId="d25e10217"><num>(3)</num><content>Those other companies are the members of the consortium.</content></subsection></section><section eId="d25e10226"><num>212G</num><heading>Qualifying 75% subsidiaries</heading><subsection eId="d25e10230"><num>(1)</num><content>For the purposes of sections 212E and 212F a company (“the subsidiary company”) is a qualifying 75% subsidiary of another company (“the parent company”) if condition 1 or 2 is met and condition 3 is met.</content></subsection><subsection eId="d25e10236"><num>(2)</num><intro>Condition 1 is that—</intro><level class="para1" eId="d25e10242"><num>(a)</num><content>the subsidiary company has ordinary share capital, and</content></level><level class="para1" eId="d25e10248"><num>(b)</num><content>the subsidiary company is a 75% subsidiary of the parent company (see section 1154(3) of CTA 2010).</content></level></subsection><subsection eId="d25e10254"><num>(3)</num><intro>Condition 2 is that—</intro><level class="para1" eId="d25e10260"><num>(a)</num><content>the subsidiary company does not have ordinary share capital, and</content></level><level class="para1" eId="d25e10266"><num>(b)</num><content>the parent company has control of the subsidiary company.</content></level></subsection><subsection eId="d25e10272"><num>(4)</num><intro>Condition 3 is that the parent company—</intro><level class="para1" eId="d25e10278"><num>(a)</num><content>is beneficially entitled to at least 75% of any profits available for distribution to equity holders of the subsidiary company, and</content></level><level class="para1" eId="d25e10284"><num>(b)</num><content>would be beneficially entitled to at least 75% of any assets of the subsidiary company available for distribution to its equity holders on a winding-up.</content></level></subsection><subsection eId="d25e10290"><num>(5)</num><content>Chapter 6 of Part 5 of CTA 2010 (equity holders and profits or assets available for distribution) applies for the purposes of subsection (4) as that Chapter applies for the purposes of section 151(4)(a) and (b) of that Act (meaning of “75% subsidiary”).</content></subsection><subsection eId="d25e10296"><num>(6)</num><content>But in a case where the subsidiary company does not have ordinary share capital, Chapter 6 of Part 5 of that Act applies for those purposes as if the members of that company were equity holders of that company for the purposes of that Chapter.</content></subsection></section><section eId="d25e10305"><num>212H</num><heading>Ownership proportion</heading><subsection eId="d25e10309"><num>(1)</num><intro>For the purposes of section 212C(3) CPC’s “ownership proportion” is the lowest of—</intro><level class="para1" eId="d25e10315"><num>(a)</num><content>the percentage of the ordinary share capital of C that is beneficially owned by CPC,</content></level><level class="para1" eId="d25e10321"><num>(b)</num><content>the percentage to which CPC is beneficially entitled of any profits available for distribution to equity holders of C, and</content></level><level class="para1" eId="d25e10327"><num>(c)</num><content>the percentage to which CPC would be beneficially entitled of any assets of C available for distribution to its equity holders on a winding-up.</content></level></subsection><subsection eId="d25e10333"><num>(2)</num><content>Chapter 6 of Part 5 of CTA 2010 applies for the purposes of subsection (1) as that Chapter applies for the purposes of section 143(3)(b) and (c) (condition 1: surrendering company owned by consortium) and section 144(3)(b) and (c) (condition 1: claimant company owned by consortium) of that Act.</content></subsection><subsection eId="d25e10339"><num>(3)</num><content>But in a case where the subsidiary company does not have ordinary share capital, Chapter 6 of Part 5 of that Act applies for those purposes as if the members of that company were equity holders of that company for the purposes of that Chapter.</content></subsection></section><section eId="d25e10348"><num>212I</num><heading>Relevant percentage share</heading><subsection eId="d25e10352"><num>(1)</num><content>For the purposes of section 212C(5) C’s “relevant percentage share” is C’s percentage share in the profits or losses of the trade.</content></subsection><subsection eId="d25e10358"><num>(2)</num><content>For this purpose C’s percentage share in the profits or losses of a trade at any time is determined on a just and reasonable basis.</content></subsection><subsection eId="d25e10364"><num>(3)</num><content>In making that determination regard must be had, in particular, to any matter that would be taken into account in determining under section 1262 of CTA 2009 (but without regard to sections 1263 and 1264 of that Act) the company’s share at that time in the profits or losses of the trade.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e10370"><heading>Relevant excess of allowances</heading><section eId="d25e10376"><num>212J</num><heading>Relevant excess of allowances</heading><subsection eId="d25e10380"><num>(1)</num><content>C or P has a relevant excess of allowances in relation to the relevant trade if—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_004"><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">T</default:mi><default:mi mathvariant="normal">W</default:mi><default:mi mathvariant="normal">D</default:mi><default:mi mathvariant="normal">V</default:mi><default:mo>></default:mo><default:mrow><default:mi mathvariant="normal">B</default:mi><default:mi mathvariant="normal">S</default:mi><default:mi mathvariant="normal">V</default:mi></default:mrow></default:math></foreign></tblock></content></subsection><subsection eId="d25e10407"><num>(2)</num><content>Section 212K defines RTWDV and section 212L defines BSV.</content></subsection><subsection eId="d25e10413"><num>(3)</num><content>References in this Chapter to plant and machinery do not include excluded plant and machinery.</content></subsection><subsection eId="d25e10419"><num>(4)</num><intro>Plant and machinery is “excluded plant and machinery” if—</intro><level class="para1" eId="d25e10425"><num>(a)</num><content>expenditure incurred on the provision of it is not, as a result of section 34A, qualifying expenditure for the purposes of this Part, or</content></level><level class="para1" eId="d25e10431"><num>(b)</num><content>it is, as a result of section 67, treated for the purposes of this Part as owned otherwise than by C or P.</content></level></subsection></section><section eId="d25e10440"><num>212K</num><heading>Relevant tax written-down value</heading><subsection eId="d25e10444"><num>(1)</num><content>RTWDV is the relevant tax written-down value and is to be found by adding together amounts 1 and 2.</content></subsection><subsection eId="d25e10450"><num>(2)</num><intro>Amount 1 is the total amount of any unrelieved qualifying expenditure in respect of plant and machinery contained in—</intro><level class="para1" eId="d25e10456"><num>(a)</num><content>single asset pools,</content></level><level class="para1" eId="d25e10462"><num>(b)</num><content>class pools, or</content></level><level class="para1" eId="d25e10468"><num>(c)</num><content>the main pool,</content></level><wrapUp>which is available to be carried forward (in accordance with section 59) from the old period and used in calculating the profits of the relevant trade.</wrapUp></subsection><subsection eId="d25e10476"><num>(3)</num><content>Amount 2 is the total of any qualifying expenditure incurred on the provision of a ship for the purposes of the relevant trade which, at the end of the old period, is unrelieved by virtue of notice having been given under section 130.</content></subsection><subsection eId="d25e10482"><num>(4)</num><intro>For the purposes of this Part the amount of unrelieved qualifying expenditure contained in any pool which is available to be carried forward (in accordance with section 59) from the old period and used in calculating the profits of the relevant trade is to be calculated on the assumptions—</intro><level class="para1" eId="d25e10488"><num>(a)</num><content>that any qualifying expenditure that could have been (but was not) allocated to the pool before the end of the old period had been so allocated at the end of the old period,</content></level><level class="para1" eId="d25e10494"><num>(b)</num><content>that any qualifying expenditure prevented from being allocated to the pool by section 58(5) had been so allocated at the end of the old period, and</content></level><level class="para1" eId="d25e10500"><num>(c)</num><content>that any transaction taking place on the relevant day that has the effect of reducing the amount of unrelieved qualifying expenditure in the pool had not taken place.</content></level></subsection><subsection eId="d25e10506"><num>(5)</num><intro>Where condition C in section 212C is met—</intro><level class="para1" eId="d25e10512"><num>(a)</num><content>references in subsection (2) to any unrelieved qualifying expenditure in respect of plant and machinery contained in a pool which is available to be carried forward (in accordance with section 59) from the old period and used in calculating the profits of the relevant trade, and</content></level><level class="para1" eId="d25e10518"><num>(b)</num><content>the reference in subsection (3) to any qualifying expenditure incurred on the provision of a ship for the purposes of the relevant trade which, at the end of the old period, is unrelieved by virtue of notice having been given under section 130,</content></level><wrapUp>are to what it would have been but for the qualifying change.</wrapUp></subsection><subsection eId="d25e10526"><num>(6)</num><content>In this section “the old period” means the period which is the old period for the purposes of section 212O (or would be if this Chapter applied): see section 212N(3).</content></subsection><subsection eId="d25e10532"><num>(7)</num><content>The plant and machinery in respect of which there is unrelieved qualifying expenditure such as is mentioned in subsection (2), or qualifying expenditure such as is mentioned in subsection (3), is referred to in the following provisions as “the relevant plant and machinery”.</content></subsection></section><section eId="d25e10541"><num>212L</num><heading>Balance sheet value</heading><subsection eId="d25e10545"><num>(1)</num><content>BSV is the balance sheet value of the relevant plant and machinery and is to be found by adding together the amounts (if any) which would be shown in respect of it in the appropriate balance sheet of C or P.</content></subsection><subsection eId="d25e10551"><num>(2)</num><intro>For this purpose the amounts shown in the appropriate balance sheet in respect of the relevant plant or machinery are—</intro><level class="para1" eId="d25e10557"><num>(a)</num><content>the amounts shown in that balance sheet as the net book value (or carrying amount) in respect of it, and</content></level><level class="para1" eId="d25e10563"><num>(b)</num><content>the amounts shown in that balance sheet as the net investment in respect of finance leases of it.</content></level></subsection><subsection eId="d25e10569"><num>(3)</num><intro>If—</intro><level class="para1" eId="d25e10575"><num>(a)</num><content>any of the relevant plant or machinery is a fixture in any land, and</content></level><level class="para1" eId="d25e10581"><num>(b)</num><content>the amount which falls (or would fall) to be shown in the appropriate balance sheet as the net book value (or carrying amount) of the land would include an amount in respect of the fixture,</content></level><wrapUp>the amount of the net book value (or carrying amount) in respect of the fixture is determined on a just and reasonable basis.</wrapUp></subsection><subsection eId="d25e10589"><num>(4)</num><intro>If—</intro><level class="para1" eId="d25e10595"><num>(a)</num><content>any of the relevant plant or machinery is subject to a finance lease, and</content></level><level class="para1" eId="d25e10601"><num>(b)</num><content>any land or asset which is not plant or machinery is subject to that lease,</content></level><wrapUp>the amount of the net investment in respect of the finance lease of that plant or machinery is determined on a just and reasonable basis.</wrapUp></subsection><subsection eId="d25e10609"><num>(5)</num><content>In this section any reference to any amount shown in the appropriate balance sheet of C or P is the amount which, assuming that a balance sheet of C or P were drawn up in accordance with subsection (6), would fall to be shown in that balance sheet.</content></subsection><subsection eId="d25e10615"><num>(6)</num><content>A balance sheet is drawn up in accordance with this subsection if it is drawn up in accordance with generally accepted accounting practice so as to reflect the position as at the beginning of the relevant day but adjusted to reflect the disposal of any of the relevant plant or machinery which is disposed of on the relevant day.</content></subsection><subsection eId="d25e10621"><num>(7)</num><intro>In this section—</intro><hcontainer name="definition"><content>“finance lease” means a lease which, in accordance with generally accepted accounting practice, falls (or would fall) to be treated as a finance lease or loan in accounts of C or P;</content></hcontainer><hcontainer name="definition"><intro>“fixture”—</intro><level class="para1"><num>(a)</num><content>means any plant or machinery that is so installed or otherwise fixed in or to a building or other description of land as to become, in law, part of that building or other land, and</content></level><level class="para1"><num>(b)</num><content>includes any boiler or water-filled radiator installed in a building as part of a space or water heating system.</content></level></hcontainer></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e10645"><heading>Unallowable purpose</heading><section eId="d25e10651"><num>212M</num><heading>Unallowable purpose</heading><subsection eId="d25e10655"><num>(1)</num><content>The qualifying change has an unallowable purpose if the main purpose, or one of the main purposes, of change arrangements is to obtain a relevant tax advantage (for any person).</content></subsection><subsection eId="d25e10661"><num>(2)</num><content>“Change arrangements” means any arrangements made to bring about, or otherwise connected with, the qualifying change; and “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</content></subsection><subsection eId="d25e10667"><num>(3)</num><content>“Obtain a relevant tax advantage” means become entitled to a reduction in profits, or an increase in losses, for the purposes of corporation tax in consequence of a claim to allowances in respect of qualifying expenditure in respect of the relevant plant and machinery or qualifying expenditure within section 212K(3).</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e10673"><heading>What happens when Chapter applies</heading><section eId="d25e10679"><num>212N</num><heading>Old and new accounting periods</heading><subsection eId="d25e10683"><num>(1)</num><content>The accounting period of C which is current on the relevant day ends with that day and a new accounting period of C begins with the following day (but subject to subsection (2)).</content></subsection><subsection eId="d25e10689"><num>(2)</num><intro>In a case in which condition A, B or D in section 212C is met and the relevant trade was, at the beginning of the relevant day, carried on by C in partnership with another company or other companies subsection (1) does not apply but—</intro><level class="para1" eId="d25e10695"><num>(a)</num><content>the period which, for the purposes of Part 17 of CTA 2009, is the accounting period of the partnership current on the relevant day ends with that day, and</content></level><level class="para1" eId="d25e10701"><num>(b)</num><intro>there begins with the following day a new accounting period—</intro><level class="para2" eId="d25e10707"><num>(i)</num><content>of the partnership, or</content></level><level class="para2" eId="d25e10713"><num>(ii)</num><content>where condition D is met and C’s relevant percentage share in the relevant trade is nil after the qualifying change, of the company or partnership by which the relevant trade is carried on after the relevant change.</content></level></level></subsection><subsection eId="d25e10719"><num>(3)</num><content>For the purposes of section 212O “the old period” means the accounting period of C or the partnership in which C carries on the relevant trade which ends with the relevant day.</content></subsection><subsection eId="d25e10725"><num>(4)</num><intro>For the purposes of section 212P “the new period” means the accounting period—</intro><level class="para1" eId="d25e10731"><num>(a)</num><content>of C or that partnership, or</content></level><level class="para1" eId="d25e10737"><num>(b)</num><content>where condition D is met and C’s relevant percentage share in the relevant trade is nil after the qualifying change, of the company or partnership by which the relevant trade is carried on after the relevant change,</content></level><wrapUp>which begins with the following day.</wrapUp></subsection></section><section eId="d25e10748"><num>212O</num><heading>When there is excess of allowances in pool: amount of excess</heading><subsection eId="d25e10752"><num>(1)</num><content>Section 212P has effect where C or P has an excess of allowances in any single asset pool, any class pool or the main pool at the end of the old period; and a pool in the case of which there is an excess of allowances is referred to in this section and section 212P as a “relevant pool”.</content></subsection><subsection eId="d25e10758"><num>(2)</num><content>For the purposes of this section C or P has an excess of allowances in a pool if—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_005"><default:mi mathvariant="normal">P</default:mi><default:mi mathvariant="normal">A</default:mi><default:mo>></default:mo><default:mrow><default:mi mathvariant="normal">B</default:mi><default:mi mathvariant="normal">S</default:mi><default:mi mathvariant="normal">V</default:mi><default:mi mathvariant="normal">P</default:mi></default:mrow></default:math></foreign></tblock></content></subsection><subsection eId="d25e10781"><num>(3)</num><intro>In this section and section 212Q—</intro><hcontainer name="definition"><content>PA, in relation to a pool, is the amount specified in section 212K(2) in relation to the pool, and</content></hcontainer><hcontainer name="definition"><content>BSVP, in relation to a pool, is so much of BSV as, on a just and reasonable apportionment, it is appropriate to attribute to the pool.</content></hcontainer></subsection><subsection eId="d25e10796"><num>(4)</num><content>For the purposes of section 212P the amount of the excess of allowances in relation to any relevant pool (“the relevant pool in question”) is the difference between PA and BSVP.</content></subsection><subsection eId="d25e10802"><num>(5)</num><content>But if, in relation to any other pool—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_006"><default:mi mathvariant="normal">B</default:mi><default:mi mathvariant="normal">S</default:mi><default:mi mathvariant="normal">V</default:mi><default:mi mathvariant="normal">P</default:mi><default:mo>></default:mo><default:mrow><default:mi mathvariant="normal">P</default:mi><default:mi mathvariant="normal">A</default:mi></default:mrow></default:math></foreign></tblock>what would otherwise be the amount of the excess of allowances in relation to the relevant pool in question for the purposes of section 212P is reduced by so much of the difference between BSVP and PA as is not taken into account under this subsection in relation to another relevant pool or under section 212Q(8).</content></subsection></section><section eId="d25e10830"><num>212P</num><heading>Effect of excess of allowances on pools</heading><subsection eId="d25e10834"><num>(1)</num><content>The unrelieved qualifying expenditure in each relevant pool is to be taken to be reduced at the beginning of the new period by the amount of the excess of allowances in relation to the pool.</content></subsection><subsection eId="d25e10840"><num>(2)</num><content>The amount of the excess of allowances is to be treated from the beginning of the new period as if it were qualifying expenditure in a new pool of the same description as the relevant pool (and so subject to the same provisions of this Part, other than this Chapter).</content></subsection><subsection eId="d25e10846"><num>(3)</num><content>Where, following the qualifying change, a person ceases to carry on a trade (or part of a trade) and C begins to carry on (whether or not in partnership) the activities of that trade (or part of a trade) as part of its trade, for the purposes of claiming any allowance in respect of qualifying expenditure in the new pool the carrying on of those activities by C is to be regarded as the carrying on of a separate trade.</content></subsection><subsection eId="d25e10852"><num>(4)</num><content>A loss attributable to an allowance claimed in respect of qualifying expenditure in the new pool may not be set off under section 37 of CTA 2010 (trade loss relief against total profits of same or earlier accounting period) otherwise than against the profits of a qualifying activity carried on by C, or any company that is a member of P, at the beginning of the relevant day.</content></subsection><subsection eId="d25e10858"><num>(5)</num><content>And the amount of such a loss which may be so set off by any person is not to exceed the amount of the loss which would have been available for such set off by the person but for the qualifying change.</content></subsection><subsection eId="d25e10864"><num>(6)</num><content>A loss attributable to an allowance claimed in respect of qualifying expenditure in the new pool may not be set off by way of group relief in accordance with Part 5 of CTA 2010 (surrender of losses by way of group relief) by a company (“the claimant company”) unless it would have been available for such set off but for the qualifying change.</content></subsection><subsection eId="d25e10870"><num>(7)</num><content>And the amount of such a loss which is available for such set off by the claimant company is not to exceed the amount of the loss which would have been available for such set off by the claimant company but for the qualifying change.</content></subsection><subsection eId="d25e10876"><num>(8)</num><content>Where any activity not carried on by C, or a company that is a member of P, at the beginning of the relevant day would otherwise be regarded for the purposes of corporation tax as forming part of a qualifying activity carried on by C or the member of P at that time it is not to be so regarded for the purposes of subsection (4).</content></subsection><subsection eId="d25e10882"><num>(9)</num><content>In a case in which condition C in section 212C is met, the references in subsections (1) and (2) to the beginning of the new period are to the time of the qualifying change (and section 948 of CTA 2010 has effect subject to this section).</content></subsection></section><section eId="d25e10891"><num>212Q</num><heading>When there are postponed capital allowances</heading><subsection eId="d25e10895"><num>(1)</num><content>This section has effect where C or P has relevant postponed capital allowances.</content></subsection><subsection eId="d25e10901"><num>(2)</num><content>C or P has relevant postponed capital allowances if amount 2 in section 212K(3) is an amount other than nil.</content></subsection><subsection eId="d25e10907"><num>(3)</num><content>Where, following the qualifying change, a person ceases to carry on a trade (or part of a trade) and C begins to carry on (whether or not in partnership) the activities of that trade (or part of a trade) as part of its trade, for the purposes of claiming any allowance in respect of qualifying expenditure such as is mentioned in section 212K(3) the carrying on of those activities by C is to be regarded as the carrying on of a separate trade.</content></subsection><subsection eId="d25e10913"><num>(4)</num><content>A loss attributable to an allowance claimed in respect of qualifying expenditure such as is mentioned in section 212K(3) may not be set off under section 37 of CTA 2010 otherwise than against the profits of a qualifying activity carried on by C, or any company that is a member of P, at the beginning of the relevant day.</content></subsection><subsection eId="d25e10919"><num>(5)</num><content>And the amount of such a loss which may be so set off by any person is not to exceed the amount of the loss which would have been available for such set off by the person but for the qualifying change.</content></subsection><subsection eId="d25e10925"><num>(6)</num><content>A loss attributable to an allowance claimed in respect of qualifying expenditure such as is mentioned in section 212K(3) may not be set off by way of group relief in accordance with Part 5 of CTA 2010 by a company (“the claimant company”) unless it would have been available for such set off but for the qualifying change.</content></subsection><subsection eId="d25e10931"><num>(7)</num><content>And the amount of such a loss which is available for such set off by the claimant company is not to exceed the amount of the loss which would have been available for such set off by the claimant company but for the qualifying change.</content></subsection><subsection eId="d25e10937"><num>(8)</num><content>If, in relation to any pool—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_007"><default:mi mathvariant="normal">B</default:mi><default:mi mathvariant="normal">S</default:mi><default:mi mathvariant="normal">V</default:mi><default:mi mathvariant="normal">P</default:mi><default:mo>></default:mo><default:mrow><default:mi mathvariant="normal">P</default:mi><default:mi mathvariant="normal">A</default:mi></default:mrow></default:math></foreign></tblock>what would otherwise be the amount of qualifying expenditure such as is mentioned in section 212K(3) is to be treated for the purposes of this section as reduced by so much of the difference between BSVP and PA in relation to the pool as is not taken into account under section 212O(5) in relation to a relevant pool.</content></subsection><subsection eId="d25e10962"><num>(9)</num><content>Where any activity not carried on by C, or a company that is a member of P, at the beginning of the relevant day would otherwise be regarded for the purposes of corporation tax as forming part of a qualifying activity carried on by C or the member of P at that time it is not to be so regarded for the purposes of subsection (4).</content></subsection></section><section eId="d25e10971"><num>212R</num><heading>Apportionment of proceeds of disposal of relevant plant and machinery</heading><content>Any amount required to be brought into account in connection with a disposal event in respect of any relevant plant and machinery is to be apportioned between the new pool and the relevant pool concerned on a just and reasonable basis.</content></section><section eId="d25e10980"><num>212S</num><heading>Transactions on relevant day</heading><subsection eId="d25e10984"><num>(1)</num><content>This section applies if any plant and machinery is transferred on the relevant day and (apart from subsection (4)(c) of section 212K) the transfer would have the effect of reducing RTWDV (as determined in accordance with that section).</content></subsection><subsection eId="d25e10990"><num>(2)</num><content>No person other than C or P is entitled to claim an allowance in respect of the plant or machinery after the transfer.</content></subsection></section></hcontainer></chapter></quotedStructure></mod></content></paragraph><paragraph eId="schedule-4-paragraph-3" class="schProv1"><num>3</num><content>For the heading of Chapter 17 substitute “O<inline name="smallCaps">ther anti-avoidance</inline>”.</content></paragraph><paragraph eId="schedule-4-paragraph-4" class="schProv1"><num>4</num><content><mod>Section 247 (giving effect to allowances and charges: trades) is renumbered as subsection (1) of that section; and after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e11012"><num>(2)</num><content>See Chapter 16A for provision restricting in certain circumstances the ways in which effect may be given to an allowance by virtue of subsection (1)(a).</content></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-4-paragraph-5" class="schProv1"><num>5</num><content>The amendments made by this Schedule have effect where the relevant day is on or after 21 July 2009.</content></paragraph><paragraph eId="schedule-4-paragraph-6" class="schProv1"><num>6</num><intro>But in relation to cases where the relevant day is before 9 December 2009 the amendment made by paragraph 2 has effect—</intro><level class="para1" eId="schedule-4-paragraph-6-a"><num>(a)</num><content>with the omission of section 212C(2)(b),</content></level><level class="para1" eId="schedule-4-paragraph-6-b"><num>(b)</num><content>as if in section 212K(1) “which is amount 1” were substituted for “and is to be found by adding together amounts 1 and 2”,</content></level><level class="para1" eId="schedule-4-paragraph-6-c"><num>(c)</num><content>with the omission of section 212K(3) and (4)(c),</content></level><level class="para1" eId="schedule-4-paragraph-6-d"><num>(d)</num><content>with the omission from section 212O(5) of the words “or under section 212Q(8)”,</content></level><level class="para1" eId="schedule-4-paragraph-6-e"><num>(e)</num><content>with the omission of section 212Q, and</content></level><level class="para1" eId="schedule-4-paragraph-6-f"><num>(f)</num><content>with the omission of section 212S.</content></level></paragraph></hcontainer><hcontainer name="schedule" eId="schedule-5"><num>SCHEDULE 5</num><heading>Leased assets</heading><hcontainer name="crossheading" class="schGroup7"><heading>Restriction of qualifying expenditure</heading><paragraph eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-5-paragraph-1-1"><num>(1)</num><content><mod>In Chapter 17 of Part 2 of CAA 2001 (plant and machinery: anti-avoidance), after section 228M insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e11090"><num>228MA</num><heading>Restriction of qualifying expenditure</heading><subsection eId="d25e11094"><num>(1)</num><intro>This section applies where capital expenditure is incurred on the provision of plant or machinery (“the asset”) and at the time the expenditure is incurred—</intro><level class="para1" eId="d25e11100"><num>(a)</num><content>the asset is leased or arrangements exist under which it is to be leased, and</content></level><level class="para1" eId="d25e11106"><num>(b)</num><content>arrangements have been entered into in relation to payments under the lease that have the effect of reducing the value of the asset to the lessor (“V”).</content></level></subsection><subsection eId="d25e11112"><num>(2)</num><content>For the purposes of capital allowances the lessor’s qualifying expenditure on the asset is restricted to V.</content></subsection><subsection eId="d25e11118"><num>(3)</num><content>The value of the asset to the lessor is given by—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_008"><default:mrow><default:mi>V</default:mi><default:mo>=</default:mo><default:mi>VI</default:mi><default:mo>+</default:mo><default:mi>VR</default:mi></default:mrow></default:math></foreign><blockContainer class="where">where—<tblock class="definition">VI is the present value of the lessor’s income from the asset, and</tblock><tblock class="definition">VR is the present value of the residual value of the asset reduced by the amount of any rental rebate.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e11150"><num>(4)</num><intro>For this purpose—</intro><level class="para1" eId="d25e11156"><num>(a)</num><intro>the lessor’s income from the asset is the total of all the amounts that—</intro><level class="para2" eId="d25e11162"><num>(i)</num><content>have been received by the lessor, or it is reasonable to expect the lessor will receive, in connection with the lease, and</content></level><level class="para2" eId="d25e11168"><num>(ii)</num><content>have been brought into account by the lessor, or it is reasonable to expect the lessor will bring into account, as income in computing profits chargeable to tax, and</content></level></level><level class="para1" eId="d25e11174"><num>(b)</num><content>the residual value of the asset is what it is reasonable to expect will be the market value of the lessor’s interest in the asset immediately after the termination of the lease.</content></level></subsection><subsection eId="d25e11180"><num>(5)</num><intro>In determining the lessor’s income from the asset, exclude—</intro><level class="para1" eId="d25e11186"><num>(a)</num><content>disposal receipts brought, or to be brought, into account under Part 2, and</content></level><level class="para1" eId="d25e11192"><num>(b)</num><content>so much of any amount as represents charges for services or qualifying UK or foreign tax (within the meaning of section 70YE) to be paid by the lessor.</content></level></subsection><subsection eId="d25e11198"><num>(6)</num><content>Where capital expenditure has previously been incurred by the lessor on the provision of the asset, the reference in subsection (2) to the lessor’s qualifying expenditure on the asset is to be read as a reference to the total amount of the lessor’s qualifying expenditure on the asset.</content></subsection><subsection eId="d25e11204"><num>(7)</num><intro>The following provisions supplement this section—</intro><level class="para1" eId="d25e11210"><num>(a)</num><content>section 228MB provides for the calculation of “present value”, and</content></level><level class="para1" eId="d25e11216"><num>(b)</num><content>section 228MC defines what is meant by a rental rebate.</content></level></subsection><subsection eId="d25e11222"><num>(8)</num><content>In this section and sections 228MB and 228MC “lease” includes any arrangements which provide for plant or machinery to be leased or otherwise made available by a person (“the lessor”) to another person (“the lessee”).</content></subsection></section><section eId="d25e11231"><num>228MB</num><heading>Calculation of present value</heading><subsection eId="d25e11235"><num>(1)</num><content>For the purposes of section 228MA the “present value” of an amount is to be calculated by using the interest rate implicit in the lease.</content></subsection><subsection eId="d25e11241"><num>(2)</num><content>The general rule is that the interest rate implicit in the lease is the interest rate that would apply in accordance with normal commercial criteria, including, in particular, generally accepted accounting practice (where applicable).</content></subsection><subsection eId="d25e11247"><num>(3)</num><content>If the interest rate implicit in the lease cannot be determined in accordance with subsection (2), it is taken to be 1% above LIBOR.</content></subsection><subsection eId="d25e11253"><num>(4)</num><intro>For this purpose—</intro><level class="para1" eId="d25e11259"><num>(a)</num><content>LIBOR means the London interbank offered rate on the relevant day for deposits for a term of 12 months in the relevant currency,</content></level><level class="para1" eId="d25e11265"><num>(b)</num><content>the relevant day is the day on which the lease was entered into (or if that was not a business day, the first business day after that day), and</content></level><level class="para1" eId="d25e11271"><num>(c)</num><content>the relevant currency is the currency in which rentals under the lease are payable.</content></level></subsection></section><section eId="d25e11280"><num>228MC</num><heading>Rental rebate</heading><subsection eId="d25e11284"><num>(1)</num><content>For the purposes of section 228MA “rental rebate” means any sum payable to the lessee that is calculated by reference to the termination value of the asset.</content></subsection><subsection eId="d25e11290"><num>(2)</num><content>The general rule is that the termination value of an asset is the value of the asset at or about the time when the lease terminates.</content></subsection><subsection eId="d25e11296"><num>(3)</num><intro>Calculation by reference to the termination value includes calculation by reference to any one or more of—</intro><level class="para1" eId="d25e11302"><num>(a)</num><content>the proceeds of sale, if the asset is sold,</content></level><level class="para1" eId="d25e11308"><num>(b)</num><content>any insurance proceeds, compensation or similar sums in respect of the asset, and</content></level><level class="para1" eId="d25e11314"><num>(c)</num><content>an estimate of the market value of the asset.</content></level></subsection><subsection eId="d25e11320"><num>(4)</num><intro>Calculation by reference to the termination value also includes—</intro><level class="para1" eId="d25e11326"><num>(a)</num><content>determination in a way which, or by reference to factors or criteria which, might reasonably be expected to produce a broadly similar result to calculation by reference to the termination value, or</content></level><level class="para1" eId="d25e11332"><num>(b)</num><content>any other form of calculation indirectly by reference to the termination value.</content></level></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-5-paragraph-1-2"><num>(2)</num><content>The amendment made by sub-paragraph (1) has effect in relation to capital expenditure incurred on or after 9 December 2009.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Restriction of deduction for rental rebate</heading><paragraph eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><mod>In Chapter 4 of Part 2 of ITTOIA 2005 (trading income: rules restricting deductions), after section 55A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e11358"><heading>Rental rebates</heading><section eId="d25e11364"><num>55B</num><heading>Rental rebates</heading><subsection eId="d25e11368"><num>(1)</num><intro>Where plant or machinery (“the asset”) is leased and a rental rebate is payable by the lessor, the amount of the deduction allowable in respect of the rebate is limited to—</intro><level class="para1" eId="d25e11374"><num>(a)</num><content>the amount of the lessor’s income from the lease, or</content></level><level class="para1" eId="d25e11380"><num>(b)</num><content>in the case of a finance lease, that amount excluding the finance charge.</content></level></subsection><subsection eId="d25e11386"><num>(2)</num><content>“Rental rebate” means any sum payable to the lessee that is calculated by reference to the termination value of the asset.</content></subsection><subsection eId="d25e11392"><num>(3)</num><intro>For this purpose—</intro><level class="para1" eId="d25e11398"><num>(a)</num><content>the termination value of an asset is the value of the asset at or about the time when the lease terminates,</content></level><level class="para1" eId="d25e11404"><num>(b)</num><intro>calculation by reference to the termination value includes calculation by reference to any one or more of—</intro><level class="para2" eId="d25e11410"><num>(i)</num><content>the proceeds of sale, if the asset is sold,</content></level><level class="para2" eId="d25e11416"><num>(ii)</num><content>any insurance proceeds, compensation or similar sums in respect of the asset,</content></level><level class="para2" eId="d25e11422"><num>(iii)</num><content>an estimate of the market value of the asset, and</content></level></level><level class="para1" eId="d25e11428"><num>(c)</num><intro>calculation by reference to the termination value also includes—</intro><level class="para2" eId="d25e11434"><num>(i)</num><content>determination in a way which, or by reference to factors or criteria which, might reasonably be expected to produce a broadly similar result to calculation by reference to the termination value, or</content></level><level class="para2" eId="d25e11440"><num>(ii)</num><content>any other form of calculation indirectly by reference to the termination value.</content></level></level></subsection><subsection eId="d25e11446"><num>(4)</num><intro>For the purposes of this section—</intro><level class="para1" eId="d25e11452"><num>(a)</num><intro>the income of the lessor from the lease is the total of all the amounts receivable in connection with the lease that have been brought into account in calculating the lessor’s income for income tax purposes, excluding—</intro><level class="para2" eId="d25e11458"><num>(i)</num><content>disposal receipts brought into account under Part 2 of CAA 2001 (see section 60(1) of that Act), and</content></level><level class="para2" eId="d25e11464"><num>(ii)</num><content>so much of any amount as represents charges for services or qualifying UK or foreign tax (within the meaning of section 70YE of that Act) to be paid by the lessor, and</content></level></level><level class="para1" eId="d25e11470"><num>(b)</num><intro>the finance charge, in relation to a finance lease, is—</intro><level class="para2" eId="d25e11476"><num>(i)</num><content>if the lease is one that, under generally accepted accounting practice, falls (or would fall) to be treated as a loan, so much of the rentals under the lease as fall (or would fall) to be treated as interest, or</content></level><level class="para2" eId="d25e11482"><num>(ii)</num><content>in any other case, the amount that, in accordance with generally accepted accounting practice, falls (or would fall) to be treated as the gross return on investment.</content></level></level></subsection><subsection eId="d25e11488"><num>(5)</num><content>Where the asset is acquired by the lessor in a transaction in relation to which an election is made under section 266 of CAA 2001 (election where predecessor and successor are connected persons), this section applies as if the successor had been the lessor at all material times and everything done to or by the predecessor had been done to or by the successor.</content></subsection><subsection eId="d25e11494"><num>(6)</num><intro>Where the whole or part of a rental rebate is disallowed under this section as a deduction in computing profits—</intro><level class="para1" eId="d25e11500"><num>(a)</num><content>the amount disallowed, or</content></level><level class="para1" eId="d25e11506"><num>(b)</num><content>if less, the amount by which the rental rebate exceeds the amount of capital expenditure incurred by the lessor,</content></level><wrapUp>may be treated for the purposes of capital gains tax as an allowable loss accruing to the lessor on the termination of the lease.That allowable loss is deductible only from chargeable gains accruing to the lessor on the disposal of the asset.</wrapUp></subsection><subsection eId="d25e11517"><num>(7)</num><content>This section does not apply to a long funding finance lease (see section 148C).</content></subsection></section></hcontainer></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><content><mod>In Chapter 4 of Part 3 of CTA 2009 (trading income: rules restricting deductions), after section 60 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e11533"><num>60A</num><heading>Rental rebates</heading><subsection eId="d25e11537"><num>(1)</num><intro>Where plant or machinery (“the asset”) is leased and a rental rebate is payable by the lessor, the amount of the deduction allowable in respect of the rebate is limited to—</intro><level class="para1" eId="d25e11543"><num>(a)</num><content>the amount of the lessor’s income from the lease, or</content></level><level class="para1" eId="d25e11549"><num>(b)</num><content>in the case of a finance lease, that amount excluding the finance charge.</content></level></subsection><subsection eId="d25e11555"><num>(2)</num><content>“Rental rebate” means any sum payable to the lessee that is calculated by reference to the termination value of the asset.</content></subsection><subsection eId="d25e11561"><num>(3)</num><intro>For this purpose—</intro><level class="para1" eId="d25e11567"><num>(a)</num><content>the termination value of an asset is the value of the asset at or about the time when the lease terminates,</content></level><level class="para1" eId="d25e11573"><num>(b)</num><intro>calculation by reference to the termination value includes calculation by reference to any one or more of—</intro><level class="para2" eId="d25e11579"><num>(i)</num><content>the proceeds of sale, if the asset is sold,</content></level><level class="para2" eId="d25e11585"><num>(ii)</num><content>any insurance proceeds, compensation or similar sums in respect of the asset, and</content></level><level class="para2" eId="d25e11591"><num>(iii)</num><content>an estimate of the market value of the asset, and</content></level></level><level class="para1" eId="d25e11597"><num>(c)</num><intro>calculation by reference to the termination value also includes—</intro><level class="para2" eId="d25e11603"><num>(i)</num><content>determination in a way which, or by reference to factors or criteria which, might reasonably be expected to produce a broadly similar result to calculation by reference to the termination value, or</content></level><level class="para2" eId="d25e11609"><num>(ii)</num><content>any other form of calculation indirectly by reference to the termination value.</content></level></level></subsection><subsection eId="d25e11615"><num>(4)</num><intro>For the purposes of this section—</intro><level class="para1" eId="d25e11621"><num>(a)</num><intro>the income of the lessor from the lease is the total of all the amounts receivable in connection with the lease that have been brought into account in calculating the lessor’s income for corporation tax purposes, excluding—</intro><level class="para2" eId="d25e11627"><num>(i)</num><content>disposal receipts brought into account under Part 2 of CAA 2001 (see section 60(1) of that Act), and</content></level><level class="para2" eId="d25e11633"><num>(ii)</num><content>so much of any amount as represents charges for services or qualifying UK or foreign tax (within the meaning of section 70YE of that Act) to be paid by the lessor, and</content></level></level><level class="para1" eId="d25e11639"><num>(b)</num><intro>the finance charge, in relation to a finance lease, is—</intro><level class="para2" eId="d25e11645"><num>(i)</num><content>if the lease is one that, under generally accepted accounting practice, falls (or would fall) to be treated as a loan, so much of the rentals under the lease as fall (or would fall) to be treated as interest, or</content></level><level class="para2" eId="d25e11651"><num>(ii)</num><content>in any other case, the amount that, in accordance with generally accepted accounting practice, falls (or would fall) to be treated as the gross return on investment.</content></level></level></subsection><subsection eId="d25e11657"><num>(5)</num><intro>Where the asset is acquired by the lessor in a transaction—</intro><level class="para1" eId="d25e11663"><num>(a)</num><content>to which section 948 of CTA 2010 applies (modified application of CAA 2001 in case of transfer of trade without change of ownership), or</content></level><level class="para1" eId="d25e11669"><num>(b)</num><content>in relation to which an election is made under section 266 of CAA 2001 (election where predecessor and successor are connected persons),</content></level><wrapUp>this section applies as if the successor had been the lessor at all material times and everything done to or by the predecessor had been done to or by the successor.</wrapUp></subsection><subsection eId="d25e11677"><num>(6)</num><intro>Where the whole or part of a rental rebate is disallowed under this section as a deduction in computing profits—</intro><level class="para1" eId="d25e11683"><num>(a)</num><content>the amount disallowed, or</content></level><level class="para1" eId="d25e11689"><num>(b)</num><content>if less, the amount by which the rental rebate exceeds the amount of capital expenditure incurred by the lessor,</content></level><wrapUp>may be treated for the purposes of corporation tax in respect of chargeable gains as an allowable loss accruing to the lessor on the termination of the lease.That allowable loss is deductible only from chargeable gains accruing to the lessor on the disposal of the asset.</wrapUp></subsection><subsection eId="d25e11700"><num>(7)</num><content>This section does not apply to a long funding finance lease (see section 362 of CTA 2010).</content></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><content>The amendments made by this paragraph have effect in relation to rental rebates payable on or after 9 December 2009.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Arrangements reducing disposal value of asset</heading><paragraph eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><mod>In Chapter 5 of Part 2 of CAA 2001 (plant and machinery: general provisions about charges and allowances), after section 64 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e11729"><num>64A</num><heading>Leased assets: arrangements reducing disposal value of asset</heading><subsection eId="d25e11733"><num>(1)</num><intro>Where—</intro><level class="para1" eId="d25e11739"><num>(a)</num><content>plant or machinery (“the asset”) is subject to a lease,</content></level><level class="para1" eId="d25e11745"><num>(b)</num><content>a disposal event occurs with the result that a disposal value in respect of the asset is to be brought into account under Item 1, 2 or 7 of the Table in section 61(2), and</content></level><level class="para1" eId="d25e11751"><num>(c)</num><content>arrangements have been entered into that have the effect of reducing the disposal value of the asset in so far as it is attributable to rentals payable under the lease,</content></level><wrapUp>the disposal value is to be determined as if the arrangements had not been entered into.</wrapUp></subsection><subsection eId="d25e11759"><num>(2)</num><intro>Subsection (1) does not apply if—</intro><level class="para1" eId="d25e11765"><num>(a)</num><content>the arrangements take the form of a transfer of relevant receipts within section 809AZA of ITA 2007 and the relevant amount has been treated as income under section 809AZB of that Act, or</content></level><level class="para1" eId="d25e11771"><num>(b)</num><content>the arrangements take the form of a transfer of relevant receipts within section 752 of CTA 2010 and the relevant amount has been treated as income under section 753 of that Act.</content></level></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content>The amendment made by sub-paragraph (1) has effect in relation to disposal events taking place on or after 9 December 2009.</content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-6"><num>SCHEDULE 6<authorialNote class="referenceNote">Section 30</authorialNote></num><heading>Charities and community amateur sports clubs: definitions</heading><part eId="schedule-6-part-1"><num>Part 1</num><heading>Definition of “charity”, “charitable company” and “charitable trust”</heading><hcontainer name="crossheading" class="schGroup7"><heading>Definition of “charity” etc</heading><paragraph eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-6-paragraph-1-1"><num>(1)</num><intro>For the purposes of the enactments to which this Part applies “charity” means a body of persons or trust that—</intro><level class="para1" eId="schedule-6-paragraph-1-1-a"><num>(a)</num><content>is established for charitable purposes only,</content></level><level class="para1" eId="schedule-6-paragraph-1-1-b"><num>(b)</num><content>meets the jurisdiction condition (see paragraph <ref href="#schedule-6-paragraph-2">2</ref>),</content></level><level class="para1" eId="schedule-6-paragraph-1-1-c"><num>(c)</num><content>meets the registration condition (see paragraph <ref href="#schedule-6-paragraph-3">3</ref>), and</content></level><level class="para1" eId="schedule-6-paragraph-1-1-d"><num>(d)</num><content>meets the management condition (see paragraph <ref href="#schedule-6-paragraph-4">4</ref>).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-1-2"><num>(2)</num><intro>For the purposes of the enactments to which this Part applies—</intro><hcontainer name="definition"><content>“charitable company” means a charity that is a body of persons;</content></hcontainer><hcontainer name="definition"><content>“charitable trust” means a charity that is a trust.</content></hcontainer></subparagraph><subparagraph eId="schedule-6-paragraph-1-3"><num>(3)</num><content>Sub-paragraphs (1) and (2) are subject to any express provision to the contrary.</content></subparagraph><subparagraph eId="schedule-6-paragraph-1-4"><num>(4)</num><intro>For the meaning of “charitable purpose”, see section 2 of the Charities Act 2006 (which—</intro><level class="para1" eId="schedule-6-paragraph-1-4-a"><num>(a)</num><content>applies regardless of where the body of persons or trust in question is established, and</content></level><level class="para1" eId="schedule-6-paragraph-1-4-b"><num>(b)</num><content>for this purpose forms part of the law of each part of the United Kingdom (see section 80(3) to (6) of that Act)).</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Jurisdiction condition</heading><paragraph eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-6-paragraph-2-1"><num>(1)</num><intro>A body of persons or trust meets the jurisdiction condition if it falls to be subject to the control of—</intro><level class="para1" eId="schedule-6-paragraph-2-1-a"><num>(a)</num><content>a relevant UK court in the exercise of its jurisdiction with respect to charities, or</content></level><level class="para1" eId="schedule-6-paragraph-2-1-b"><num>(b)</num><content>any other court in the exercise of a corresponding jurisdiction under the law of a relevant territory.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-2-2"><num>(2)</num><intro>In sub-paragraph (1)(a) “a relevant UK court” means—</intro><level class="para1" eId="schedule-6-paragraph-2-2-a"><num>(a)</num><content>the High Court,</content></level><level class="para1" eId="schedule-6-paragraph-2-2-b"><num>(b)</num><content>the Court of Session, or</content></level><level class="para1" eId="schedule-6-paragraph-2-2-c"><num>(c)</num><content>the High Court in Northern Ireland.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-2-3"><num>(3)</num><intro>In sub-paragraph (1)(b) “a relevant territory” means—</intro><level class="para1" eId="schedule-6-paragraph-2-3-a"><num>(a)</num><content>a member State other than the United Kingdom, or</content></level><level class="para1" eId="schedule-6-paragraph-2-3-b"><num>(b)</num><content>a territory specified in regulations made by the Commissioners for Her Majesty's Revenue and Customs.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-2-4"><num>(4)</num><content>Regulations under this paragraph are to be made by statutory instrument.</content></subparagraph><subparagraph eId="schedule-6-paragraph-2-5"><num>(5)</num><content>A statutory instrument containing regulations under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Registration condition</heading><paragraph eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-6-paragraph-3-1"><num>(1)</num><intro>A body of persons or trust meets the registration condition if—</intro><level class="para1" eId="schedule-6-paragraph-3-1-a"><num>(a)</num><content>in the case of a body of persons or trust that is a charity within the meaning of the Charities Act 1993, condition A is met, and</content></level><level class="para1" eId="schedule-6-paragraph-3-1-b"><num>(b)</num><content>in the case of any other body of persons or trust, condition B is met.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-3-2"><num>(2)</num><content>Condition A is that the body of persons or trust has complied with any requirement to be registered in the register of charities kept under section 3 of the Charities Act 1993.</content></subparagraph><subparagraph eId="schedule-6-paragraph-3-3"><num>(3)</num><content>Condition B is that the body of persons or trust has complied with any requirement under the law of a territory outside England and Wales to be registered in a register corresponding to that mentioned in sub-paragraph (2).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Management condition</heading><paragraph eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-6-paragraph-4-1"><num>(1)</num><content>A body of persons or trust meets the management condition if its managers are fit and proper persons to be managers of the body or trust.</content></subparagraph><subparagraph eId="schedule-6-paragraph-4-2"><num>(2)</num><content>In this paragraph “managers”, in relation to a body of persons or trust, means the persons having the general control and management of the administration of the body or trust.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Periods over which management condition treated as met</heading><paragraph eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-6-paragraph-5-1"><num>(1)</num><content>This paragraph applies in relation to any period throughout which the management condition is not met.</content></subparagraph><subparagraph eId="schedule-6-paragraph-5-2"><num>(2)</num><intro>The management condition is treated as met throughout the period if the Commissioners for Her Majesty’s Revenue and Customs consider that—</intro><level class="para1" eId="schedule-6-paragraph-5-2-a"><num>(a)</num><content>the failure to meet the management condition has not prejudiced the charitable purposes of the body or trust, or</content></level><level class="para1" eId="schedule-6-paragraph-5-2-b"><num>(b)</num><content>it is just and reasonable in all the circumstances for the condition to be treated as met throughout the period.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Publication of names and addresses of bodies or trusts regarded by HMRC as charities</heading><paragraph eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><content>Her Majesty’s Revenue and Customs may publish the name and address of any body of persons or trust that appears to them to meet, or at any time to have met, the definition of a charity in paragraph <ref href="#schedule-6-paragraph-1">1</ref>.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Enactments to which this Part applies</heading><paragraph eId="schedule-6-paragraph-7" class="schProv1"><num>7</num><intro>The enactments to which this Part applies are the enactments relating to—</intro><level class="para1" eId="schedule-6-paragraph-7-a"><num>(a)</num><content>income tax</content></level><level class="para1" eId="schedule-6-paragraph-7-b"><num>(b)</num><content>capital gains tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-c"><num>(c)</num><content>corporation tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-d"><num>(d)</num><content>value added tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-e"><num>(e)</num><content>inheritance tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-f"><num>(f)</num><content>stamp duty,</content></level><level class="para1" eId="schedule-6-paragraph-7-g"><num>(g)</num><content>stamp duty land tax, and</content></level><level class="para1" eId="schedule-6-paragraph-7-h"><num>(h)</num><content>stamp duty reserve tax.</content></level></paragraph></hcontainer></part><part eId="schedule-6-part-2"><num>Part 2</num><heading>Repeals of superseded definitions and other consequential amendments</heading><hcontainer name="crossheading" class="schGroup7"><heading>FA 1982</heading><paragraph eId="schedule-6-paragraph-8" class="schProv1"><num>8</num><content>In section 129(1) of FA 1982 (stamp duty: exemption from duty on grants, transfers to charities etc), for “a body of persons established for charitable purposes only or to the trustees of a trust so established” substitute “a charitable company or to the trustees of a charitable trust”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 1983</heading><paragraph eId="schedule-6-paragraph-9" class="schProv1"><num>9</num><content>In section 46(3) of FA 1983 (Historic Buildings and Monuments Commission for England) for “a body of persons established for charitable purposes only” substitute “a charitable company”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>IHTA 1984</heading><paragraph eId="schedule-6-paragraph-10" class="schProv1"><num>10</num><content>In section 272 of IHTA 1984 (general interpretation), omit the definitions of “charity” and “charitable”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 1986</heading><paragraph eId="schedule-6-paragraph-11" class="schProv1"><num>11</num><intro>In section 90(7) of FA 1986 (stamp duty reserve tax: exceptions from principal charge)—</intro><level class="para1" eId="schedule-6-paragraph-11-a"><num>(a)</num><content>in paragraph (a), for “a body of persons established for charitable purposes only” substitute “a charitable company”, and</content></level><level class="para1" eId="schedule-6-paragraph-11-b"><num>(b)</num><content>in paragraph (b), for “a trust so established” substitute “a charitable trust”.</content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 1989</heading><paragraph eId="schedule-6-paragraph-12" class="schProv1"><num>12</num><content>In paragraph 4 of Schedule 5 to FA 1989 (employee share ownership trusts), omit sub-paragraph (10).</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>TCGA 1992</heading><paragraph eId="schedule-6-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-6-paragraph-13-1"><num>(1)</num><content>TCGA 1992 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-2"><num>(2)</num><content>In section 222(8B)(b)(iii) (relief on disposal of private residence), for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-3"><num>(3)</num><content>In section 256 (charities), omit subsections (6) and (8).</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-4"><num>(4)</num><content>In section 256C (attributing gains to the non-exempt amount: charitable companies), omit subsection (6).</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-5"><num>(5)</num><content>In section 256D (how gains are attributed to the non-exempt amount: charitable companies), omit subsection (7).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>F(No.2)A 1997</heading><paragraph eId="schedule-6-paragraph-14" class="schProv1"><num>14</num><content>In section 35(3)(a) of F(No.2)A 1997 (transitional relief for charities) omit “(as defined in section 506(1) of the Taxes Act 1988)”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 1999</heading><paragraph eId="schedule-6-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-6-paragraph-15-1"><num>(1)</num><content>Schedule 19 to FA 1999 (stamp duty and stamp duty reserve tax: unit trusts) is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-15-2"><num>(2)</num><intro>In paragraph 6(3)—</intro><level class="para1" eId="schedule-6-paragraph-15-2-a"><num>(a)</num><content>in paragraph (a), for “a body of persons established for charitable purposes only” substitute “a charitable company”, and</content></level><level class="para1" eId="schedule-6-paragraph-15-2-b"><num>(b)</num><content>in paragraph (b), for “a trust established for those purposes only” substitute “a charitable trust”.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-15-3"><num>(3)</num><content>In paragraph 15(c), for “bodies of persons established for charitable purposes only or trustees of trusts so established” substitute “charitable companies or trustees of charitable trusts”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>CAA 2001</heading><paragraph eId="schedule-6-paragraph-16" class="schProv1"><num>16</num><intro>In section 63(2) of CAA 2001 (cases in which disposal value is nil)—</intro><level class="para1" eId="schedule-6-paragraph-16-a"><num>(a)</num><content>in paragraph (a), omit “within the meaning of Part 10 of ITA 2007 (see section 519 of that Act)”, and</content></level><level class="para1" eId="schedule-6-paragraph-16-b"><num>(b)</num><content>in paragraph (aa), omit “within the meaning of Part 11 of CTA 2010 (see section 467 of that Act)”.</content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>ITEPA 2003</heading><paragraph eId="schedule-6-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-6-paragraph-17-1"><num>(1)</num><content>ITEPA 2003 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-2"><num>(2)</num><content>In section 99(3)(b)(ii) (accommodation provided for performance of duties), for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-3"><num>(3)</num><content>In section 216(3)(b) (provisions not applicable to lower-paid employments) for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-4"><num>(4)</num><content>In section 223(7)(b)(ii) (payments on account of director’s tax other than by the director), for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-5"><num>(5)</num><content>In section 290(5) (accommodation benefits of ministers of religion), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-6"><num>(6)</num><content>In section 351 (expenses of ministers of religion), omit subsection (5).</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-7"><num>(7)</num><content>In section 714(2) (payroll giving: meaning of “donation”), in the definition of “charity”, omit “means any body of persons or trust established for charitable purposes only and”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 2003</heading><paragraph eId="schedule-6-paragraph-18" class="schProv1"><num>18</num><content>Schedule 8 to FA 2003 (SDLT: charities relief) is amended as follows.</content></paragraph><paragraph eId="schedule-6-paragraph-19" class="schProv1"><num>19</num><content>In paragraph 1 (charities relief), omit sub-paragraph (4).</content></paragraph><paragraph eId="schedule-6-paragraph-20" class="schProv1"><num>20</num><content>In paragraph 4 (charitable trusts), in sub-paragraph (2), omit “and “charity” has the same meaning as in paragraph 1”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>ITTOIA 2005</heading><paragraph eId="schedule-6-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-6-paragraph-21-1"><num>(1)</num><content>ITTOIA 2005 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-2"><num>(2)</num><content>In section 410(3)(b) (when stock dividend income arises), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-3"><num>(3)</num><content>In section 545(1) (definitions for Chapter 9 of Part 4), omit the definition of “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-4"><num>(4)</num><content>In section 568(3) (special rule for certain income of trustees), for “trust established for charitable purposes” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-5"><num>(5)</num><intro>In Part 2 of Schedule 4 (index of defined expressions)—</intro><level class="para1" eId="schedule-6-paragraph-21-5-a"><num>(a)</num><intro>in the entry for “charitable trust (in Chapter 9 of Part 4)”—</intro><level class="para2" eId="schedule-6-paragraph-21-5-a-i"><num>(i)</num><content>omit “(in Chapter 9 of Part 4)”, and</content></level><level class="para2" eId="schedule-6-paragraph-21-5-a-ii"><num>(ii)</num><content>for “section 545(1)” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”, and</content></level></level><level class="para1" eId="schedule-6-paragraph-21-5-b"><num>(b)</num><content>in the entry for “charity”, for “section 989 of ITA 2007” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>F(No.2)A 2005</heading><paragraph eId="schedule-6-paragraph-22" class="schProv1"><num>22</num><content>In section 18(3)(b)(i) of F(No.2)A 2005 (authorised unit trusts and OEICS: specific powers) omit “(within the meaning of section 989 of ITA 2007)”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>ITA 2007</heading><paragraph eId="schedule-6-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-6-paragraph-23-1"><num>(1)</num><content>ITA 2007 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-2"><num>(2)</num><content>In section 479(1)(b) (special rates for trustees’ income), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-3"><num>(3)</num><content>In section 481(1)(c) (other special rates for trustees), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-4"><num>(4)</num><content>Omit section 519 (meaning of “charitable trust”).</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-5"><num>(5)</num><content>In section 873(2) (discretionary or accumulation settlements), in paragraphs (a) and (b), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-6"><num>(6)</num><content>In section 989 (definitions), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-7"><num>(7)</num><intro>In Schedule 4 (index of defined expressions)—</intro><level class="para1" eId="schedule-6-paragraph-23-7-a"><num>(a)</num><intro>in the entry for “charitable trust (in Part 10)”—</intro><level class="para2" eId="schedule-6-paragraph-23-7-a-i"><num>(i)</num><content>omit “(in Part 10)”, and</content></level><level class="para2" eId="schedule-6-paragraph-23-7-a-ii"><num>(ii)</num><content>for “section 519” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”, and</content></level></level><level class="para1" eId="schedule-6-paragraph-23-7-b"><num>(b)</num><content>in the entries for “charity”, “charity (in Chapter 2 of Part 8)” and “charity (in Chapter 3 of Part 8)”, for “section 989” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 2008</heading><paragraph eId="schedule-6-paragraph-24" class="schProv1"><num>24</num><content>In paragraph 60(2) of Schedule 36 to FA 2008 (references to carrying on a business), omit the definition of “charity”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>CTA 2009</heading><paragraph eId="schedule-6-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-6-paragraph-25-1"><num>(1)</num><content>CTA 2009 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-25-2"><num>(2)</num><content>In section 1319 (other definitions), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-25-3"><num>(3)</num><content>In Schedule 4 (index of defined expressions), in the entry for “charity”, for “section 1319” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 2009</heading><paragraph eId="schedule-6-paragraph-26" class="schProv1"><num>26</num><content>In paragraph 8 of Schedule 49 to FA 2009 (general interpretation), omit the definition of “charity”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>CTA 2010</heading><paragraph eId="schedule-6-paragraph-27" class="schProv1"><num>27</num><subparagraph eId="schedule-6-paragraph-27-1"><num>(1)</num><content>CTA 2010 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-2"><num>(2)</num><intro>In section 202 (meaning of “charity” in Chapter 2 of Part 6)—</intro><level class="para1" eId="schedule-6-paragraph-27-2-a"><num>(a)</num><content>for “means” substitute “includes”, and</content></level><level class="para1" eId="schedule-6-paragraph-27-2-b"><num>(b)</num><content>omit paragraph (a).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-27-3"><num>(3)</num><intro>In section 217 (meaning of “charity” in Chapter 3 of Part 6)—</intro><level class="para1" eId="schedule-6-paragraph-27-3-a"><num>(a)</num><content>for “means” substitute “includes”, and</content></level><level class="para1" eId="schedule-6-paragraph-27-3-b"><num>(b)</num><content>omit paragraph (a).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-27-4"><num>(4)</num><content>Omit section 467 (meaning of “charitable company” in Part 11).</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-5"><num>(5)</num><content>In section 610(2)(a) (discretionary payments by trustees to companies), omit “as defined in section 467”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-6"><num>(6)</num><content>In section 1119 (definitions), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-7"><num>(7)</num><intro>In Schedule 4 (index of defined expressions)—</intro><level class="para1" eId="schedule-6-paragraph-27-7-a"><num>(a)</num><intro>in the entry for “charitable company (in Part 11)”—</intro><level class="para2" eId="schedule-6-paragraph-27-7-a-i"><num>(i)</num><content>omit “(in Part 11)”, and</content></level><level class="para2" eId="schedule-6-paragraph-27-7-a-ii"><num>(ii)</num><content>for “section 467” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”,</content></level></level><level class="para1" eId="schedule-6-paragraph-27-7-b"><num>(b)</num><content>in the entry for “charity (except in Chapters 2 and 3 of Part 6)” for “section 1119” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”,</content></level><level class="para1" eId="schedule-6-paragraph-27-7-c"><num>(c)</num><content>in the entry for “charity (in Chapter 2 of Part 6)”, for “section 202” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010 (and see section 202 of this Act)”, and</content></level><level class="para1" eId="schedule-6-paragraph-27-7-d"><num>(d)</num><content>in the entry for “charity (in Chapter 3 of Part 6)”, for “section 217” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010 (and see section 217 of this Act)”.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>TIOPA 2010</heading><paragraph eId="schedule-6-paragraph-28" class="schProv1"><num>28</num><content>In section 326(3) of TIOPA 2010 (charities), omit the definition of “charity” and the “and” immediately after it.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Power to make further consequential provision</heading><paragraph eId="schedule-6-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-6-paragraph-29-1"><num>(1)</num><content>The Commissioners for Her Majesty’s Revenue and Customs may by order make such further consequential, incidental, supplemental, transitional or transitory provision or saving as appears appropriate in consequence of, or otherwise in connection with, Part <ref href="#schedule-6-part-1">1</ref>.</content></subparagraph><subparagraph eId="schedule-6-paragraph-29-2"><num>(2)</num><intro>An order under this paragraph may—</intro><level class="para1" eId="schedule-6-paragraph-29-2-a"><num>(a)</num><content>make different provision for different purposes, and</content></level><level class="para1" eId="schedule-6-paragraph-29-2-b"><num>(b)</num><content>make provision repealing, revoking or otherwise amending any enactment or instrument (whenever passed or made).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-29-3"><num>(3)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph><subparagraph eId="schedule-6-paragraph-29-4"><num>(4)</num><content>A statutory instrument containing an order under this paragraph is subject to annulment in pursuance of an order of the House of Commons.</content></subparagraph></paragraph></hcontainer></part><part eId="schedule-6-part-3"><num>Part 3</num><heading>Meaning of “community amateur sports club”</heading><paragraph eId="schedule-6-paragraph-30" class="schProv1"><num>30</num><content>Chapter 9 of Part 13 of CTA 2010 (community amateur sports clubs) is amended as follows.</content></paragraph><paragraph eId="schedule-6-paragraph-31" class="schProv1"><num>31</num><content><mod>In section 658(1) (meaning) omit the “and” at the end of paragraph (b) and after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e12749"><num>(d)</num><content>meets the location condition (see section <ref href="#d25e12777">661A</ref>), and</content></level><level class="para1" eId="d25e12758"><num>(e)</num><content>meets the management condition (see section <ref href="#d25e12811">661B</ref>).</content></level></quotedStructure></mod></content></paragraph><paragraph eId="schedule-6-paragraph-32" class="schProv1"><num>32</num><content><mod>After section 661 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e12777"><num>661A</num><heading>The location condition</heading><subsection eId="d25e12781"><num>(1)</num><intro>A club meets the location condition for the purposes of section 658 if—</intro><level class="para1" eId="d25e12787"><num>(a)</num><content>it is established in a member State or a relevant territory, and</content></level><level class="para1" eId="d25e12793"><num>(b)</num><content>the facilities that it provides for eligible sports are all located in a single member State or relevant territory.</content></level></subsection><subsection eId="d25e12799"><num>(2)</num><content>In this section “relevant territory” means a territory specified in regulations under paragraph <ref href="#schedule-6-paragraph-2-3-b">2(3)(b)</ref> of Schedule 6 to FA 2010 (definition of “charity” etc).</content></subsection></section><section eId="d25e12811"><num>661B</num><heading>The management condition</heading><subsection eId="d25e12815"><num>(1)</num><content>A club meets the management condition for the purposes of section 658 if its managers are fit and proper persons to be managers of the club.</content></subsection><subsection eId="d25e12821"><num>(2)</num><content>In this paragraph “managers”, in relation to a club, means the persons having the general control and management of the administration of the club.</content></subsection></section><section eId="d25e12830"><num>661C</num><heading>Periods over which management condition treated as met</heading><subsection eId="d25e12834"><num>(1)</num><content>This paragraph applies in relation to any period throughout which the management condition is not met.</content></subsection><subsection eId="d25e12840"><num>(2)</num><intro>The management condition is treated as met throughout the period if the Commissioners for Her Majesty’s Revenue and Customs consider that—</intro><level class="para1" eId="d25e12846"><num>(a)</num><content>the failure to meet the management condition has not prejudiced the purposes of the club, or</content></level><level class="para1" eId="d25e12852"><num>(b)</num><content>it is just and reasonable in all the circumstances for the condition to be treated as met throughout the period.</content></level></subsection></section></quotedStructure></mod></content></paragraph></part><part eId="schedule-6-part-4"><num>Part 4</num><heading>Commencement</heading><hcontainer name="crossheading" class="schGroup7"><heading>Commencement of Part 1</heading><paragraph eId="schedule-6-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-6-paragraph-33-1"><num>(1)</num><content>Part <ref href="#schedule-6-part-1">1</ref> is treated as having come into force on 6 April 2010.</content></subparagraph><subparagraph eId="schedule-6-paragraph-33-2"><num>(2)</num><content>But the definitions of “charity”, “charitable company” and “charitable trust” in that Part do not apply for the purposes of an enactment in relation to which, on that date, another definition applies until such time as that other definition ceases to have effect on the coming into force of provision made by or under Part <ref href="#schedule-6-part-2">2</ref>.</content></subparagraph><subparagraph eId="schedule-6-paragraph-33-3"><num>(3)</num><content>For provision about the coming into force of provision made by that Part, see paragraph <ref href="#schedule-6-paragraph-34">34</ref>.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement of Part 2</heading><paragraph eId="schedule-6-paragraph-34" class="schProv1"><num>34</num><subparagraph eId="schedule-6-paragraph-34-1"><num>(1)</num><intro>The repeal of the definition of “charity” in section 989 of ITA 2007 made by paragraph <ref href="#schedule-6-paragraph-23-6">23(6)</ref> above has effect—</intro><level class="para1" eId="schedule-6-paragraph-34-1-a"><num>(a)</num><content>so far as it applies for the purposes of Chapter 2 of Part 8 of that Act (gift aid), in relation to gifts made on or after 6 April 2010, and</content></level><level class="para1" eId="schedule-6-paragraph-34-1-b"><num>(b)</num><content>so far as it applies for other purposes, in accordance with such provision as the Treasury may make by order.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-34-2"><num>(2)</num><content>The other amendments made by Part <ref href="#schedule-6-part-2">2</ref> come into force in accordance with such provision as the Treasury may make by order.</content></subparagraph><subparagraph eId="schedule-6-paragraph-34-3"><num>(3)</num><intro>An order under this paragraph may—</intro><level class="para1" eId="schedule-6-paragraph-34-3-a"><num>(a)</num><content>make different provision for different purposes, and</content></level><level class="para1" eId="schedule-6-paragraph-34-3-b"><num>(b)</num><content>include transitional provision and savings.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-34-4"><num>(4)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement of Part 3</heading><paragraph eId="schedule-6-paragraph-35" class="schProv1"><num>35</num><content>The amendments made by Part <ref href="#schedule-6-part-3">3</ref> are treated as having come into force on 6 April 2010.</content></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-7"><num>SCHEDULE 7<authorialNote class="referenceNote">Section 31</authorialNote></num><heading>Gifts of shares etc to charities</heading><hcontainer name="crossheading" class="schGroup7"><heading>Gifts by individuals</heading><paragraph eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><content>Chapter 3 of Part 8 of ITA 2007 (relief for gifts by individuals of shares, securities and real property to charities etc) is amended as follows.</content></paragraph><paragraph eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-7-paragraph-2-1"><num>(1)</num><content>Section 437 (value of net benefit to charity) is amended as follows.</content></subparagraph><subparagraph eId="schedule-7-paragraph-2-2"><num>(2)</num><content>In subsection (1), for “market” (in both places) substitute “relevant”.</content></subparagraph><subparagraph eId="schedule-7-paragraph-2-3"><num>(3)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e13011"><num>(1A)</num><intro>In subsection (1) “relevant value” means—</intro><level class="para1" eId="d25e13017"><num>(a)</num><content>where subsection (1B) applies, the lower of the market value and the acquisition value, and</content></level><level class="para1" eId="d25e13023"><num>(b)</num><content>otherwise, the market value.</content></level></subsection><subsection eId="d25e13029"><num>(1B)</num><intro>This subsection applies where—</intro><level class="para1" eId="d25e13035"><num>(a)</num><content>the qualifying investment, or anything from which it derives or which it represents (whether in whole or in part and whether directly or indirectly), was acquired by the individual making the disposal within the period of 4 years ending with the day on which the disposal is made,</content></level><level class="para1" eId="d25e13041"><num>(b)</num><content>the acquisition was made as part of a scheme, and</content></level><level class="para1" eId="d25e13047"><num>(c)</num><content>the main purpose, or one of the main purposes, of the individual in entering into the scheme was to obtain relief, or an increased amount of relief, under this Chapter.</content></level></subsection><subsection eId="d25e13053"><num>(1C)</num><content>In subsection (1B) “scheme” includes any scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-4"><num>(4)</num><content><mod>In subsection (2), after the entry relating to section 438 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>section 438A (acquisition value of qualifying investments),</item></blockList></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph></paragraph><paragraph eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><content><mod>After section 438 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13083"><num>438A</num><heading>Acquisition value of qualifying investments</heading><subsection eId="d25e13087"><num>(1)</num><intro>For the purposes of this Chapter the acquisition value of a qualifying investment disposed of by an individual is—</intro><level class="para1" eId="d25e13093"><num>(a)</num><content>where the qualifying investment was acquired by the individual within the period of 4 years ending with the day on which the disposal is made, the cost to the individual of acquiring it, or</content></level><level class="para1" eId="d25e13099"><num>(b)</num><content>where something from which the qualifying investment derives or which it represents was so acquired, such proportion of the cost to the individual of acquiring that thing as is just and reasonable to attribute to the qualifying investment.</content></level></subsection><subsection eId="d25e13105"><num>(2)</num><intro>A reference in subsection (1) to the cost to the individual of an acquisition is to—</intro><level class="para1" eId="d25e13111"><num>(a)</num><content>the consideration given by the individual for the acquisition, less</content></level><level class="para1" eId="d25e13117"><num>(b)</num><content>any amount that is received in connection with the acquisition, by the individual or a person connected with the individual, as part of the scheme in question.</content></level></subsection></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><content><mod>In Schedule 4 to ITA 2007 (index of defined expressions), after the entry relating to accumulated or discretionary income insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml" xmlns:leg="http://www.legislation.gov.uk/namespaces/legislation"><default1:col span="1" style="width:67%"/><default1:col span="1" style="width:33%"/><default1:tbody><default1:tr><default1:td>acquisition value of a qualifying investment (in Chapter 3 of Part 8)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section 438A</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Gifts by companies</heading><paragraph eId="schedule-7-paragraph-5" class="schProv1"><num>5</num><content>Chapter 3 of Part 6 of CTA 2010 (charitable donations relief: amounts treated as qualifying charitable donations) is amended as follows.</content></paragraph><paragraph eId="schedule-7-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-7-paragraph-6-1"><num>(1)</num><content>Section 209 (value of net benefit to charity) is amended as follows.</content></subparagraph><subparagraph eId="schedule-7-paragraph-6-2"><num>(2)</num><content>In subsection (1), for “market” (in both places) substitute “relevant”.</content></subparagraph><subparagraph eId="schedule-7-paragraph-6-3"><num>(3)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e13174"><num>(1A)</num><intro>In subsection (1) “relevant value” means—</intro><level class="para1" eId="d25e13180"><num>(a)</num><content>where subsection (1B) applies, the lower of the market value and the acquisition value, and</content></level><level class="para1" eId="d25e13186"><num>(b)</num><content>otherwise, the market value.</content></level></subsection><subsection eId="d25e13192"><num>(1B)</num><intro>This subsection applies where—</intro><level class="para1" eId="d25e13198"><num>(a)</num><content>the qualifying investment, or anything from which it derives or which it represents (whether in whole or in part and whether directly or indirectly), was acquired by the company making the disposal within the period of 4 years ending with the day on which the disposal is made,</content></level><level class="para1" eId="d25e13204"><num>(b)</num><content>the acquisition was made as part of a scheme, and</content></level><level class="para1" eId="d25e13210"><num>(c)</num><content>the main purpose, or one of the main purposes, of the company in entering into the scheme was to obtain relief, or an increased amount of relief, as a result of this Chapter.</content></level></subsection><subsection eId="d25e13216"><num>(1C)</num><content>In subsection (1B) “scheme” includes any scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-4"><num>(4)</num><content><mod>In subsection (2), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e13229"><num>(aa)</num><content>section 210A (acquisition value of qualifying investments),</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph></paragraph><paragraph eId="schedule-7-paragraph-7" class="schProv1"><num>7</num><content><mod>After section 210 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13247"><num>210A</num><heading>Acquisition value of qualifying investments</heading><subsection eId="d25e13251"><num>(1)</num><intro>For the purposes of this Chapter the acquisition value of a qualifying investment disposed of by a company is—</intro><level class="para1" eId="d25e13257"><num>(a)</num><content>where the qualifying investment was acquired by the company within the period of 4 years ending with the day on which the disposal is made, the cost to the company of acquiring it, or</content></level><level class="para1" eId="d25e13263"><num>(b)</num><content>where something from which the qualifying investment derives or which it represents was so acquired, such proportion of the cost to the company of acquiring that thing as is just and reasonable to attribute to the qualifying investment.</content></level></subsection><subsection eId="d25e13269"><num>(2)</num><intro>A reference in subsection (1) to the cost to the company of an acquisition is to—</intro><level class="para1" eId="d25e13275"><num>(a)</num><content>the consideration given by the company for the acquisition, less</content></level><level class="para1" eId="d25e13281"><num>(b)</num><content>any amount that is received in connection with the acquisition, by the company or a person connected with it, as part of the scheme in question.</content></level></subsection></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-7-paragraph-8" class="schProv1"><num>8</num><content><mod>In Schedule 4 to CTA 2010 (index of defined expressions), after the entry relating to accounts (in Chapter 2 of Part 16) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml" xmlns:leg="http://www.legislation.gov.uk/namespaces/legislation"><default1:col span="1" style="width:67%"/><default1:col span="1" style="width:33%"/><default1:tbody><default1:tr><default1:td>acquisition value of a qualifying investment (in Chapter 3 of Part 6)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section 210A</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement and corresponding ICTA amendments</heading><paragraph eId="schedule-7-paragraph-9" class="schProv1"><num>9</num><content>The amendments made by this Schedule have effect in relation to any disposal made to a charity on or after 15 December 2009.</content></paragraph><paragraph eId="schedule-7-paragraph-10" class="schProv1"><num>10</num><content>Amendments corresponding to the ones made by paragraphs 6 and 7, having effect in relation to any such disposal, are to be treated as having been made in section 587B of ICTA.</content></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-8"><num>SCHEDULE 8<authorialNote class="referenceNote">Section 32</authorialNote></num><heading>Charities: miscellaneous amendments</heading><hcontainer name="crossheading" class="schGroup7"><heading>Payroll giving</heading><paragraph eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-8-paragraph-1-1"><num>(1)</num><content><mod>In ITA 2007, after section 521 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13347"><num>521A</num><heading>Gifts under payroll deduction schemes: income tax liability and exemption</heading><subsection eId="d25e13351"><num>(1)</num><content>This section applies if gifts are made to charitable trusts by individuals and the gifts are donations for the purposes of Part 12 of ITEPA 2003 (payroll giving).</content></subsection><subsection eId="d25e13357"><num>(2)</num><content>Income tax is charged on the gifts under this section.</content></subsection><subsection eId="d25e13363"><num>(3)</num><content>It is charged on the full amount of the gifts arising in the tax year.</content></subsection><subsection eId="d25e13369"><num>(4)</num><content>But a gift is not taken into account in calculating total income so far as it is applied to charitable purposes only.</content></subsection><subsection eId="d25e13375"><num>(5)</num><content>The trustees of the charitable trust are liable for any tax charged under this section.</content></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-2"><num>(2)</num><content><mod>In CTA 2010, after section 472 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13391"><num>472A</num><heading>Gifts under payroll deduction schemes: corporation tax liability and exemption</heading><subsection eId="d25e13395"><num>(1)</num><content>If a charitable company receives a gift from an individual and the gift is a donation for the purposes of Part 12 of ITEPA 2003 (payroll giving), the gift is treated as an amount in respect of which the charitable company is chargeable to corporation tax, under the charge to corporation tax on income.</content></subsection><subsection eId="d25e13401"><num>(2)</num><content>But the gift is not taken into account in calculating total profits so far as it is applied to charitable purposes only.</content></subsection><subsection eId="d25e13407"><num>(3)</num><content>The exemption under subsection (2) requires a claim.</content></subsection></section></quotedStructure></mod></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Payments to bodies outside the UK: non-charitable expenditure</heading><paragraph eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-8-paragraph-2-1"><num>(1)</num><content>In section 547(b) of ITA 2007 (payments by charitable trusts to bodies outside the UK), after “such steps as” insert “the Commissioners for Her Majesty’s Revenue and Customs consider”.</content></subparagraph><subparagraph eId="schedule-8-paragraph-2-2"><num>(2)</num><content>In section 500(b) of CTA 2010 (payments by charitable companies to bodies outside the UK), after “such steps as” insert “the Commissioners for Her Majesty’s Revenue and Customs consider”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Gift aid: disqualified overseas gifts</heading><paragraph eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-8-paragraph-3-1"><num>(1)</num><content>Chapter 2 of Part 8 of ITA 2007 (gift aid) is amended as follows.</content></subparagraph><subparagraph eId="schedule-8-paragraph-3-2"><num>(2)</num><intro>In section 416 (meaning of “qualifying donation”)—</intro><level class="para1" eId="schedule-8-paragraph-3-2-a"><num>(a)</num><content>in subsection (1)(a) for “G” substitute “F”, and</content></level><level class="para1" eId="schedule-8-paragraph-3-2-b"><num>(b)</num><content>omit subsection (8).</content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-3"><num>(3)</num><content>Omit section 422 (disqualified overseas gifts).</content></subparagraph><subparagraph eId="schedule-8-paragraph-3-4"><num>(4)</num><content>In section 429(3) (giving through self-assessment return), for “G” substitute “F”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Gift aid administration: charitable trusts</heading><paragraph eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-8-paragraph-4-1"><num>(1)</num><content>Section 42 of TMA 1970 (procedure for making claims etc) is amended as follows.</content></subparagraph><subparagraph eId="schedule-8-paragraph-4-2"><num>(2)</num><content>In subsection (2), for “(3A)” substitute “(3ZA)”.</content></subparagraph><subparagraph eId="schedule-8-paragraph-4-3"><num>(3)</num><content><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e13501"><num>(3ZA)</num><content>Subsection (2) above shall not apply in relation to any claim by the trustees of a charitable trust for an amount to be exempt from tax by virtue of section 521(4) of ITA 2007 (gifts entitling donor to gift aid relief: charitable trusts).</content></subsection></quotedStructure></mod></content></subparagraph></paragraph><paragraph eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-8-paragraph-5-1"><num>(1)</num><content>ITA 2007 is amended as follows.</content></subparagraph><subparagraph eId="schedule-8-paragraph-5-2"><num>(2)</num><content>In section 518(4) (overview of Part 10), for “section 538” substitute “sections 538 and 538A”.</content></subparagraph><subparagraph eId="schedule-8-paragraph-5-3"><num>(3)</num><content><mod>After section 538 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13533"><num>538A</num><heading>Claims in relation to gift aid relief</heading><subsection eId="d25e13537"><num>(1)</num><content>This section applies to claims for amounts to be exempt from tax by virtue of section 521(4) (gifts entitling donor to gift aid relief: charitable trusts).</content></subsection><subsection eId="d25e13543"><num>(2)</num><intro>A claim to which this section applies may be made—</intro><level class="para1" eId="d25e13549"><num>(a)</num><content>to an officer of Revenue and Customs, or</content></level><level class="para1" eId="d25e13555"><num>(b)</num><content>by being included in a return under section 8A of TMA 1970 (trustee’s self-assessment return).</content></level></subsection><subsection eId="d25e13561"><num>(3)</num><intro>In this section—</intro><hcontainer name="definition"><content>“free-standing claim” means a claim made as mentioned in subsection (2)(a), and</content></hcontainer><hcontainer name="definition"><content>“tax return claim” means a claim made as mentioned in subsection (2)(b).</content></hcontainer></subsection><subsection eId="d25e13576"><num>(4)</num><intro>The Commissioners for Her Majesty’s Revenue and Customs may by regulations make provision—</intro><level class="para1" eId="d25e13582"><num>(a)</num><content>limiting the number of free-standing claims that may be made by a person in a tax year, or</content></level><level class="para1" eId="d25e13588"><num>(b)</num><content>requiring a claim for an amount below an amount specified in the regulations to be made as a tax return claim.</content></level></subsection><subsection eId="d25e13594"><num>(5)</num><content>The regulations may make different provision for different cases or purposes.</content></subsection></section></quotedStructure></mod></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Gift aid administration: charitable companies</heading><paragraph eId="schedule-8-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-8-paragraph-6-1"><num>(1)</num><content>Schedule 18 to FA 1998 (company tax returns, assessments and related matters) is amended as follows.</content></subparagraph><subparagraph eId="schedule-8-paragraph-6-2"><num>(2)</num><content><mod>In paragraph 9 (claims that cannot be made without a return), after sub-paragraph (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e13620"><num>(2A)</num><intro>But this paragraph does not apply to a claim by a company for an amount to be exempt from tax by virtue of—</intro><level class="para1" eId="d25e13626"><num>(a)</num><content>section 472 of CTA 2010 (gifts qualifying for gift aid relief: charitable companies), or</content></level><level class="para1" eId="d25e13632"><num>(b)</num><content>section 475 of that Act (gifts qualifying for gift aid relief: eligible bodies).</content></level></subparagraph></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-8-paragraph-6-3"><num>(3)</num><content><mod>In paragraph 57 (claims or elections affecting a single accounting period), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e13645"><num>(1A)</num><intro>But this paragraph does not apply to a claim by a company for an amount to be exempt from tax by virtue of—</intro><level class="para1" eId="d25e13651"><num>(a)</num><content>section 472 of CTA 2010 (gifts qualifying for gift aid relief: charitable companies), or</content></level><level class="para1" eId="d25e13657"><num>(b)</num><content>section 475 of that Act (gifts qualifying for gift aid relief: eligible bodies).</content></level></subparagraph></quotedStructure></mod></content></subparagraph></paragraph><paragraph eId="schedule-8-paragraph-7" class="schProv1"><num>7</num><content><mod>In CTA 2010, after section 477 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e13670"><heading>Claims</heading><section eId="d25e13676"><num>477A</num><heading>Claims in relation to gift aid relief</heading><subsection eId="d25e13680"><num>(1)</num><intro>This section applies to claims for amounts to be exempt from tax by virtue of—</intro><level class="para1" eId="d25e13686"><num>(a)</num><content>section 472 (gifts qualifying for gift aid relief: charitable companies), or</content></level><level class="para1" eId="d25e13692"><num>(b)</num><content>section 475 (gifts qualifying for gift aid relief: eligible bodies).</content></level></subsection><subsection eId="d25e13698"><num>(2)</num><intro>A claim to which this section applies may be made—</intro><level class="para1" eId="d25e13704"><num>(a)</num><content>to an officer of Revenue and Customs, or</content></level><level class="para1" eId="d25e13710"><num>(b)</num><content>where the claimant is a company, by being included in the claimant’s company tax return.</content></level></subsection><subsection eId="d25e13716"><num>(3)</num><intro>In this section—</intro><hcontainer name="definition"><content>“free-standing claim” means a claim made as mentioned in subsection (2)(a), and</content></hcontainer><hcontainer name="definition"><content>“tax return claim” means a claim made as mentioned in subsection (2)(b).</content></hcontainer></subsection><subsection eId="d25e13731"><num>(4)</num><intro>The Commissioners for Her Majesty’s Revenue and Customs may by regulations make provision—</intro><level class="para1" eId="d25e13737"><num>(a)</num><content>limiting the number of free-standing claims that may be made by a person in a tax year, or</content></level><level class="para1" eId="d25e13743"><num>(b)</num><content>requiring a claim for an amount below an amount specified in the regulations to be made as a tax return claim.</content></level></subsection><subsection eId="d25e13749"><num>(5)</num><content>The regulations may make different provision for different cases or purposes.</content></subsection></section></hcontainer></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-8-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-8-paragraph-8-1"><num>(1)</num><content>The amendments made by paragraph <ref href="#schedule-8-paragraph-1">1</ref> have effect in relation to gifts made on or after 24 March 2010.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-2"><num>(2)</num><content>An amendment corresponding to that made by paragraph <ref href="#schedule-8-paragraph-1-2">1(2)</ref>, having effect in relation to gifts made on or after that date, is to be treated as having been made in ICTA.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-3"><num>(3)</num><content>The amendments made by paragraph <ref href="#schedule-8-paragraph-2">2</ref> have effect in relation to payments representing expenditure incurred on or after 24 March.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-4"><num>(4)</num><content>An amendment corresponding to that made by paragraph <ref href="#schedule-8-paragraph-2-2">2(2)</ref>, having effect in relation to payments representing expenditure incurred on or after that date, is to be treated as having been made in ICTA.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-5"><num>(5)</num><content>The amendments made by paragraph <ref href="#schedule-8-paragraph-3">3</ref> have effect in relation to gifts made on or after 6 April 2010.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-6"><num>(6)</num><content>The amendments made by paragraphs <ref href="#schedule-8-paragraph-4">4</ref> and <ref href="#schedule-8-paragraph-6">6</ref> have effect in relation to claims whenever made.</content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-9"><num>SCHEDULE 9<authorialNote class="referenceNote">Section 34</authorialNote></num><heading>Foreign currency bank accounts</heading><paragraph eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><content><mod>In TCGA 1992, after section 252 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13838"><num>252A</num><heading>Foreign currency bank accounts and the remittance basis</heading><content>Schedule 8A contains provision about the calculation of chargeable gains on disposals of debts to which section 252(1) applies which are not situated in the United Kingdom.</content></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><content><mod>In that Act, after Schedule 8 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule" eId="d25e13851"><num>Schedule 8A</num><heading>Foreign currency bank accounts</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e13858"><heading>Introductory</heading><paragraph eId="d25e13861" class="schProv1"><num>1</num><subparagraph eId="d25e13865"><num>(1)</num><intro>This Schedule applies where—</intro><level class="para1" eId="d25e13871"><num>(a)</num><content>an individual makes a disposal of a debt to which section 252(1) applies (“the relevant disposal”),</content></level><level class="para1" eId="d25e13877"><num>(b)</num><content>the debt (“the section 252 debt”) is not situated in the United Kingdom, and</content></level><level class="para1" eId="d25e13883"><num>(c)</num><content>money or money’s worth which is remitted foreign income (“the section 37 amount”) is excluded under section 37 from the consideration for the relevant disposal.</content></level></subparagraph><subparagraph eId="d25e13889"><num>(2)</num><content>For this purpose “remitted foreign income” means income of the individual which is chargeable to income tax on the alternative basis of charge set out in Chapter A1 of Part 14 of ITA 2007 (remittance basis).</content></subparagraph><subparagraph eId="d25e13895"><num>(3)</num><content>In determining whether the condition in sub-paragraph (1)(c) is met, the following provisions of this Schedule are to be ignored.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e13901"><heading>Section 37 operates to exclude the whole consideration</heading><paragraph eId="d25e13904" class="schProv1"><num>2</num><subparagraph eId="d25e13908"><num>(1)</num><content>This paragraph applies where the section 37 amount constitutes the whole of the unreduced consideration.</content></subparagraph><subparagraph eId="d25e13914"><num>(2)</num><content>If the relevant disposal is a part disposal of the section 252 debt, section 42 applies as if the reference in subsection (2)(a) of that section to the consideration for the disposal were a reference to the unreduced consideration for the disposal.</content></subparagraph><subparagraph eId="d25e13920"><num>(3)</num><content>Any loss accruing to the individual on the relevant disposal is not an allowable loss.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e13926"><heading>Section 37 operates to exclude part of the consideration</heading><paragraph eId="d25e13929" class="schProv1"><num>3</num><subparagraph eId="d25e13933"><num>(1)</num><content>This paragraph applies where the section 37 amount constitutes part of the unreduced consideration.</content></subparagraph><subparagraph eId="d25e13939"><num>(2)</num><intro>For the purposes of this Act the relevant disposal is to be treated as if it were—</intro><level class="para1" eId="d25e13945"><num>(a)</num><content>a disposal of so much of the section 252 debt as is represented by the section 37 proportion of the sum mentioned in sub-paragraph (3) (“debt A”), and</content></level><level class="para1" eId="d25e13951"><num>(b)</num><content>a separate disposal of so much of the section 252 debt as is represented by the remainder of that sum (“debt B”).</content></level></subparagraph><subparagraph eId="d25e13957"><num>(3)</num><intro>That sum is—</intro><level class="para1" eId="d25e13963"><num>(a)</num><content>if the relevant disposal is a disposal of the whole of the section 252 debt, the sum referred to in section 252(1), and</content></level><level class="para1" eId="d25e13969"><num>(b)</num><content>if the relevant disposal is a part disposal of that debt, the proportion of the sum referred to in section 252(1) to which that part disposal relates.</content></level></subparagraph><subparagraph eId="d25e13975"><num>(4)</num><intro>Sub-paragraphs (5) to (9) apply for the purposes of—</intro><level class="para1" eId="d25e13981"><num>(a)</num><content>the computation of the gain accruing on the disposals under sub-paragraph (2), and</content></level><level class="para1" eId="d25e13987"><num>(b)</num><content>the application of Chapter 3 of Part 2 of this Act in relation to the part of the debt (if any) which remains undisposed of.</content></level></subparagraph><subparagraph eId="d25e13993"><num>(5)</num><intro>The consideration for the disposal (before any exclusion under section 37) is—</intro><level class="para1" eId="d25e13999"><num>(a)</num><content>in the case of debt A, the section 37 amount, and</content></level><level class="para1" eId="d25e14005"><num>(b)</num><content>in the case of debt B, the remainder of the unreduced consideration.</content></level></subparagraph><subparagraph eId="d25e14011"><num>(6)</num><intro>If the relevant disposal is not a part disposal of the section 252 debt—</intro><level class="para1" eId="d25e14017"><num>(a)</num><content>the section 37 proportion of the debt costs and the disposal costs is to be attributed to debt A, and</content></level><level class="para1" eId="d25e14023"><num>(b)</num><content>the remaining debt costs and disposal costs are to be attributed to debt B.</content></level></subparagraph><subparagraph eId="d25e14029"><num>(7)</num><content>Sub-paragraphs (8) and (9) apply if the relevant disposal is a part disposal of the section 252 debt.</content></subparagraph><subparagraph eId="d25e14035"><num>(8)</num><content>Section 42(2) applies as if it provided for the debt costs to be apportioned between debt A, debt B and the remainder of the section 252 debt in the proportions which those parts of the section 252 debt bear to one another.</content></subparagraph><subparagraph eId="d25e14041"><num>(9)</num><content>The section 37 proportion of the disposal costs is to be attributed to debt A and the remaining disposal costs are to be attributed to debt B.</content></subparagraph><subparagraph eId="d25e14047"><num>(10)</num><content>Any loss accruing to the individual on the disposal of debt A is not an allowable loss.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e14053"><heading>Interpretation</heading><paragraph eId="d25e14056" class="schProv1"><num>4</num><intro>In this Schedule—</intro><hcontainer name="definition"><content>“debt costs” means the sums which under section 38(1)(a) and (b) are attributable to the section 252 debt;</content></hcontainer><hcontainer name="definition"><content>“disposal costs” means the costs within section 38(1)(c) in relation to the relevant disposal;</content></hcontainer><hcontainer name="definition"><content>“the section 252 debt”, “the relevant disposal” and “the section 37 amount” are to be construed in accordance with paragraph 1;</content></hcontainer><hcontainer name="definition"><content>“the section 37 proportion” means the proportion of the unreduced consideration which constitutes the section 37 amount;</content></hcontainer><hcontainer name="definition"><content>“the unreduced consideration” means the consideration for the relevant disposal ignoring the exclusion of the section 37 amount.</content></hcontainer></paragraph></hcontainer></hcontainer></quotedStructure></mod></content></paragraph><paragraph eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><content>The amendments made by this Schedule have effect in relation to disposals on or after 16 December 2009.</content></paragraph></hcontainer><hcontainer name="schedule" eId="schedule-10"><num>SCHEDULE 10<authorialNote class="referenceNote">Section 35</authorialNote></num><heading>Penalties: offshore income etc</heading><hcontainer name="crossheading" class="schGroup7"><heading>Schedule 24 to FA 2007</heading><paragraph eId="schedule-10-paragraph-1" class="schProv1"><num>1</num><content>Schedule 24 to FA 2007 (penalties for errors) is amended as follows.</content></paragraph><paragraph eId="schedule-10-paragraph-2" class="schProv1"><num>2</num><content><mod>For paragraph 4 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><paragraph eId="d25e14114" class="schProv1"><num>4</num><subparagraph eId="d25e14118"><num>(1)</num><content>This paragraph sets out the penalty payable under paragraph 1.</content></subparagraph><subparagraph eId="d25e14124"><num>(2)</num><intro>If the inaccuracy is in category 1, the penalty is—</intro><level class="para1" eId="d25e14130"><num>(a)</num><content>for careless action, 30% of the potential lost revenue,</content></level><level class="para1" eId="d25e14136"><num>(b)</num><content>for deliberate but not concealed action, 70% of the potential lost revenue, and</content></level><level class="para1" eId="d25e14142"><num>(c)</num><content>for deliberate and concealed action, 100% of the potential lost revenue.</content></level></subparagraph><subparagraph eId="d25e14148"><num>(3)</num><intro>If the inaccuracy is in category 2, the penalty is—</intro><level class="para1" eId="d25e14154"><num>(a)</num><content>for careless action, 45% of the potential lost revenue,</content></level><level class="para1" eId="d25e14160"><num>(b)</num><content>for deliberate but not concealed action, 105% of the potential lost revenue, and</content></level><level class="para1" eId="d25e14166"><num>(c)</num><content>for deliberate and concealed action, 150% of the potential lost revenue.</content></level></subparagraph><subparagraph eId="d25e14172"><num>(4)</num><intro>If the inaccuracy is in category 3, the penalty is—</intro><level class="para1" eId="d25e14178"><num>(a)</num><content>for careless action, 60% of the potential lost revenue,</content></level><level class="para1" eId="d25e14184"><num>(b)</num><content>for deliberate but not concealed action, 140% of the potential lost revenue, and</content></level><level class="para1" eId="d25e14190"><num>(c)</num><content>for deliberate and concealed action, 200% of the potential lost revenue.</content></level></subparagraph><subparagraph eId="d25e14196"><num>(5)</num><content>Paragraph 4A explains the 3 categories of inaccuracy.</content></subparagraph></paragraph><paragraph eId="d25e14202" class="schProv1"><num>4A</num><subparagraph eId="d25e14206"><num>(1)</num><intro>An inaccuracy is in category 1 if—</intro><level class="para1" eId="d25e14212"><num>(a)</num><content>it involves a domestic matter, or</content></level><level class="para1" eId="d25e14218"><num>(b)</num><intro>it involves an offshore matter and—</intro><level class="para2" eId="d25e14224"><num>(i)</num><content>the territory in question is a category 1 territory, or</content></level><level class="para2" eId="d25e14230"><num>(ii)</num><content>the tax at stake is a tax other than income tax or capital gains tax.</content></level></level></subparagraph><subparagraph eId="d25e14236"><num>(2)</num><intro>An inaccuracy is in category 2 if—</intro><level class="para1" eId="d25e14242"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1" eId="d25e14248"><num>(b)</num><content>the territory in question is a category 2 territory, and</content></level><level class="para1" eId="d25e14254"><num>(c)</num><content>the tax at stake is income tax or capital gains tax.</content></level></subparagraph><subparagraph eId="d25e14260"><num>(3)</num><intro>An inaccuracy is in category 3 if—</intro><level class="para1" eId="d25e14266"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1" eId="d25e14272"><num>(b)</num><content>the territory in question is a category 3 territory, and</content></level><level class="para1" eId="d25e14278"><num>(c)</num><content>the tax at stake is income tax or capital gains tax.</content></level></subparagraph><subparagraph eId="d25e14284"><num>(4)</num><intro>An inaccuracy “involves an offshore matter” if it results in a potential loss of revenue that is charged on or by reference to—</intro><level class="para1" eId="d25e14290"><num>(a)</num><content>income arising from a source in a territory outside the UK,</content></level><level class="para1" eId="d25e14296"><num>(b)</num><content>assets situated or held in a territory outside the UK,</content></level><level class="para1" eId="d25e14302"><num>(c)</num><content>activities carried on wholly or mainly in a territory outside the UK, or</content></level><level class="para1" eId="d25e14308"><num>(d)</num><content>anything having effect as if it were income, assets or activities of a kind described above.</content></level></subparagraph><subparagraph eId="d25e14314"><num>(5)</num><content>An inaccuracy “involves a domestic matter” if it results in a potential loss of revenue that is charged on or by reference to anything not mentioned in sub-paragraph (4)(a) to (d).</content></subparagraph><subparagraph eId="d25e14320"><num>(6)</num><intro>If a single inaccuracy is in more than one category (each referred to as a “relevant category”)—</intro><level class="para1" eId="d25e14326"><num>(a)</num><content>it is to be treated for the purposes of this Schedule as if it were separate inaccuracies, one in each relevant category according to the matters that it involves, and</content></level><level class="para1" eId="d25e14332"><num>(b)</num><content>the potential lost revenue is to be calculated separately in respect of each separate inaccuracy.</content></level></subparagraph><subparagraph eId="d25e14338"><num>(7)</num><content>“Category 1 territory”, “category 2 territory” and “category 3 territory” are defined in paragraph 21A.</content></subparagraph><subparagraph eId="d25e14344"><num>(8)</num><content>“Assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling.</content></subparagraph></paragraph><paragraph eId="d25e14350" class="schProv1"><num>4B</num><content>The penalty payable under paragraph 1A is 100% of the potential lost revenue.</content></paragraph><paragraph eId="d25e14356" class="schProv1"><num>4C</num><content>The penalty payable under paragraph 2 is 30% of the potential lost revenue.</content></paragraph><paragraph eId="d25e14362" class="schProv1"><num>4D</num><content>Paragraphs 5 to 8 define “potential lost revenue”.</content></paragraph></quotedStructure></mod></content></paragraph><paragraph eId="schedule-10-paragraph-3" class="schProv1"><num>3</num><content><mod>For paragraph 10 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><paragraph eId="d25e14375" class="schProv1"><num>10</num><subparagraph eId="d25e14379"><num>(1)</num><content>If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.</content></subparagraph><subparagraph eId="d25e14385"><num>(2)</num><intro>But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—</intro><level class="para1" eId="d25e14391"><num>(a)</num><content>in the case of a prompted disclosure, in column 2 of the Table, and</content></level><level class="para1" eId="d25e14397"><num>(b)</num><content>in the case of an unprompted disclosure, in column 3 of the Table.</content></level></subparagraph><wrapUp><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml" xmlns:leg="http://www.legislation.gov.uk/namespaces/legislation"><default1:col span="1" style="width:33%"/><default1:col span="1" style="width:33%"/><default1:col span="1" style="width:33%"/><default1:thead><default1:tr><default1:th xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt">Standard % </default1:th><default1:th xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt">Minimum % for prompted disclosure</default1:th><default1:th xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt">Minimum % for unprompted disclosure</default1:th></default1:tr></default1:thead><default1:tbody><default1:tr><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-top-color="black">30%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-top-color="black">15%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-top-color="black">0%</default1:td></default1:tr><default1:tr><default1:td>45%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">22.5%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">0%</default1:td></default1:tr><default1:tr><default1:td>60%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">30%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">0%</default1:td></default1:tr><default1:tr><default1:td>70%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">35%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">20%</default1:td></default1:tr><default1:tr><default1:td>105%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">52.5%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">30%</default1:td></default1:tr><default1:tr><default1:td>140%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">70%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">40%</default1:td></default1:tr><default1:tr><default1:td>100%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">50%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">30%</default1:td></default1:tr><default1:tr><default1:td>150%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">75%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">45%</default1:td></default1:tr><default1:tr><default1:td>200%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">100%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">60%</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></wrapUp></paragraph></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph><paragraph eId="schedule-10-paragraph-4" class="schProv1"><num>4</num><content><mod>In paragraph 12 (interaction with other penalties), for sub-paragraph (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e14489"><num>(4)</num><content>Where penalties are imposed under paragraphs 1 and 1A in respect of the same inaccuracy, the aggregate of the amounts of the penalties must not exceed the relevant percentage of the potential lost revenue.</content></subparagraph><subparagraph eId="d25e14495"><num>(5)</num><intro>The relevant percentage is—</intro><level class="para1" eId="d25e14501"><num>(a)</num><content>if the penalty imposed under paragraph 1 is for an inaccuracy in category 1, 100%,</content></level><level class="para1" eId="d25e14507"><num>(b)</num><content>if the penalty imposed under paragraph 1 is for an inaccuracy in category 2, 150%, and</content></level><level class="para1" eId="d25e14513"><num>(c)</num><content>if the penalty imposed under paragraph 1 is for an inaccuracy in category 3, 200%.</content></level></subparagraph></quotedStructure></mod></content></paragraph><paragraph eId="schedule-10-paragraph-5" class="schProv1"><num>5</num><content><mod>In Part 5 (general), before the heading “Interpretation” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7" eId="d25e14526"><heading>Classification of territories</heading><paragraph eId="d25e14529" class="schProv1"><num>21A</num><subparagraph eId="d25e14533"><num>(1)</num><content>A category 1 territory is a territory designated as a category 1 territory by order made by the Treasury.</content></subparagraph><subparagraph eId="d25e14539"><num>(2)</num><intro>A category 2 territory is a territory that is neither—</intro><level class="para1" eId="d25e14545"><num>(a)</num><content>a category 1 territory, nor</content></level><level class="para1" eId="d25e14551"><num>(b)</num><content>a category 3 territory.</content></level></subparagraph><subparagraph eId="d25e14557"><num>(3)</num><content>A category 3 territory is a territory designated as a category 3 territory by order made by the Treasury.</content></subparagraph><subparagraph eId="d25e14563"><num>(4)</num><intro>In considering how to classify a territory for the purposes of this paragraph, the Treasury must have regard to—</intro><level class="para1" eId="d25e14569"><num>(a)</num><content>the existence of any arrangements between the UK and that territory for the exchange of information for tax enforcement purposes,</content></level><level class="para1" eId="d25e14575"><num>(b)</num><content>the quality of any such arrangements (in particular, whether they provide for information to be exchanged automatically or on request), and</content></level><level class="para1" eId="d25e14581"><num>(c)</num><content>the benefit that the UK would be likely to obtain from receiving information from that territory, were such arrangements to exist with it.</content></level></subparagraph><subparagraph eId="d25e14587"><num>(5)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph><subparagraph eId="d25e14593"><num>(6)</num><content>Subject to sub-paragraph (7), an instrument containing an order under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.</content></subparagraph><subparagraph eId="d25e14599"><num>(7)</num><intro>If the order is—</intro><level class="para1" eId="d25e14605"><num>(a)</num><content>the first order to be made under sub-paragraph (1), or</content></level><level class="para1" eId="d25e14611"><num>(b)</num><content>the first order to be made under sub-paragraph (3),</content></level><wrapUp>it may not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, the House of Commons.</wrapUp></subparagraph><subparagraph eId="d25e14619"><num>(8)</num><content>An order under this paragraph does not apply to inaccuracies in a document given to HMRC (or, in a case within paragraph 3(2), inaccuracies discovered by P) before the date on which the order comes into force.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e14625"><heading>Location of assets etc</heading><paragraph eId="d25e14628" class="schProv1"><num>21B</num><subparagraph eId="d25e14632"><num>(1)</num><intro>The Treasury may by regulations make provision for determining for the purposes of paragraph 4A where—</intro><level class="para1" eId="d25e14638"><num>(a)</num><content>a source of income is located,</content></level><level class="para1" eId="d25e14644"><num>(b)</num><content>an asset is situated or held, or</content></level><level class="para1" eId="d25e14650"><num>(c)</num><content>activities are wholly or mainly carried on.</content></level></subparagraph><subparagraph eId="d25e14656"><num>(2)</num><content>Different provision may be made for different cases and for income tax and capital gains tax.</content></subparagraph><subparagraph eId="d25e14662"><num>(3)</num><content>Regulations under this paragraph are to be made by statutory instrument.</content></subparagraph><subparagraph eId="d25e14668"><num>(4)</num><content>An instrument containing regulations under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.</content></subparagraph></paragraph></hcontainer></quotedStructure></mod></content></paragraph><paragraph eId="schedule-10-paragraph-6" class="schProv1"><num>6</num><content><mod>After paragraph 23A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><paragraph eId="d25e14681" class="schProv1"><num>23B</num><content>UK” means the United Kingdom, including the territorial sea of the United Kingdom.</content></paragraph></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Schedule 41 to FA 2008</heading><paragraph eId="schedule-10-paragraph-7" class="schProv1"><num>7</num><content>Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and excise wrongdoing) is amended as follows.</content></paragraph><paragraph eId="schedule-10-paragraph-8" class="schProv1"><num>8</num><content><mod>For paragraph 6 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><paragraph eId="d25e14703" class="schProv1"><num>6</num><subparagraph eId="d25e14707"><num>(1)</num><content>This paragraph sets out the penalty payable under paragraph 1.</content></subparagraph><subparagraph eId="d25e14713"><num>(2)</num><intro>If the failure is in category 1, the penalty is—</intro><level class="para1" eId="d25e14719"><num>(a)</num><content>for a deliberate and concealed failure, 100% of the potential lost revenue,</content></level><level class="para1" eId="d25e14725"><num>(b)</num><content>for a deliberate but not concealed failure, 70% of the potential lost revenue, and</content></level><level class="para1" eId="d25e14731"><num>(c)</num><content>for any other case, 30% of the potential lost revenue.</content></level></subparagraph><subparagraph eId="d25e14737"><num>(3)</num><intro>If the failure is in category 2, the penalty is—</intro><level class="para1" eId="d25e14743"><num>(a)</num><content>for a deliberate and concealed failure, 150% of the potential lost revenue,</content></level><level class="para1" eId="d25e14749"><num>(b)</num><content>for a deliberate but not concealed failure, 105% of the potential lost revenue, and</content></level><level class="para1" eId="d25e14755"><num>(c)</num><content>for any other case, 45% of the potential lost revenue.</content></level></subparagraph><subparagraph eId="d25e14761"><num>(4)</num><intro>If the failure is in category 3, the penalty is—</intro><level class="para1" eId="d25e14767"><num>(a)</num><content>for a deliberate and concealed failure, 200% of the potential lost revenue,</content></level><level class="para1" eId="d25e14773"><num>(b)</num><content>for a deliberate but not concealed failure, 140% of the potential lost revenue, and</content></level><level class="para1" eId="d25e14779"><num>(c)</num><content>for any other case, 60% of the potential lost revenue.</content></level></subparagraph><subparagraph eId="d25e14785"><num>(5)</num><content>Paragraph 6A explains the 3 categories of failure.</content></subparagraph></paragraph><paragraph eId="d25e14791" class="schProv1"><num>6A</num><subparagraph eId="d25e14795"><num>(1)</num><intro>A failure is in category 1 if—</intro><level class="para1" eId="d25e14801"><num>(a)</num><content>it involves a domestic matter, or</content></level><level class="para1" eId="d25e14807"><num>(b)</num><intro>it involves an offshore matter and—</intro><level class="para2" eId="d25e14813"><num>(i)</num><content>the territory in question is a category 1 territory, or</content></level><level class="para2" eId="d25e14819"><num>(ii)</num><content>the tax at stake is a tax other than income tax or capital gains tax.</content></level></level></subparagraph><subparagraph eId="d25e14825"><num>(2)</num><intro>A failure is in category 2 if—</intro><level class="para1" eId="d25e14831"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1" eId="d25e14837"><num>(b)</num><content>the territory in question is a category 2 territory, and</content></level><level class="para1" eId="d25e14843"><num>(c)</num><content>the tax at stake is income tax or capital gains tax.</content></level></subparagraph><subparagraph eId="d25e14849"><num>(3)</num><intro>A failure is in category 3 if—</intro><level class="para1" eId="d25e14855"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1" eId="d25e14861"><num>(b)</num><content>the territory in question is a category 3 territory, and</content></level><level class="para1" eId="d25e14867"><num>(c)</num><content>the tax at stake is income tax or capital gains tax.</content></level></subparagraph><subparagraph eId="d25e14873"><num>(4)</num><intro>A failure “involves an offshore matter” if it results in a potential loss of revenue that is charged on or by reference to—</intro><level class="para1" eId="d25e14879"><num>(a)</num><content>income arising from a source in a territory outside the UK,</content></level><level class="para1" eId="d25e14885"><num>(b)</num><content>assets situated or held in a territory outside the UK,</content></level><level class="para1" eId="d25e14891"><num>(c)</num><content>activities carried on wholly or mainly in a territory outside the UK, or</content></level><level class="para1" eId="d25e14897"><num>(d)</num><content>anything having effect as if it were income, assets or activities of a kind described above.</content></level></subparagraph><subparagraph eId="d25e14903"><num>(5)</num><content>A failure “involves a domestic matter” if it results in a potential loss of revenue that is charged on or by reference to anything not mentioned in sub-paragraph (4)(a) to (d).</content></subparagraph><subparagraph eId="d25e14909"><num>(6)</num><intro>If a single failure is in more than one category (each referred to as a “relevant category”)—</intro><level class="para1" eId="d25e14915"><num>(a)</num><content>it is to be treated for the purposes of this Schedule as if it were separate failures, one in each relevant category according to the matters that it involves, and</content></level><level class="para1" eId="d25e14921"><num>(b)</num><content>the potential lost revenue in respect of each separate failure is taken to be such share of the potential lost revenue in respect of the single failure (see paragraphs 7 and 11) as is just and reasonable.</content></level></subparagraph><subparagraph eId="d25e14927"><num>(7)</num><intro>For the purposes of this Schedule—</intro><level class="para1" eId="d25e14933"><num>(a)</num><content>paragraph 21A of Schedule 24 to FA 2007 (classification of territories) has effect, but</content></level><level class="para1" eId="d25e14939"><num>(b)</num><content>an order under that paragraph does not apply to relevant obligations that are to be complied with by a date before the date on which the order comes into force.</content></level></subparagraph><subparagraph eId="d25e14945"><num>(8)</num><content>Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets etc) apply for the purposes of paragraph 6A of this Schedule as they apply for the purposes of paragraph 4A of that Schedule.</content></subparagraph><subparagraph eId="d25e14951"><num>(9)</num><intro>In this paragraph—</intro><hcontainer name="definition"><content>“assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling;</content></hcontainer><hcontainer name="definition"><content>“UK” means the United Kingdom, including the territorial sea of the United Kingdom.</content></hcontainer></subparagraph></paragraph><paragraph eId="d25e14966" class="schProv1"><num>6B</num><intro>The penalty payable under any of paragraphs 2, 3(1) and 4 is—</intro><level class="para1" eId="d25e14972"><num>(a)</num><content>for a deliberate and concealed act or failure, 100% of the potential lost revenue,</content></level><level class="para1" eId="d25e14978"><num>(b)</num><content>for a deliberate but not concealed act or failure, 70% of the potential lost revenue, and</content></level><level class="para1" eId="d25e14984"><num>(c)</num><content>for any other case, 30% of the potential lost revenue.</content></level></paragraph><paragraph eId="d25e14990" class="schProv1"><num>6C</num><content>The penalty payable under paragraph 3(2) is 100% of the potential lost revenue.</content></paragraph><paragraph eId="d25e14996" class="schProv1"><num>6D</num><content>Paragraphs 7 to 11 define “potential lost revenue”.</content></paragraph></quotedStructure></mod></content></paragraph><paragraph eId="schedule-10-paragraph-9" class="schProv1"><num>9</num><content><mod>For paragraph 13 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><paragraph eId="d25e15009" class="schProv1"><num>13</num><subparagraph eId="d25e15013"><num>(1)</num><content>If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.</content></subparagraph><subparagraph eId="d25e15019"><num>(2)</num><intro>But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—</intro><level class="para1" eId="d25e15025"><num>(a)</num><content>for a prompted disclosure, in column 2 of the Table, and</content></level><level class="para1" eId="d25e15031"><num>(b)</num><content>for an unprompted disclosure, in column 3 of the Table.</content></level></subparagraph><subparagraph eId="d25e15037"><num>(3)</num><intro>Where the Table shows a different minimum for case A and case B—</intro><level class="para1" eId="d25e15043"><num>(a)</num><intro>the case A minimum applies if—</intro><level class="para2" eId="d25e15049"><num>(i)</num><content>the penalty is one under paragraph 1, and</content></level><level class="para2" eId="d25e15055"><num>(ii)</num><content>HMRC become aware of the failure less than 12 months after the time when the tax first becomes unpaid by reason of the failure, and</content></level></level><level class="para1" eId="d25e15061"><num>(b)</num><content>otherwise, the case B minimum applies.</content></level></subparagraph><wrapUp><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml" xmlns:leg="http://www.legislation.gov.uk/namespaces/legislation"><default1:col span="1" style="width:33%"/><default1:col span="1" style="width:33%"/><default1:col span="1" style="width:33%"/><default1:thead><default1:tr><default1:th xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt">Standard % </default1:th><default1:th xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt">Minimum % for prompted disclosure</default1:th><default1:th xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt">Minimum % for unprompted disclosure</default1:th></default1:tr></default1:thead><default1:tbody><default1:tr><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-top-color="black">30%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-top-color="black">case A: 10%case B: 20%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-top-color="black">case A: 0%case B: 10%</default1:td></default1:tr><default1:tr><default1:td>45%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">case A: 15%case B: 30%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">case A: 0%case B: 15%</default1:td></default1:tr><default1:tr><default1:td>60%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">case A: 20%case B: 40%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">case A: 0%case B: 20%</default1:td></default1:tr><default1:tr><default1:td>70%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">35%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">20%</default1:td></default1:tr><default1:tr><default1:td>105%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">52.5%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">30%</default1:td></default1:tr><default1:tr><default1:td>140%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">70%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">40%</default1:td></default1:tr><default1:tr><default1:td>100%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">50%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">30%</default1:td></default1:tr><default1:tr><default1:td>150%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">75%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">45%</default1:td></default1:tr><default1:tr><default1:td>200%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">100%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">60%</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></wrapUp></paragraph></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Schedule 55 to FA 2009</heading><paragraph eId="schedule-10-paragraph-10" class="schProv1"><num>10</num><content>Schedule 55 to FA 2009 (penalties for failure to make returns etc) is amended as follows.</content></paragraph><paragraph eId="schedule-10-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-10-paragraph-11-1"><num>(1)</num><content>Paragraph 6 (amount of penalty if failure continues more than 12 months) is amended as follows.</content></subparagraph><subparagraph eId="schedule-10-paragraph-11-2"><num>(2)</num><content>In sub-paragraph (3)(a), for “100%” substitute “the relevant percentage”.</content></subparagraph><subparagraph eId="schedule-10-paragraph-11-3"><num>(3)</num><content><mod>After sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e15178"><num>(3A)</num><intro>For the purposes of sub-paragraph (3)(a), the relevant percentage is—</intro><level class="para1" eId="d25e15184"><num>(a)</num><content>for the withholding of category 1 information, 100%,</content></level><level class="para1" eId="d25e15190"><num>(b)</num><content>for the withholding of category 2 information, 150%, and</content></level><level class="para1" eId="d25e15196"><num>(c)</num><content>for the withholding of category 3 information, 200%.</content></level></subparagraph></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-4"><num>(4)</num><content>In sub-paragraph (4)(a), for “70%” substitute “the relevant percentage”.</content></subparagraph><subparagraph eId="schedule-10-paragraph-11-5"><num>(5)</num><content><mod>After sub-paragraph (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e15215"><num>(4A)</num><intro>For the purposes of sub-paragraph (4)(a), the relevant percentage is—</intro><level class="para1" eId="d25e15221"><num>(a)</num><content>for the withholding of category 1 information, 70%,</content></level><level class="para1" eId="d25e15227"><num>(b)</num><content>for the withholding of category 2 information, 105%, and</content></level><level class="para1" eId="d25e15233"><num>(c)</num><content>for the withholding of category 3 information, 140%.</content></level></subparagraph></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-6"><num>(6)</num><content><mod>After sub-paragraph (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e15246"><num>(6)</num><content>Paragraph 6A explains the 3 categories of information.</content></subparagraph></quotedStructure></mod></content></subparagraph></paragraph><paragraph eId="schedule-10-paragraph-12" class="schProv1"><num>12</num><content><mod>After paragraph 6 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><paragraph eId="d25e15259" class="schProv1"><num>6A</num><subparagraph eId="d25e15263"><num>(1)</num><intro>Information is category 1 information if—</intro><level class="para1" eId="d25e15269"><num>(a)</num><content>it involves a domestic matter, or</content></level><level class="para1" eId="d25e15275"><num>(b)</num><intro>it involves an offshore matter and—</intro><level class="para2" eId="d25e15281"><num>(i)</num><content>the territory in question is a category 1 territory, or</content></level><level class="para2" eId="d25e15287"><num>(ii)</num><content>it is information which would enable or assist HMRC to assess P’s liability to a tax other than income tax or capital gains tax.</content></level></level></subparagraph><subparagraph eId="d25e15293"><num>(2)</num><intro>Information is category 2 information if—</intro><level class="para1" eId="d25e15299"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1" eId="d25e15305"><num>(b)</num><content>the territory in question is a category 2 territory, and</content></level><level class="para1" eId="d25e15311"><num>(c)</num><content>it is information which would enable or assist HMRC to assess P’s liability to income tax or capital gains tax.</content></level></subparagraph><subparagraph eId="d25e15317"><num>(3)</num><intro>Information is category 3 information if—</intro><level class="para1" eId="d25e15323"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1" eId="d25e15329"><num>(b)</num><content>the territory in question is a category 3 territory, and</content></level><level class="para1" eId="d25e15335"><num>(c)</num><content>it is information which would enable or assist HMRC to assess P’s liability to income tax or capital gains tax.</content></level></subparagraph><subparagraph eId="d25e15341"><num>(4)</num><intro>Information “involves an offshore matter” if the liability to tax which would have been shown in the return includes a liability to tax charged on or by reference to—</intro><level class="para1" eId="d25e15347"><num>(a)</num><content>income arising from a source in a territory outside the UK,</content></level><level class="para1" eId="d25e15353"><num>(b)</num><content>assets situated or held in a territory outside the UK,</content></level><level class="para1" eId="d25e15359"><num>(c)</num><content>activities carried on wholly or mainly in a territory outside the UK, or</content></level><level class="para1" eId="d25e15365"><num>(d)</num><content>anything having effect as if it were income, assets or activities of a kind described above.</content></level></subparagraph><subparagraph eId="d25e15371"><num>(5)</num><content>Information “involves a domestic matter” if the liability to tax which would have been shown in the return includes a liability to tax charged on or by reference to anything not mentioned in sub-paragraph (4)(a) to (d).</content></subparagraph><subparagraph eId="d25e15377"><num>(6)</num><intro>If the information which P withholds falls into more than one category—</intro><level class="para1" eId="d25e15383"><num>(a)</num><content>P’s failure to make the return is to be treated for the purposes of this Schedule as if it were separate failures, one for each category of information according to the matters which the information involves, and</content></level><level class="para1" eId="d25e15389"><num>(b)</num><content>for each separate failure, the liability to tax which would have been shown in the return in question is taken to be such share of the liability to tax which would have been shown in the return mentioned in paragraph (a) as is just and reasonable.</content></level></subparagraph><subparagraph eId="d25e15395"><num>(7)</num><intro>For the purposes of this Schedule—</intro><level class="para1" eId="d25e15401"><num>(a)</num><content>paragraph 21A of Schedule 24 to FA 2007 (classification of territories) has effect, but</content></level><level class="para1" eId="d25e15407"><num>(b)</num><content>an order under that paragraph does not apply to a failure if the filing date is before the date on which the order comes into force.</content></level></subparagraph><subparagraph eId="d25e15413"><num>(8)</num><content>Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets etc) apply for the purposes of paragraph 6A of this Schedule as they apply for the purposes of paragraph 4A of that Schedule.</content></subparagraph><subparagraph eId="d25e15419"><num>(9)</num><intro>In this paragraph—</intro><hcontainer name="definition"><content>“assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling;</content></hcontainer><hcontainer name="definition"><content>“UK” means the United Kingdom, including the territorial sea of the United Kingdom.</content></hcontainer></subparagraph></paragraph></quotedStructure></mod></content></paragraph><paragraph eId="schedule-10-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-10-paragraph-13-1"><num>(1)</num><content>Paragraph 15 (reductions for disclosure) is amended as follows.</content></subparagraph><subparagraph eId="schedule-10-paragraph-13-2"><num>(2)</num><content><mod>For sub-paragraphs (1) and (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e15451"><num>(1)</num><content>If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.</content></subparagraph><subparagraph eId="d25e15457"><num>(2)</num><intro>But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—</intro><level class="para1" eId="d25e15463"><num>(a)</num><content>in the case of a prompted disclosure, in column 2 of the Table, and</content></level><level class="para1" eId="d25e15469"><num>(b)</num><content>in the case of an unprompted disclosure, in column 3 of the Table.</content></level></subparagraph><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml" xmlns:leg="http://www.legislation.gov.uk/namespaces/legislation"><default1:col span="1" style="width:33%"/><default1:col span="1" style="width:33%"/><default1:col span="1" style="width:33%"/><default1:thead><default1:tr><default1:th xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt">Standard % </default1:th><default1:th xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt">Minimum % for prompted disclosure</default1:th><default1:th xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt">Minimum % for unprompted disclosure</default1:th></default1:tr></default1:thead><default1:tbody><default1:tr><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-top-color="black">70%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-top-color="black">35%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-top-color="black">20%</default1:td></default1:tr><default1:tr><default1:td>105%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">52.5%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">30%</default1:td></default1:tr><default1:tr><default1:td>140%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">70%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">40%</default1:td></default1:tr><default1:tr><default1:td>100%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">50%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">30%</default1:td></default1:tr><default1:tr><default1:td>150%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">75%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">45%</default1:td></default1:tr><default1:tr><default1:td>200%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">100%</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">60%</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-3"><num>(3)</num><content>Omit sub-paragraphs (3) and (4).</content></subparagraph></paragraph><paragraph eId="schedule-10-paragraph-14" class="schProv1"><num>14</num><intro>In paragraph 17 (interaction with other penalties)—</intro><level class="para1" eId="schedule-10-paragraph-14-a"><num>(a)</num><content>in sub-paragraph (3), for “100%” substitute “the relevant percentage”, and</content></level><level class="para1" eId="schedule-10-paragraph-14-b"><num>(b)</num><content><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e15558"><num>(4)</num><intro>The relevant percentage is—</intro><level class="para1" eId="d25e15564"><num>(a)</num><content>if one of the penalties is a penalty under paragraph 6(3) or (4) and the information withheld is category 3 information, 200%,</content></level><level class="para1" eId="d25e15570"><num>(b)</num><content>if one of the penalties is a penalty under paragraph 6(3) or (4) and the information withheld is category 2 information, 150%, and</content></level><level class="para1" eId="d25e15576"><num>(c)</num><content>in all other cases, 100%.</content></level></subparagraph></quotedStructure></mod></content></level></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-11"><num>SCHEDULE 11<authorialNote class="referenceNote">Section 36</authorialNote></num><heading>Reliefs and reductions for foreign tax</heading><hcontainer name="crossheading" class="schGroup7"><heading>Effect of foreign tax becoming payable</heading><paragraph eId="schedule-11-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-11-paragraph-1-1"><num>(1)</num><content>Paragraph 3 of Schedule 28AB to ICTA (schemes about effect of paying foreign tax) is amended as follows.</content></subparagraph><subparagraph eId="schedule-11-paragraph-1-2"><num>(2)</num><intro>In sub-paragraph (2)—</intro><level class="para1" eId="schedule-11-paragraph-1-2-a"><num>(a)</num><content>in paragraph (a), after “paid” insert “or payable”, and</content></level><level class="para1" eId="schedule-11-paragraph-1-2-b"><num>(b)</num><content>in paragraph (b), for “of the payment of that amount of foreign tax on the foreign tax total” substitute “on the foreign tax total of that amount being so paid or payable”.</content></level></subparagraph><subparagraph eId="schedule-11-paragraph-1-3"><num>(3)</num><content>In sub-paragraph (3)(b), for “the payment by the claimant of that amount of foreign tax” substitute “that amount of foreign tax being paid or payable by the claimant”.</content></subparagraph></paragraph><paragraph eId="schedule-11-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-11-paragraph-2-1"><num>(1)</num><content>Section 85 of TIOPA 2010 (schemes about effect of paying foreign tax) is amended as follows.</content></subparagraph><subparagraph eId="schedule-11-paragraph-2-2"><num>(2)</num><intro>In subsection (2)—</intro><level class="para1" eId="schedule-11-paragraph-2-2-a"><num>(a)</num><content><mod>for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e15652"><num>(a)</num><content>an amount of foreign tax (“the FT amount”) is paid or payable by C, and</content></level></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-11-paragraph-2-2-b"><num>(b)</num><content>in paragraph (b), for “of the payment of the FT amount on the foreign-tax total” substitute “on the foreign-tax total of the FT amount being so paid or payable”.</content></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-3"><num>(3)</num><content>In subsection (3), in paragraph (b) of the definition of “the foreign-tax total”, for “the payment by C of the FT amount” substitute “the FT amount being paid or payable by C”.</content></subparagraph></paragraph><paragraph eId="schedule-11-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-11-paragraph-3-1"><num>(1)</num><content>The amendments made by paragraphs 1 and 2 have effect in relation to amounts of foreign tax payable on or after 21 October 2009.</content></subparagraph><subparagraph eId="schedule-11-paragraph-3-2"><num>(2)</num><content>But see paragraph 5 for amounts of foreign tax payable on or after 1 April 2010 (as regards corporation tax) or 6 April 2010 (as regards income tax or capital gains tax).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Schemes about deemed foreign tax</heading><paragraph eId="schedule-11-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-11-paragraph-4-1"><num>(1)</num><content><mod>In TIOPA 2010, after section 85 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e15705"><num>85A</num><heading>Section 83(2) and (4): schemes involving deemed foreign tax</heading><subsection eId="d25e15709"><num>(1)</num><intro>This section applies to a scheme or arrangement if in relation to a claimant—</intro><level class="para1" eId="d25e15715"><num>(a)</num><content>an amount (“amount X”) is treated by virtue of a provision of the Tax Acts as if it were an amount of foreign tax paid or payable by the claimant in respect of a source of income, and</content></level><level class="para1" eId="d25e15721"><num>(b)</num><content>condition A or B is met.</content></level></subsection><subsection eId="d25e15727"><num>(2)</num><content>Condition A is met if, when the claimant entered into the scheme or arrangement, it could reasonably be expected that, under the scheme or arrangement, no real foreign tax would be paid or payable by a participant.</content></subsection><subsection eId="d25e15733"><num>(3)</num><intro>Condition B is met if, when the claimant entered into the scheme or arrangement, it could reasonably be expected that, under the scheme or arrangement—</intro><level class="para1" eId="d25e15739"><num>(a)</num><content>an amount of real foreign tax (“the RFT amount”) would be paid or payable by a participant, but</content></level><level class="para1" eId="d25e15745"><num>(b)</num><content>the effect on the foreign-tax total of the RFT amount being so paid or payable would be to increase the foreign-tax total by less than the amount allowable to the claimant as a credit in respect of amount X.</content></level></subsection><subsection eId="d25e15751"><num>(4)</num><intro>In this section—</intro><hcontainer name="definition"><content>“claimant” means a person who for a chargeable period has claimed, or is in a position to claim, for any credit that under the arrangements is to be allowed for foreign tax;</content></hcontainer><hcontainer name="definition"><content>“the foreign-tax total” has the meaning given by section 85(3), except that the reference to “the FT amount being paid or payable by C” must be read as a reference to “the RFT amount being paid or payable by any of them”;</content></hcontainer><hcontainer name="definition"><content>“income” includes a chargeable gain;</content></hcontainer><hcontainer name="definition"><content>“participant” means a person who is party to, or concerned in, the scheme or arrangement;</content></hcontainer><hcontainer name="definition"><intro>“real foreign tax” means—</intro><level class="para1"><num>(a)</num><content>in a case involving section 10 (accrued income profits), the foreign tax chargeable in respect of the interest on the securities, as mentioned in subsection (1)(c) of that section,</content></level><level class="para1"><num>(b)</num><content>in a case involving section 792 or 794 of CTA 2010 (manufactured overseas dividends), the foreign tax chargeable in respect of the overseas dividend of which the manufactured overseas dividend is representative, as mentioned in section 790 of that Act, and</content></level><level class="para1"><num>(c)</num><content>in any other case, the foreign tax chargeable in respect of the source of income of which the source mentioned in subsection (1)(a) is representative.</content></level></hcontainer></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-11-paragraph-4-2"><num>(2)</num><content>The amendment made by this paragraph has effect in relation to amounts treated as if they were amounts of foreign tax paid or payable on or after 21 October 2009.</content></subparagraph><subparagraph eId="schedule-11-paragraph-4-3"><num>(3)</num><content>A corresponding amendment, having effect in relation to such amounts, is to be treated as having been made in Schedule 28AB to ICTA.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Foreign tax payable by other participants</heading><paragraph eId="schedule-11-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-11-paragraph-5-1"><num>(1)</num><intro>In section 85 of TIOPA 2010 (schemes about effect of paying foreign tax) as amended by paragraph 2—</intro><level class="para1" eId="schedule-11-paragraph-5-1-a"><num>(a)</num><content>in subsection (1), for “for foreign tax” substitute “in respect of the payment of an amount of foreign tax (“the FT amount”)”,</content></level><level class="para1" eId="schedule-11-paragraph-5-1-b"><num>(b)</num><content><mod>for subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e15829"><num>(2)</num><content>The condition is that, when C entered into the scheme or arrangement, it could reasonably be expected that the effect on the foreign-tax total of the FT amount being paid or payable would be to increase that total by less than amount X.</content></subsection></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-11-paragraph-5-1-c"><num>(c)</num><intro>in subsection (3)—</intro><level class="para2" eId="schedule-11-paragraph-5-1-c-i"><num>(i)</num><content>for “subsection (2)(b)” substitute “subsection (2)”, and</content></level><level class="para2" eId="schedule-11-paragraph-5-1-c-ii"><num>(ii)</num><content>in paragraph (b) of the definition of “the foreign-tax total”, omit “by C”.</content></level></level></subparagraph><subparagraph eId="schedule-11-paragraph-5-2"><num>(2)</num><intro>In section 85A of TIOPA 2010 (schemes involving deemed foreign tax) as inserted by paragraph 4—</intro><level class="para1" eId="schedule-11-paragraph-5-2-a"><num>(a)</num><content>in subsection (1)(a), omit “by the claimant”, and</content></level><level class="para1" eId="schedule-11-paragraph-5-2-b"><num>(b)</num><content>in subsection (4), in the definition of “the foreign-tax total”, omit “by C”.</content></level></subparagraph><subparagraph eId="schedule-11-paragraph-5-3"><num>(3)</num><intro>The amendments made by this paragraph have effect in relation to amounts of foreign tax, or amounts treated as if they were amounts of foreign tax, payable—</intro><level class="para1" eId="schedule-11-paragraph-5-3-a"><num>(a)</num><content>as regards corporation tax, on or after 1 April 2010, and</content></level><level class="para1" eId="schedule-11-paragraph-5-3-b"><num>(b)</num><content>as regards income tax or capital gains tax, on or after 6 April 2010.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Claims etc made before scheme or arrangement made</heading><paragraph eId="schedule-11-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-11-paragraph-6-1"><num>(1)</num><intro>In section 86 of TIOPA 2010 (schemes about claims or elections etc)—</intro><level class="para1" eId="schedule-11-paragraph-6-1-a"><num>(a)</num><content>in subsection (1), omit “under the scheme or arrangement”, and</content></level><level class="para1" eId="schedule-11-paragraph-6-1-b"><num>(b)</num><content><mod>after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e15917"><num>(3A)</num><content>Reference in subsection (1) to a step that is taken or not taken by a participant includes one that was taken or not taken by a participant before the scheme or arrangement was made.</content></subsection><subsection eId="d25e15923"><num>(3B)</num><content>The reason for taking or not taking a step does not matter so long as it has the effect mentioned in subsection (1).</content></subsection></quotedStructure></mod></content></level></subparagraph><subparagraph eId="schedule-11-paragraph-6-2"><num>(2)</num><intro>The amendments made by this paragraph have effect in relation to amounts of foreign tax payable—</intro><level class="para1" eId="schedule-11-paragraph-6-2-a"><num>(a)</num><content>as regards corporation tax, on or after 1 April 2010, and</content></level><level class="para1" eId="schedule-11-paragraph-6-2-b"><num>(b)</num><content>as regards income tax or capital gains tax, on or after 6 April 2010.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Limit on reduction for foreign tax</heading><paragraph eId="schedule-11-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-11-paragraph-7-1"><num>(1)</num><content><mod>In section 112 of TIOPA 2010 (deduction from income for foreign tax), after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e15961"><num>(2A)</num><content>But if X is less than Y, an amount equal to the difference between X and Y must be subtracted from the amount by which any income of a person (“the relevant income”) is reduced under subsection (1)(a).</content></subsection><subsection eId="d25e15967"><num>(2B)</num><intro>In subsection (2A)—</intro><hcontainer name="definition"><content>X is the amount of the relevant income that the person would (disregarding this section) be required to bring into account for income tax or corporation tax purposes, less any deduction that the person would be allowed to make for the amount paid in respect of non-UK tax, and</content></hcontainer><hcontainer name="definition"><content>Y is the amount of the relevant income (that is to say, the amount on which the amount in respect of non-UK tax is paid).</content></hcontainer></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-11-paragraph-7-2"><num>(2)</num><intro>The amendment made by this paragraph has effect in relation to amounts in respect of non-UK tax that are paid—</intro><level class="para1" eId="schedule-11-paragraph-7-2-a"><num>(a)</num><content>as regards corporation tax, on or after 1 April 2010, and</content></level><level class="para1" eId="schedule-11-paragraph-7-2-b"><num>(b)</num><content>as regards income tax, on or after 6 April 2010.</content></level></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-12"><num>SCHEDULE 12<authorialNote class="referenceNote">Section 38</authorialNote></num><heading>Transactions in securities</heading><hcontainer name="crossheading" class="schGroup7"><heading>Income tax</heading><paragraph eId="schedule-12-paragraph-1" class="schProv1"><num>1</num><content>Chapter 1 of Part 13 of ITA 2007 (transactions in securities: income tax advantages) is amended as follows.</content></paragraph><paragraph eId="schedule-12-paragraph-2" class="schProv1"><num>2</num><content><mod>For sections 682 to 694 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e16025"><heading>Introduction</heading><section eId="d25e16031"><num>682</num><heading>Overview of Chapter</heading><content>This Chapter makes provision for counteracting income tax advantages from transactions in securities.</content></section><section eId="d25e16040"><num>683</num><heading>Provisions of Chapter</heading><subsection eId="d25e16044"><num>(1)</num><content>Sections 684 to 687 specify when a person is liable to counteraction of income tax advantages from transactions in securities.</content></subsection><subsection eId="d25e16050"><num>(2)</num><content>Sections 695 to 700 make provision about the procedure for counteraction of such income tax advantages.</content></subsection><subsection eId="d25e16056"><num>(3)</num><content>Sections 701 and 702 make provision for a clearance procedure.</content></subsection><subsection eId="d25e16062"><num>(4)</num><content>Section 705 makes provision for appeals against counteraction notices.</content></subsection><subsection eId="d25e16068"><num>(5)</num><content>Sections 712 deals with cases in which a person liable to counteraction dies.</content></subsection><subsection eId="d25e16074"><num>(6)</num><content>Section 713 contains interpretative provisions.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e16080"><heading>Person liable to counteraction of income tax advantages</heading><section eId="d25e16086"><num>684</num><heading>Person liable to counteraction of income tax advantage</heading><subsection eId="d25e16090"><num>(1)</num><intro>This section applies to a person where—</intro><level class="para1" eId="d25e16096"><num>(a)</num><content>the person is a party to a transaction in securities or two or more transactions in securities (see subsection (2)),</content></level><level class="para1" eId="d25e16102"><num>(b)</num><content>the circumstances are covered by section 685 and not excluded by section 686,</content></level><level class="para1" eId="d25e16108"><num>(c)</num><content>the main purpose, or one of the main purposes, of the person in being a party to the transaction in securities, or any of the transactions in securities, is to obtain an income tax advantage, and</content></level><level class="para1" eId="d25e16114"><num>(d)</num><content>the person obtains an income tax advantage in consequence of the transaction or the combined effect of the transactions.</content></level></subsection><subsection eId="d25e16120"><num>(2)</num><intro>In this Chapter “transaction in securities” means a transaction, of whatever description, relating to securities, and includes in particular—</intro><level class="para1" eId="d25e16126"><num>(a)</num><content>the purchase, sale or exchange of securities,</content></level><level class="para1" eId="d25e16132"><num>(b)</num><content>issuing or securing the issue of new securities,</content></level><level class="para1" eId="d25e16138"><num>(c)</num><content>applying or subscribing for new securities, and</content></level><level class="para1" eId="d25e16144"><num>(d)</num><content>altering or securing the alteration of the rights attached to securities.</content></level></subsection><subsection eId="d25e16150"><num>(3)</num><content>Section 687 defines “income tax advantage”.</content></subsection><subsection eId="d25e16156"><num>(4)</num><content>This section is subject to—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>section 696(3) (disapplication of this section where person receiving preliminary notification that section 684 may apply makes statutory declaration and relevant officer of Revenue and Customs sees no reason to take further action), and</item><item>section 697(5) (determination by tribunal that there is no prima facie case that section 684 applies).</item></blockList></content></subsection></section><section eId="d25e16174"><num>685</num><heading>Receipt of consideration in connection with distribution by or assets of close company</heading><subsection eId="d25e16178"><num>(1)</num><content>The circumstances covered by this section are circumstances where condition A or condition B is met.</content></subsection><subsection eId="d25e16184"><num>(2)</num><intro>Condition A is that, as a result of the transaction in securities or any one or more of the transactions in securities, the person receives relevant consideration in connection with—</intro><level class="para1" eId="d25e16190"><num>(a)</num><content>the distribution, transfer or realisation of assets of a close company,</content></level><level class="para1" eId="d25e16196"><num>(b)</num><content>the application of assets of a close company in discharge of liabilities, or</content></level><level class="para1" eId="d25e16202"><num>(c)</num><content>the direct or indirect transfer of assets of one close company to another close company,</content></level><wrapUp>and does not pay or bear income tax on the consideration (apart from this Chapter).</wrapUp></subsection><subsection eId="d25e16210"><num>(3)</num><intro>Condition B is that—</intro><level class="para1" eId="d25e16216"><num>(a)</num><content>the person receives relevant consideration in connection with the transaction in securities or any one or more of the transactions in securities,</content></level><level class="para1" eId="d25e16222"><num>(b)</num><content>two or more close companies are concerned in the transaction or transactions in securities concerned, and</content></level><level class="para1" eId="d25e16228"><num>(c)</num><content>the person does not pay or bear income tax on the consideration (apart from this Chapter).</content></level></subsection><subsection eId="d25e16234"><num>(4)</num><intro>In a case within subsection (2)(a) or (b) “relevant consideration” means consideration which—</intro><level class="para1" eId="d25e16240"><num>(a)</num><intro>is or represents the value of—</intro><level class="para2" eId="d25e16246"><num>(i)</num><content>assets which are available for distribution by way of dividend by the company, or</content></level><level class="para2" eId="d25e16252"><num>(ii)</num><content>assets which would have been so available apart from anything done by the company,</content></level></level><level class="para1" eId="d25e16258"><num>(b)</num><content>is received in respect of future receipts of the company, or</content></level><level class="para1" eId="d25e16264"><num>(c)</num><content>is or represents the value of trading stock of the company.</content></level></subsection><subsection eId="d25e16270"><num>(5)</num><intro>In a case within subsection (2)(c) or (3) “relevant consideration” means consideration which consists of any share capital or any security issued by a close company and which is or represents the value of assets which—</intro><level class="para1" eId="d25e16276"><num>(a)</num><content>are available for distribution by way of dividend by the company,</content></level><level class="para1" eId="d25e16282"><num>(b)</num><content>would have been so available apart from anything done by the company, or</content></level><level class="para1" eId="d25e16288"><num>(c)</num><content>are trading stock of the company.</content></level></subsection><subsection eId="d25e16294"><num>(6)</num><content>The references in subsection (2)(a) and (b) to assets do not include assets which are shown to represent a return of sums paid by subscribers on the issue of securities, despite the fact that under the law of the country in which the company is incorporated assets of that description are available for distribution by way of dividend.</content></subsection><subsection eId="d25e16300"><num>(7)</num><content>So far as subsection (2)(c) or (3) relates to share capital other than redeemable share capital, it applies only so far as the share capital is repaid (on a winding up or otherwise); and for this purpose any distribution made in respect of any shares on a winding up or dissolution of the company is to be treated as a repayment of share capital.</content></subsection><subsection eId="d25e16306"><num>(8)</num><content>References in this section to the receipt of consideration include references to the receipt of any money or money’s worth.</content></subsection><subsection eId="d25e16312"><num>(9)</num><intro>In this section—</intro><hcontainer name="definition"><content>“security” includes securities not creating or evidencing a charge on assets;</content></hcontainer><hcontainer name="definition"><content>“share” includes stock and any other interest of a member in a company.</content></hcontainer></subsection></section><section eId="d25e16330"><num>686</num><heading>Excluded circumstances: fundamental change of ownership</heading><subsection eId="d25e16334"><num>(1)</num><intro>Circumstances are excluded by this section if—</intro><level class="para1" eId="d25e16340"><num>(a)</num><content>immediately before the transaction in securities (or the first of the transactions in securities) the person (referred to in this section as “the party”) holds shares or an interest in shares in the close company, and</content></level><level class="para1" eId="d25e16346"><num>(b)</num><content>there is a fundamental change of ownership of the close company.</content></level></subsection><subsection eId="d25e16352"><num>(2)</num><intro>There is a fundamental change of ownership of the close company if—</intro><level class="para1" eId="d25e16358"><num>(a)</num><content>as a result of the transaction or transactions in securities, conditions A, B and C are met, and</content></level><level class="para1" eId="d25e16364"><num>(b)</num><content>those conditions continue to be met for a period of 2 years.</content></level></subsection><subsection eId="d25e16370"><num>(3)</num><intro>Condition A is that at least 75% of the ordinary share capital of the close company is held beneficially by—</intro><level class="para1" eId="d25e16376"><num>(a)</num><content>a person who is not connected with the party and has not been so connected within the period of 2 years ending with the day on which the transaction in securities (or the first of the transactions in securities) takes place, or</content></level><level class="para1" eId="d25e16382"><num>(b)</num><content>persons none of whom is so connected or has been so connected within that period.</content></level></subsection><subsection eId="d25e16388"><num>(4)</num><content>Condition B is that shares in the close company held by that person or those persons carry an entitlement to at least 75% of the distributions which may be made by the company.</content></subsection><subsection eId="d25e16394"><num>(5)</num><content>Condition C is that shares so held carry at least 75% of the total voting rights in the close company.</content></subsection></section><section eId="d25e16403"><num>687</num><heading>Income tax advantage</heading><subsection eId="d25e16407"><num>(1)</num><intro>For the purposes of this Chapter the person obtains an income tax advantage if—</intro><level class="para1" eId="d25e16413"><num>(a)</num><content>the amount of any income tax which would be payable by the person in respect of the relevant consideration if it constituted a qualifying distribution exceeds the amount of any capital gains tax payable in respect of it, or</content></level><level class="para1" eId="d25e16419"><num>(b)</num><content>income tax would be payable by the person in respect of the relevant consideration if it constituted a qualifying distribution and no capital gains tax is payable in respect of it.</content></level></subsection><subsection eId="d25e16425"><num>(2)</num><content>So much of the relevant consideration as exceeds the maximum amount that could in any circumstances have been paid to the person by way of a qualifying distribution at the time when the relevant consideration is received is to be left out of account for the purposes of subsection (1).</content></subsection><subsection eId="d25e16431"><num>(3)</num><content>The amount of the income tax advantage is the amount of the excess or (if no capital gains tax is payable) the amount of the income tax which would be payable.</content></subsection><subsection eId="d25e16437"><num>(4)</num><content>In this section “relevant consideration” has the same meaning as in section 685.</content></subsection></section></hcontainer></quotedStructure></mod></content></paragraph><paragraph eId="schedule-12-paragraph-3" class="schProv1"><num>3</num><intro>In section 698(6) (counteraction notices), omit—</intro><level class="para1" eId="schedule-12-paragraph-3-a"><num>(a)</num><content>the entry relating to section 699, and</content></level><level class="para1" eId="schedule-12-paragraph-3-b"><num>(b)</num><content>in the entry relating to section 700, “in section 690 cases”.</content></level></paragraph><paragraph eId="schedule-12-paragraph-4" class="schProv1"><num>4</num><content>Omit section 699 (limit on amount assessed in section 689 and 690 cases).</content></paragraph><paragraph eId="schedule-12-paragraph-5" class="schProv1"><num>5</num><intro>In section 700 (timing of assessments in section 690 cases)—</intro><level class="para1" eId="schedule-12-paragraph-5-a"><num>(a)</num><content>in subsection (1), for “690 (receipt of relevant company assets (circumstance E))” substitute “685(2)(c) or (3)”, and</content></level><level class="para1" eId="schedule-12-paragraph-5-b"><num>(b)</num><content>in the heading, omit “in section 690 cases”.</content></level></paragraph><paragraph eId="schedule-12-paragraph-6" class="schProv1"><num>6</num><content>In the heading before section 701, omit “and information powers”.</content></paragraph><paragraph eId="schedule-12-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-12-paragraph-7-1"><num>(1)</num><content>Section 713 (interpretation) is amended as follows.</content></subparagraph><subparagraph eId="schedule-12-paragraph-7-2"><num>(2)</num><content><mod>Before the definition of “company” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“close company” includes a company that would be a close company if it were resident in the United Kingdom,</content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-12-paragraph-7-3"><num>(3)</num><content>Omit the definition of “transaction in securities”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Corporation tax</heading><paragraph eId="schedule-12-paragraph-8" class="schProv1"><num>8</num><content>Part 15 of CTA 2010 (transactions in securities: corporation tax advantages) is amended as follows.</content></paragraph><paragraph eId="schedule-12-paragraph-9" class="schProv1"><num>9</num><content>In section 733(2) (company liable to counteraction of corporation tax advantage), omit the entry relating to section 735.</content></paragraph><paragraph eId="schedule-12-paragraph-10" class="schProv1"><num>10</num><content>Omit section 735 (abnormal dividends used for exemptions or reliefs).</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Consequential amendments</heading><paragraph eId="schedule-12-paragraph-11" class="schProv1"><num>11</num><content><mod>In section 809S of ITA 2007 (remittance basis: anti-avoidance provisions relating to transfers of mixed funds), for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e16555"><num>(4)</num><intro>Income tax advantage” means—</intro><level class="para1" eId="d25e16561"><num>(a)</num><content>a relief from income tax or increased relief from income tax,</content></level><level class="para1" eId="d25e16567"><num>(b)</num><content>a repayment of income tax or increased repayment of income tax,</content></level><level class="para1" eId="d25e16573"><num>(c)</num><content>the avoidance or reduction of a charge to income tax or an assessment to income tax, or</content></level><level class="para1" eId="d25e16579"><num>(d)</num><content>the avoidance of a possible assessment to income tax;</content></level><wrapUp>and for this purpose “relief from income tax” includes a tax credit.</wrapUp></subsection><subsection eId="d25e16587"><num>(4A)</num><intro>For the purposes of subsection (4)(c) and (d) it does not matter whether the avoidance or reduction is effected—</intro><level class="para1" eId="d25e16593"><num>(a)</num><content>by receipts accruing in such a way that the recipient does not pay or bear income tax on them, or</content></level><level class="para1" eId="d25e16599"><num>(b)</num><content>by a deduction in calculating profits or gains.</content></level></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-12-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-12-paragraph-12-1"><num>(1)</num><content>Schedule 4 to that Act (index of defined expressions) is amended as follows.</content></subparagraph><subparagraph eId="schedule-12-paragraph-12-2"><num>(2)</num><content>After the definition of “close company” insert—<tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml" xmlns:leg="http://www.legislation.gov.uk/namespaces/legislation"><default1:col span="1" style="width:69%"/><default1:col span="1" style="width:31%"/><default1:tbody><default1:tr><default1:td>“close company (in Chapter 1 of Part 13)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section 713”.</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></content></subparagraph><subparagraph eId="schedule-12-paragraph-12-3"><num>(3)</num><content>In the entry relating to “income tax advantage (in Chapter 1 of Part 13)”, for “683(1)” substitute “687”.</content></subparagraph><subparagraph eId="schedule-12-paragraph-12-4"><num>(4)</num><content>In the entry relating to “transaction in securities (in Chapter 1 of Part 13)”, for “713” substitute “684(2)”.</content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-13" class="schProv1"><num>13</num><content>In FA 2007, in Schedule 26, omit paragraph 12(11).</content></paragraph><paragraph eId="schedule-12-paragraph-14" class="schProv1"><num>14</num><content>In CTA 2010, in Schedule 1, omit paragraphs 545 and 546.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-12-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-12-paragraph-15-1"><num>(1)</num><content>The amendments made by paragraphs 2 to 5, 7 and 11 to 13 (and paragraph 1 so far as relating to them) have effect in relation to income tax advantages obtained on or after 24 March 2010.</content></subparagraph><subparagraph eId="schedule-12-paragraph-15-2"><num>(2)</num><content>The amendment made by paragraph 6 (and paragraph 1 so far as relating to it) are treated as having come into force on 1 April 2009.</content></subparagraph><subparagraph eId="schedule-12-paragraph-15-3"><num>(3)</num><content>The amendments made by paragraphs 8 to 10 have effect in relation to corporation tax advantages obtained on or after 1 April 2010.</content></subparagraph><subparagraph eId="schedule-12-paragraph-15-4"><num>(4)</num><content>The repeals made by paragraph 14 are treated as having come into force on 1 April 2010.</content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-13"><num>SCHEDULE 13<authorialNote class="referenceNote">Section 40</authorialNote></num><heading>Unauthorised unit trusts</heading><hcontainer name="crossheading" class="schGroup7"><heading>Amendments of Chapter 13 of Part 15 of ITA 2007</heading><paragraph eId="schedule-13-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-13-paragraph-1-1"><num>(1)</num><content>Chapter 13 of Part 15 of ITA 2007 (deduction of income tax at source: unauthorised unit trusts) is amended as follows.</content></subparagraph><subparagraph eId="schedule-13-paragraph-1-2"><num>(2)</num><content><mod>In section 941(6) (deemed payments to unit holders and deemed deductions of income tax), after the definition of “deemed deduction”, insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“deemed income” means the gross amount of income treated as received as mentioned in subsection (1),</content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-13-paragraph-1-3"><num>(3)</num><content><mod>In section 942 (income tax to be collected from trustees) after subsection (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e16729"><num>(6)</num><intro>No relief under—</intro><level class="para1" eId="d25e16735"><num>(a)</num><content>sections 2 and 6 of TIOPA 2010 (double taxation arrangements: relief by agreement), or</content></level><level class="para1" eId="d25e16741"><num>(b)</num><content>section 18(1)(b) and (2) of that Act (relief for foreign tax where no double taxation arrangements),</content></level><wrapUp>is allowed in relation to income tax to be collected by virtue of this section.</wrapUp></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-13-paragraph-1-4"><num>(4)</num><content><mod>After section 943 (calculation of trustees’ income pool) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e16759"><num>943A</num><heading>Treatment of cases involving double tax relief</heading><subsection eId="d25e16763"><num>(1)</num><intro>This section applies where—</intro><level class="para1" eId="d25e16769"><num>(a)</num><content>the trustees of an unauthorised unit trust are treated as making deemed payments to unit holders in a tax year (“the current tax year”),</content></level><level class="para1" eId="d25e16775"><num>(b)</num><content>there is a reduction in the income pool in the current tax year, and</content></level><level class="para1" eId="d25e16781"><num>(c)</num><content>the amount of the trustees’ double tax relief pool as at the start of the current tax year is greater than zero.</content></level></subsection><subsection eId="d25e16787"><num>(2)</num><content>Section 848 (income tax deducted at source treated as income tax paid by recipient) does not apply to the foreign element of the deemed deduction treated as made from any of the deemed payments.</content></subsection><subsection eId="d25e16793"><num>(3)</num><intro>Instead, for the purposes of the Tax Acts—</intro><level class="para1" eId="d25e16799"><num>(a)</num><content>the foreign element of the deemed deduction is treated as if it were tax payable under the law of a territory outside the United Kingdom with which there are not in force any arrangements under section 2(1) of TIOPA 2010 (double taxation relief by agreement), and</content></level><level class="para1" eId="d25e16805"><num>(b)</num><intro>the foreign element of the deemed income represented by the deemed payment is treated as if it were income that—</intro><level class="para2" eId="d25e16811"><num>(i)</num><content>arises in a territory of the kind mentioned in paragraph (a), and</content></level><level class="para2" eId="d25e16817"><num>(ii)</num><content>is income by reference to which the tax treated under paragraph (a) as payable was computed.</content></level></level></subsection><subsection eId="d25e16823"><num>(4)</num><intro>A reference in this Chapter to a reduction in the income pool in a tax year is to the amount (if any) by which—</intro><level class="para1" eId="d25e16829"><num>(a)</num><content>the amount of the income pool at the start of the tax year, exceeds</content></level><level class="para1" eId="d25e16835"><num>(b)</num><content>the amount of the income pool at the start of the following tax year.</content></level></subsection><subsection eId="d25e16841"><num>(5)</num><content>See—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>section <ref href="#d25e16865">943B</ref> for provision about references to the “foreign element” of a deemed deduction or deemed income, and</item><item>section <ref href="#d25e16929">943C</ref> for provision about the calculation of the trustees’ double tax relief pool as at the beginning of a tax year.</item></blockList></content></subsection></section><section eId="d25e16865"><num>943B</num><heading>The “foreign element” of a deemed deduction or deemed income</heading><subsection eId="d25e16869"><num>(1)</num><intro>References in this Chapter to the “foreign element” of—</intro><level class="para1" eId="d25e16875"><num>(a)</num><content>a deemed deduction treated as made in a tax year, or</content></level><level class="para1" eId="d25e16881"><num>(b)</num><content>deemed income treated as received in a tax year,</content></level><wrapUp>are to the deemed deduction or deemed income multiplied by the relevant fraction.</wrapUp></subsection><subsection eId="d25e16889"><num>(2)</num><content>For this purpose “the relevant fraction” means—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_009"><default:mfrac linethickness="1" denomalign="center" numalign="center"><default:mrow><default:mi mathvariant="normal">A</default:mi></default:mrow><default:mrow><default:mi mathvariant="normal">B</default:mi></default:mrow></default:mfrac></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A is—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>the reduction in the income pool in the tax year multiplied by the basic rate for the year, or</item><item><num>(b)</num>if lower, the amount of the trustees’ double tax relief pool as at the start of the tax year;</item></blockList></tblock><tblock class="definition">B is the total of the deemed deductions treated as made in the tax year.</tblock></blockContainer></tblock></content></subsection></section><section eId="d25e16929"><num>943C</num><heading>Calculation of trustees’ double tax relief pool</heading><subsection eId="d25e16933"><num>(1)</num><content>This is how the amount of the trustees’ double tax relief pool as at the start of a tax year (“the current tax year”) is calculated.</content></subsection><subsection eId="d25e16939"><num>(2)</num><content>The trustees’ double tax relief pool as at the start of the current tax year is—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_010"><default:mi mathvariant="normal">A</default:mi><default:mo>+</default:mo><default:mi mathvariant="normal">B</default:mi><default:mo>−</default:mo><default:mi mathvariant="normal">C</default:mi></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A is—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>the amount of the trustees’ double tax relief pool as at the start of the previous tax year, or</item><item><num>(b)</num>if the current tax year is the tax year during which the unauthorised unit trust is established, or the trustees have been UK resident for no tax year prior to the current tax year, nil;</item></blockList></tblock><tblock class="definition">B is the amount of the reduction, if any, in the liability of the trustees to income tax in the previous tax year under—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>sections 2 and 6 of TIOPA 2010 (double taxation arrangements: relief by agreement), or</item><item><num>(b)</num>section 18(1)(b) and (2) of TIOPA 2010 (relief for foreign tax where no double taxation arrangements);</item></blockList></tblock><tblock class="definition">C is the sum of the foreign elements (if any) of deemed deductions from deemed payments treated as made in the previous tax year.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e16992"><num>(3)</num><content>If the trustees were non-UK resident for the previous tax year, references in subsection (2) to the previous tax year are to be read as references to the last tax year prior to the current tax year for which the trustees were UK resident.</content></subsection></section><section eId="d25e17001"><num>943D</num><heading>Annual statements</heading><subsection eId="d25e17005"><num>(1)</num><content>This section applies in relation to any tax year in which the trustees of an unauthorised unit trust are treated as making a deemed payment to a unit holder.</content></subsection><subsection eId="d25e17011"><num>(2)</num><content>The trustees must, as soon as reasonably practicable after the end of the tax year, give the unit holder a statement (an “annual statement”).</content></subsection><subsection eId="d25e17017"><num>(3)</num><intro>The annual statement must include the following information in relation to each deemed payment treated as made by the trustees to the unit holder in the tax year—</intro><level class="para1" eId="d25e17023"><num>(a)</num><content>the date on which the deemed payment was treated as made,</content></level><level class="para1" eId="d25e17029"><num>(b)</num><content>the gross amount of the deemed payment,</content></level><level class="para1" eId="d25e17035"><num>(c)</num><content>the foreign element (if any) of the deemed income represented by the deemed payment,</content></level><level class="para1" eId="d25e17041"><num>(d)</num><content>the deemed deduction made from the deemed payment, and</content></level><level class="para1" eId="d25e17047"><num>(e)</num><content>the foreign element (if any) of that deemed deduction.</content></level></subsection><subsection eId="d25e17053"><num>(4)</num><content>The duties imposed by this section are enforceable by the unit holder.</content></subsection></section></quotedStructure></mod></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Consequential amendments</heading><paragraph eId="schedule-13-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-13-paragraph-2-1"><num>(1)</num><content>In section 550 of ITTOIA 2005 (distributions from unauthorised unit trusts: income tax treated as paid), after “is” insert “, subject to section <ref href="#d25e16759">943A</ref> of that Act (treatment of cases involving double tax relief),”.</content></subparagraph><subparagraph eId="schedule-13-paragraph-2-2"><num>(2)</num><content><mod>In section 848 of ITA 2007 (income tax deducted at source treated as income tax paid by the recipient), at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17082"><num>(4)</num><content>In relation to income tax deducted at source under section 941 (unauthorised unit trusts), this section is subject to section <ref href="#d25e16759">943A</ref> (treatment of cases involving double tax relief).</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-13-paragraph-2-3"><num>(3)</num><content><mod>In Schedule 4 to that Act (index of defined expressions), insert at the appropriate places—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml" xmlns:leg="http://www.legislation.gov.uk/namespaces/legislation"><default1:col span="1" style="width:72%"/><default1:col span="1" style="width:28%"/><default1:tbody><default1:tr><default1:td>deemed income (in Chapter 13 of Part 15)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section 941(6)”</default1:td></default1:tr><default1:tr><default1:td>“foreign element (in Chapter 13 of Part 15)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section <ref href="#d25e16865">943B</ref></default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-13-paragraph-2-4"><num>(4)</num><content>In section 971 of CTA 2009 (distributions from unauthorised unit trusts: overview of Chapter), in subsection (2)(a), after “is” insert “, subject to section <ref href="#d25e16759">943A</ref> of that Act (treatment of cases involving double tax relief),”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-13-paragraph-3" class="schProv1"><num>3</num><content>The amendments made by this Schedule have effect in relation to payments treated under section 941(2) of ITA 2007 as made on or after 21 October 2009.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Transitional provision: opening value of trustees’ double tax relief pool</heading><paragraph eId="schedule-13-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-13-paragraph-4-1"><num>(1)</num><content>This paragraph applies, and section <ref href="#d25e16929">943C</ref> of ITA 2007 does not apply, in relation to the determination of the amount of the trustees’ double tax relief pool as at the start of the tax year 2009-10.</content></subparagraph><subparagraph eId="schedule-13-paragraph-4-2"><num>(2)</num><intro>That amount is—</intro><level class="para1" eId="schedule-13-paragraph-4-2-a"><num>(a)</num><content>if amounts A and B are both greater than £20,000, the lower of those amounts, and</content></level><level class="para1" eId="schedule-13-paragraph-4-2-b"><num>(b)</num><content>in any other case, nil.</content></level></subparagraph><subparagraph eId="schedule-13-paragraph-4-3"><num>(3)</num><intro>Amount A is the sum of—</intro><level class="para1" eId="schedule-13-paragraph-4-3-a"><num>(a)</num><intro>any amount by which the liability of the trustees to income tax for the tax year 2007-08 is reduced under—</intro><level class="para2" eId="schedule-13-paragraph-4-3-a-i"><num>(i)</num><content>sections 2 and 6 of TIOPA 2010 (double taxation arrangements: relief by agreement), or</content></level><level class="para2" eId="schedule-13-paragraph-4-3-a-ii"><num>(ii)</num><content>section 18(1)(b) and (2) of that Act (relief for foreign tax where no double taxation arrangements), and</content></level></level><level class="para1" eId="schedule-13-paragraph-4-3-b"><num>(b)</num><content>any amount by which the liability of the trustees to income tax for the following tax year is so reduced.</content></level></subparagraph><subparagraph eId="schedule-13-paragraph-4-4"><num>(4)</num><content>Amount B is 20% of the amount (if any) of the trustees’ income pool as at the start of the tax year 2009-10 (calculated in accordance with section 943 of ITA 2007).</content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-14"><num>SCHEDULE 14<authorialNote class="referenceNote">Section 41</authorialNote></num><heading>Index-linked gilt-edged securities</heading><hcontainer name="crossheading" class="schGroup7"><heading>Amendments of Chapter 12 of Part 5 of CTA 2009</heading><paragraph eId="schedule-14-paragraph-1" class="schProv1"><num>1</num><content>Chapter 12 of Part 5 of CTA 2009 (loan relationships: special rules for particular kinds of securities) is amended as follows.</content></paragraph><paragraph eId="schedule-14-paragraph-2" class="schProv1"><num>2</num><content><mod>In section 398(2) (overview of Chapter), for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e17230"><num>(a)</num><content>sections 399 to <ref href="#d25e17542">400C</ref> (index-linked gilt-edged securities),</content></level><level class="para1" eId="d25e17239"><num>(aa)</num><content>sections 401 to 405 (other gilt-edged securities),</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph><paragraph eId="schedule-14-paragraph-3" class="schProv1"><num>3</num><content><mod>For the heading before section 399 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><heading ukl:Context="Pblock">Index-linked gilt-edged securities</heading></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph><paragraph eId="schedule-14-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-14-paragraph-4-1"><num>(1)</num><content>Section 399 (index-linked gilt-edged securities: basic rules) is amended as follows.</content></subparagraph><subparagraph eId="schedule-14-paragraph-4-2"><num>(2)</num><content>For the heading substitute “Basic rules”.</content></subparagraph><subparagraph eId="schedule-14-paragraph-4-3"><num>(3)</num><content><mod>For subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17285"><num>(3)</num><content>For provision requiring adjustments to be made to amounts determined under subsection (2), see sections 400 to <ref href="#d25e17542">400C</ref> (adjustments for changes in index).</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-14-paragraph-4-4"><num>(4)</num><content>In subsection (4), for “section 400” substitute “sections 400 to <ref href="#d25e17542">400C</ref>”.</content></subparagraph></paragraph><paragraph eId="schedule-14-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-14-paragraph-5-1"><num>(1)</num><content>Section 400 (index-linked gilt-edged securities: adjustments for changes in index) is amended as follows.</content></subparagraph><subparagraph eId="schedule-14-paragraph-5-2"><num>(2)</num><content>For the heading substitute “Adjustments for changes in index”.</content></subparagraph><subparagraph eId="schedule-14-paragraph-5-3"><num>(3)</num><intro>In subsection (1)(a)—</intro><level class="para1" eId="schedule-14-paragraph-5-3-a"><num>(a)</num><content>for “the amounts” substitute “an amount”, and</content></level><level class="para1" eId="schedule-14-paragraph-5-3-b"><num>(b)</num><content>for “fall” substitute “falls”.</content></level></subparagraph><subparagraph eId="schedule-14-paragraph-5-4"><num>(4)</num><content><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17347"><num>(2A)</num><content>Subsection (2) is subject to sections <ref href="#d25e17369">400A</ref> to <ref href="#d25e17542">400C</ref> (relevant hedging schemes).</content></subsection></quotedStructure></mod></content></subparagraph></paragraph><paragraph eId="schedule-14-paragraph-6" class="schProv1"><num>6</num><content><mod>After section 400 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e17369"><num>400A</num><heading>Adjustments for changes in index: relevant hedging schemes</heading><subsection eId="d25e17373"><num>(1)</num><intro>This section applies where—</intro><level class="para1" eId="d25e17379"><num>(a)</num><content>section 400 applies in relation to an amount to be brought into account for an accounting period of a company (“company A”) in respect of a security, and</content></level><level class="para1" eId="d25e17385"><num>(b)</num><content>conditions 1 to 3 are met.</content></level></subsection><subsection eId="d25e17391"><num>(2)</num><content>Condition 1 is that company A is a party to a relevant hedging scheme at any time in the accounting period.</content></subsection><subsection eId="d25e17397"><num>(3)</num><content>Condition 2 is that there is an increase in the retail prices index between the times mentioned in subsection (1) of section 400.</content></subsection><subsection eId="d25e17403"><num>(4)</num><content>Condition 3 is that the index-linked capital return on the security in the accounting period, or a proportion of it, is hedged.</content></subsection><subsection eId="d25e17409"><num>(5)</num><intro>Where this section applies, any increase in the carrying value of the security at the earlier of the times mentioned in subsection (1) of section 400 that would, apart from this section, be made under subsection (2) of that section is reduced—</intro><level class="para1" eId="d25e17415"><num>(a)</num><content>in a case in which the index-linked capital return on the security in the accounting period is wholly hedged, to nil, and</content></level><level class="para1" eId="d25e17421"><num>(b)</num><content>in a case in which only a proportion of that return is hedged, by the same proportion.</content></level></subsection><subsection eId="d25e17427"><num>(6)</num><content>For the purposes of this section “a relevant hedging scheme” means a scheme the purpose, or one of the main purposes, of any party to which, on entering into the scheme, is to secure that the index-linked capital return on the security, or a proportion of it, is hedged.</content></subsection><subsection eId="d25e17433"><num>(7)</num><intro>For the purposes of this section the “index-linked capital return” of the security is so much of the return on the security as—</intro><level class="para1" eId="d25e17439"><num>(a)</num><content>would, disregarding section 400, result in an increase in the carrying value of the security between the times mentioned in subsection (1) of that section, and</content></level><level class="para1" eId="d25e17445"><num>(b)</num><content>is attributable to an increase in the retail prices index.</content></level></subsection><subsection eId="d25e17451"><num>(8)</num><content>For the purposes of this section the index-linked capital return on the security, or any proportion of that return, is “hedged” if (whether because of the operation of a swap or otherwise) the pre-tax economic profit or loss made by the relevant group or company in the accounting period is unaffected by it.</content></subsection><subsection eId="d25e17457"><num>(9)</num><intro>In subsection (8) “the relevant group or company” means—</intro><level class="para1" eId="d25e17463"><num>(a)</num><intro>company A and every other company that is at any time in the accounting period—</intro><level class="para2" eId="d25e17469"><num>(i)</num><content>associated with company A, and</content></level><level class="para2" eId="d25e17475"><num>(ii)</num><content>a party to the relevant hedging scheme, or</content></level></level><level class="para1" eId="d25e17481"><num>(b)</num><content>if there is no such other company, company A.</content></level></subsection><subsection eId="d25e17487"><num>(10)</num><content>In this section “scheme” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></section><section eId="d25e17499"><num>400B</num><heading>Interpretation of section <ref href="#d25e17369">400A</ref>: economic profits and losses</heading><subsection eId="d25e17503"><num>(1)</num><content>A reference in section <ref href="#d25e17369">400A</ref> to an “economic” profit or loss made by any person in a period is to a profit or loss made by that person in that period, computed taking into account unrealised (as well as realised) profits and losses.</content></subsection><subsection eId="d25e17512"><num>(2)</num><content>For the purposes of section <ref href="#d25e17369">400A</ref> an economic profit or loss is made by a group of companies if it is made by the members of the group considered together.</content></subsection><subsection eId="d25e17521"><num>(3)</num><content>In determining for the purposes of section <ref href="#d25e17369">400A</ref> the amount of an economic profit or loss made by a group of companies in any period, the economic profits and losses of each member of the group are to be computed over that period (whether or not that period is an accounting period of the member).</content></subsection><subsection eId="d25e17530"><num>(4)</num><content>A reference in section <ref href="#d25e17369">400A</ref> to a “pre-tax” economic profit or loss is a reference to an economic profit or loss determined disregarding any gain or loss made as a result of the operation of any provision of the Corporation Tax Acts.</content></subsection></section><section eId="d25e17542"><num>400C</num><heading>Meaning of “associated with”</heading><subsection eId="d25e17546"><num>(1)</num><content>For the purposes of section <ref href="#d25e17369">400A</ref>, a company (“company B”) is associated with company A at a time (“the relevant time”) during an accounting period of company A (“the accounting period”) if any of the following five conditions is met.</content></subsection><subsection eId="d25e17555"><num>(2)</num><content>The first condition is that the financial results of company A and company B, for a period that includes the relevant time, meet the consolidation condition.</content></subsection><subsection eId="d25e17561"><num>(3)</num><content>The second condition is that there is a connection between company A and company B for the accounting period.</content></subsection><subsection eId="d25e17567"><num>(4)</num><content>The third condition is that, at the relevant time, company A has a major interest in company B or company B has a major interest in company A.</content></subsection><subsection eId="d25e17573"><num>(5)</num><intro>The fourth condition is that—</intro><level class="para1" eId="d25e17579"><num>(a)</num><content>the financial results of company A and a third company, for a period that includes the relevant time, meet the consolidation condition, and</content></level><level class="para1" eId="d25e17585"><num>(b)</num><content>at the relevant time the third company has a major interest in company B.</content></level></subsection><subsection eId="d25e17591"><num>(6)</num><intro>The fifth condition is that—</intro><level class="para1" eId="d25e17597"><num>(a)</num><content>there is a connection between company A and a third company for the accounting period, and</content></level><level class="para1" eId="d25e17603"><num>(b)</num><content>at the relevant time the third company has a major interest in company B.</content></level></subsection><subsection eId="d25e17609"><num>(7)</num><intro>In this paragraph the financial results of any two companies for any period meet “the consolidation condition” if—</intro><level class="para1" eId="d25e17615"><num>(a)</num><content>they are required to be comprised in group accounts prepared under section 399 of the Companies Act 2006 (duty of certain parent companies to prepare group accounts), or</content></level><level class="para1" eId="d25e17621"><num>(b)</num><content>they would be required to be comprised in such accounts but for the application of an exemption mentioned in subsection (3) of that section.</content></level></subsection><subsection eId="d25e17627"><num>(8)</num><content>Section 466 (companies connected for an accounting period) applies for the purposes of this section.</content></subsection><subsection eId="d25e17633"><num>(9)</num><content>In this section “scheme” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></section><heading ukl:Context="Pblock">Other gilt-edged securities</heading></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Consequential amendment</heading><paragraph eId="schedule-14-paragraph-7" class="schProv1"><num>7</num><content>In section 317(5)(g) of CTA 2009 (carrying value), for “and 400” substitute “to <ref href="#d25e17542">400C</ref>”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-14-paragraph-8" class="schProv1"><num>8</num><content>The amendments made by this Schedule have effect in relation to adjustments made under section 400(2) of CTA 2009 in respect of increases in the retail prices index over periods beginning on or after 9 December 2009.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Transitional provision</heading><paragraph eId="schedule-14-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-14-paragraph-9-1"><num>(1)</num><intro>This paragraph applies in relation to an accounting period of a company beginning before 9 December 2009 if, apart from this paragraph—</intro><level class="para1" eId="schedule-14-paragraph-9-1-a"><num>(a)</num><content>an amount to be brought into account for the purposes of Part 5 of CTA 2009 in respect of an index-linked gilt-edged security falls to be determined by reference to its value at two different times, and</content></level><level class="para1" eId="schedule-14-paragraph-9-1-b"><num>(b)</num><content>the earlier time is before 9 December 2009 and the later time is on or after that date.</content></level></subparagraph><subparagraph eId="schedule-14-paragraph-9-2"><num>(2)</num><intro>Instead of bringing into account the amount determined as mentioned in sub-paragraph <ref href="#schedule-14-paragraph-9-1-a">(1)(a)</ref>, the company is to bring into account the amounts that it would have brought into account for—</intro><level class="para1" eId="schedule-14-paragraph-9-2-a"><num>(a)</num><content>that part of the accounting period that falls before 9 December 2009, and</content></level><level class="para1" eId="schedule-14-paragraph-9-2-b"><num>(b)</num><content>that part of the accounting period that falls on or after that date,</content></level><wrapUp>had those parts been separate periods of account (and so separate accounting periods).</wrapUp></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-15"><num>SCHEDULE 15<authorialNote class="referenceNote">Section 44</authorialNote></num><heading>Connected companies: releases of debts</heading><hcontainer name="crossheading" class="schGroup7"><heading>Amendments of section 322 of CTA 2009</heading><paragraph eId="schedule-15-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-15-paragraph-1-1"><num>(1)</num><content>Section 322 of CTA 2009 (release of debts: cases where credits not required to be brought into account) is amended as follows.</content></subparagraph><subparagraph eId="schedule-15-paragraph-1-2"><num>(2)</num><content>In subsection (4), after “release is” insert “not a release of relevant rights and is”.</content></subparagraph><subparagraph eId="schedule-15-paragraph-1-3"><num>(3)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17748"><num>(4A)</num><content>Relevant rights” has the same meaning for the purposes of this section as it has for the purposes of section 358.</content></subsection></quotedStructure></mod></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Amendments of Chapter 6 of Part 5 of CTA 2009</heading><paragraph eId="schedule-15-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-15-paragraph-2-1"><num>(1)</num><content>Chapter 6 of Part 5 of CTA 2009 (connected companies relationships: release of debts etc) is amended as follows.</content></subparagraph><subparagraph eId="schedule-15-paragraph-2-2"><num>(2)</num><content>In section 353(2)(b) (introduction to Chapter), for “except where the release is a deemed release under section 361 or 362” substitute “subject to some exceptions”.</content></subparagraph><subparagraph eId="schedule-15-paragraph-2-3"><num>(3)</num><intro>In section 358 (exclusion of credits on release of connected companies debts: general)—</intro><level class="para1" eId="schedule-15-paragraph-2-3-a"><num>(a)</num><content>in subsection (1)(a), for “a company’s debtor relationship is released,” substitute “a debtor relationship of a company (“D”) is released, and”,</content></level><level class="para1" eId="schedule-15-paragraph-2-3-b"><num>(b)</num><content><mod>in subsection (2), for “The company” substitute “D” and for “it is a deemed release” substitute <quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">—<level class="para1" eId="d25e17795"><num>(a)</num><content>it is a deemed release, or</content></level><level class="para1" eId="d25e17801"><num>(b)</num><content>it is a release of relevant rights.</content></level></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-15-paragraph-2-3-c"><num>(c)</num><content><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17816"><num>(4)</num><intro>For the purposes of this section “relevant rights” means rights of a company (“C”) that—</intro><level class="para1" eId="d25e17822"><num>(a)</num><content>were acquired by C in circumstances that, but for the application of the corporate rescue exception or the debt-for-debt exception, would have resulted in a deemed release under section 361(3), or</content></level><level class="para1" eId="d25e17828"><num>(b)</num><content>were acquired by another company in such circumstances and transferred to C by way of an assignment or assignments.</content></level></subsection><subsection eId="d25e17834"><num>(5)</num><intro>The amount of the credit that D is required to bring into account in respect of a release of relevant rights is—</intro><level class="para1" eId="d25e17840"><num>(a)</num><content>the amount of the discount received on the acquisition, less</content></level><level class="para1" eId="d25e17846"><num>(b)</num><content>the sum of any credits brought into account in respect of that amount (whether in the accounting period in which the release takes place or in a previous accounting period) by C or, in a case within subsection (4)(b), by the company that acquired the rights or any company to which the rights were subsequently assigned.</content></level></subsection><subsection eId="d25e17852"><num>(6)</num><content>A reference in subsection <ref href="#d25e17834">(5)</ref> to the amount of the discount received on the acquisition is to the amount that would have been treated as released under section 361(4) on the acquisition, but for the application of the corporate rescue exception or the debt-for-debt exception.</content></subsection></quotedStructure></mod></content></level></subparagraph><subparagraph eId="schedule-15-paragraph-2-4"><num>(4)</num><intro>In section 361 (acquisition of creditor rights by connected company at undervalue)—</intro><level class="para1" eId="schedule-15-paragraph-2-4-a"><num>(a)</num><content><mod>in subsection (1), for paragraph (f) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e17874"><num>(f)</num><content>no relevant exception applies.</content></level></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-15-paragraph-2-4-b"><num>(b)</num><content><mod>for subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17889"><num>(2)</num><intro>In subsection (1) “relevant exception” means—</intro><level class="para1" eId="d25e17895"><num>(a)</num><content>the corporate rescue exception (see section <ref href="#d25e17932">361A</ref>),</content></level><level class="para1" eId="d25e17904"><num>(b)</num><content>the debt-for-debt exception (see section <ref href="#d25e18008">361B</ref>), or</content></level><level class="para1" eId="d25e17913"><num>(c)</num><content>the equity-for-debt exception (see section <ref href="#d25e18105">361C</ref>).</content></level></subsection></quotedStructure></mod></content></level></subparagraph><subparagraph eId="schedule-15-paragraph-2-5"><num>(5)</num><content><mod>After section 361 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e17932"><num>361A</num><heading>The corporate rescue exception</heading><subsection eId="d25e17936"><num>(1)</num><intro>For the purposes of section 361, the “corporate rescue exception” applies if—</intro><level class="para1" eId="d25e17942"><num>(a)</num><content>the acquisition is an arm’s length transaction,</content></level><level class="para1" eId="d25e17948"><num>(b)</num><content>there has been a change in the ownership of D at any time in the period beginning one year before, and ending 60 days after, the date of the acquisition,</content></level><level class="para1" eId="d25e17954"><num>(c)</num><content>it is reasonable to assume that, but for the change in ownership, D would, within one year of the date of the change of ownership, have met one of the insolvency conditions, and</content></level><level class="para1" eId="d25e17960"><num>(d)</num><content>it is reasonable to assume that, but for the change in ownership, the acquisition would not have been made.</content></level></subsection><subsection eId="d25e17966"><num>(2)</num><content>Subject to subsection <ref href="#d25e17975">(3)</ref>, section 769 of ICTA (rules for ascertaining change in ownership of company) applies for the purpose of construing a reference in this section to a change in the ownership of a company.</content></subsection><subsection eId="d25e17975"><num>(3)</num><intro>A reference in this section to a change in the ownership of a company, in the case of a company that is a building society, is a reference to—</intro><level class="para1" eId="d25e17981"><num>(a)</num><content>an amalgamation of two or more building societies under section 93 of the Building Societies Act 1986,</content></level><level class="para1" eId="d25e17987"><num>(b)</num><content>a transfer of all the engagements of one building society to another under section 94 of that Act, or</content></level><level class="para1" eId="d25e17993"><num>(c)</num><content>a transfer of the whole of the business of a building society to a company under section 97 of that Act.</content></level></subsection><subsection eId="d25e17999"><num>(4)</num><content>Sections 322(6) and 323 (insolvency conditions) apply for the purposes of this section.</content></subsection></section><section eId="d25e18008"><num>361B</num><heading>The debt-for-debt exception</heading><subsection eId="d25e18012"><num>(1)</num><content>For the purposes of section 361, the “debt-for-debt exception” applies if condition 1 or 2 is met.</content></subsection><subsection eId="d25e18018"><num>(2)</num><intro>Condition 1 is that—</intro><level class="para1" eId="d25e18024"><num>(a)</num><content>the acquisition is an arm’s length transaction,</content></level><level class="para1" eId="d25e18030"><num>(b)</num><content>the rights that are acquired are rights under a loan relationship that is represented by a security (“the old security”),</content></level><level class="para1" eId="d25e18036"><num>(c)</num><content>the consideration given by C for the acquisition consists only of a security (“the new security”) representing a loan relationship to which C is a party as debtor, and</content></level><level class="para1" eId="d25e18042"><num>(d)</num><intro>the new security—</intro><level class="para2" eId="d25e18048"><num>(i)</num><content>has the same nominal value as the old security, and</content></level><level class="para2" eId="d25e18054"><num>(ii)</num><content>at the time of the acquisition, has substantially the same market value as the old security.</content></level></level></subsection><subsection eId="d25e18060"><num>(3)</num><intro>Condition 2 is that—</intro><level class="para1" eId="d25e18066"><num>(a)</num><content>the acquisition is an arm’s length transaction,</content></level><level class="para1" eId="d25e18072"><num>(b)</num><content>the rights that are acquired are rights under a loan relationship that is represented by an asset other than a security (“the old unsecured loan”),</content></level><level class="para1" eId="d25e18078"><num>(c)</num><content>the consideration given by C for the acquisition consists only of an asset other than a security (“the new unsecured loan”) representing a loan relationship to which C is a party as debtor, and</content></level><level class="para1" eId="d25e18084"><num>(d)</num><content>the amount of the new unsecured loan, and its terms, are substantially the same as those of the old unsecured loan.</content></level></subsection><subsection eId="d25e18090"><num>(4)</num><content>In this section “market value” has the same meaning as in TCGA 1992 (see sections 272 and 273 of that Act).</content></subsection><subsection eId="d25e18096"><num>(5)</num><content>In determining for the purposes of this section the market value of a security in a case in which the security represents a loan relationship to which section 415 (loan relationships with embedded derivatives) applies, rights or liabilities within subsection (1)(b) of that section are to be treated as comprised in the loan relationship.</content></subsection></section><section eId="d25e18105"><num>361C</num><heading>The equity-for-debt exception</heading><subsection eId="d25e18109"><num>(1)</num><content>For the purposes of section 361 the “equity-for-debt exception” applies if the following two conditions are met.</content></subsection><subsection eId="d25e18115"><num>(2)</num><content>The first condition is that the acquisition is an arm’s length transaction.</content></subsection><subsection eId="d25e18121"><num>(3)</num><intro>The second condition is that the consideration given by C for the acquisition consists only of—</intro><level class="para1" eId="d25e18127"><num>(a)</num><content>shares forming part of the ordinary share capital of C,</content></level><level class="para1" eId="d25e18133"><num>(b)</num><content>shares forming part of the ordinary share capital of a company connected with C, or</content></level><level class="para1" eId="d25e18139"><num>(c)</num><content>an entitlement to shares within paragraph (a) or (b).</content></level></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-15-paragraph-2-6"><num>(6)</num><intro>In section 363—</intro><level class="para1" eId="schedule-15-paragraph-2-6-a"><num>(a)</num><content>in the heading, for “and” substitute “to”, and</content></level><level class="para1" eId="schedule-15-paragraph-2-6-b"><num>(b)</num><content>in subsections (1) and (4), for “and” substitute “to”.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-15-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-15-paragraph-3-1"><num>(1)</num><content>The amendments made by paragraph <ref href="#schedule-15-paragraph-1">1</ref> have effect in relation to a release of rights that takes place on or after 9 November 2009.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-2"><num>(2)</num><content>The amendments made by paragraph <ref href="#schedule-15-paragraph-2-2">2(2)</ref> and <ref href="#schedule-15-paragraph-2-4">(4)</ref> to <ref href="#schedule-15-paragraph-2-6">(6)</ref> have effect in relation to a relevant acquisition that is made on or after 14 October 2009.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-3"><num>(3)</num><content>The amendments made by paragraph <ref href="#schedule-15-paragraph-2-3">2(3)</ref> have effect in relation to a release of rights that takes place on or after 14 October 2009.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-4"><num>(4)</num><content>Sub-paragraphs <ref href="#schedule-15-paragraph-3-1">(1)</ref> to <ref href="#schedule-15-paragraph-3-3">(3)</ref> are subject to paragraph <ref href="#schedule-15-paragraph-4">4</ref>.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-5"><num>(5)</num><content>In this paragraph and paragraph <ref href="#schedule-15-paragraph-4">4</ref> “relevant acquisition” means an acquisition of rights within subsection (1)(a) to (e) of section 361 of CTA 2009 (acquisition of creditor rights by connected company at an undervalue).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Transitional provision</heading><paragraph eId="schedule-15-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-15-paragraph-4-1"><num>(1)</num><intro>The amendments made by this Schedule do not have effect in relation to a relevant acquisition that is made on or after 14 October 2009, or to a release of rights acquired by way of such an acquisition, if—</intro><level class="para1" eId="schedule-15-paragraph-4-1-a"><num>(a)</num><content>the acquisition is made pursuant to an agreement entered into before 14 October 2009, or</content></level><level class="para1" eId="schedule-15-paragraph-4-1-b"><num>(b)</num><content>the acquisition is made during the transitional period and condition A, B or C is met.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-2"><num>(2)</num><intro>Condition A is that, before 14 October 2009—</intro><level class="para1" eId="schedule-15-paragraph-4-2-a"><num>(a)</num><content>the original creditor received a proposal from the new creditor that the acquisition should be made, or</content></level><level class="para1" eId="schedule-15-paragraph-4-2-b"><num>(b)</num><content>the new creditor received a proposal from the original creditor that the acquisition should be made.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-3"><num>(3)</num><intro>Condition B is that—</intro><level class="para1" eId="schedule-15-paragraph-4-3-a"><num>(a)</num><content>the acquisition is of rights under a loan relationship that is represented by a security,</content></level><level class="para1" eId="schedule-15-paragraph-4-3-b"><num>(b)</num><content>during the transitional period the new creditor acquires rights under other loan relationships represented by securities, and</content></level><level class="para1" eId="schedule-15-paragraph-4-3-c"><num>(c)</num><intro>before 14 October 2009, either—</intro><level class="para2" eId="schedule-15-paragraph-4-3-c-i"><num>(i)</num><content>persons together holding more than 50% by value of the securities referred to in paragraphs (a) and (b) (“the bought-back securities”) received proposals from the new creditor that the acquisitions should be made, or</content></level><level class="para2" eId="schedule-15-paragraph-4-3-c-ii"><num>(ii)</num><content>the new creditor received proposals from persons together holding more than 50% by value of the bought-back securities that the acquisitions should be made.</content></level></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-4"><num>(4)</num><intro>In sub-paragraphs <ref href="#schedule-15-paragraph-4-2">(2)</ref> and <ref href="#schedule-15-paragraph-4-3">(3)</ref>—</intro><level class="para1" eId="schedule-15-paragraph-4-4-a"><num>(a)</num><content>a reference to the original creditor includes any person acting on behalf of, or who controls, the original creditor,</content></level><level class="para1" eId="schedule-15-paragraph-4-4-b"><num>(b)</num><content>a reference to the new creditor includes any person acting on behalf of, or who controls, the new creditor, and</content></level><level class="para1" eId="schedule-15-paragraph-4-4-c"><num>(c)</num><content>a reference to a person holding a security includes any person acting on behalf of, or who controls, the person holding the security.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-5"><num>(5)</num><intro>Condition C is that—</intro><level class="para1" eId="schedule-15-paragraph-4-5-a"><num>(a)</num><content>before 14 October 2009, the Financial Services Authority gave its agreement (“the FSA agreement”) to the acquisition being made (and had not withdrawn that agreement),</content></level><level class="para1" eId="schedule-15-paragraph-4-5-b"><num>(b)</num><content>if the FSA agreement was given subject to the agreement of any other person, the agreement of that other person was also given (and not withdrawn) before that date, and</content></level><level class="para1" eId="schedule-15-paragraph-4-5-c"><num>(c)</num><content>condition A or B would have been met but for the compliance by the original creditor or the new creditor with any other term on which the FSA agreement was given.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-6"><num>(6)</num><intro>In this paragraph—</intro><level class="para1" eId="schedule-15-paragraph-4-6-a"><num>(a)</num><content>“the original creditor”, in relation to a relevant acquisition, means the person from whom the rights are acquired, and</content></level><level class="para1" eId="schedule-15-paragraph-4-6-b"><num>(b)</num><content>“the new creditor”, in relation to a relevant acquisition, means the person who acquires the rights.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-7"><num>(7)</num><intro>In this paragraph “the transitional period” means the period—</intro><level class="para1" eId="schedule-15-paragraph-4-7-a"><num>(a)</num><content>beginning with 14 October 2009, and</content></level><level class="para1" eId="schedule-15-paragraph-4-7-b"><num>(b)</num><content>ending with 31 January 2010.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-8"><num>(8)</num><content>Section 472 of CTA 2009 (meaning of “control”) applies for the purposes of this paragraph.</content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-16"><num>SCHEDULE 16<authorialNote class="referenceNote">Section 46</authorialNote></num><heading>Risk transfer schemes</heading><hcontainer name="crossheading" class="schGroup7"><heading>Amendments</heading><paragraph eId="schedule-16-paragraph-1" class="schProv1"><num>1</num><content>CTA 2010 is amended as follows.</content></paragraph><paragraph eId="schedule-16-paragraph-2" class="schProv1"><num>2</num><content><mod>In section 1(4) (overview of Act) omit the “and” at the end of paragraph (g), insert “, and” at the end of paragraph (h) and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e18427"><num>(i)</num><content>risk transfer schemes (see Part 21A).</content></level></quotedStructure></mod></content></paragraph><paragraph eId="schedule-16-paragraph-3" class="schProv1"><num>3</num><content><mod>After Part 21 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><part eId="d25e18440"><num>Part 21A</num><heading>Risk transfer schemes</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e18445"><heading>Introduction</heading><section eId="d25e18451"><num>937A</num><heading>Overview</heading><content>This Part contains rules about the treatment of certain losses made by companies as a result of risk transfer schemes.</content></section><section eId="d25e18460"><num>937B</num><heading>Group schemes and single company schemes</heading><subsection eId="d25e18464"><num>(1)</num><intro>A risk transfer scheme may be—</intro><level class="para1" eId="d25e18470"><num>(a)</num><content>a group scheme, or</content></level><level class="para1" eId="d25e18476"><num>(b)</num><content>a risk transfer scheme other than a group scheme (a “single-company scheme”).</content></level></subsection><subsection eId="d25e18482"><num>(2)</num><intro>A risk transfer scheme to which a company (“company A”) is a party is a “group scheme” if at least one company other than company A is at any time both—</intro><level class="para1" eId="d25e18488"><num>(a)</num><content>associated with company A, and</content></level><level class="para1" eId="d25e18494"><num>(b)</num><content>a party to the scheme.</content></level></subsection><subsection eId="d25e18500"><num>(3)</num><intro>In this Part “the relevant group” means—</intro><level class="para1" eId="d25e18506"><num>(a)</num><content>company A, and</content></level><level class="para1" eId="d25e18512"><num>(b)</num><content>each company other than company A in relation to which the condition in subsection (2) is met.</content></level></subsection><subsection eId="d25e18518"><num>(4)</num><content>In its application in relation to single company schemes, this Part applies subject to the following modifications.</content></subsection><subsection eId="d25e18524"><num>(5)</num><intro>The modifications are that—</intro><level class="para1" eId="d25e18530"><num>(a)</num><content>references to the relevant group, a member of the relevant group, or the members of the relevant group, are treated as references to company A, and</content></level><level class="para1" eId="d25e18536"><num>(b)</num><content>sections <ref href="#d25e18672">937E</ref><ref href="#d25e18700">(2)</ref> and <ref href="#d25e19348">937L</ref><ref href="#d25e19358">(2)</ref> are treated as omitted.</content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e18552"><heading>Basic definitions</heading><section eId="d25e18558"><num>937C</num><heading>Meaning of “risk transfer scheme”</heading><subsection eId="d25e18562"><num>(1)</num><content>A scheme to which a company (“company A”) is a party is a “risk transfer scheme” if conditions 1 to 3 are met.</content></subsection><subsection eId="d25e18568"><num>(2)</num><content>Condition 1 is that the purpose, or one of the main purposes, of any member of the relevant group on entering into the scheme is to obtain a financial advantage for the relevant group that it is reasonable to assume could not otherwise have been obtained without the relevant group becoming subject to (or incurring the cost of avoiding) a relevant risk.</content></subsection><subsection eId="d25e18574"><num>(3)</num><intro>In subsection <ref href="#d25e18568">(2)</ref> “a relevant risk” means a risk that the relevant group would make economic losses in one or more accounting periods of company A as a result of fluctuations in—</intro><level class="para1" eId="d25e18583"><num>(a)</num><content>the rate of exchange between any two currencies,</content></level><level class="para1" eId="d25e18589"><num>(b)</num><content>the retail prices index (or any similar general index of prices) or any other index, or</content></level><level class="para1" eId="d25e18595"><num>(c)</num><content>any price or other value.</content></level></subsection><subsection eId="d25e18601"><num>(4)</num><intro>Condition 2 is that, as a result of the scheme, and disregarding the effect of this Part, the relevant group—</intro><level class="para1" eId="d25e18607"><num>(a)</num><content>is not subject to the relevant risk, or</content></level><level class="para1" eId="d25e18613"><num>(b)</num><content>is subject only to a negligible proportion of that risk.</content></level></subsection><subsection eId="d25e18619"><num>(5)</num><content>Condition 3 is that, disregarding the effect of the provisions of the Corporation Tax Acts, condition 2 would not be met.</content></subsection><subsection eId="d25e18625"><num>(6)</num><intro>For the purposes of this section the relevant group obtains a “financial advantage” from a scheme if, taking into account the effect of the scheme on each member of the group, the scheme—</intro><level class="para1" eId="d25e18631"><num>(a)</num><content>increases the return on any investment,</content></level><level class="para1" eId="d25e18637"><num>(b)</num><content>reduces the costs of any borrowing, or</content></level><level class="para1" eId="d25e18643"><num>(c)</num><content>has an effect economically equivalent to that mentioned in paragraph (a) or (b).</content></level></subsection></section><section eId="d25e18652"><num>937D</num><heading>Meaning of “the scheme rate, index or value”</heading><content>In this Part “the scheme rate, index or value”, in relation to a risk transfer scheme, means the rate, index or value mentioned in section <ref href="#d25e18558">937C</ref><ref href="#d25e18583">(3)(a)</ref>, <ref href="#d25e18589">(b)</ref> or <ref href="#d25e18595">(c)</ref> in relation to the relevant risk for the scheme.</content></section><section eId="d25e18672"><num>937E</num><heading>Scheme losses and scheme profits</heading><subsection eId="d25e18676"><num>(1)</num><intro>A loss or profit made by a company in an accounting period is a “scheme loss” or “scheme profit” in relation to a risk transfer scheme to which the company is a party at any time in the period if the loss or profit—</intro><level class="para1" eId="d25e18682"><num>(a)</num><content>is from a loan relationship, or derivative contract, that is part of the scheme,</content></level><level class="para1" eId="d25e18688"><num>(b)</num><content>would, apart from this Part, be brought into account in determining a debit or credit for the purposes of Part 5 of CTA 2009 (loan relationships) or Part 7 of that Act (derivative contracts), and</content></level><level class="para1" eId="d25e18694"><num>(c)</num><content>arises as a result of fluctuations in the scheme rate, index or value.</content></level></subsection><subsection eId="d25e18700"><num>(2)</num><content>References in this Part to a scheme loss or scheme profit made by a company in a period that is not an accounting period of that company are to the scheme loss or scheme profit that the company would have made in the period from the loan relationship or derivative contract in question if the period had been an accounting period of the company.</content></subsection><subsection eId="d25e18706"><num>(3)</num><intro>References in this section to a loss or profit from a loan relationship or a derivative contract include—</intro><level class="para1" eId="d25e18712"><num>(a)</num><content>a loss or profit from a related transaction, and</content></level><level class="para1" eId="d25e18718"><num>(b)</num><content>a loss or profit of a capital nature.</content></level></subsection><subsection eId="d25e18724"><num>(4)</num><intro>In subsection (3)(a) “related transaction” has the meaning given by—</intro><level class="para1" eId="d25e18730"><num>(a)</num><content>section 304 of CTA 2009 (in relation to a loan relationship), or</content></level><level class="para1" eId="d25e18736"><num>(b)</num><content>section 596 of that Act (in relation to a derivative contract).</content></level></subsection></section><section eId="d25e18745"><num>937F</num><heading>Ring-fenced scheme losses and relevant scheme profits</heading><subsection eId="d25e18749"><num>(1)</num><intro>Subsection (2) applies if—</intro><level class="para1" eId="d25e18755"><num>(a)</num><content>a company makes one or more scheme losses in an accounting period in relation to a risk transfer scheme, and</content></level><level class="para1" eId="d25e18761"><num>(b)</num><content>disregarding any profits or losses made otherwise than as a result of the scheme, the relevant group makes a pre-tax economic loss in the period as a result of fluctuations in the scheme rate, index or value.</content></level></subsection><subsection eId="d25e18767"><num>(2)</num><content>The relevant proportion of each scheme loss made by the company in the accounting period is a “ring-fenced scheme loss”.</content></subsection><subsection eId="d25e18773"><num>(3)</num><content>For this purpose “the relevant proportion” means—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_011"><default:mfrac linethickness="1" denomalign="center" numalign="center"><default:mrow><default:mi mathvariant="normal">A</default:mi><default:mo>−</default:mo><default:mi mathvariant="normal">B</default:mi><default:mo>−</default:mo><default:mi mathvariant="normal">C</default:mi></default:mrow><default:mrow><default:mi mathvariant="normal">A</default:mi></default:mrow></default:mfrac></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A is the total of the scheme losses made in the period in relation to the scheme by the members of the relevant group,</tblock><tblock class="definition">B is the total of the scheme profits made in the period in relation to the scheme by the members of the relevant group, and</tblock><tblock class="definition">C is the pre-tax economic loss referred to in subsection (1)(b).</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e18813"><num>(4)</num><intro>Subsection (5) applies if—</intro><level class="para1" eId="d25e18819"><num>(a)</num><content>a company makes one or more scheme profits in an accounting period in relation to a risk transfer scheme, and</content></level><level class="para1" eId="d25e18825"><num>(b)</num><content>disregarding any profits or losses made otherwise than as a result of the scheme, the relevant group makes a pre-tax economic profit in the period as a result of fluctuations in the scheme rate, index or value.</content></level></subsection><subsection eId="d25e18831"><num>(5)</num><content>The relevant proportion of each scheme profit made by the company in the accounting period is a “relevant scheme profit”.</content></subsection><subsection eId="d25e18837"><num>(6)</num><content>For this purpose “the relevant proportion” means—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_012"><default:mfrac linethickness="1" denomalign="center" numalign="center"><default:mrow><default:mi mathvariant="normal">A</default:mi><default:mo>−</default:mo><default:mi mathvariant="normal">B</default:mi><default:mo>−</default:mo><default:mi mathvariant="normal">C</default:mi></default:mrow><default:mrow><default:mi mathvariant="normal">A</default:mi></default:mrow></default:mfrac></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A is the total of the scheme profits made in the period in relation to the scheme by the members of the relevant group,</tblock><tblock class="definition">B is the total of the scheme losses made in the period in relation to the scheme by the members of the relevant group, and</tblock><tblock class="definition">C is the pre-tax economic profit referred to in subsection (4)(b).</tblock></blockContainer></tblock></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e18877"><heading>Treatment of ring-fenced scheme losses</heading><section eId="d25e18883"><num>937G</num><heading>Ring-fenced scheme loss: treatment in period in which made</heading><subsection eId="d25e18887"><num>(1)</num><content>This section applies for the purpose of determining the amount (if any) of a ring-fenced scheme loss that may be brought into account by a company in the accounting period in which it is made.</content></subsection><subsection eId="d25e18893"><num>(2)</num><content>If the amount of the company’s profits pool for the scheme as at the beginning of the period is nil, the ring-fenced scheme loss may not be brought into account.</content></subsection><subsection eId="d25e18899"><num>(3)</num><intro>If the amount of the company’s profits pool for the scheme as at the beginning of the period is—</intro><level class="para1" eId="d25e18905"><num>(a)</num><content>greater than nil, and</content></level><level class="para1" eId="d25e18911"><num>(b)</num><content>less than the total of the ring-fenced scheme losses made in the period in relation to the scheme by the company,</content></level><wrapUp>only the relevant proportion of the ring-fenced scheme loss may be brought into account.</wrapUp></subsection><subsection eId="d25e18919"><num>(4)</num><content>For this purpose “the relevant proportion” means—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_013"><default:mfrac linethickness="1" denomalign="center" numalign="center"><default:mrow><default:mi mathvariant="normal">A</default:mi></default:mrow><default:mrow><default:mi mathvariant="normal">B</default:mi></default:mrow></default:mfrac></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A is the amount of the company’s profits pool as at the beginning of the period, and</tblock><tblock class="definition">B is the total of the ring-fenced scheme losses made in the period in relation to the scheme by the company.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e18947"><num>(5)</num><content>If the amount of the company’s profits pool for the scheme as at the beginning of the period is equal to or greater than the total of the ring-fenced scheme losses made in the period in relation to the scheme by the company, the ring-fenced scheme loss may be brought into account in full.</content></subsection><subsection eId="d25e18953"><num>(6)</num><content>A reference in this paragraph to bringing a ring-fenced scheme loss into account is to bringing it into account in determining a debit or credit for the purposes of Part 5 of CTA 2009 (loan relationships) or Part 7 of that Act (derivative contracts).</content></subsection></section><section eId="d25e18962"><num>937H</num><heading>Ring-fenced scheme loss: treatment in subsequent periods</heading><subsection eId="d25e18966"><num>(1)</num><intro>This section applies where—</intro><level class="para1" eId="d25e18972"><num>(a)</num><content>a company makes one or more scheme profits in an accounting period in relation to a risk transfer scheme,</content></level><level class="para1" eId="d25e18978"><num>(b)</num><content>disregarding any profits or losses made otherwise than as a result of the scheme, the relevant group makes a pre-tax economic profit in the period as a result of fluctuations in the scheme rate, index or value, and</content></level><level class="para1" eId="d25e18984"><num>(c)</num><content>the amount of the company’s losses pool for the scheme as at the beginning of the period is greater than nil.</content></level></subsection><subsection eId="d25e18990"><num>(2)</num><content>The company may bring into account, as if it were a loss made in the period from a loan relationship—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_014"><default:mrow><default:mi mathvariant="normal">A</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">B</default:mi></default:mrow></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A is so much of the amount of the company’s losses pool as at the beginning of the period as does not exceed the total of the relevant scheme profits made in the period in relation to the scheme by the company, and</tblock><tblock class="definition">B is the proportion of the total of the relevant scheme profits made in the period in relation to the scheme by the company that consists of profits made from its loan relationships.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e19019"><num>(3)</num><content>The company may bring into account, as if it were a loss made in the period from a derivative contract—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_015"><default:mrow><default:mi mathvariant="normal">A</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">C</default:mi></default:mrow></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A has the same meaning as in subsection <ref href="#d25e18990">(2)</ref>, and</tblock><tblock class="definition">C is the proportion of the total of the relevant scheme profits made in the period in relation to the scheme by the company that consists of profits made from its derivative contracts.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e19051"><num>(4)</num><content>A reference in this section to bringing an amount into account is to bringing it into account in determining a debit or credit for the purposes of Part 5 of CTA 2009 (loan relationships) or Part 7 of that Act (derivative contracts).</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e19057"><heading>A company’s losses pool and profits pool</heading><section eId="d25e19063"><num>937I</num><heading>A company’s losses pool and profits pool</heading><subsection eId="d25e19067"><num>(1)</num><content>The amount of a company’s losses pool for a risk transfer scheme as at the beginning of an accounting period (“the current accounting period”) is—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_016"><default:mi mathvariant="normal">A</default:mi><default:mo>+</default:mo><default:mi mathvariant="normal">B</default:mi><default:mo>−</default:mo><default:mi mathvariant="normal">C</default:mi></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A is—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>the amount of the pool as at the beginning of the previous accounting period, or</item><item><num>(b)</num>if the risk transfer scheme began in the current accounting period, nil,</item></blockList></tblock><tblock class="definition">B is the total amount, if any, of ring-fenced scheme losses made in the previous accounting period in relation to the scheme by the company that, as a result of the application of section <ref href="#d25e18883">937G</ref><ref href="#d25e18893">(2)</ref> or <ref href="#d25e18899">(3)</ref>, are not brought into account in that period, and</tblock><tblock class="definition">C is the total amount (if any) that, as a result of the application of section <ref href="#d25e18962">937H</ref><ref href="#d25e18990">(2)</ref> or <ref href="#d25e18899">(3)</ref>, is brought into account in the previous accounting period in relation to the scheme by the company.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e19127"><num>(2)</num><content>The amount of a company’s profits pool for a risk transfer scheme as at the beginning of an accounting period (“the current accounting period”) is—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_017"><default:mi mathvariant="normal">A</default:mi><default:mo>+</default:mo><default:mi mathvariant="normal">B</default:mi><default:mo>−</default:mo><default:mi mathvariant="normal">C</default:mi></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A is—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>the amount of the pool as at the beginning of the previous accounting period, or</item><item><num>(b)</num>if the risk transfer scheme began in the current accounting period, nil,</item></blockList></tblock><tblock class="definition">B is—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>the total of any relevant scheme profits made in the previous accounting period in relation to the scheme by the company, less</item><item><num>(b)</num>the total amount (if any) that, as a result of the application of section <ref href="#d25e18962">937H</ref><ref href="#d25e18990">(2)</ref> or <ref href="#d25e18899">(3)</ref>, is brought into account in that accounting period in relation to the scheme by the company, and</item></blockList></tblock><tblock class="definition">C is the total amount (if any) of ring-fenced scheme losses made in the previous accounting period in relation to the scheme by the company that, as a result of the application of section <ref href="#d25e18883">937G</ref><ref href="#d25e18899">(3)</ref> or <ref href="#d25e18947">(5)</ref>, are brought into account in that period.</tblock></blockContainer></tblock></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e19196"><heading>General</heading><section eId="d25e19202"><num>937J</num><heading>Tax capacity assumption</heading><subsection eId="d25e19206"><num>(1)</num><content>This section applies for the purpose of determining whether condition 2 in section <ref href="#d25e18558">937C</ref> is met.</content></subsection><subsection eId="d25e19215"><num>(2)</num><content>Where a member of the relevant group (“the company”) makes a scheme loss in an accounting period, the economic profits and losses made by the relevant group in the period must be calculated on the assumption that the company obtained the full tax benefit of the loss.</content></subsection><subsection eId="d25e19221"><num>(3)</num><intro>The “full tax benefit” of the loss is the reduction in the corporation tax liability of the company that would result if—</intro><level class="para1" eId="d25e19227"><num>(a)</num><content>the loss were brought into account, and</content></level><level class="para1" eId="d25e19233"><num>(b)</num><content>the company’s profits chargeable to corporation tax, before doing so, were equal to the debit (or the reduction in any credit) determined by reference to the loss.</content></level></subsection><subsection eId="d25e19239"><num>(4)</num><content>A reference in this section to bringing a loss into account is to bringing it into account in determining a debit or credit for the purposes of Part 5 of CTA 2009 (loan relationships) or Part 7 of that Act (derivative contracts).</content></subsection></section><section eId="d25e19248"><num>937K</num><heading>Meaning of “associated with”</heading><subsection eId="d25e19252"><num>(1)</num><content>For the purposes of this Part a company (“company B”) is associated with another company (“company A”) at a time (“the relevant time”) if any of the following five conditions is met.</content></subsection><subsection eId="d25e19258"><num>(2)</num><content>The first condition is that the financial results of company A and company B, for a period that includes the relevant time, meet the consolidation condition.</content></subsection><subsection eId="d25e19264"><num>(3)</num><content>The second condition is that there is a connection between company A and company B for the accounting period of company A in which the relevant time falls.</content></subsection><subsection eId="d25e19270"><num>(4)</num><content>The third condition is that, at the relevant time, company A has a major interest in company B or company B has a major interest in company A.</content></subsection><subsection eId="d25e19276"><num>(5)</num><intro>The fourth condition is that—</intro><level class="para1" eId="d25e19282"><num>(a)</num><content>the financial results of company A and a third company, for a period that includes the relevant time, meet the consolidation condition, and</content></level><level class="para1" eId="d25e19288"><num>(b)</num><content>at the relevant time the third company has a major interest in company B.</content></level></subsection><subsection eId="d25e19294"><num>(6)</num><intro>The fifth condition is that—</intro><level class="para1" eId="d25e19300"><num>(a)</num><content>there is a connection between company A and a third company for the accounting period of company A in which the relevant time falls, and</content></level><level class="para1" eId="d25e19306"><num>(b)</num><content>at the relevant time the third company has a major interest in company B.</content></level></subsection><subsection eId="d25e19312"><num>(7)</num><intro>In this section the financial results of any two companies for any period meet “the consolidation condition” if—</intro><level class="para1" eId="d25e19318"><num>(a)</num><content>they are required to be comprised in group accounts prepared under section 399 of the Companies Act 2006 (duty of certain parent companies to prepare group accounts), or</content></level><level class="para1" eId="d25e19324"><num>(b)</num><content>they would be required to be comprised in such accounts but for the application of an exemption mentioned in subsection (3) of that section.</content></level></subsection><subsection eId="d25e19330"><num>(8)</num><content>The following provisions apply for the purposes of this section—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>sections 466 to 471 of CTA 2009 (companies connected for accounting period), and</item><item>sections 473 and 474 of CTA 2009 (meaning of “major interest”).</item></blockList></content></subsection></section><section eId="d25e19348"><num>937L</num><heading>Interpretation of references to economic losses and profits</heading><subsection eId="d25e19352"><num>(1)</num><content>A reference in this Part to an “economic” loss or profit made by any person in a period is to a loss or profit made by that person in that period, computed taking into account unrealised (as well as realised) losses and profits.</content></subsection><subsection eId="d25e19358"><num>(2)</num><content>For the purposes of this Part an economic loss or profit is made “by the relevant group” if it is made by the members of the relevant group considered together.</content></subsection><subsection eId="d25e19364"><num>(3)</num><intro>Where—</intro><level class="para1" eId="d25e19370"><num>(a)</num><content>any member of the relevant group makes a scheme loss or profit in an accounting period, and</content></level><level class="para1" eId="d25e19376"><num>(b)</num><content>that scheme loss or profit is, under generally accepted accounting practice, calculated by reference to fluctuations in the scheme rate, index or value over a longer period,</content></level><wrapUp>the economic loss or profit made by the group in the accounting period as a result of those fluctuations is, so far as it relates to that scheme loss or profit, to be computed over that longer period.</wrapUp></subsection><subsection eId="d25e19384"><num>(4)</num><intro>In determining for the purposes of this Part the amount of an economic loss or profit made by the relevant group in any period, the economic losses and profits of each member of the relevant group—</intro><level class="para1" eId="d25e19390"><num>(a)</num><content>are (subject to subsection (3)) to be computed over that period (whether or not that period is an accounting period of the member), but</content></level><level class="para1" eId="d25e19396"><num>(b)</num><content>are only to be taken into account to the extent that they are attributable to times at which the member is a party to the risk transfer scheme in question.</content></level></subsection><subsection eId="d25e19402"><num>(5)</num><content>A reference in this Part to a “pre-tax” economic loss or profit is a reference to an economic loss or profit determined disregarding any loss or gain made as a result of the operation of any provision of the Corporation Tax Acts.</content></subsection></section><section eId="d25e19411"><num>937M</num><heading>Foreign currency accounting</heading><subsection eId="d25e19415"><num>(1)</num><content>In determining under this Part amounts that a company may or may not bring into account in an accounting period, economic losses and profits are to be computed in the tax calculation currency of that company in that accounting period.</content></subsection><subsection eId="d25e19421"><num>(2)</num><content>Section 17(5) of CTA 2010 (meaning of references to the tax calculation currency of a company) applies for the purposes of this section.</content></subsection></section><section eId="d25e19430"><num>937N</num><heading>Meaning of “scheme”</heading><content>In this Part “scheme” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e19436"><heading>Power to amend this Part</heading><section eId="d25e19442"><num>937O</num><heading>Power to amend this Part in its application to dealers in securities</heading><subsection eId="d25e19446"><num>(1)</num><content>The Treasury may by order amend any enactment contained in this Part so as to apply (with or without modifications) the rules in this Part about scheme losses and scheme profits to losses and profits made in a trade.</content></subsection><subsection eId="d25e19452"><num>(2)</num><content>The power conferred by subsection (1) may only be exercised in relation to losses and profits made by a company that carries on a banking business, an insurance business or a business consisting wholly or partly of dealing in securities.</content></subsection><subsection eId="d25e19458"><num>(3)</num><intro>In this section “securities” includes—</intro><level class="para1" eId="d25e19464"><num>(a)</num><content>shares,</content></level><level class="para1" eId="d25e19470"><num>(b)</num><content>rights of unit holders in unit trust schemes to which TCGA 1992 applies as a result of section 99 of that Act, and</content></level><level class="para1" eId="d25e19476"><num>(c)</num><content>in the case of a company with no share capital, interests in the company possessed by members of the company.</content></level></subsection><subsection eId="d25e19482"><num>(4)</num><intro>An order under this section—</intro><level class="para1" eId="d25e19488"><num>(a)</num><content>may make different provision for different cases or purposes, and</content></level><level class="para1" eId="d25e19494"><num>(b)</num><content>may include incidental, consequential, supplementary or transitional provision.</content></level></subsection></section></hcontainer></part></quotedStructure></mod></content></paragraph><paragraph eId="schedule-16-paragraph-4" class="schProv1"><num>4</num><content><mod>In Schedule 4 (index of defined expressions), insert at the appropriate places—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml" xmlns:leg="http://www.legislation.gov.uk/namespaces/legislation"><default1:col span="1" style="width:71%"/><default1:col span="1" style="width:29%"/><default1:tbody><default1:tr><default1:td>associated with (in Part 21A)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section <ref href="#d25e19248">937K</ref>”</default1:td></default1:tr><default1:tr><default1:td>“economic loss (in Part 21A)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section <ref href="#d25e19348">937L</ref>”</default1:td></default1:tr><default1:tr><default1:td>“economic profit (in Part 21A)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section <ref href="#d25e19348">937L</ref>”</default1:td></default1:tr><default1:tr><default1:td>“the relevant group (in Part 21A)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section <ref href="#d25e18460">937B</ref><ref href="#d25e18500">(3)</ref>”</default1:td></default1:tr><default1:tr><default1:td>“relevant scheme profit (in Part 21A)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section <ref href="#d25e18745">937F</ref>”</default1:td></default1:tr><default1:tr><default1:td>“ring-fenced scheme loss (in Part 21A)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section <ref href="#d25e18745">937F</ref>”</default1:td></default1:tr><default1:tr><default1:td>“risk transfer scheme (in Part 21A)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section <ref href="#d25e18558">937C</ref>”</default1:td></default1:tr><default1:tr><default1:td>“scheme (in Part 21A)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section <ref href="#d25e19430">937N</ref>”</default1:td></default1:tr><default1:tr><default1:td>“scheme loss (in Part 21A)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section <ref href="#d25e18672">937E</ref>”</default1:td></default1:tr><default1:tr><default1:td>“scheme profit (in Part 21A)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section <ref href="#d25e18672">937E</ref>”</default1:td></default1:tr><default1:tr><default1:td>“the scheme rate, index or value (in Part 21A)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section <ref href="#d25e18652">937D</ref></default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement and transitional provision</heading><paragraph eId="schedule-16-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-16-paragraph-5-1"><num>(1)</num><content>The amendments made by this Schedule have effect in relation to accounting periods that begin on or after 1 April 2010 (“the commencement date”).</content></subparagraph><subparagraph eId="schedule-16-paragraph-5-2"><num>(2)</num><intro>Where a company has an accounting period (“the straddling accounting period”) that—</intro><level class="para1" eId="schedule-16-paragraph-5-2-a"><num>(a)</num><content>begins before the commencement date, and</content></level><level class="para1" eId="schedule-16-paragraph-5-2-b"><num>(b)</num><content>ends on or after that date,</content></level><wrapUp>the straddling accounting period is to be treated as split.</wrapUp></subparagraph><subparagraph eId="schedule-16-paragraph-5-3"><num>(3)</num><content>Where this paragraph provides that the straddling accounting period is to be treated as split, that part of the straddling accounting period that falls before the commencement date and that part of the straddling accounting period that falls on or after that date are to be treated for the purposes of the amendments made by this Schedule as separate accounting periods.</content></subparagraph><subparagraph eId="schedule-16-paragraph-5-4"><num>(4)</num><intro>In relation to the first accounting period of a company in relation to which the amendments made by this Schedule have effect—</intro><level class="para1" eId="schedule-16-paragraph-5-4-a"><num>(a)</num><content>section <ref href="#d25e19063">937I</ref> of CTA 2010 (as inserted by paragraph <ref href="#schedule-16-paragraph-3">3</ref> above) does not apply, and</content></level><level class="para1" eId="schedule-16-paragraph-5-4-b"><num>(b)</num><content>as at the beginning of the period, the amounts of the company’s losses pool and profits pool for any risk transfer scheme to which the company is a party is nil.</content></level></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-17"><num>SCHEDULE 17<authorialNote class="referenceNote">Section 56</authorialNote></num><heading>Disclosure of tax avoidance schemes</heading><hcontainer name="crossheading" class="schGroup7"><heading>Introduction</heading><paragraph eId="schedule-17-paragraph-1" class="schProv1"><num>1</num><content>Part 7 of FA 2004 (disclosure of tax avoidance schemes) is amended as follows.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Initial marketing</heading><paragraph eId="schedule-17-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-17-paragraph-2-1"><num>(1)</num><content>Section 307 (meaning of “promoter”) is amended as follows.</content></subparagraph><subparagraph eId="schedule-17-paragraph-2-2"><num>(2)</num><content><mod>In paragraph (a) of subsection (1), for the words from “business” to “makes” substitute “business, the person (“P”)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2" eId="d25e19702"><num>(i)</num><content>is to any extent responsible for the design of the proposed arrangements,</content></level><level class="para2" eId="d25e19708"><num>(ii)</num><content>makes a firm approach to another person (“C”) in relation to the notifiable proposal with a view to P making the notifiable proposal available for implementation by C or any other person, or</content></level><level class="para2" eId="d25e19714"><num>(iii)</num><content>makes</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-2-3"><num>(3)</num><content>In paragraph (b) of that subsection, after “(a)(ii)” insert “or (iii)”.</content></subparagraph><subparagraph eId="schedule-17-paragraph-2-4"><num>(4)</num><content><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e19735"><num>(1A)</num><content>For the purposes of this Part a person is an introducer in relation to a notifiable proposal if the person makes a marketing contact with another person in relation to the notifiable proposal.</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-2-5"><num>(5)</num><content><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e19748"><num>(4A)</num><content>For the purposes of this Part a person makes a firm approach to another person in relation to a notifiable proposal if the person makes a marketing contact with the other person in relation to the notifiable proposal at a time when the proposed arrangements have been substantially designed.</content></subsection><subsection eId="d25e19754"><num>(4B)</num><intro>For the purposes of this Part a person makes a marketing contact with another person in relation to a notifiable proposal if—</intro><level class="para1" eId="d25e19760"><num>(a)</num><content>the person communicates information about the notifiable proposal to the other person,</content></level><level class="para1" eId="d25e19766"><num>(b)</num><content>the communication is made with a view to that other person, or any other person, entering into transactions forming part of the proposed arrangements, and</content></level><level class="para1" eId="d25e19772"><num>(c)</num><content>the information communicated includes an explanation of the advantage in relation to any tax that might be expected to be obtained from the proposed arrangements.</content></level></subsection><subsection eId="d25e19778"><num>(4C)</num><intro>For the purposes of subsection (4A) proposed arrangements have been substantially designed at any time if by that time the nature of the transactions to form part of them has been sufficiently developed for it to be reasonable to believe that a person who wished to obtain the advantage mentioned in subsection (4B)(c) might enter into—</intro><level class="para1" eId="d25e19784"><num>(a)</num><content>transactions of the nature developed, or</content></level><level class="para1" eId="d25e19792"><num>(b)</num><content>transactions not substantially different from transactions of that nature.</content></level></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-2-6"><num>(6)</num><content>In subsection (5), after “promoter” insert “or introducer”.</content></subparagraph><subparagraph eId="schedule-17-paragraph-2-7"><num>(7)</num><content>In subsection (6), after “promoter” (in both places) insert “or introducer”.</content></subparagraph></paragraph><paragraph eId="schedule-17-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-17-paragraph-3-1"><num>(1)</num><content>Section 308(2) (duties of promoter) is amended as follows.</content></subparagraph><subparagraph eId="schedule-17-paragraph-3-2"><num>(2)</num><content>For “earlier” substitute “earliest”.</content></subparagraph><subparagraph eId="schedule-17-paragraph-3-3"><num>(3)</num><content><mod>Before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e19833"><num>(za)</num><content>the date on which the promoter first makes a firm approach to another person in relation to a notifiable proposal,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph></paragraph><paragraph eId="schedule-17-paragraph-4" class="schProv1"><num>4</num><content>In section 313A(1) (pre-disclosure enquiry), for “of a proposal or arrangements” substitute “or introducer of a proposal, or the promoter of arrangements,”.</content></paragraph><paragraph eId="schedule-17-paragraph-5" class="schProv1"><num>5</num><content><mod>In section 318(1) (interpretation), after the definition of “HMRC” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“introducer”, in relation to a notifiable proposal, has the meaning given by section 307;</content></hcontainer><hcontainer name="definition"><content>“make a firm approach” has the meaning given by section 307(4A);</content></hcontainer><hcontainer name="definition"><content>“make a marketing contact” has the meaning given by section 307(4B);</content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Promoters to provide client lists</heading><paragraph eId="schedule-17-paragraph-6" class="schProv1"><num>6</num><content><mod>After section 313 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e19882"><num>313ZA</num><heading>Duty to provide details of clients</heading><subsection eId="d25e19886"><num>(1)</num><intro>This section applies where a person who is a promoter in relation to notifiable arrangements is providing (or has provided) services to any person (“the client”) in connection with the notifiable arrangements and either—</intro><level class="para1" eId="d25e19892"><num>(a)</num><content>the promoter is subject to the reference number information requirement, or</content></level><level class="para1" eId="d25e19898"><num>(b)</num><content>the promoter has failed to comply with section 308(1) or (3) in relation to the notifiable arrangements (or the notifiable proposal for them) but would be subject to the reference number information requirement if a reference number had been allocated to the notifiable arrangements.</content></level></subsection><subsection eId="d25e19904"><num>(2)</num><content>For the purposes of this section “the reference number information requirement” is the requirement under section 312(2) to provide to the client prescribed information relating to the reference number allocated to the notifiable arrangements.</content></subsection><subsection eId="d25e19910"><num>(3)</num><content>The promoter must, within the prescribed period after the end of the relevant period, provide HMRC with prescribed information in relation to the client.</content></subsection><subsection eId="d25e19916"><num>(4)</num><content>In subsection (3) “the relevant period” means such period during which the promoter is or would be subject to the reference number information requirement as is prescribed.</content></subsection><subsection eId="d25e19922"><num>(5)</num><content>The promoter need not comply with subsection (3) in relation to any notifiable arrangements at any time after HMRC have given notice under section 312(6) in relation to the notifiable arrangements.</content></subsection></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-17-paragraph-7" class="schProv1"><num>7</num><content>In section 316 (information to be provided in manner and form specified by HMRC), for “and 313(1) and (3)” substitute “, 313(1) and (3) and 313ZA(3)”.</content></paragraph><paragraph eId="schedule-17-paragraph-8" class="schProv1"><num>8</num><content>In section 317(2) (regulations), after “may” insert “make different provision for different cases and may”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Information provided to introducers</heading><paragraph eId="schedule-17-paragraph-9" class="schProv1"><num>9</num><content><mod>After section 313B insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e19953"><num>313C</num><heading>Information provided to introducers</heading><subsection eId="d25e19957"><num>(1)</num><intro>Where HMRC suspect—</intro><level class="para1" eId="d25e19963"><num>(a)</num><content>that a person (“P”) is an introducer in relation to a proposal, and</content></level><level class="para1" eId="d25e19969"><num>(b)</num><content>that the proposal may be notifiable,</content></level><wrapUp>they may by written notice require P to provide HMRC with prescribed information in relation to each person who has provided P with any information relating to the proposal.</wrapUp></subsection><subsection eId="d25e19977"><num>(2)</num><content>A notice must specify the proposal to which it relates.</content></subsection><subsection eId="d25e19983"><num>(3)</num><intro>P must comply with a requirement under or by virtue of subsection (1) within—</intro><level class="para1" eId="d25e19989"><num>(a)</num><content>the prescribed period, or</content></level><level class="para1" eId="d25e19995"><num>(b)</num><content>such longer period as HMRC may direct.</content></level></subsection></section></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Penalties</heading><paragraph eId="schedule-17-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-17-paragraph-10-1"><num>(1)</num><content>Section 98C of TMA 1970 (penalties for failures to comply with duties relating to disclosure of tax avoidance schemes) is amended as follows.</content></subparagraph><subparagraph eId="schedule-17-paragraph-10-2"><num>(2)</num><content><mod>In subsection (1)(a) (initial penalty for failing to comply with duties), for “£5,000” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2" eId="d25e20021"><num>(i)</num><content>in the case of a provision mentioned in paragraph (a), (b) or (c) of that subsection, £600 for each day during the initial period (but see also subsections (2A), (2B) and (2ZC) below), and</content></level><level class="para2" eId="d25e20027"><num>(ii)</num><content>in any other case, £5,000.</content></level></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-10-3"><num>(3)</num><intro>In subsection (2)—</intro><level class="para1" eId="schedule-17-paragraph-10-3-a"><num>(a)</num><content>omit the “and” at the end of paragraph (da),</content></level><level class="para1" eId="schedule-17-paragraph-10-3-b"><num>(b)</num><content><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e20052"><num>(db)</num><content>section 313ZA (duty of promoter to provide details of clients),</content></level></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-17-paragraph-10-3-c"><num>(c)</num><content><mod>insert at the end <quotedText startQuote="“">and</quotedText><quotedStructure endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><level class="para1" eId="d25e20069"><num>(f)</num><content>section 313C (duty of introducer to give details of persons who have provided information).</content></level></quotedStructure></mod></content></level></subparagraph><subparagraph eId="schedule-17-paragraph-10-4"><num>(4)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e20082"><num>(2ZA)</num><intro>In this section “the initial period” means the period—</intro><level class="para1" eId="d25e20088"><num>(a)</num><content>beginning with the relevant day, and</content></level><level class="para1" eId="d25e20094"><num>(b)</num><content>ending with the earlier of the day on which the penalty under subsection (1)(a)(i) is determined and the last day before the failure ceases;</content></level><wrapUp>and for this purpose “the relevant day” is the day specified in relation to the failure in the following table.<tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml" xmlns:leg="http://www.legislation.gov.uk/namespaces/legislation"><default1:col span="1" style="width:50%"/><default1:col span="1" style="width:50%"/><default1:thead><default1:tr><default1:th xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-top-style="solid" fo:border-top-width="0.5pt">Failure</default1:th><default1:th xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-right-style="solid" fo:border-right-width="0.5pt">Relevant day</default1:th></default1:tr></default1:thead><default1:tbody><default1:tr><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-top-style="solid" fo:border-top-width="0.5pt">A failure to comply with subsection (1) or (3) of section 308 in so far as the subsection applies by virtue of an order under section 306A</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-right-style="solid" fo:border-right-width="0.5pt">The first day after the end of the period prescribed under section 306A(6)</default1:td></default1:tr><default1:tr><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-top-style="solid" fo:border-top-width="0.5pt">A failure to comply with subsection (1) or (3) of section 308 in so far as the subsection applies by virtue of an order under section 308A(2)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-right-style="solid" fo:border-right-width="0.5pt">The first day after the end of the period prescribed under subsections (5) and (6)(a) of section 308A (as it may have been extended by a direction under subsection (6)(b) of that section)</default1:td></default1:tr><default1:tr><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-top-style="solid" fo:border-top-width="0.5pt">Any other failure to comply with subsection (1) of section 308</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-right-style="solid" fo:border-right-width="0.5pt">The first day after the end of the period prescribed under that subsection</default1:td></default1:tr><default1:tr><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-top-style="solid" fo:border-top-width="0.5pt">Any other failure to comply with subsection (3) of section 308</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-right-style="solid" fo:border-right-width="0.5pt">The first day after the end of the period prescribed under that subsection</default1:td></default1:tr><default1:tr><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-top-style="solid" fo:border-top-width="0.5pt">A failure to comply with subsection (1) of section 309</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-right-style="solid" fo:border-right-width="0.5pt">The first day after the end of the period prescribed under that subsection</default1:td></default1:tr><default1:tr><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-bottom-style="solid" fo:border-bottom-width="0.5pt">A failure to comply with section 310 </default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-top-style="solid" fo:border-top-width="0.5pt" fo:border-right-style="solid" fo:border-right-width="0.5pt" fo:border-bottom-style="solid" fo:border-bottom-width="0.5pt">The first day after the latest time by which section 310 must be complied with in the case concerned</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></wrapUp></subsection><subsection eId="d25e20143"><num>(2ZB)</num><intro>The amount of a penalty under subsection (1)(a)(i) is to be arrived at after taking account of all relevant considerations, including the desirability of its being set at a level which appears appropriate for deterring the person, or other persons, from similar failures to comply on future occasions having regard (in particular)—</intro><level class="para1" eId="d25e20149"><num>(a)</num><content>in the case of a penalty for a person’s failure to comply with section 308(1) or (3), to the amount of any fees received, or likely to have been received, by the person in connection with the notifiable proposal (or arrangements implementing the notifiable proposal), or with the notifiable arrangements, and</content></level><level class="para1" eId="d25e20155"><num>(b)</num><content>in the case of a penalty for a person’s failure to comply with section 309(1) or 310, to the amount of any advantage gained, or sought to be gained, by the person in relation to any tax prescribed under section 306(1)(b) in relation to the notifiable arrangements.</content></level></subsection><subsection eId="d25e20161"><num>(2ZC)</num><content>If the maximum penalty under subsection (1)(a)(i) above appears inappropriately low after taking account of those considerations, the penalty is to be of such amount not exceeding £1 million as appears appropriate having regard to those considerations.</content></subsection><subsection eId="d25e20167"><num>(2ZD)</num><content>Where it appears to an officer of Revenue and Customs that a penalty under subsection (1)(a)(i) above has been determined on the basis that the initial period begins with a day later than that which the officer considers to be the relevant day, an officer of Revenue and Customs may commence proceedings for a re-determination of the penalty.</content></subsection><subsection eId="d25e20173"><num>(2ZE)</num><intro>The Treasury may by regulations vary—</intro><level class="para1" eId="d25e20179"><num>(a)</num><content>any of the sums for the time being specified in subsection (1) above, and</content></level><level class="para1" eId="d25e20185"><num>(b)</num><content>the sum specified in subsection (2ZC) above.</content></level></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-10-5"><num>(5)</num><content>In subsection (2A), for “amount specified in subsection (1)(b) above shall be increased to the prescribed sum” substitute “amounts specified in subsection (1)(a)(i) and (b) above shall be increased to the prescribed sum in relation to days falling after the prescribed period”.</content></subparagraph><subparagraph eId="schedule-17-paragraph-10-6"><num>(6)</num><content>In subsection (2B), for “amount specified in subsection (1)(b)” substitute “amounts specified in subsection (1)(a)(i) and (b)”.</content></subparagraph><subparagraph eId="schedule-17-paragraph-10-7"><num>(7)</num><content>In subsection (2C)(b), after “section” insert “306A or”.</content></subparagraph><subparagraph eId="schedule-17-paragraph-10-8"><num>(8)</num><content>In subsection (2D), after “under section” insert “306A or”.</content></subparagraph><subparagraph eId="schedule-17-paragraph-10-9"><num>(9)</num><content>In subsection (2E), after “under section” insert “306A or”.</content></subparagraph><subparagraph eId="schedule-17-paragraph-10-10"><num>(10)</num><intro>In subsection (2F)—</intro><level class="para1" eId="schedule-17-paragraph-10-10-a"><num>(a)</num><content>in the opening words, for “subsection (2C)” substitute “this section”, and</content></level><level class="para1" eId="schedule-17-paragraph-10-10-b"><num>(b)</num><content>in paragraph (c), after “subsection” insert “(2ZE) or”.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-17-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-17-paragraph-11-1"><num>(1)</num><content>The amendments made by this Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint.</content></subparagraph><subparagraph eId="schedule-17-paragraph-11-2"><num>(2)</num><content>An order may appoint different days for different provisions or for different purposes.</content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-18"><num>SCHEDULE 18<authorialNote class="referenceNote">Section 61</authorialNote></num><heading>Sale of lessors: election out of charge</heading><hcontainer name="crossheading" class="schGroup7"><heading>Main changes</heading><paragraph eId="schedule-18-paragraph-1" class="schProv1"><num>1</num><content>Chapter 3 of Part 9 of CTA 2010 (sale of lessors: leasing business carried on by company alone) is amended as follows.</content></paragraph><paragraph eId="schedule-18-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-18-paragraph-2-1"><num>(1)</num><content>Section 382 (introduction to Chapter) is amended as follows.</content></subparagraph><subparagraph eId="schedule-18-paragraph-2-2"><num>(2)</num><intro>In subsection (1)—</intro><level class="para1" eId="schedule-18-paragraph-2-2-a"><num>(a)</num><content>for “qualifying change of ownership in relation to” substitute “relevant change in the relationship between”, and</content></level><level class="para1" eId="schedule-18-paragraph-2-2-b"><num>(b)</num><content>insert at the end “and a principal company of the company.”</content></level></subparagraph><subparagraph eId="schedule-18-paragraph-2-3"><num>(3)</num><content>In subsection (3), for ““qualifying change of ownership”, see sections 392 to 398.” substitute ““relevant change in the relationship between a company and a principal company of the company”, see sections 392 to 394.”</content></subparagraph></paragraph><paragraph eId="schedule-18-paragraph-3" class="schProv1"><num>3</num><content><mod>In section 383 (income and matching expense in different accounting periods), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e20317"><num>(1A)</num><content>For the meaning of “qualifying change of ownership”, see sections 394A to 398A</content></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-18-paragraph-4" class="schProv1"><num>4</num><content><mod>For section 392 (and the italic heading before it) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e20330"><heading>“Relevant change in relationship”</heading><section eId="d25e20336"><num>392</num><heading>“Relevant change in relationship”</heading><content>For the purposes of the sales of lessors Chapters there is a relevant change in the relationship between a company (“A”) and a principal company of A on any day in any of the circumstances in section 393 or 394 (qualifying 75% subsidiaries and consortium relationships).</content></section></hcontainer></quotedStructure></mod></content></paragraph><paragraph eId="schedule-18-paragraph-5" class="schProv1"><num>5</num><content><mod>After section 394 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e20349"><heading>“Qualifying change of ownership”</heading><section eId="d25e20355"><num>394A</num><heading>“Qualifying change of ownership”</heading><intro>For the purposes of the sales of lessors Chapters there is a qualifying change of ownership in relation to a company (“A”) on any day if there is a relevant change in the relationship on that day between A and a principal company of A unless any of the following apply—</intro><level class="para1" eId="d25e20361"><num>(a)</num><content>section 395(2),</content></level><level class="para1" eId="d25e20367"><num>(b)</num><content>section 396(2), or</content></level><level class="para1" eId="d25e20373"><num>(c)</num><content>section 398A(2) or (5).</content></level></section></hcontainer></quotedStructure></mod></content></paragraph><paragraph eId="schedule-18-paragraph-6" class="schProv1"><num>6</num><content><mod>After section 398 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e20386"><heading>Election out of qualifying change of ownership</heading><section eId="d25e20392"><num>398A</num><heading>Election out of qualifying change of ownership</heading><subsection eId="d25e20396"><num>(1)</num><intro>This section applies if—</intro><level class="para1" eId="d25e20402"><num>(a)</num><content>on any day (“the relevant day”) a company (“A”) carries on a business of leasing plant or machinery otherwise than in partnership,</content></level><level class="para1" eId="d25e20408"><num>(b)</num><content>there is a relevant change in the relationship between A and a principal company of A (“P”) on the relevant day, and</content></level><level class="para1" eId="d25e20414"><num>(c)</num><content>an election that this section is to apply is made by A.</content></level></subsection><subsection eId="d25e20420"><num>(2)</num><intro>For the purposes of the sales of lessors Chapters, there is no qualifying change of ownership in relation to A on the relevant day as a result of the change in the relationship but—</intro><level class="para1" eId="d25e20426"><num>(a)</num><content>subsections (2)(b) and (4)(b) of section 383 nevertheless apply,</content></level><level class="para1" eId="d25e20432"><num>(b)</num><content>section 398D (and section 398C so far as relating to it) has effect during the relevant period, and</content></level><level class="para1" eId="d25e20438"><num>(c)</num><content>sections 398E to 398G (and section 398C so far as relating to section 398E) have effect on the relevant day and during the relevant period.</content></level></subsection><subsection eId="d25e20444"><num>(3)</num><intro>“The relevant period” is the period—</intro><level class="para1" eId="d25e20450"><num>(a)</num><content>beginning with the day after the relevant day, and</content></level><level class="para1" eId="d25e20456"><num>(b)</num><content>ending with the day on which there is next a relevant change in the relationship between A and a principal company of A falling within subsection (4) (or continuing indefinitely if there is not another such relevant change).</content></level></subsection><subsection eId="d25e20462"><num>(4)</num><content>A relevant change in the relationship between A and a principal company of A falls within this subsection if, as a result of it, the (unadjusted) basic amount (see section 399) is (or, but for a further election, would be) treated as a receipt of the business of leasing plant or machinery carried on by A.</content></subsection><subsection eId="d25e20468"><num>(5)</num><content>Where during the relevant period there is a relevant change in the relationship between A and a principal company of A but the relevant period is not brought to an end by it, for the purposes of the sales of lessors Chapters there is no qualifying change of ownership in relation to A as a result of the change in the relationship.</content></subsection></section><section eId="d25e20477"><num>398B</num><heading>The election</heading><subsection eId="d25e20481"><num>(1)</num><content>The election under section 398A must state the date of the relevant day.</content></subsection><subsection eId="d25e20487"><num>(2)</num><intro>The election must be made—</intro><level class="para1" eId="d25e20493"><num>(a)</num><content>by notice to an officer of Revenue and Customs, and</content></level><level class="para1" eId="d25e20499"><num>(b)</num><content>during the period of two years beginning with the relevant day.</content></level></subsection><subsection eId="d25e20505"><num>(3)</num><content>The election is irrevocable.</content></subsection><subsection eId="d25e20511"><num>(4)</num><content>All such assessments and adjustments of assessments are to be made as are necessary to give effect to the election.</content></subsection></section><section eId="d25e20520"><num>398C</num><heading>Special treatment of A’s trade or business that includes leasing</heading><subsection eId="d25e20524"><num>(1)</num><content>Sections 398D and 398E make special provision about the trade or property business consisting of or including A’s business of leasing plant or machinery.</content></subsection><subsection eId="d25e20530"><num>(2)</num><intro>In those sections “the relevant activity” means—</intro><level class="para1" eId="d25e20536"><num>(a)</num><content>if A’s business of leasing plant or machinery constitutes or forms part of a trade, that trade, and</content></level><level class="para1" eId="d25e20542"><num>(b)</num><content>if it forms part of a property business, that property business.</content></level></subsection></section><section eId="d25e20551"><num>398D</num><heading>Restrictions on use of losses etc</heading><subsection eId="d25e20555"><num>(1)</num><intro>No loss may be deducted under—</intro><level class="para1" eId="d25e20561"><num>(a)</num><content>Chapter 2 of Part 4,</content></level><level class="para1" eId="d25e20567"><num>(b)</num><content>section 62, or</content></level><level class="para1" eId="d25e20573"><num>(c)</num><content>section 189,</content></level><wrapUp>from so much of the total profits of A as are attributable to the carrying on of the relevant activity except to the extent that the loss or charge is attributable to the carrying on of the relevant activity.</wrapUp></subsection><subsection eId="d25e20581"><num>(2)</num><content>Group relief is not to be given under Part 5 against so much of the total profits of A as are attributable to the carrying on of the relevant activity.</content></subsection><subsection eId="d25e20587"><num>(3)</num><content>No deficit may be set off under section 461 of CTA 2009 (non-trading deficit from loan relationship) against profits attributable to the carrying on of the relevant activity except to the extent that the deficit is attributable to the carrying on of the relevant activity.</content></subsection><subsection eId="d25e20593"><num>(4)</num><content>No loss may be set off under section 753 of CTA 2009 (non-trading loss on intangible fixed assets) against so much of the total profits of A as are attributable to the carrying on of the relevant activity except to the extent that the loss or charge is attributable to the carrying on of the relevant activity.</content></subsection><subsection eId="d25e20599"><num>(5)</num><content>No deduction is to be allowed under section 1219 of CTA 2009 (expenses of management of investment business) from so much of the total profits of A as are attributable to the carrying on of the relevant activity except to the extent that the expenses concerned are attributable to the carrying on of the relevant activity.</content></subsection><subsection eId="d25e20605"><num>(6)</num><content>If A is a controlled foreign company within the meaning of Chapter 4 of Part 17 of ICTA in relation to which an apportionment falls to be made under section 747(3) of that Act in respect of the accounting period ending with the relevant day, no sum may be set off under paragraph 1 of Schedule 26 to ICTA by any person in respect of so much of the chargeable profits of A as are apportioned to the person and are attributable to the carrying on of the relevant activity.</content></subsection><subsection eId="d25e20611"><num>(7)</num><content>If A would otherwise be a tonnage tax company under Schedule 22 to FA 2000 (tonnage tax) it is to be treated as not being such a company.</content></subsection></section><section eId="d25e20620"><num>398E</num><heading>Restriction on artificial losses or reductions in profits</heading><subsection eId="d25e20624"><num>(1)</num><content>This section applies if any expenditure incurred by A in carrying on the relevant activity has an unallowable purpose.</content></subsection><subsection eId="d25e20630"><num>(2)</num><content>In calculating the profits or losses of A for any accounting period for the purposes of corporation tax so much of the expenditure as, on a just and reasonable apportionment, is attributable to the unallowable purpose is to be left out of account.</content></subsection><subsection eId="d25e20636"><num>(3)</num><content>Expenditure has an unallowable purpose if the main purpose, or one of the main purposes, of A in incurring it is to obtain a relevant tax advantage (“the unallowable purpose”).</content></subsection><subsection eId="d25e20642"><num>(4)</num><intro>A “relevant tax advantage” is—</intro><level class="para1" eId="d25e20648"><num>(a)</num><content>a reduction in the profits which, for the purposes of corporation tax, are attributable to the carrying on of the relevant activity by A,</content></level><level class="para1" eId="d25e20654"><num>(b)</num><content>the creation of a loss which, for those purposes, is so attributable, or</content></level><level class="para1" eId="d25e20660"><num>(c)</num><content>an increase in losses which, for those purposes, are so attributable.</content></level></subsection></section><section eId="d25e20669"><num>398F</num><heading>Limit on availability of capital allowances to A</heading><subsection eId="d25e20673"><num>(1)</num><content>Expenditure incurred by A in providing plant or machinery is not qualifying expenditure for the purposes of Part 2 of CAA 2001 if the expenditure is incurred on the acquisition or creation of an independent asset.</content></subsection><subsection eId="d25e20679"><num>(2)</num><intro>An asset is an “independent” asset if, in the normal course of business—</intro><level class="para1" eId="d25e20685"><num>(a)</num><content>it could be used individually (whether or not it could also be used in conjunction with another asset or other assets as a constituent part of a single asset consisting of more than one asset (a “combined asset”)), or</content></level><level class="para1" eId="d25e20691"><num>(b)</num><content>it could be used (at different times) as a constituent part of different combined assets.</content></level></subsection></section><section eId="d25e20700"><num>398G</num><heading>Transfers into and out of A</heading><subsection eId="d25e20704"><num>(1)</num><content>Section 948 does not apply where A is the predecessor or the successor.</content></subsection><subsection eId="d25e20710"><num>(2)</num><content>Where section 948 does not apply as a result of subsection (1), the plant or machinery belonging to the trade is to be treated for the purposes of the Corporation Tax Acts as sold by the predecessor to the successor on the day of cessation for an amount equal to its market value on that day.</content></subsection><subsection eId="d25e20716"><num>(3)</num><intro>Where A is the predecessor, section 265(2)(b) of CAA 2001 (successions) applies—</intro><level class="para1" eId="d25e20722"><num>(a)</num><content>even if the relevant property has been sold to the successor, and</content></level><level class="para1" eId="d25e20728"><num>(b)</num><content>as if the reference to market value were to market value as determined in accordance with section 437(9).</content></level></subsection></section></hcontainer></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Interpretation</heading><paragraph eId="schedule-18-paragraph-7" class="schProv1"><num>7</num><content><mod>In section 437 of CTA 2010 (interpretation of the sales of lessors Chapters), after subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e20744"><num>(8A)</num><content>Property business” means a UK property business or an overseas property business.</content></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-18-paragraph-8" class="schProv1"><num>8</num><content><mod>In Schedule 4 to that Act (index of defined expressions), insert at the appropriate places—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="double"><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml" xmlns:leg="http://www.legislation.gov.uk/namespaces/legislation"><default1:col span="1" style="width:63%"/><default1:col span="1" style="width:37%"/><default1:tbody><default1:tr><default1:td>property business (in Chapters 3 to 6 of Part 9)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section 437(8A)”</default1:td></default1:tr><default1:tr><default1:td>“relevant change in relationship (in Chapters 3 to 6 of Part 9)</default1:td><default1:td xmlns:fo="http://www.w3.org/1999/XSL/Format" fo:border-left-style="solid" fo:border-left-width="0.5pt" fo:border-left-color="black">section 392</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></quotedStructure></mod>and in the entry relating to “qualifying change of ownership in relation to a company (in Chapters 3 to 6 of Part 9)” for “392 to 398” substitute “394A to 398A”).</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement etc</heading><paragraph eId="schedule-18-paragraph-9" class="schProv1"><num>9</num><content>The amendments made by this Schedule have effect where the relevant day is on or after 9 December 2009.</content></paragraph><paragraph eId="schedule-18-paragraph-10" class="schProv1"><num>10</num><content>Amendments corresponding to those made by this Schedule, having effect where the relevant day is on or after that date, are to be treated as having been made in Schedule 10 to FA 2006.</content></paragraph><paragraph eId="schedule-18-paragraph-11" class="schProv1"><num>11</num><intro>Neither section 398F of CTA 2010 (inserted by paragraph 6) nor the corresponding provision treated as inserted by paragraph 10 apply in relation to expenditure incurred in pursuance of a written contract which is finalised by A before 9 December 2009; and for this purpose a contract is finalised on the earliest date on which—</intro><level class="para1" eId="schedule-18-paragraph-11-a"><num>(a)</num><content>it is unconditional or (if conditional) the conditions are met, and</content></level><level class="para1" eId="schedule-18-paragraph-11-b"><num>(b)</num><content>no terms remain to be agreed.</content></level></paragraph><paragraph eId="schedule-18-paragraph-12" class="schProv1"><num>12</num><intro>Section 398A of CTA 2010 (as inserted by paragraph 6) has effect in relation to a relevant change in the relationship between A and a principal company of A in the case of which the relevant day is before 24 March 2010 as if—</intro><level class="para1" eId="schedule-18-paragraph-12-a"><num>(a)</num><content>in subsection (3)(b), the words “falling within subsection (4)”, and</content></level><level class="para1" eId="schedule-18-paragraph-12-b"><num>(b)</num><content>subsections (4) and (5),</content></level><wrapUp>were omitted.</wrapUp></paragraph><paragraph eId="schedule-18-paragraph-13" class="schProv1"><num>13</num><intro>Section 398D of CTA 2010 (as inserted by paragraph 6)—</intro><level class="para1" eId="schedule-18-paragraph-13-a"><num>(a)</num><content>has effect with the omission of subsection (6) in relation to accounting periods beginning before 24 March 2010, and</content></level><level class="para1" eId="schedule-18-paragraph-13-b"><num>(b)</num><content>has effect with the omission of subsection (7) until that date.</content></level></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-19"><num>SCHEDULE 19<authorialNote class="referenceNote">Section 62</authorialNote></num><heading>Accounting standards: loan relationships and derivative contracts</heading><hcontainer name="crossheading" class="schGroup7"><heading>Loan relationships</heading><paragraph eId="schedule-19-paragraph-1" class="schProv1"><num>1</num><content><mod>In Chapter 18 of Part 5 of CTA 2009 (loan relationships: general and supplementary provision), before section 466 (and the heading before it) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e20864"><heading>Changes in accounting standards</heading><section eId="d25e20870"><num>465A</num><heading>Power to make regulations where accounting standards change</heading><subsection eId="d25e20874"><num>(1)</num><content>The Treasury may by regulations make provision for cases where, in consequence of a change in accounting standards, there is a relevant accounting change.</content></subsection><subsection eId="d25e20880"><num>(2)</num><content>“Change in accounting standards” means the issue, revocation, amendment or recognition of, or withdrawal of recognition from, an accounting standard by an accounting body.</content></subsection><subsection eId="d25e20886"><num>(3)</num><intro>“Relevant accounting change” means a change in the way in which a company is permitted or required, for accounting purposes, to recognise amounts which—</intro><level class="para1" eId="d25e20892"><num>(a)</num><content>are brought into account by the company as credits or debits for any period for the purposes of this Part, or</content></level><level class="para1" eId="d25e20898"><num>(b)</num><content>would be so brought into account but for any provision made by or under this Part.</content></level></subsection><subsection eId="d25e20904"><num>(4)</num><content>Regulations under subsection (1) may amend this Part (apart from this section).</content></subsection><subsection eId="d25e20910"><num>(5)</num><intro>Regulations under subsection (1) may—</intro><level class="para1" eId="d25e20916"><num>(a)</num><content>make different provision for different cases,</content></level><level class="para1" eId="d25e20922"><num>(b)</num><content>make incidental, supplemental, consequential and transitional provision and savings, and</content></level><level class="para1" eId="d25e20928"><num>(c)</num><content>make provision subject to an election or other specified circumstances.</content></level></subsection><subsection eId="d25e20934"><num>(6)</num><content>Regulations making consequential provision by virtue of subsection (5)(b) may, in particular, include provision amending a provision of the Corporation Tax Acts.</content></subsection><subsection eId="d25e20940"><num>(7)</num><content>Regulations under subsection (1) may apply to a pre-commencement period if they make provision in relation to a relevant accounting change which may or must be adopted, for accounting purposes, for a period of account, or part of a period of account, which coincides with that pre-commencement period.</content></subsection><subsection eId="d25e20946"><num>(8)</num><intro>In this section—</intro><hcontainer name="definition"><content>“accounting body” means the International Accounting Standards Board or the Accounting Standards Board, or a successor body to either of those Boards;</content></hcontainer><hcontainer name="definition"><content>“accounting standard” includes any statement of practice, guidance or other similar document;</content></hcontainer><hcontainer name="definition"><content>“pre-commencement period”, in relation to regulations, means an accounting period, or part of an accounting period, which begins before the regulations are made.</content></hcontainer></subsection></section></hcontainer></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Derivative contracts</heading><paragraph eId="schedule-19-paragraph-2" class="schProv1"><num>2</num><content><mod>In Chapter 13 of Part 7 of CTA 2009 (derivative contracts: general and supplementary provision), after section 701 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e20975"><heading>Changes to accounting standards</heading><section eId="d25e20981"><num>701A</num><heading>Power to make regulations where accounting standards change</heading><subsection eId="d25e20985"><num>(1)</num><content>The Treasury may by regulations make provision for cases where, in consequence of a change in accounting standards, there is a relevant accounting change.</content></subsection><subsection eId="d25e20991"><num>(2)</num><content>“Change in accounting standards” means the issue, revocation, amendment or recognition of, or withdrawal of recognition from, an accounting standard by an accounting body.</content></subsection><subsection eId="d25e20997"><num>(3)</num><intro>“Relevant accounting change” means a change in the way in which a company is permitted or required, for accounting purposes, to recognise amounts which—</intro><level class="para1" eId="d25e21003"><num>(a)</num><content>are brought into account by the company as credits or debits for any period for the purposes of this Part, or</content></level><level class="para1" eId="d25e21009"><num>(b)</num><content>would be so brought into account but for any provision made by or under this Part.</content></level></subsection><subsection eId="d25e21015"><num>(4)</num><content>Regulations under subsection (1) may amend this Part (apart from this section).</content></subsection><subsection eId="d25e21021"><num>(5)</num><intro>Regulations under subsection (1) may—</intro><level class="para1" eId="d25e21027"><num>(a)</num><content>make different provision for different cases,</content></level><level class="para1" eId="d25e21033"><num>(b)</num><content>make incidental, supplemental, consequential and transitional provision and savings, and</content></level><level class="para1" eId="d25e21039"><num>(c)</num><content>make provision subject to an election or other specified circumstances.</content></level></subsection><subsection eId="d25e21045"><num>(6)</num><content>Regulations making consequential provision by virtue of subsection (5)(b) may, in particular, include provision amending a provision of the Corporation Tax Acts.</content></subsection><subsection eId="d25e21051"><num>(7)</num><content>Regulations under subsection (1) may apply to a pre-commencement period if they make provision in relation to a relevant accounting change which may or must be adopted, for accounting purposes, for a period of account (or part of a period of account) which coincides with that pre-commencement period.</content></subsection><subsection eId="d25e21057"><num>(8)</num><intro>In this section—</intro><hcontainer name="definition"><content>“accounting body” means the International Accounting Standards Board or the Accounting Standards Board, or a successor body to either of those Boards;</content></hcontainer><hcontainer name="definition"><content>“accounting standard” includes any statement of practice, guidance or other similar document;</content></hcontainer><hcontainer name="definition"><content>“pre-commencement period”, in relation to regulations, means an accounting period (or part of an accounting period) which begins before the regulations are made.</content></hcontainer></subsection></section></hcontainer></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Affirmative resolution procedure</heading><paragraph eId="schedule-19-paragraph-3" class="schProv1"><num>3</num><content><mod>In section 1310(4) of CTA 2009 (orders and regulations subject to affirmative resolution of House of Commons), before paragraph (za) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e21086"><num>(zza)</num><content>section 465A or 701A (powers to make regulations where accounting standards change),</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-20"><num>SCHEDULE 20<authorialNote class="referenceNote">Section 63</authorialNote></num><heading>Champions League final</heading><hcontainer name="crossheading" class="schGroup7"><heading>Exemption from income tax</heading><paragraph eId="schedule-20-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-20-paragraph-1-1"><num>(1)</num><content>This paragraph applies if an employee or contractor of an overseas team which competes in the 2011 Champions League final (“the final”) is neither UK resident nor ordinarily UK resident at the time of the final.</content></subparagraph><subparagraph eId="schedule-20-paragraph-1-2"><num>(2)</num><content>That person is not liable to income tax in respect of any income arising to the person which is related to duties or services performed by the person in the United Kingdom in connection with the final.</content></subparagraph><subparagraph eId="schedule-20-paragraph-1-3"><num>(3)</num><content>This paragraph is subject to paragraphs 2 and 3.</content></subparagraph><subparagraph eId="schedule-20-paragraph-1-4"><num>(4)</num><content>For the meaning of some expressions used in this paragraph, see paragraphs 5 and 6.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Exclusion of certain income</heading><paragraph eId="schedule-20-paragraph-2" class="schProv1"><num>2</num><intro>Paragraph 1(2) does not apply to income which arises as a result of—</intro><level class="para1" eId="schedule-20-paragraph-2-a"><num>(a)</num><content>a contract entered into after the final, or</content></level><level class="para1" eId="schedule-20-paragraph-2-b"><num>(b)</num><content>any amendment, after the final, of a contract entered into before the end of the final.</content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Tax avoidance</heading><paragraph eId="schedule-20-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-20-paragraph-3-1"><num>(1)</num><content>This paragraph applies if conditions A and B are met.</content></subparagraph><subparagraph eId="schedule-20-paragraph-3-2"><num>(2)</num><content>Condition A is that arrangements have been made which, but for this paragraph, would result in a person obtaining exemption under paragraph 1 in respect of particular income.</content></subparagraph><subparagraph eId="schedule-20-paragraph-3-3"><num>(3)</num><content>Condition B is that those arrangements have, or form part of arrangements which have, as their main purpose, or one of their main purposes, the obtaining of that exemption.</content></subparagraph><subparagraph eId="schedule-20-paragraph-3-4"><num>(4)</num><content>Paragraph 1(2) does not apply to that income.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Disapplication of section 966 of ITA 2007</heading><paragraph eId="schedule-20-paragraph-4" class="schProv1"><num>4</num><content>Section 966 of ITA 2007 (duty to deduct and account for sums representing income tax) does not apply to any payment or transfer which gives rise to income within paragraph 1(2).</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Interpretation</heading><paragraph eId="schedule-20-paragraph-5" class="schProv1"><num>5</num><intro>References in this Schedule to income are to be read as references to—</intro><level class="para1" eId="schedule-20-paragraph-5-a"><num>(a)</num><content>income that would be employment income but for the provisions of paragraph 1, and</content></level><level class="para1" eId="schedule-20-paragraph-5-b"><num>(b)</num><content>profits of a trade, profession or vocation (including profits treated as arising as a result of provision made by or under sections 13 and 14 of ITTOIA 2005).</content></level></paragraph><paragraph eId="schedule-20-paragraph-6" class="schProv1"><num>6</num><intro>In this Schedule—</intro><hcontainer name="definition"><content>“the 2011 Champions League final” means the final of the UEFA Champions League 2010/2011 competition held in England in 2011;</content></hcontainer><hcontainer name="definition"><intro>“contractor”, in relation to an overseas team, means an individual who is not an employee of the team but who performs services for the team—</intro><level class="para1"><num>(a)</num><content>under the terms of a contract with the team, or</content></level><level class="para1"><num>(b)</num><content>under the terms of a contract, or that individual’s employment, with a company which is a member of the same group of companies as the team (within the meaning given by section 152 of CTA 2010);</content></level></hcontainer><hcontainer name="definition"><content>“employee” and “employment” are to be read in accordance with section 4 of ITEPA 2003;</content></hcontainer><hcontainer name="definition"><content>“overseas team” means a football club which is not a member of the Football Association, the Scottish Football Association, the Football Association of Wales or the Irish Football Association.</content></hcontainer></paragraph></hcontainer></hcontainer></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" name="schedule" eId="schedule-1"><num>SCHEDULE 1<authorialNote class="referenceNote">Section 22</authorialNote></num><heading>Bank payroll tax</heading><part eId="schedule-1-part-1"><num>Part 1</num><heading>The tax</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-the-tax"><heading>The tax</heading><paragraph eId="schedule-1-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-1-paragraph-1-1"><num>(1)</num><content>This Schedule makes provision for taxable companies to be charged to a tax to be known as “<term refersTo="#term-bank-payroll-tax" eId="term-bank-payroll-tax">bank payroll tax</term>”.</content></subparagraph><subparagraph eId="schedule-1-paragraph-1-2"><num>(2)</num><content>Bank payroll tax is chargeable on the aggregate of the amounts of chargeable relevant remuneration awarded during the chargeable period to or in respect of relevant banking employees of a taxable company by reason of their employment as relevant banking employees.</content></subparagraph><subparagraph eId="schedule-1-paragraph-1-3"><num>(3)</num><content>Relevant remuneration awarded during the chargeable period to or in respect of a relevant banking employee of a taxable company by reason of the employee's employment as a relevant banking employee is “chargeable” relevant remuneration only if and to the extent that its amount exceeds £25,000.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-rate"><heading>Rate</heading><paragraph eId="schedule-1-paragraph-2" class="schProv1"><num>2</num><content>Bank payroll tax is charged at the rate of 50%.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-taxable-company"><heading> “Taxable company” </heading><paragraph eId="schedule-1-paragraph-3" class="schProv1"><num>3</num><intro>“<term refersTo="#term-taxable-company" eId="term-taxable-company">Taxable company</term>” means a company which—</intro><level class="para1" eId="schedule-1-paragraph-3-a"><num>(a)</num><content>is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank or a relevant foreign bank,</content></level><level class="para1" eId="schedule-1-paragraph-3-b"><num>(b)</num><intro>is a company not within paragraph (a) which is a member of a banking group and—</intro><level class="para2" eId="schedule-1-paragraph-3-b-i"><num>(i)</num><content>is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident investment company or a <abbr class="acronym" title="United Kingdom">UK</abbr> resident financial trading company, or</content></level><level class="para2" eId="schedule-1-paragraph-3-b-ii"><num>(ii)</num><content>is a relevant foreign financial trading company, or</content></level></level><level class="para1" eId="schedule-1-paragraph-3-c"><num>(c)</num><content>is a building society or is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident investment company, or a <abbr class="acronym" title="United Kingdom">UK</abbr> resident financial trading company, which is a member of the same group as a building society.</content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-relevant-remuneration"><heading> “Relevant remuneration” </heading><paragraph eId="schedule-1-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-1-paragraph-4-1"><num>(1)</num><intro>“<term refersTo="#term-relevant-remuneration" eId="term-relevant-remuneration">Relevant remuneration</term>”, in relation to a relevant banking employee of a taxable company, means anything that—</intro><level class="para1" eId="schedule-1-paragraph-4-1-a"><num>(a)</num><content>constitutes earnings (within the meaning of section 62 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003) in relation to the employee's employment by the taxable company as a relevant banking employee, or</content></level><level class="para1" eId="schedule-1-paragraph-4-1-b"><num>(b)</num><content>while not constituting earnings, constitutes a benefit provided by reason of that employment.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-4-2"><num>(2)</num><content>Whether or not the relevant banking employee is chargeable to income tax in respect of anything is irrelevant in determining whether or not it is relevant remuneration.</content></subparagraph><subparagraph eId="schedule-1-paragraph-4-3"><num>(3)</num><content>Excluded remuneration is not relevant remuneration.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-excluded-remuneration"><heading> “Excluded remuneration” </heading><paragraph eId="schedule-1-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-1-paragraph-5-1"><num>(1)</num><intro>“<term refersTo="#term-excluded-remuneration" eId="term-excluded-remuneration">Excluded remuneration</term>” means—</intro><level class="para1" eId="schedule-1-paragraph-5-1-a"><num>(a)</num><content>anything which is regular salary or wages or a regular benefit,</content></level><level class="para1" eId="schedule-1-paragraph-5-1-b"><num>(b)</num><content>anything in the case of which a contractual obligation to pay or provide it to or in respect of the employee concerned arose before the beginning of the chargeable period,</content></level><level class="para1" eId="schedule-1-paragraph-5-1-c"><num>(c)</num><content>any shares awarded under an approved share incentive plan (within the meaning of section 488 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003), or</content></level><level class="para1" eId="schedule-1-paragraph-5-1-d"><num>(d)</num><content>any share option granted under an approved <abbr class="acronym" title="Save As You Earn">SAYE</abbr> option scheme (within the meaning of section 516 of that Act).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-2"><num>(2)</num><intro>In sub-paragraph (1)(a) “<term refersTo="#term-regular" eId="term-regular">regular</term>”, in relation to salary or wages or a benefit, means so much of the amount of the salary or wages or benefit as cannot vary according to—</intro><level class="para1" eId="schedule-1-paragraph-5-2-a"><num>(a)</num><intro>the performance of, or of any part of—</intro><level class="para2" eId="schedule-1-paragraph-5-2-a-i"><num>(i)</num><content>any business of the taxable company concerned, or</content></level><level class="para2" eId="schedule-1-paragraph-5-2-a-ii"><num>(ii)</num><content>any business of a person connected with the taxable company,</content></level></level><level class="para1" eId="schedule-1-paragraph-5-2-b"><num>(b)</num><content>the contribution made by the employee concerned to the performance of, or of any part of, any business within paragraph (a)(i) or (ii),</content></level><level class="para1" eId="schedule-1-paragraph-5-2-c"><num>(c)</num><content>the performance by the employee of any of the duties of the employment, or</content></level><level class="para1" eId="schedule-1-paragraph-5-2-d"><num>(d)</num><content>any similar considerations.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-3"><num>(3)</num><intro>For the purposes of sub-paragraph (1)(b) a contractual obligation to pay or provide something to or in respect of the employee does not arise until—</intro><level class="para1" eId="schedule-1-paragraph-5-3-a"><num>(a)</num><content>the amount to be paid or provided is fixed or is capable of becoming fixed without the exercise of discretion by any person, or</content></level><level class="para1" eId="schedule-1-paragraph-5-3-b"><num>(b)</num><content>the total amount of things to be paid or provided to or in respect of a number of employees including the employee is fixed or is capable of becoming fixed without the exercise of discretion by any person.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-4"><num>(4)</num><content>A contractual obligation to pay or provide something is taken to arise for those purposes even if payment or provision of it is dependent on compliance by the employee with any conditions.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-awarded"><heading> “Awarded” </heading><paragraph eId="schedule-1-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-1-paragraph-6-1"><num>(1)</num><intro>Relevant remuneration is “awarded” during the chargeable period if—</intro><level class="para1" eId="schedule-1-paragraph-6-1-a"><num>(a)</num><content>a contractual obligation to pay or provide it arises during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-6-1-b"><num>(b)</num><content>the relevant remuneration is paid or provided during the chargeable period without any such obligation having arisen during the chargeable period,</content></level><wrapUp>but subject to sub-paragraph (3).</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-6-2"><num>(2)</num><content>Sub-paragraph (3)(a) of paragraph 5 applies for the purposes of sub-paragraph (1) as for the purposes of sub-paragraph (1)(b) of that paragraph.</content></subparagraph><subparagraph eId="schedule-1-paragraph-6-3"><num>(3)</num><intro>Relevant remuneration is not to be taken to be awarded during the chargeable period by virtue of sub-paragraph (1)(a) if—</intro><level class="para1" eId="schedule-1-paragraph-6-3-a"><num>(a)</num><content>it is required to be paid or provided at intervals,</content></level><level class="para1" eId="schedule-1-paragraph-6-3-b"><num>(b)</num><content>it is to be paid or provided in respect of contribution, performance or similar considerations only for times after the end of the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-6-3-c"><num>(c)</num><content>the reduction or elimination of a liability to bank payroll tax is not the main purpose or one of the main purposes of any person in assuming the obligation to pay or provide it.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-6-4"><num>(4)</num><content>Sub-paragraph (4) of paragraph 5 applies for the purposes of this paragraph as for the purposes of sub-paragraph (1)(b) of that paragraph.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-amount-of-remuneration"><heading> “Amount” of remuneration</heading><paragraph eId="schedule-1-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-1-paragraph-7-1"><num>(1)</num><intro>Subject to sub-paragraphs (2) to (4), the amount of any relevant remuneration is—</intro><level class="para1" eId="schedule-1-paragraph-7-1-a"><num>(a)</num><content>if it is money, its amount when awarded,</content></level><level class="para1" eId="schedule-1-paragraph-7-1-b"><num>(b)</num><content>if it is money's worth, the amount of the money's worth when awarded, or</content></level><level class="para1" eId="schedule-1-paragraph-7-1-c"><num>(c)</num><content>if it is a benefit not constituting earnings, the cost of providing it.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-7-2"><num>(2)</num><content>Where relevant remuneration is awarded to or in respect of an employee by virtue of paragraph 6(1)(a) and its amount is not fixed when it is awarded, its amount is such as it is reasonable at that time to assume would be its amount (in accordance with sub-paragraph (1)) if and when paid or provided.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-3"><num>(3)</num><content>Where the market value of any relevant remuneration at the time it is awarded exceeds, or would exceed, what would otherwise be its amount, its amount is that market value.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-4"><num>(4)</num><content>Where anything constituting relevant remuneration is or would be, when awarded, subject to any restriction or restrictions, the restriction is, or restrictions are, to be ignored in arriving at its amount.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-5"><num>(5)</num><content>For this purpose “<term refersTo="#term-restriction" eId="term-restriction">restriction</term>” means any condition, restriction or other similar provision which causes the value of the relevant remuneration to be less than it otherwise would be.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-the-chargeable-period"><heading> “The chargeable period” </heading><paragraph eId="schedule-1-paragraph-8" class="schProv1"><num>8</num><intro>“The chargeable period” is the period—</intro><level class="para1" eId="schedule-1-paragraph-8-a"><num>(a)</num><content>beginning at 12.30 pm on 9 December 2009, and</content></level><level class="para1" eId="schedule-1-paragraph-8-b"><num>(b)</num><content>ending with 5 April 2010.</content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-relevant-banking-employee"><heading> “Relevant banking employee” </heading><paragraph eId="schedule-1-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-1-paragraph-9-1"><num>(1)</num><intro>An employee of a taxable company is a relevant banking employee of the taxable company if—</intro><level class="para1" eId="schedule-1-paragraph-9-1-a"><num>(a)</num><content>the employment in which the employee is employed by the taxable company is a banking employment, and</content></level><level class="para1" eId="schedule-1-paragraph-9-1-b"><num>(b)</num><intro>either—</intro><level class="para2" eId="schedule-1-paragraph-9-1-b-i"><num>(i)</num><content>the employee is resident in the United Kingdom in the tax year 2009-10, or</content></level><level class="para2" eId="schedule-1-paragraph-9-1-b-ii"><num>(ii)</num><content>the duties of the banking employment are at any time in that tax year performed wholly or partly in the United Kingdom.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-2"><num>(2)</num><content>“<term refersTo="#term-banking-employment" eId="term-banking-employment">Banking employment</term>” means an employment the duties of which are wholly or mainly concerned (whether directly or indirectly) with activities to which sub-paragraph (3) applies.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-3"><num>(3)</num><intro>This sub-paragraph applies to activities which are—</intro><level class="para1" eId="schedule-1-paragraph-9-3-a"><num>(a)</num><content>listed regulated activities, or</content></level><level class="para1" eId="schedule-1-paragraph-9-3-b"><num>(b)</num><content>activities which are not listed regulated activities but consist of the lending of money or of dealing in currency or commodities as principal.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-4"><num>(4)</num><intro>“<term refersTo="#term-listed-regulated-activity" eId="term-listed-regulated-activity">Listed regulated activity</term>” means an activity which is a regulated activity for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 by virtue of any of the following provisions of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2001/544)—</intro><level class="para1" eId="schedule-1-paragraph-9-4-a"><num>(a)</num><content>article 5 (accepting deposits),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-b"><num>(b)</num><content>article 14 (dealing in investments as principal),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-c"><num>(c)</num><content>article 21 (dealing in investments as agent),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-d"><num>(d)</num><content>article 25 (arranging deals in investments),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-e"><num>(e)</num><content>article 40 (safeguarding and administering investments),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-f"><num>(f)</num><content>article 53 (advising on investments), and</content></level><level class="para1" eId="schedule-1-paragraph-9-4-g"><num>(g)</num><content>article 61 (entering into regulated mortgage contracts).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-5"><num>(5)</num><intro>But an activity is not a listed regulated activity in relation to an employee of a taxable company if—</intro><level class="para1" eId="schedule-1-paragraph-9-5-a"><num>(a)</num><content>the taxable company is an insurance company, or a member of the same group as an insurance company, and the activity is carried on wholly on behalf of the insurance company, or</content></level><level class="para1" eId="schedule-1-paragraph-9-5-b"><num>(b)</num><intro>it—</intro><level class="para2" eId="schedule-1-paragraph-9-5-b-i"><num>(i)</num><content>is either of the activities described in the provisions mentioned in sub-paragraph (4)(c) and (d), and</content></level><level class="para2" eId="schedule-1-paragraph-9-5-b-ii"><num>(ii)</num><content>is carried on as part of, or wholly in support of, activities of the taxable company, or of a company which is a member of the same group as the taxable company, and the activities consist of acting as discretionary investment manager for clients none of which is a linked entity.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-6"><num>(6)</num><content>An employee of a taxable company who spends no more than 60 days in the United Kingdom in the tax year 2009-10 is to be treated as not being a relevant banking employee of the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-7"><num>(7)</num><content>In determining for the purposes of sub-paragraph (6) whether an individual spends no more than 60 days in the United Kingdom treat a day as a day spent by the individual in the United Kingdom if (and only if) the individual is present in the United Kingdom at the end of the day.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-8"><num>(8)</num><intro>But in determining that issue for those purposes do not treat as a day spent by the individual in the United Kingdom any day on which the individual arrives in the United Kingdom as a passenger if—</intro><level class="para1" eId="schedule-1-paragraph-9-8-a"><num>(a)</num><content>the individual departs from the United Kingdom on the next day, and</content></level><level class="para1" eId="schedule-1-paragraph-9-8-b"><num>(b)</num><content>during the time between arrival and departure the individual does not engage in activities which are to a substantial extent unrelated to the individual's passage through the United Kingdom.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-multiple-employments"><heading>Multiple employments</heading><paragraph eId="schedule-1-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-1-paragraph-10-1"><num>(1)</num><content>The threshold of £25,000 in paragraph 1(3) applies whether or not an employee has more than one employment as a relevant banking employee with a taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-10-2"><num>(2)</num><content>If relevant remuneration is awarded during the chargeable period to or in respect of a relevant banking employee by reason of the employee's employment as such by a number of associated taxable companies, the threshold in paragraph 1(3) in relation to each of the taxable companies is £25,000 divided by the number of the taxable companies.</content></subparagraph><subparagraph eId="schedule-1-paragraph-10-3"><num>(3)</num><intro>For this purpose taxable companies are associated if—</intro><level class="para1" eId="schedule-1-paragraph-10-3-a"><num>(a)</num><content>one of them is under the control of the other, or</content></level><level class="para1" eId="schedule-1-paragraph-10-3-b"><num>(b)</num><content>one of them is under the control of a third person who controls or is under the control of the other.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-payments-etc-to-intermediaries"><heading>Payments <abbr title="Et cetera" xml:lang="la">etc</abbr> to intermediaries</heading><paragraph eId="schedule-1-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-1-paragraph-11-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-11-1-a"><num>(a)</num><content>an individual personally performs banking services for a taxable company,</content></level><level class="para1" eId="schedule-1-paragraph-11-1-b"><num>(b)</num><content>the banking services are provided not under a contract directly between the individual and the taxable company but under arrangements involving any other person (“the intermediary”), and</content></level><level class="para1" eId="schedule-1-paragraph-11-1-c"><num>(c)</num><content>the circumstances are such that, if the banking services were provided under a contract directly between the taxable company and the individual, the individual would be a relevant banking employee of the taxable company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-11-2"><num>(2)</num><content>The individual is to be regarded as a relevant banking employee of the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-11-3"><num>(3)</num><content>Anything done by the intermediary in relation to the individual which, if the banking services were provided under a contract directly between the taxable company and the individual, would be regarded as the award of relevant remuneration during the chargeable period to or in respect of the individual (as a relevant banking employee) by reason of the employee's employment as a relevant banking employee is to be so regarded.</content></subparagraph><subparagraph eId="schedule-1-paragraph-11-4"><num>(4)</num><content>“<term refersTo="#term-banking-services" eId="term-banking-services">Banking services</term>” means services which are wholly or mainly concerned (whether directly or indirectly) with activities which are activities to which paragraph 9(3) applies.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-arrangements-for-future-payments-etc"><heading>Arrangements for future payments <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-1-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-1-paragraph-12-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-12-1-a"><num>(a)</num><content>arrangements are made during the chargeable period by reason of an employee's employment as a relevant banking employee of a taxable company,</content></level><level class="para1" eId="schedule-1-paragraph-12-1-b"><num>(b)</num><content>the arrangements make provision under which money may be paid, or any money's worth or other benefit provided, to or in respect of the employee in accordance with the arrangements, and</content></level><level class="para1" eId="schedule-1-paragraph-12-1-c"><num>(c)</num><content>were the money so paid, or the money's worth or other benefit so provided, during the chargeable period, it would be relevant remuneration awarded to or in respect of the employee during the chargeable period.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-12-2"><num>(2)</num><content>The making of the arrangements is to be regarded as the awarding of relevant remuneration to or in respect of the relevant banking employee by reason of the employment; and the amount of the relevant remuneration is to regarded as the amount of any money which it is reasonable to assume will be paid, and any money's worth or other benefit which it is reasonable to assume will be provided, as mentioned in sub-paragraph (1).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-loans"><heading>Loans</heading><paragraph eId="schedule-1-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-1-paragraph-13-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-13-1-a"><num>(a)</num><content>at any time during the chargeable period a relevant loan is provided to or in respect of a relevant banking employee of a taxable company by reason of the employee's employment as a relevant banking employee otherwise than pursuant to a contractual obligation arising before the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-13-1-b"><num>(b)</num><content>at any time during the chargeable period there arises a contractual obligation to provide a relevant loan to or in respect of the employee by reason of the employee's employment as a relevant banking employee of the taxable company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-13-2"><num>(2)</num><content>A loan is a “relevant” loan if the main purpose, or one of the main purposes, of providing it, or undertaking to provide it, is the reduction or elimination of a liability to bank payroll tax or any other tax or national insurance contributions.</content></subparagraph><subparagraph eId="schedule-1-paragraph-13-3"><num>(3)</num><content>The loan is to be regarded as relevant remuneration awarded during the chargeable period to or in respect of the relevant banking employee by reason of the employee's employment as a relevant banking employee; and the amount of the relevant remuneration is to be regarded as the amount which is loaned or (where the amount of the loan is not fixed) the amount which it is reasonable to assume will be loaned.</content></subparagraph><subparagraph eId="schedule-1-paragraph-13-4"><num>(4)</num><content>A contractual obligation to provide a relevant loan is taken to arise for the purposes of this paragraph even if provision of it is dependent on compliance by the relevant banking employee with any conditions.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-antiavoidance"><heading>Anti-avoidance</heading><paragraph eId="schedule-1-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-1-paragraph-14-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-14-1-a"><num>(a)</num><content>relevant arrangements are entered into by one or more persons during the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-14-1-b"><num>(b)</num><content>the main purpose, or one of the main purposes, of the person, or any of the persons, in entering into the relevant arrangements is a relevant tax avoidance purpose.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-2"><num>(2)</num><intro>“<term refersTo="#term-relevant-arrangements" eId="term-relevant-arrangements">Relevant arrangements</term>” means arrangements involving either or both of the following—</intro><level class="para1" eId="schedule-1-paragraph-14-2-a"><num>(a)</num><content>the making of a payment of money, or the provision of any money's worth or other benefit, otherwise than during the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-14-2-b"><num>(b)</num><content>the giving otherwise than in the form of relevant remuneration of any reward which equates in substance to relevant remuneration.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-3"><num>(3)</num><intro>A “relevant tax avoidance purpose” is the reduction or elimination of a liability to bank payroll tax which would exist if—</intro><level class="para1" eId="schedule-1-paragraph-14-3-a"><num>(a)</num><content>in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money's worth or other benefit provided, during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-14-3-b"><num>(b)</num><content>in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-4"><num>(4)</num><intro>Liability to bank payroll tax is to be determined as it would have been if—</intro><level class="para1" eId="schedule-1-paragraph-14-4-a"><num>(a)</num><content>in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money's worth or other benefit provided, during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-14-4-b"><num>(b)</num><content>in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-no-deduction-in-computing-profits"><heading>No deduction in computing profits</heading><paragraph eId="schedule-1-paragraph-15" class="schProv1"><num>15</num><content>No amount of bank payroll tax is to be taken into account in calculating profits or losses for the purposes of income tax or corporation tax.</content></paragraph></hcontainer></part><part eId="schedule-1-part-2"><num>Part 2</num><heading>Collection and management of tax</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-responsibility-for-collection-and-management"><heading>Responsibility for collection and management</heading><paragraph eId="schedule-1-paragraph-16" class="schProv1"><num>16</num><content>The Commissioners are responsible for the collection and management of bank payroll tax.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-due-date-for-payment"><heading>Due date for payment</heading><paragraph eId="schedule-1-paragraph-17" class="schProv1"><num>17</num><content>Bank payroll tax is payable by taxable companies on or before 31 August 2010.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-obligation-to-deliver-return"><heading>Obligation to deliver return</heading><paragraph eId="schedule-1-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-1-paragraph-18-1"><num>(1)</num><content>In order to establish the amount of bank payroll tax payable by it, every taxable company must deliver a return to HMRC.</content></subparagraph><subparagraph eId="schedule-1-paragraph-18-2"><num>(2)</num><content>The return must be delivered on or before 31 August 2010.</content></subparagraph><subparagraph eId="schedule-1-paragraph-18-3"><num>(3)</num><content>A return under this paragraph is referred to as a bank payroll tax return.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-content-etc-of-return"><heading>Content <abbr title="Et cetera" xml:lang="la">etc</abbr> of return</heading><paragraph eId="schedule-1-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-1-paragraph-19-1"><num>(1)</num><intro><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may publish requirements as to—</intro><level class="para1" eId="schedule-1-paragraph-19-1-a"><num>(a)</num><content>the information to be contained in bank payroll tax returns,</content></level><level class="para1" eId="schedule-1-paragraph-19-1-b"><num>(b)</num><content>the form in which they must be made,</content></level><level class="para1" eId="schedule-1-paragraph-19-1-c"><num>(c)</num><content>the manner in which they must be delivered, and</content></level><level class="para1" eId="schedule-1-paragraph-19-1-d"><num>(d)</num><content>the documents to be delivered with them.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-19-2"><num>(2)</num><intro>A bank payroll tax return must include—</intro><level class="para1" eId="schedule-1-paragraph-19-2-a"><num>(a)</num><content>an assessment (a “self-assessment”) of the amount of bank payroll tax payable by the taxable company on the basis of the information contained in it, and</content></level><level class="para1" eId="schedule-1-paragraph-19-2-b"><num>(b)</num><content>a declaration by the person making it that, to the best of that person's knowledge, it is correct and complete.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-failure-to-include-selfassessment"><heading>Failure to include self-assessment</heading><paragraph eId="schedule-1-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-1-paragraph-20-1"><num>(1)</num><content>If a taxable company delivers a bank payroll tax return but fails to include a self-assessment, <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may make the assessment on the company's behalf on the basis of the information contained in it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-20-2"><num>(2)</num><content>The assessment is treated for the purposes of this Schedule as a self-assessment and as included in the return.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-amendment-of-return-by-company"><heading>Amendment of return by company</heading><paragraph eId="schedule-1-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-1-paragraph-21-1"><num>(1)</num><content>A taxable company may amend its bank payroll tax return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-2"><num>(2)</num><content>An amendment under this paragraph is made by notice to <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> in such form, and accompanied by such information, as <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may reasonably require.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-3"><num>(3)</num><content>No such amendment may be made after 31 August 2011.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-4"><num>(4)</num><content>Nothing in sub-paragraph (1) permits a taxable company to amend its return to revise an amount determined under paragraph 7(2), 12(2) or 13(3) merely because the amount determined under that provision differs from the amount which is actually paid or provided (or loaned).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-correction-of-return-by-hmrc"><heading>Correction of return by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr></heading><paragraph eId="schedule-1-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-1-paragraph-22-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may amend a bank payroll tax return so as to correct obvious errors or omissions in it (whether errors of principle, arithmetical mistakes or otherwise).</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-2"><num>(2)</num><content>A correction under this paragraph is made by notice to the taxable company concerned.</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-3"><num>(3)</num><intro>No such correction may be made more than 9 months after—</intro><level class="para1" eId="schedule-1-paragraph-22-3-a"><num>(a)</num><content>the day on which the return was delivered, or</content></level><level class="para1" eId="schedule-1-paragraph-22-3-b"><num>(b)</num><content>if the correction is required in consequence of an amendment made under paragraph 21, the day on which that amendment was made.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-22-4"><num>(4)</num><content>A correction under this paragraph is of no effect if the taxable company gives notice rejecting it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-5"><num>(5)</num><intro>Notice of rejection must be given—</intro><level class="para1" eId="schedule-1-paragraph-22-5-a"><num>(a)</num><content>to the officer of Revenue and Customs by whom the correction notice was given, and</content></level><level class="para1" eId="schedule-1-paragraph-22-5-b"><num>(b)</num><content>before the end of the period of 30 days beginning with the date on which the correction notice was given.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-enquiry-into-return"><heading>Enquiry into return</heading><paragraph eId="schedule-1-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-1-paragraph-23-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may enquire into a bank payroll tax return if they give notice to the taxable company of their intention to do so within the time allowed.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-2"><num>(2)</num><content>If the return was delivered on or before 31 August 2010, notice of enquiry may be given at any time on or before 31 August 2011.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-3"><num>(3)</num><content>If the return was delivered after 31 August 2010, notice of enquiry may be given at any time up to and including whichever of 31 January, 30 April, 31 July or 31 October next follows the first anniversary of the day on which the return was delivered.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-4"><num>(4)</num><content>An enquiry extends to anything contained in the return or required to be contained in the return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-5"><num>(5)</num><intro>The following provisions of Schedule 18 to FA 1998 apply to an enquiry into a bank payroll tax return under this Schedule as they apply to an enquiry into a company tax return under that Schedule—</intro><level class="para1" eId="schedule-1-paragraph-23-5-a"><num>(a)</num><content>paragraph 24(4) to (5) (notice of enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-b"><num>(b)</num><content>paragraph 25(2) (enquiry following amendment by company) (but as if the reference there to paragraph 24(2) or (3) were to sub-paragraph (2) or (3) of this paragraph),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-c"><num>(c)</num><content>paragraph 31 (amendment of return by company during enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-d"><num>(d)</num><content>paragraphs 31A to 31D (referral of questions to the tribunal during enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-e"><num>(e)</num><content>paragraph 32(1) (completion of enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-f"><num>(f)</num><content>paragraph 33 (direction to complete enquiry), and</content></level><level class="para1" eId="schedule-1-paragraph-23-5-g"><num>(g)</num><content>paragraph 34 (amendment of return after enquiry).</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-determination-by-hmrc"><heading>Determination by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr></heading><paragraph eId="schedule-1-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-1-paragraph-24-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may determine to the best of their knowledge and belief the amount of bank payroll tax payable by a taxable company if the company has not delivered a bank payroll tax return on or before 31 August 2010.</content></subparagraph><subparagraph eId="schedule-1-paragraph-24-2"><num>(2)</num><intro>Notice of the determination—</intro><level class="para1" eId="schedule-1-paragraph-24-2-a"><num>(a)</num><content>must be served on the company, and</content></level><level class="para1" eId="schedule-1-paragraph-24-2-b"><num>(b)</num><content>must state the date on which it is given.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-24-3"><num>(3)</num><content>The amount determined by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> is taken to be the amount payable by the company (in the same way as if it were an assessment) unless and until the determination is superseded by a relevant assessment.</content></subparagraph><subparagraph eId="schedule-1-paragraph-24-4"><num>(4)</num><intro>A relevant assessment is an assessment—</intro><level class="para1" eId="schedule-1-paragraph-24-4-a"><num>(a)</num><content>included in a bank payroll tax return delivered by the company within the period of 12 months beginning with the date on which notice of the determination was given, or</content></level><level class="para1" eId="schedule-1-paragraph-24-4-b"><num>(b)</num><content>made by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> under paragraph 20 following delivery of such a return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-24-5"><num>(5)</num><intro>If—</intro><level class="para1" eId="schedule-1-paragraph-24-5-a"><num>(a)</num><content>proceedings have been commenced for the recovery of an amount determined by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> under this paragraph, and</content></level><level class="para1" eId="schedule-1-paragraph-24-5-b"><num>(b)</num><content>before the proceedings are concluded, the determination is superseded by a relevant assessment,</content></level><wrapUp>the proceedings may be continued as if they were proceedings for the recovery of so much of the tax shown in the assessment as has not been paid.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-24-6"><num>(6)</num><content>No determination may be made under this paragraph after 31 August 2013.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-discovery-assessment-by-hmrc"><heading>Discovery assessment by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr></heading><paragraph eId="schedule-1-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-1-paragraph-25-1"><num>(1)</num><intro>This paragraph applies if <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> discover, with respect to a taxable company, any of the following situations—</intro><level class="para1" eId="schedule-1-paragraph-25-1-a"><num>(a)</num><content>an amount which ought to have been assessed to bank payroll tax has not been assessed,</content></level><level class="para1" eId="schedule-1-paragraph-25-1-b"><num>(b)</num><content>an assessment to bank payroll tax is insufficient, or</content></level><level class="para1" eId="schedule-1-paragraph-25-1-c"><num>(c)</num><content>an amount of bank payroll tax has been repaid which ought not to have been repaid.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-25-2"><num>(2)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may make an assessment (a “discovery assessment”) in the amount or further amount which ought in their opinion to be charged or recovered in order to make good to the Crown the loss of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-3"><num>(3)</num><content>If the company has delivered a bank payroll tax return, <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may only make a discovery assessment if condition A or condition B is met.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-4"><num>(4)</num><content>Condition A is that the situation discovered by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> was brought about carelessly or deliberately by the company or a person acting on its behalf.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-5"><num>(5)</num><intro>Condition B is that <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> could not reasonably have been expected to be aware of the situation at the time when they—</intro><level class="para1" eId="schedule-1-paragraph-25-5-a"><num>(a)</num><content>ceased to be entitled to give notice of enquiry into the return, or</content></level><level class="para1" eId="schedule-1-paragraph-25-5-b"><num>(b)</num><content>completed their enquiries into the return.</content></level></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-26" class="schProv1"><num>26</num><intro>Notice of a discovery assessment—</intro><level class="para1" eId="schedule-1-paragraph-26-a"><num>(a)</num><content>must be served on the taxable company, and</content></level><level class="para1" eId="schedule-1-paragraph-26-b"><num>(b)</num><content>must state the date on which it is given and the time by which an appeal may be brought against it.</content></level></paragraph><paragraph eId="schedule-1-paragraph-27" class="schProv1"><num>27</num><subparagraph eId="schedule-1-paragraph-27-1"><num>(1)</num><content>No discovery assessment may be made after the relevant deadline.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-2"><num>(2)</num><intro>The relevant deadline is 5 April 2030 if the situation—</intro><level class="para1" eId="schedule-1-paragraph-27-2-a"><num>(a)</num><content>was brought about deliberately by the taxable company, or</content></level><level class="para1" eId="schedule-1-paragraph-27-2-b"><num>(b)</num><content>was attributable to the taxable company's careless failure to deliver a bank payroll tax return on or before 31 August 2010.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-27-3"><num>(3)</num><content>Subject to sub-paragraph (2)(b), the relevant deadline is 5 April 2016 if the situation was brought about carelessly by the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-4"><num>(4)</num><content>In all other cases, the relevant deadline is 5 April 2014.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-5"><num>(5)</num><intro>In this paragraph—</intro><level class="para1" eId="schedule-1-paragraph-27-5-a"><num>(a)</num><content>references to the situation are to the one discovered by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr>, and</content></level><level class="para1" eId="schedule-1-paragraph-27-5-b"><num>(b)</num><content>references to the taxable company include a person acting on the company's behalf.</content></level></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-1-paragraph-28-1"><num>(1)</num><content>If a discovery assessment is made with respect to a taxable company, the company may appeal against it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-28-2"><num>(2)</num><intro>Notice of appeal must be given—</intro><level class="para1" eId="schedule-1-paragraph-28-2-a"><num>(a)</num><content>in writing,</content></level><level class="para1" eId="schedule-1-paragraph-28-2-b"><num>(b)</num><content>within the period of 30 days beginning with the date on which notice of the assessment was given, and</content></level><level class="para1" eId="schedule-1-paragraph-28-2-c"><num>(c)</num><content>to the officer of Revenue and Customs by whom notice of the assessment was given.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-28-3"><num>(3)</num><content>Any objection to a discovery assessment on the ground that paragraph 25, 26 or 27 was not complied with can only be made on an appeal against the assessment under this paragraph.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-collection-and-recovery"><heading>Collection and recovery</heading><paragraph eId="schedule-1-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-1-paragraph-29-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may publish requirements as to the method or methods of payment to be used by taxable companies for paying bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-29-2"><num>(2)</num><content>Part 6 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (collection and recovery) applies in relation to a charge to bank payroll tax as it applies in relation to a charge to corporation tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-29-3"><num>(3)</num><content>See also Chapter 5 of Part 7 of FA 2008 (which makes general provision about payment and enforcement).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-interest-on-late-payments-and-repayments"><heading>Interest on late payments and repayments</heading><paragraph eId="schedule-1-paragraph-30" class="schProv1"><num>30</num><subparagraph eId="schedule-1-paragraph-30-1"><num>(1)</num><content>This paragraph applies if an order is made under section 104(3) of FA 2009 appointing a day on which sections 101 to 103 of that Act are to come into force for the purposes of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-30-2"><num>(2)</num><intro>Part 2 of Schedule 53 to that Act (which makes special provision about the late payment interest start date) has effect for those purposes as if—</intro><level class="para1" eId="schedule-1-paragraph-30-2-a"><num>(a)</num><content>the reference in paragraph 4(1) to income tax or capital gains tax included a reference to bank payroll tax, and</content></level><level class="para1" eId="schedule-1-paragraph-30-2-b"><num>(b)</num><content>the Part included a provision that the late payment interest start date in respect of an amount of bank payroll tax assessed and recoverable under paragraph 25(1)(c) of this Schedule is 31 August 2010.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-30-3"><num>(3)</num><content>Interest charged under section 101 of FA 2009 on an amount of bank payroll tax may be enforced as if it were an amount of bank payroll tax payable by the taxable company.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-overpaid-tax-etc"><heading>Overpaid tax <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-1-paragraph-31" class="schProv1"><num>31</num><subparagraph eId="schedule-1-paragraph-31-1"><num>(1)</num><content>Paragraphs 50 to 51G of Schedule 18 to FA 1998 (overpaid tax <abbr title="Et cetera" xml:lang="la">etc</abbr>) apply (so far as relevant) to bank payroll tax assessable for the chargeable period as they apply to corporation tax assessable for an accounting period, subject to the following modifications.</content></subparagraph><subparagraph eId="schedule-1-paragraph-31-2"><num>(2)</num><content>With respect to bank payroll tax, a claim under paragraph 51 may not be made after 31 August 2014.</content></subparagraph><subparagraph eId="schedule-1-paragraph-31-3"><num>(3)</num><intro>For the purposes of paragraph 51E, the relevant restrictions for making a discovery assessment under this Schedule are—</intro><level class="para1" eId="schedule-1-paragraph-31-3-a"><num>(a)</num><content>the conditions mentioned in paragraph 25(3), and</content></level><level class="para1" eId="schedule-1-paragraph-31-3-b"><num>(b)</num><content>expiry of the relevant deadline as defined in paragraph 27.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-31-4"><num>(4)</num><content>Nothing in sub-paragraph (1) permits a taxable company to make a claim under paragraph 51 of Schedule 18 to FA 1998 with respect to bank payroll tax merely because an amount determined under paragraph 7(2), 12(2) or 13(3) differs from the amount which is actually paid or provided (or loaned).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-appeals-and-other-proceedings"><heading>Appeals and other proceedings</heading><paragraph eId="schedule-1-paragraph-32" class="schProv1"><num>32</num><subparagraph eId="schedule-1-paragraph-32-1"><num>(1)</num><content>Part 5 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (appeals and other proceedings) applies in relation to an appeal against a discovery assessment to bank payroll tax as it applies in relation to an appeal against an assessment to corporation tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-32-2"><num>(2)</num><content>References in that Part to tax are to be read accordingly.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-1-paragraph-33-1"><num>(1)</num><content>Where a provision of FA 1998 is applied by this Part of this Schedule, a reference in section 46D of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (questions to be determined by the relevant tribunal) to that provision includes a reference to that provision as so applied.</content></subparagraph><subparagraph eId="schedule-1-paragraph-33-2"><num>(2)</num><content>A reference in section 48 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (application to appeals and other proceedings) to the Taxes Acts includes a reference to those Acts as applied by this Part of this Schedule.</content></subparagraph><subparagraph eId="schedule-1-paragraph-33-3"><num>(3)</num><intro>Where a provision of FA 1998 is applied by this Part of this Schedule—</intro><level class="para1" eId="schedule-1-paragraph-33-3-a"><num>(a)</num><content>a reference in section 55 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (recovery of tax not postponed) to that provision includes a reference to that provision as so applied, and</content></level><level class="para1" eId="schedule-1-paragraph-33-3-b"><num>(b)</num><content>references in that section to tax are to be read accordingly.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-obligation-to-preserve-records"><heading>Obligation to preserve records</heading><paragraph eId="schedule-1-paragraph-34" class="schProv1"><num>34</num><subparagraph eId="schedule-1-paragraph-34-1"><num>(1)</num><intro>Each taxable company must—</intro><level class="para1" eId="schedule-1-paragraph-34-1-a"><num>(a)</num><content>keep such records as may be needed to enable it to establish and verify the amount of bank payroll tax payable by it and to deliver a correct and complete bank payroll tax return, and</content></level><level class="para1" eId="schedule-1-paragraph-34-1-b"><num>(b)</num><content>preserve those records, and any other relevant records, until the end of 31 August 2016.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-2"><num>(2)</num><intro>Other relevant records are records that—</intro><level class="para1" eId="schedule-1-paragraph-34-2-a"><num>(a)</num><content>may be needed for a purpose mentioned in sub-paragraph (1)(a), and</content></level><level class="para1" eId="schedule-1-paragraph-34-2-b"><num>(b)</num><content>are in the company's possession or power immediately before the commencement of this Schedule.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-3"><num>(3)</num><intro>The obligation under sub-paragraph (1)(b) may be discharged by—</intro><level class="para1" eId="schedule-1-paragraph-34-3-a"><num>(a)</num><content>preserving the records in any form and by any means, or</content></level><level class="para1" eId="schedule-1-paragraph-34-3-b"><num>(b)</num><content>preserving the information contained in them in any form and by any means.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-4"><num>(4)</num><content>The obligation under sub-paragraph (1)(b) includes an obligation to preserve supporting documents (such as contracts, accounts and correspondence).</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-1-paragraph-35-1"><num>(1)</num><content>A taxable company which fails to comply with paragraph 34 is liable to a penalty of an amount not exceeding £3,000.</content></subparagraph><subparagraph eId="schedule-1-paragraph-35-2"><num>(2)</num><content>Sections 100 to 102 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 apply to a penalty under this paragraph as they apply to a penalty under section 12B(5) of that Act.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-information-powers"><heading>Information powers</heading><paragraph eId="schedule-1-paragraph-36" class="schProv1"><num>36</num><subparagraph eId="schedule-1-paragraph-36-1"><num>(1)</num><content>Schedule 36 to FA 2008 (information and inspection powers) has effect as if the definition of tax in paragraph 63(1) included bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-36-2"><num>(2)</num><intro>Paragraph 21 of that Schedule (taxpayer notices) applies where a taxable company has made a bank payroll tax return as it applies where a person has made a company tax return and, in relation to bank payroll tax—</intro><level class="para1" eId="schedule-1-paragraph-36-2-a"><num>(a)</num><content>a reference in that paragraph to a chargeable period is to the chargeable period within the meaning of this Schedule, and</content></level><level class="para1" eId="schedule-1-paragraph-36-2-b"><num>(b)</num><content>a reference in that paragraph to a notice of enquiry is to a notice of enquiry under paragraph 23 of this Schedule.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-penalties"><heading>Penalties</heading><paragraph eId="schedule-1-paragraph-37" class="schProv1"><num>37</num><subparagraph eId="schedule-1-paragraph-37-1"><num>(1)</num><intro>Schedule 24 to FA 2007 (penalties for errors) has effect as if in the Table in paragraph 1—</intro><level class="para1" eId="schedule-1-paragraph-37-1-a"><num>(a)</num><content>the list of taxes included bank payroll tax, and</content></level><level class="para1" eId="schedule-1-paragraph-37-1-b"><num>(b)</num><content>the list of documents included a bank payroll tax return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-37-2"><num>(2)</num><content>In relation to bank payroll tax, any reference in that Schedule to a tax period is to the chargeable period within the meaning of this Schedule.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-1-paragraph-38-1"><num>(1)</num><intro>Schedule 55 to FA 2009 (penalties for failure to make returns <abbr title="Et cetera" xml:lang="la">etc</abbr>) has effect as if—</intro><level class="para1" eId="schedule-1-paragraph-38-1-a"><num>(a)</num><content>a bank payroll tax return were specified in the Table in paragraph 1 (and bank payroll tax were specified in relation to it), and</content></level><level class="para1" eId="schedule-1-paragraph-38-1-b"><num>(b)</num><content>the reference in paragraph 2 to a return falling within certain items in the Table included a reference to a bank payroll tax return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-38-2"><num>(2)</num><content>Schedule 55 to FA 2009 has effect for the purposes of bank payroll tax in accordance with this paragraph whether or not it has come into force for other purposes.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-1-paragraph-39-1"><num>(1)</num><content>Schedule 56 to FA 2009 (penalties for failure to make payments on time <abbr title="Et cetera" xml:lang="la">etc</abbr>) has effect for the purposes of bank payroll tax as follows.</content></subparagraph><subparagraph eId="schedule-1-paragraph-39-2"><num>(2)</num><intro>The part of the Table in paragraph 1 headed “Principal amounts” has effect as if bank payroll tax were specified in column 2 and, in relation to that tax—</intro><level class="para1" eId="schedule-1-paragraph-39-2-a"><num>(a)</num><content>an amount shown (or treated as shown) in a bank payroll tax return were specified in column 3, and</content></level><level class="para1" eId="schedule-1-paragraph-39-2-b"><num>(b)</num><content>31 August 2010 were specified in column 4.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-39-3"><num>(3)</num><intro>The part of that Table headed “Amounts payable in default of a return being made” has effect as if bank payroll tax were specified in column 2 and, in relation to that tax—</intro><level class="para1" eId="schedule-1-paragraph-39-3-a"><num>(a)</num><content>an amount shown in a determination under paragraph 24 of this Schedule were specified in column 3, and</content></level><level class="para1" eId="schedule-1-paragraph-39-3-b"><num>(b)</num><content>31 August 2010 were specified in column 4.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-39-4"><num>(4)</num><intro>The part of that Table headed “Amount shown to be due in other assessments, determinations, <abbr title="Et cetera" xml:lang="la">etc</abbr>” has effect as if—</intro><level class="para1" eId="schedule-1-paragraph-39-4-a"><num>(a)</num><content>bank payroll tax were a tax falling within any of items 1 to 6, 9 or 10, and</content></level><level class="para1" eId="schedule-1-paragraph-39-4-b"><num>(b)</num><content>an amount shown (or treated as shown) in a bank payroll tax return were an amount falling within any of those items.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-39-5"><num>(5)</num><content>Paragraph 2 (assessments and determinations in default of return) has effect as if the reference in paragraph (a) to a return falling within any item in the Table in Schedule 55 included a reference to a bank payroll tax return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-39-6"><num>(6)</num><content>Paragraph 3 (amount of penalty) has effect as if sub-paragraph (1)(a) included a reference to a payment of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-39-7"><num>(7)</num><content>Schedule 56 to FA 2009 has effect for the purposes of bank payroll tax in accordance with this paragraph whether or not it has come into force for other purposes.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-miscellaneous"><heading>Miscellaneous</heading><paragraph eId="schedule-1-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-1-paragraph-40-1"><num>(1)</num><intro>The following provisions of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 apply for the purposes of bank payroll tax and this Schedule as they apply for the purposes of corporation tax and the Taxes Acts—</intro><level class="para1" eId="schedule-1-paragraph-40-1-a"><num>(a)</num><content>section 108 (responsibility of company officers),</content></level><level class="para1" eId="schedule-1-paragraph-40-1-b"><num>(b)</num><content>section 112 (loss, destruction or damage to assessments, returns <abbr title="Et cetera" xml:lang="la">etc</abbr>),</content></level><level class="para1" eId="schedule-1-paragraph-40-1-c"><num>(c)</num><content>section 114 (want of form), and</content></level><level class="para1" eId="schedule-1-paragraph-40-1-d"><num>(d)</num><content>section 115 (delivery and service of documents).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-40-2"><num>(2)</num><content>The application of section 115 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 in relation to the delivery of bank payroll tax returns is subject to any requirements published under paragraph 19(1) of this Schedule.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-41" class="schProv1"><num>41</num><content>Chapter 6 of Part 22 of CTA 2010 (collection <abbr title="Et cetera" xml:lang="la">etc</abbr> of tax from <abbr class="acronym" title="United Kingdom">UK</abbr> representatives of non-UK resident companies) applies to this Part of this Schedule as it applies to enactments relating to corporation tax.</content></paragraph><paragraph eId="schedule-1-paragraph-42" class="schProv1"><num>42</num><content>Section 118(5) to (7) of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (meaning of carelessly <abbr title="Et cetera" xml:lang="la">etc</abbr>) applies for the interpretation of this Part of this Schedule, with references to tax being read as references to bank payroll tax.</content></paragraph></hcontainer></part><part eId="schedule-1-part-3"><num>Part 3</num><heading>Definitions</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-3-crossheading-uk-resident-bank-and-relevant-foreign-bank"><heading> “<abbr class="acronym" title="United Kingdom">UK</abbr> resident bank” and “relevant foreign bank”</heading><paragraph eId="schedule-1-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-1-paragraph-43-1"><num>(1)</num><content>“<term refersTo="#term-uk-resident-bank" eId="term-uk-resident-bank"><abbr class="acronym" title="United Kingdom">UK</abbr> resident bank</term>” means a company which—</content></subparagraph><level class="para1" eId="schedule-1-paragraph-43-a"><num>(a)</num><content>is resident in the United Kingdom,</content></level><level class="para1" eId="schedule-1-paragraph-43-b"><num>(b)</num><content>is an authorised person for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 (see section 31 of that Act),</content></level><level class="para1" eId="schedule-1-paragraph-43-c"><num>(c)</num><intro>is a person—</intro><level class="para2" eId="schedule-1-paragraph-43-c-i"><num>(i)</num><content>whose activities include the relevant regulated activity described in the provision mentioned in paragraph 44(1)(a), or</content></level><level class="para2" eId="schedule-1-paragraph-43-c-ii"><num>(ii)</num><content>which is both a BIPRU 730k firm and a full scope BIPRU investment firm, whose activities consist wholly or mainly of any of the relevant regulated activities described in the provisions mentioned in paragraph 44(1)(b) to (f) and which meets the capital resources condition,</content></level></level><level class="para1" eId="schedule-1-paragraph-43-d"><num>(d)</num><content>carries on that relevant regulated activity, or those relevant regulated activities, wholly or mainly in the course of trade, and</content></level><level class="para1" eId="schedule-1-paragraph-43-e"><num>(e)</num><content>is not an excluded company.</content></level><subparagraph eId="schedule-1-paragraph-43-2"><num>(2)</num><intro>“<abbr class="acronym" title="United Kingdom">UK</abbr> resident bank” also includes a company which—</intro><level class="para1" eId="schedule-1-paragraph-43-2-a"><num>(a)</num><content>meets the conditions in sub-paragraph (1)(a) and (e), and</content></level><level class="para1" eId="schedule-1-paragraph-43-2-b"><num>(b)</num><content>is a member of a partnership which meets the conditions in sub-paragraph (1)(b) to (d).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-43-3"><num>(3)</num><intro>“<term refersTo="#term-relevant-foreign-bank" eId="term-relevant-foreign-bank">Relevant foreign bank</term>” means a company which—</intro><level class="para1" eId="schedule-1-paragraph-43-3-a"><num>(a)</num><content>is not resident in the United Kingdom,</content></level><level class="para1" eId="schedule-1-paragraph-43-3-b"><num>(b)</num><content>is an authorised person for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 (see section 31 of that Act),</content></level><level class="para1" eId="schedule-1-paragraph-43-3-c"><num>(c)</num><intro>is a person which carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom and—</intro><level class="para2" eId="schedule-1-paragraph-43-3-c-i"><num>(i)</num><content>whose activities include the relevant regulated activity described in the provision mentioned in paragraph 44(1)(a), or</content></level><level class="para2" eId="schedule-1-paragraph-43-3-c-ii"><num>(ii)</num><content>which is both a BIPRU 730k firm and a full scope BIPRU investment firm, whose activities consist wholly or mainly of any of the relevant regulated activities described in the provisions mentioned in paragraph 44(1)(b) to (f) and which meets the capital resources condition,</content></level></level><level class="para1" eId="schedule-1-paragraph-43-3-d"><num>(d)</num><content>carries on that relevant regulated activity, or those relevant regulated activities, wholly or mainly in the course of that trade, and</content></level><level class="para1" eId="schedule-1-paragraph-43-3-e"><num>(e)</num><content>is not an excluded company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-43-4"><num>(4)</num><intro>“Relevant foreign bank” also includes a company which—</intro><level class="para1" eId="schedule-1-paragraph-43-4-a"><num>(a)</num><content>meets the conditions in sub-paragraph (3)(a) and (e), and</content></level><level class="para1" eId="schedule-1-paragraph-43-4-b"><num>(b)</num><content>is a member of a partnership which meets the conditions in sub-paragraph (1)(b) to (d).</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-3-crossheading-relevant-regulated-activity-capital-resources-condition-excluded-company-asset-management-activities-linked-entity-etc"><heading> “Relevant regulated activity”, “capital resources condition”, “excluded company”, “asset management activities”, “linked entity” <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-1-paragraph-44" class="schProv1"><num>44</num><subparagraph eId="schedule-1-paragraph-44-1"><num>(1)</num><intro>“<term refersTo="#term-relevant-regulated-activity" eId="term-relevant-regulated-activity">Relevant regulated activity</term>” means an activity which is a regulated activity for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 by virtue of any of the following provisions of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2001/544)—</intro><level class="para1" eId="schedule-1-paragraph-44-1-a"><num>(a)</num><content>article 5 (accepting deposits),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-b"><num>(b)</num><content>article 14 (dealing in investments as principal),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-c"><num>(c)</num><content>article 21 (dealing in investments as agent),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-d"><num>(d)</num><content>article 25 (arranging deals in investments),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-e"><num>(e)</num><content>article 40 (safeguarding and administering investments), and</content></level><level class="para1" eId="schedule-1-paragraph-44-1-f"><num>(f)</num><content>article 61 (entering into regulated mortgage contracts).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-2"><num>(2)</num><content>“The capital resources condition” is that the company has a capital resources requirement of at least £100 million.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-3"><num>(3)</num><intro>But if the company is a member of a group, “the capital resources condition” is that the company and—</intro><level class="para1" eId="schedule-1-paragraph-44-3-a"><num>(a)</num><intro>any other companies which—</intro><level class="para2" eId="schedule-1-paragraph-44-3-a-i"><num>(i)</num><content>are members of the group,</content></level><level class="para2" eId="schedule-1-paragraph-44-3-a-ii"><num>(ii)</num><content>meet either of the conditions in sub-paragraph (4),</content></level><level class="para2" eId="schedule-1-paragraph-44-3-a-iii"><num>(iii)</num><content>are not excluded companies, and</content></level><level class="para2" eId="schedule-1-paragraph-44-3-a-iv"><num>(iv)</num><content>are not members of any partnership within paragraph (b), and</content></level></level><level class="para1" eId="schedule-1-paragraph-44-3-b"><num>(b)</num><intro>any partnership—</intro><level class="para2" eId="schedule-1-paragraph-44-3-b-i"><num>(i)</num><content>the members of which are or include one or more companies that are members of the group and not excluded companies, and</content></level><level class="para2" eId="schedule-1-paragraph-44-3-b-ii"><num>(ii)</num><content>which meets either of those conditions,</content></level></level><wrapUp>have (in aggregate) capital resources requirements of at least that amount.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-44-4"><num>(4)</num><intro>The conditions referred to in sub-paragraph (3) are that the company or partnership—</intro><level class="para1" eId="schedule-1-paragraph-44-4-a"><num>(a)</num><content>is both a BIPRU 730k firm and a full scope BIPRU investment firm, or</content></level><level class="para1" eId="schedule-1-paragraph-44-4-b"><num>(b)</num><content>is a company or partnership which carries on in the United Kingdom activities including the relevant regulated activity described in the provision mentioned in sub-paragraph (1)(a).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-5"><num>(5)</num><content>For the purposes of sub-paragraphs (2) and (3) the capital resources requirement of a company or a partnership is that as at the end of the last period of account of the company or partnership ending no later than the end of the chargeable period.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-6"><num>(6)</num><content>In determining whether the company is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank or a relevant foreign bank by virtue of paragraph 43(2) or (4), the references in sub-paragraph (2) to the company are to the partnership.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-7"><num>(7)</num><content>If any company or partnership whose capital resources may be material for the purposes of sub-paragraph (2) or (3) prepares its accounts in a currency other than sterling, the amount of its capital resources at the end of the period of account mentioned in that sub-paragraph is to be translated into its sterling equivalent by reference to the average spot rate of exchange on the day on which that period ends.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-8"><num>(8)</num><content>If any company whose capital resources may be material for the purposes of sub-paragraph (2) or (3) carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom, its capital resources are to be determined as they would be for the purposes of corporation tax (see Chapter 4 of Part 2 of CTA 2009).</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-9"><num>(9)</num><intro>“<term refersTo="#term-excluded-company" eId="term-excluded-company">Excluded company</term>” means a company which is—</intro><level class="para1" eId="schedule-1-paragraph-44-9-a"><num>(a)</num><content>an insurance company or an insurance special purpose vehicle,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-b"><num>(b)</num><content>a company which is a member of a group and does not carry on any relevant regulated activities otherwise than on behalf of an insurance company or insurance special purpose vehicle which is a member of the same group,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-c"><num>(c)</num><content>a company which does not carry on any relevant regulated activities otherwise than as the manager of a pension scheme,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-d"><num>(d)</num><content>an investment trust (within the meaning given by section 1158 of CTA 2010),</content></level><level class="para1" eId="schedule-1-paragraph-44-9-e"><num>(e)</num><content>a company which does not carry on any relevant regulated activities other than asset management activities,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-f"><num>(f)</num><content>an exempt BIPRU commodities firm,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-g"><num>(g)</num><content>a company which does not carry on any relevant regulated activities otherwise than for the purpose of trading in commodities or commodity derivatives,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-h"><num>(h)</num><content>a company which does not carry on any relevant regulated activities otherwise than for the purpose of dealing in contracts for differences as principal with persons all or all but an insignificant proportion of whom are retail clients or of dealing in contracts for differences with another person to enable the company or other person to deal in contracts for differences as principal with such persons,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-i"><num>(i)</num><content>a society incorporated under the Friendly Societies Act 1992,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-j"><num>(j)</num><content>a society registered as a credit union under <ins class="substitution first last" ukl:ChangeId="key-5b1148b97a35630336898e190caff4be-1502975701152" ukl:CommentaryRef="key-5b1148b97a35630336898e190caff4be"><noteRef uk:name="commentary" href="#key-5b1148b97a35630336898e190caff4be" class="commentary"/>the Co-operative and Community Benefit Societies Act 2014</ins> or the Credit Unions (Northern Ireland) Order 1985 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 1985/1205 (<abbr class="acronym" title="Northern Ireland">NI</abbr> 12)), or</content></level><level class="para1" eId="schedule-1-paragraph-44-9-k"><num>(k)</num><content>a building society.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-10"><num>(10)</num><intro>“<term refersTo="#term-asset-management-activities" eId="term-asset-management-activities">Asset management activities</term>” means activities which consist (or, if they were carried on in the United Kingdom, would consist) of any or all of the following—</intro><level class="para1" eId="schedule-1-paragraph-44-10-a"><num>(a)</num><content>acting as the operator of a collective investment scheme (within the meaning of Part 17 of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000: see sections 235 and 237 of that Act),</content></level><level class="para1" eId="schedule-1-paragraph-44-10-b"><num>(b)</num><content>acting as a discretionary investment manager for clients none of which is a linked entity, and</content></level><level class="para1" eId="schedule-1-paragraph-44-10-c"><num>(c)</num><content>acting as an authorised corporate director.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-11"><num>(11)</num><intro>“<term refersTo="#term-linked-entity" eId="term-linked-entity">Linked entity</term>”, in relation to a company (“C”), means—</intro><level class="para1" eId="schedule-1-paragraph-44-11-a"><num>(a)</num><content>a member of the same group as C,</content></level><level class="para1" eId="schedule-1-paragraph-44-11-b"><num>(b)</num><content>a company in which a company which is a member of the same group as C has a major interest (within the meaning of Part 5 of CTA 2009: see section 473 of that Act), or</content></level><level class="para1" eId="schedule-1-paragraph-44-11-c"><num>(c)</num><intro>a partnership the members of which include a company—</intro><level class="para2" eId="schedule-1-paragraph-44-11-c-i"><num>(i)</num><content>which is a member of the same group as C, and</content></level><level class="para2" eId="schedule-1-paragraph-44-11-c-ii"><num>(ii)</num><content>whose share of the profits or losses of a trade carried on by the partnership for an accounting period of the partnership any part of which falls within the chargeable period is at least a 40% share (see Part 17 of CTA 2009 for provisions about shares of partnership profits and losses).</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-12"><num>(12)</num><content>The following have the meanings given in the <ins class="substitution first last" ukl:ChangeId="key-63d92d7c3429b57f55c6951079ab3092-1502969150646" ukl:CommentaryRef="key-63d92d7c3429b57f55c6951079ab3092"><noteRef uk:name="commentary" href="#key-63d92d7c3429b57f55c6951079ab3092" class="commentary"/>PRA Handbook made by the Prudential Regulation Authority</ins> (as that Handbook has effect from time to time)—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>“authorised corporate director”,</item><item>“BIPRU 730k firm”,</item><item>“capital resources requirement”,</item><item>“contracts for differences”,</item><item>“discretionary investment manager”,</item><item>“exempt BIPRU commodities firm”,</item><item>“full scope BIPRU investment firm”,</item><item>“pension scheme”,</item><item>“principal”, and</item><item>“retail clients”.</item></blockList></content></subparagraph><subparagraph eId="schedule-1-paragraph-44-13"><num>(13)</num><content>A company which would be a BIPRU 730k firm and a full scope BIPRU investment firm by virtue of activities carried on in the United Kingdom but for the fact that its registered office (or, if it does not have a registered office, its head office) is not in the United Kingdom is to be treated as being one.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-14"><num>(14)</num><content>The Treasury may by order amend this paragraph.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-15"><num>(15)</num><content>An order under this paragraph may be made so as to have effect in relation to any time after the beginning of the chargeable period.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-16"><num>(16)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-17"><num>(17)</num><content>An order under this paragraph may not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, the House of Commons.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-3-crossheading-member-of-a-banking-group"><heading> “Member of a banking group” </heading><paragraph eId="schedule-1-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-1-paragraph-45-1"><num>(1)</num><intro>A company is a “member of a banking group” at any time if—</intro><level class="para1" eId="schedule-1-paragraph-45-1-a"><num>(a)</num><content>it is within sub-paragraph (2) at that time, or</content></level><level class="para1" eId="schedule-1-paragraph-45-1-b"><num>(b)</num><content>it was within that sub-paragraph immediately before the chargeable period.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-2"><num>(2)</num><intro>A company is within this sub-paragraph if—</intro><level class="para1" eId="schedule-1-paragraph-45-2-a"><num>(a)</num><content>it is a member of a group,</content></level><level class="para1" eId="schedule-1-paragraph-45-2-b"><num>(b)</num><content>any of conditions A to C is met, and</content></level><level class="para1" eId="schedule-1-paragraph-45-2-c"><num>(c)</num><content>the group does not meet the exempt activities test.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-3"><num>(3)</num><content>Condition A is that the principal company of the group is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank or a relevant foreign bank.</content></subparagraph><subparagraph eId="schedule-1-paragraph-45-4"><num>(4)</num><intro>Condition B is that—</intro><level class="para1" eId="schedule-1-paragraph-45-4-a"><num>(a)</num><content>the principal company of the group is a company which is not resident in the United Kingdom but which (if it were so resident) would be a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank, or</content></level><level class="para1" eId="schedule-1-paragraph-45-4-b"><num>(b)</num><content>the principal company of the group is a company which is not resident in the United Kingdom, and is a member of a partnership which is not so resident, but which (if both the company and the partnership were so resident) would be a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank,</content></level><wrapUp>and (in either case) any member of the group is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank or a relevant foreign bank.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-45-5"><num>(5)</num><intro>Condition C is that—</intro><level class="para1" eId="schedule-1-paragraph-45-5-a"><num>(a)</num><content>the principal company is the holding company of another company, and</content></level><level class="para1" eId="schedule-1-paragraph-45-5-b"><num>(b)</num><content>if that other company were the principal company of the group, condition A or B would be met.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-6"><num>(6)</num><intro>For the purposes of condition C a company (“H”) is a “holding company” of another company (“S”) if—</intro><level class="para1" eId="schedule-1-paragraph-45-6-a"><num>(a)</num><content>H is an investment company, and</content></level><level class="para1" eId="schedule-1-paragraph-45-6-b"><num>(b)</num><intro>S is—</intro><level class="para2" eId="schedule-1-paragraph-45-6-b-i"><num>(i)</num><content>an effective 51% subsidiary of H, and</content></level><level class="para2" eId="schedule-1-paragraph-45-6-b-ii"><num>(ii)</num><content>not an effective 51% subsidiary of any company which is not an investment company.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-7"><num>(7)</num><content>A group meets the exempt activities test if at least 90% of the trading income of the group for the relevant period is derived from exempt activities.</content></subparagraph><subparagraph eId="schedule-1-paragraph-45-8"><num>(8)</num><intro>For this purpose—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-exempt-activities" eId="term-exempt-activities">exempt activities</term>” means—</intro><level class="para1"><num>(a)</num><content>insurance activities, asset management activities and related activities, and</content></level><level class="para1"><num>(b)</num><content>activities carried on by a company which is not a financial trading company (or a company which would be a financial trading company if it were resident in the United Kingdom) other than lending activities or dealing on own account,</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-relevant-period" eId="term-the-relevant-period">the relevant period</term>”, in relation to a group, means the last period of account of the group ending no later than the end of the chargeable period, and</content></hcontainer><hcontainer name="definition"><content>“the trading income of the group” for the relevant period is to be calculated in accordance with paragraph 46.</content></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-45-9"><num>(9)</num><intro>In sub-paragraph (8)—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-insurance-activities" eId="term-insurance-activities">insurance activities</term>” means—</intro><level class="para1"><num>(a)</num><content>the effecting or carrying out of contracts of insurance by a regulated insurer, and</content></level><level class="para1"><num>(b)</num><content>investment business that arises directly from activities falling within paragraph (a);</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-lending-activities" eId="term-lending-activities">lending activities</term>” means—</intro><level class="para1"><num>(a)</num><content>acceptance of deposits or other repayable funds,</content></level><level class="para1"><num>(b)</num><content>lending of money, including consumer credit, mortgage credit, factoring (with or without recourse) and financing of commercial transactions (including forfeiting),</content></level><level class="para1"><num>(c)</num><content>finance leasing (as lessor),</content></level><level class="para1"><num>(d)</num><content>issuing and administering means of payment,</content></level><level class="para1"><num>(e)</num><content>provision of guarantees or commitments to provide money,</content></level><level class="para1"><num>(f)</num><content>money transmission services,</content></level><level class="para1"><num>(g)</num><content>provision of alternative finance arrangements, and</content></level><level class="para1"><num>(h)</num><content>other activities carried on in connection with activities falling within any of paragraphs (a) to (g);</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-related-activities" eId="term-related-activities">related activities</term>” means—</intro><level class="para1"><num>(a)</num><content>activities which are ancillary to insurance activities or asset management activities of any company which is a member of the group (whether or not the company carrying on the insurance activities or asset management activities), and</content></level><level class="para1"><num>(b)</num><content>activities which would not be carried on but for such insurance activities or asset management activities being carried on,</content></level><wrapUp>but does not include dealing on own account.</wrapUp></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-45-10"><num>(10)</num><intro>In sub-paragraph (9)—</intro><hcontainer name="definition"><content>“<term refersTo="#term-activities" eId="term-activities">activities</term>” includes buying, holding, managing and selling assets;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-regulated-insurer" eId="term-regulated-insurer">regulated insurer</term>”, in relation to a group, means a member of the group that—</intro><level class="para1"><num>(a)</num><content>is authorised under the law of any territory to carry on insurance business, or</content></level><level class="para1"><num>(b)</num><content>is a member of a body or organisation which is so authorised.</content></level></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-45-11"><num>(11)</num><intro>A company which is a member of a banking group ceases to be a member of a banking group when it ceases to be within sub-paragraph (2), but only if it ceases to be within that provision as a result of—</intro><level class="para1" eId="schedule-1-paragraph-45-11-a"><num>(a)</num><content>an arm's length transaction undertaken for wholly commercial purposes, or</content></level><level class="para1" eId="schedule-1-paragraph-45-11-b"><num>(b)</num><content>following a recommendation of a relevant regulatory body.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-12"><num>(12)</num><content>For the purposes of sub-paragraph (11) obtaining a tax advantage is not a commercial purpose.</content></subparagraph><subparagraph eId="schedule-1-paragraph-45-13"><num>(13)</num><intro>“<term refersTo="#term-tax-advantage" eId="term-tax-advantage">Tax advantage</term>” means—</intro><level class="para1" eId="schedule-1-paragraph-45-13-a"><num>(a)</num><content>a relief from tax or increased relief from tax (relief here including a tax credit),</content></level><level class="para1" eId="schedule-1-paragraph-45-13-b"><num>(b)</num><content>a repayment of tax or increased repayment of tax,</content></level><level class="para1" eId="schedule-1-paragraph-45-13-c"><num>(c)</num><content>the avoidance or reduction of a charge to tax or an assessment to tax (obtained in any way), or</content></level><level class="para1" eId="schedule-1-paragraph-45-13-d"><num>(d)</num><content>the avoidance of a possible assessment to tax (so obtained),</content></level><wrapUp>and, for this purpose, “<term refersTo="#term-tax" eId="term-tax">tax</term>” includes bank payroll tax and any other tax.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-45-14"><num>(14)</num><intro>In sub-paragraph (11) “<term refersTo="#term-relevant-regulatory-body" eId="term-relevant-regulatory-body">relevant regulatory body</term>” means—</intro><level class="para1" eId="schedule-1-paragraph-45-14-a"><num><ins class="substitution first" ukl:ChangeId="key-5a774582ac70712a134266db2ac9f549-1502969797129" ukl:CommentaryRef="key-5a774582ac70712a134266db2ac9f549"><noteRef uk:name="commentary" href="#key-5a774582ac70712a134266db2ac9f549" class="commentary"/>(a)</ins></num><content><ins class="substitution" ukl:ChangeId="key-5a774582ac70712a134266db2ac9f549-1502969797129" ukl:CommentaryRef="key-5a774582ac70712a134266db2ac9f549">the Financial Conduct Authority,</ins></content></level><level class="para1" eId="schedule-1-paragraph-45-14-aa"><num><ins class="substitution" ukl:ChangeId="key-5a774582ac70712a134266db2ac9f549-1502969797129" ukl:CommentaryRef="key-5a774582ac70712a134266db2ac9f549">(aa)</ins></num><content><ins class="substitution last" ukl:ChangeId="key-5a774582ac70712a134266db2ac9f549-1502969797129" ukl:CommentaryRef="key-5a774582ac70712a134266db2ac9f549">the Prudential Regulation Authority, or</ins></content></level><level class="para1" eId="schedule-1-paragraph-45-14-b"><num>(b)</num><content>a body discharging functions under the law of a country or territory outside the United Kingdom corresponding to functions discharged by the <ins class="substitution first last" ukl:ChangeId="key-5274a9ac6b65ddbc5a35efd73132bebc-1502969919286" ukl:CommentaryRef="key-5274a9ac6b65ddbc5a35efd73132bebc"><noteRef uk:name="commentary" href="#key-5274a9ac6b65ddbc5a35efd73132bebc" class="commentary"/>Financial Conduct Authority or the Prudential Regulation Authority</ins>.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-15"><num>(15)</num><content>In this paragraph “<term refersTo="#term-dealing-on-own-account" eId="term-dealing-on-own-account">dealing on own account</term>” has the same meaning as in <ref eId="c00044" href="http://www.legislation.gov.uk/european/directive/2014/0065"><ins class="first" ukl:ChangeId="M_F_72919bd0-5b84-4091-bb6e-7cbcd858a894-1507040978627" ukl:CommentaryRef="M_F_72919bd0-5b84-4091-bb6e-7cbcd858a894"><noteRef uk:name="commentary" href="#M_F_72919bd0-5b84-4091-bb6e-7cbcd858a894" class="commentary"/>Directive 2014/65/EU</ins></ref><ins class="last" ukl:ChangeId="M_F_72919bd0-5b84-4091-bb6e-7cbcd858a894-1507040978627" ukl:CommentaryRef="M_F_72919bd0-5b84-4091-bb6e-7cbcd858a894"> of the European Parliament and of the Council of 15 May 2014</ins> on markets in financial instruments (see Article 4(1)(6)).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-3-crossheading-the-trading-income-of-the-group-for-the-relevant-period"><heading> “The trading income of the group” for the relevant period</heading><paragraph eId="schedule-1-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-1-paragraph-46-1"><num>(1)</num><content>This paragraph applies for calculating the “trading income of the group” for the relevant period for the purposes of paragraph 45.</content></subparagraph><subparagraph eId="schedule-1-paragraph-46-2"><num>(2)</num><intro>The trading income for the group for the relevant period is the aggregate of—</intro><level class="para1" eId="schedule-1-paragraph-46-2-a"><num>(a)</num><content>the gross income calculated in accordance with sub-paragraph (3), and</content></level><level class="para1" eId="schedule-1-paragraph-46-2-b"><num>(b)</num><content>the net income calculated in accordance with sub-paragraph (4).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-46-3"><num>(3)</num><intro>The income referred to in sub-paragraph (2)(a) is the gross income—</intro><level class="para1" eId="schedule-1-paragraph-46-3-a"><num>(a)</num><content>arising from the activities of the group (other than net-basis activities), and</content></level><level class="para1" eId="schedule-1-paragraph-46-3-b"><num>(b)</num><content>disclosed as such in the financial statements of the group,</content></level><wrapUp>without taking account of any deductions (whether for expenses or otherwise).</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-46-4"><num>(4)</num><intro>The income referred to in sub-paragraph (2)(b) is the net income arising from the net-basis activities of the group that—</intro><level class="para1" eId="schedule-1-paragraph-46-4-a"><num>(a)</num><content>is accounted for as such under international accounting standards or in accordance with practice which is generally accepted accounting practice in the territory in which the principal company of the group is resident, or</content></level><level class="para1" eId="schedule-1-paragraph-46-4-b"><num>(b)</num><content>would be accounted for as such if income arising from such activities were accounted for under such standards or in accordance with such practice.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-46-5"><num>(5)</num><content>In this paragraph “<term refersTo="#term-net-basis-activities" eId="term-net-basis-activities">net-basis activities</term>” means activities normally reported on a net basis in financial statements prepared in accordance with such standards or practice.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-3-crossheading-investment-company-etc"><heading> “Investment company” <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-1-paragraph-47" class="schProv1"><num>47</num><subparagraph eId="schedule-1-paragraph-47-1"><num>(1)</num><intro>“Investment company”—</intro><level class="para1" eId="schedule-1-paragraph-47-1-a"><num>(a)</num><content>means a company whose business consists wholly or mainly of, and the principal part of whose income is derived from, the making of investments, and</content></level><level class="para1" eId="schedule-1-paragraph-47-1-b"><num>(b)</num><content>also includes any savings bank or other bank for savings.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-47-2"><num>(2)</num><content>“<term refersTo="#term-uk-resident-investment-company" eId="term-uk-resident-investment-company"><abbr class="acronym" title="United Kingdom">UK</abbr> resident investment company</term>” means an investment company which is resident in the United Kingdom.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-3-crossheading-financial-trading-company-etc"><heading> “Financial trading company” <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-1-paragraph-48" class="schProv1"><num>48</num><subparagraph eId="schedule-1-paragraph-48-1"><num>(1)</num><intro>“<term refersTo="#term-financial-trading-company" eId="term-financial-trading-company">Financial trading company</term>” means a company which—</intro><level class="para1" eId="schedule-1-paragraph-48-1-a"><num>(a)</num><content>is an authorised person for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 (see section 31 of that Act), or</content></level><level class="para1" eId="schedule-1-paragraph-48-1-b"><num>(b)</num><content>is not within paragraph (a) but carries on a trade consisting wholly or partly in dealing in securities.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-48-2"><num>(2)</num><content>“<term refersTo="#term-uk-resident-financial-trading-company" eId="term-uk-resident-financial-trading-company"><abbr class="acronym" title="United Kingdom">UK</abbr> resident financial trading company</term>” means a financial trading company which is resident in the United Kingdom.</content></subparagraph><subparagraph eId="schedule-1-paragraph-48-3"><num>(3)</num><content>“<term refersTo="#term-relevant-foreign-financial-trading-company" eId="term-relevant-foreign-financial-trading-company">Relevant foreign financial trading company</term>” means a company which meets conditions A and B.</content></subparagraph><subparagraph eId="schedule-1-paragraph-48-4"><num>(4)</num><intro>Condition A is that the company—</intro><level class="para1" eId="schedule-1-paragraph-48-4-a"><num>(a)</num><content>is not resident in the United Kingdom, and</content></level><level class="para1" eId="schedule-1-paragraph-48-4-b"><num>(b)</num><content>carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-48-5"><num>(5)</num><content>Condition B is that, disregarding any activities of the company other than those carried on through that permanent establishment, the company is a financial trading company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-48-6"><num>(6)</num><intro>In this paragraph “<term refersTo="#term-securities" eId="term-securities">securities</term>” includes—</intro><level class="para1" eId="schedule-1-paragraph-48-6-a"><num>(a)</num><content>shares,</content></level><level class="para1" eId="schedule-1-paragraph-48-6-b"><num>(b)</num><content>rights of unit holders in unit trust schemes to which <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 applies as a result of section 99 of that Act, and</content></level><level class="para1" eId="schedule-1-paragraph-48-6-c"><num>(c)</num><content>in the case of a company with no share capital, interests in the company possessed by members of the company.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-3-crossheading-other-interpretative-provisions"><heading>Other interpretative provisions</heading><paragraph eId="schedule-1-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-1-paragraph-49-1"><num>(1)</num><intro>In this Schedule—</intro><hcontainer name="definition"><content>“<term refersTo="#term-arrangements" eId="term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-benefit" eId="term-benefit">benefit</term>” includes a facility of any kind;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-building-society" eId="term-building-society">building society</term>” means a building society within the meaning of the Building Societies Act 1986;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-commissioners" eId="term-the-commissioners">the Commissioners</term>” means the Commissioners of Her Majesty's Revenue and Customs;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-contract-of-insurance" eId="term-contract-of-insurance">contract of insurance</term>” has the meaning given by section 431(2) of <abbr class="acronym" title="Income and Corporation Taxes Act">ICTA</abbr>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-control" eId="term-control">control</term>” has the meaning given by section 995 of ITA 2007;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-employment" eId="term-employment">employment</term>”, “<term refersTo="#term-employee" eId="term-employee">employee</term>” and “<term refersTo="#term-employer" eId="term-employer">employer</term>” have the same meaning as in the employment income Parts of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (see sections 4 and 5 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-enactment" eId="term-enactment">enactment</term>” includes an enactment or instrument (whenever passed or made);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-hmrc" eId="term-hmrc"><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr></term>” means Her Majesty's Revenue and Customs;</content></hcontainer><hcontainer name="definition"><content>“insurance company” and “insurance special purpose vehicle” have the meaning given by section 431(2) of <abbr class="acronym" title="Income and Corporation Taxes Act">ICTA</abbr>;</content></hcontainer><hcontainer name="definition"><content>“market value” has the same meaning it has for the purposes of <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 by virtue of Part 8 of that Act;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-moneys-worth" eId="term-moneys-worth">money's worth</term>” has the meaning given by section 62(3) of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-partnership" eId="term-partnership">partnership</term>” includes—</intro><level class="para1"><num>(a)</num><content>a limited liability partnership, and</content></level><level class="para1"><num>(b)</num><content>an entity established under the law of a territory outside the United Kingdom of a similar character to a partnership (and “<term refersTo="#term-member" eId="term-member">member</term>”, in relation to a partnership, is to be read accordingly);</content></level></hcontainer><hcontainer name="definition"><content>“period of account” and “permanent establishment” have the meaning given by section 1119 of CTA 2010;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-tax-year-2009-10" eId="term-the-tax-year-2009-10">the tax year 2009-10</term>” has the same meaning as in the Income Tax Acts (see section 989 of ITA 2007).</content></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-49-2"><num>(2)</num><content>Section 170(2) to (11) of <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 (“group”, “principal company”, “effective 51% subsidiary”, “company” <abbr title="Et cetera" xml:lang="la">etc</abbr>) has effect for the interpretation of this Schedule as for the interpretation of sections 171 to 181 of that Act.</content></subparagraph><subparagraph eId="schedule-1-paragraph-49-3"><num>(3)</num><content>Section 993 of ITA 2007 (meaning of “connected” persons) applies for the purposes of this Schedule.</content></subparagraph><subparagraph eId="schedule-1-paragraph-49-4"><num>(4)</num><content>For the purposes of this Schedule the territory in which a company is resident is to be determined as for the purposes of the Corporation Tax Acts.</content></subparagraph></paragraph></hcontainer></part></hcontainer>

<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-1-part-1"><num>Part 1</num><heading>The tax</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-the-tax"><heading>The tax</heading><paragraph eId="schedule-1-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-1-paragraph-1-1"><num>(1)</num><content>This Schedule makes provision for taxable companies to be charged to a tax to be known as “<term refersTo="#term-bank-payroll-tax" eId="term-bank-payroll-tax">bank payroll tax</term>”.</content></subparagraph><subparagraph eId="schedule-1-paragraph-1-2"><num>(2)</num><content>Bank payroll tax is chargeable on the aggregate of the amounts of chargeable relevant remuneration awarded during the chargeable period to or in respect of relevant banking employees of a taxable company by reason of their employment as relevant banking employees.</content></subparagraph><subparagraph eId="schedule-1-paragraph-1-3"><num>(3)</num><content>Relevant remuneration awarded during the chargeable period to or in respect of a relevant banking employee of a taxable company by reason of the employee's employment as a relevant banking employee is “chargeable” relevant remuneration only if and to the extent that its amount exceeds £25,000.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-rate"><heading>Rate</heading><paragraph eId="schedule-1-paragraph-2" class="schProv1"><num>2</num><content>Bank payroll tax is charged at the rate of 50%.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-taxable-company"><heading> “Taxable company” </heading><paragraph eId="schedule-1-paragraph-3" class="schProv1"><num>3</num><intro>“<term refersTo="#term-taxable-company" eId="term-taxable-company">Taxable company</term>” means a company which—</intro><level class="para1" eId="schedule-1-paragraph-3-a"><num>(a)</num><content>is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank or a relevant foreign bank,</content></level><level class="para1" eId="schedule-1-paragraph-3-b"><num>(b)</num><intro>is a company not within paragraph (a) which is a member of a banking group and—</intro><level class="para2" eId="schedule-1-paragraph-3-b-i"><num>(i)</num><content>is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident investment company or a <abbr class="acronym" title="United Kingdom">UK</abbr> resident financial trading company, or</content></level><level class="para2" eId="schedule-1-paragraph-3-b-ii"><num>(ii)</num><content>is a relevant foreign financial trading company, or</content></level></level><level class="para1" eId="schedule-1-paragraph-3-c"><num>(c)</num><content>is a building society or is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident investment company, or a <abbr class="acronym" title="United Kingdom">UK</abbr> resident financial trading company, which is a member of the same group as a building society.</content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-relevant-remuneration"><heading> “Relevant remuneration” </heading><paragraph eId="schedule-1-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-1-paragraph-4-1"><num>(1)</num><intro>“<term refersTo="#term-relevant-remuneration" eId="term-relevant-remuneration">Relevant remuneration</term>”, in relation to a relevant banking employee of a taxable company, means anything that—</intro><level class="para1" eId="schedule-1-paragraph-4-1-a"><num>(a)</num><content>constitutes earnings (within the meaning of section 62 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003) in relation to the employee's employment by the taxable company as a relevant banking employee, or</content></level><level class="para1" eId="schedule-1-paragraph-4-1-b"><num>(b)</num><content>while not constituting earnings, constitutes a benefit provided by reason of that employment.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-4-2"><num>(2)</num><content>Whether or not the relevant banking employee is chargeable to income tax in respect of anything is irrelevant in determining whether or not it is relevant remuneration.</content></subparagraph><subparagraph eId="schedule-1-paragraph-4-3"><num>(3)</num><content>Excluded remuneration is not relevant remuneration.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-excluded-remuneration"><heading> “Excluded remuneration” </heading><paragraph eId="schedule-1-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-1-paragraph-5-1"><num>(1)</num><intro>“<term refersTo="#term-excluded-remuneration" eId="term-excluded-remuneration">Excluded remuneration</term>” means—</intro><level class="para1" eId="schedule-1-paragraph-5-1-a"><num>(a)</num><content>anything which is regular salary or wages or a regular benefit,</content></level><level class="para1" eId="schedule-1-paragraph-5-1-b"><num>(b)</num><content>anything in the case of which a contractual obligation to pay or provide it to or in respect of the employee concerned arose before the beginning of the chargeable period,</content></level><level class="para1" eId="schedule-1-paragraph-5-1-c"><num>(c)</num><content>any shares awarded under an approved share incentive plan (within the meaning of section 488 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003), or</content></level><level class="para1" eId="schedule-1-paragraph-5-1-d"><num>(d)</num><content>any share option granted under an approved <abbr class="acronym" title="Save As You Earn">SAYE</abbr> option scheme (within the meaning of section 516 of that Act).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-2"><num>(2)</num><intro>In sub-paragraph (1)(a) “<term refersTo="#term-regular" eId="term-regular">regular</term>”, in relation to salary or wages or a benefit, means so much of the amount of the salary or wages or benefit as cannot vary according to—</intro><level class="para1" eId="schedule-1-paragraph-5-2-a"><num>(a)</num><intro>the performance of, or of any part of—</intro><level class="para2" eId="schedule-1-paragraph-5-2-a-i"><num>(i)</num><content>any business of the taxable company concerned, or</content></level><level class="para2" eId="schedule-1-paragraph-5-2-a-ii"><num>(ii)</num><content>any business of a person connected with the taxable company,</content></level></level><level class="para1" eId="schedule-1-paragraph-5-2-b"><num>(b)</num><content>the contribution made by the employee concerned to the performance of, or of any part of, any business within paragraph (a)(i) or (ii),</content></level><level class="para1" eId="schedule-1-paragraph-5-2-c"><num>(c)</num><content>the performance by the employee of any of the duties of the employment, or</content></level><level class="para1" eId="schedule-1-paragraph-5-2-d"><num>(d)</num><content>any similar considerations.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-3"><num>(3)</num><intro>For the purposes of sub-paragraph (1)(b) a contractual obligation to pay or provide something to or in respect of the employee does not arise until—</intro><level class="para1" eId="schedule-1-paragraph-5-3-a"><num>(a)</num><content>the amount to be paid or provided is fixed or is capable of becoming fixed without the exercise of discretion by any person, or</content></level><level class="para1" eId="schedule-1-paragraph-5-3-b"><num>(b)</num><content>the total amount of things to be paid or provided to or in respect of a number of employees including the employee is fixed or is capable of becoming fixed without the exercise of discretion by any person.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-4"><num>(4)</num><content>A contractual obligation to pay or provide something is taken to arise for those purposes even if payment or provision of it is dependent on compliance by the employee with any conditions.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-awarded"><heading> “Awarded” </heading><paragraph eId="schedule-1-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-1-paragraph-6-1"><num>(1)</num><intro>Relevant remuneration is “awarded” during the chargeable period if—</intro><level class="para1" eId="schedule-1-paragraph-6-1-a"><num>(a)</num><content>a contractual obligation to pay or provide it arises during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-6-1-b"><num>(b)</num><content>the relevant remuneration is paid or provided during the chargeable period without any such obligation having arisen during the chargeable period,</content></level><wrapUp>but subject to sub-paragraph (3).</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-6-2"><num>(2)</num><content>Sub-paragraph (3)(a) of paragraph 5 applies for the purposes of sub-paragraph (1) as for the purposes of sub-paragraph (1)(b) of that paragraph.</content></subparagraph><subparagraph eId="schedule-1-paragraph-6-3"><num>(3)</num><intro>Relevant remuneration is not to be taken to be awarded during the chargeable period by virtue of sub-paragraph (1)(a) if—</intro><level class="para1" eId="schedule-1-paragraph-6-3-a"><num>(a)</num><content>it is required to be paid or provided at intervals,</content></level><level class="para1" eId="schedule-1-paragraph-6-3-b"><num>(b)</num><content>it is to be paid or provided in respect of contribution, performance or similar considerations only for times after the end of the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-6-3-c"><num>(c)</num><content>the reduction or elimination of a liability to bank payroll tax is not the main purpose or one of the main purposes of any person in assuming the obligation to pay or provide it.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-6-4"><num>(4)</num><content>Sub-paragraph (4) of paragraph 5 applies for the purposes of this paragraph as for the purposes of sub-paragraph (1)(b) of that paragraph.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-amount-of-remuneration"><heading> “Amount” of remuneration</heading><paragraph eId="schedule-1-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-1-paragraph-7-1"><num>(1)</num><intro>Subject to sub-paragraphs (2) to (4), the amount of any relevant remuneration is—</intro><level class="para1" eId="schedule-1-paragraph-7-1-a"><num>(a)</num><content>if it is money, its amount when awarded,</content></level><level class="para1" eId="schedule-1-paragraph-7-1-b"><num>(b)</num><content>if it is money's worth, the amount of the money's worth when awarded, or</content></level><level class="para1" eId="schedule-1-paragraph-7-1-c"><num>(c)</num><content>if it is a benefit not constituting earnings, the cost of providing it.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-7-2"><num>(2)</num><content>Where relevant remuneration is awarded to or in respect of an employee by virtue of paragraph 6(1)(a) and its amount is not fixed when it is awarded, its amount is such as it is reasonable at that time to assume would be its amount (in accordance with sub-paragraph (1)) if and when paid or provided.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-3"><num>(3)</num><content>Where the market value of any relevant remuneration at the time it is awarded exceeds, or would exceed, what would otherwise be its amount, its amount is that market value.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-4"><num>(4)</num><content>Where anything constituting relevant remuneration is or would be, when awarded, subject to any restriction or restrictions, the restriction is, or restrictions are, to be ignored in arriving at its amount.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-5"><num>(5)</num><content>For this purpose “<term refersTo="#term-restriction" eId="term-restriction">restriction</term>” means any condition, restriction or other similar provision which causes the value of the relevant remuneration to be less than it otherwise would be.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-the-chargeable-period"><heading> “The chargeable period” </heading><paragraph eId="schedule-1-paragraph-8" class="schProv1"><num>8</num><intro>“The chargeable period” is the period—</intro><level class="para1" eId="schedule-1-paragraph-8-a"><num>(a)</num><content>beginning at 12.30 pm on 9 December 2009, and</content></level><level class="para1" eId="schedule-1-paragraph-8-b"><num>(b)</num><content>ending with 5 April 2010.</content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-relevant-banking-employee"><heading> “Relevant banking employee” </heading><paragraph eId="schedule-1-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-1-paragraph-9-1"><num>(1)</num><intro>An employee of a taxable company is a relevant banking employee of the taxable company if—</intro><level class="para1" eId="schedule-1-paragraph-9-1-a"><num>(a)</num><content>the employment in which the employee is employed by the taxable company is a banking employment, and</content></level><level class="para1" eId="schedule-1-paragraph-9-1-b"><num>(b)</num><intro>either—</intro><level class="para2" eId="schedule-1-paragraph-9-1-b-i"><num>(i)</num><content>the employee is resident in the United Kingdom in the tax year 2009-10, or</content></level><level class="para2" eId="schedule-1-paragraph-9-1-b-ii"><num>(ii)</num><content>the duties of the banking employment are at any time in that tax year performed wholly or partly in the United Kingdom.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-2"><num>(2)</num><content>“<term refersTo="#term-banking-employment" eId="term-banking-employment">Banking employment</term>” means an employment the duties of which are wholly or mainly concerned (whether directly or indirectly) with activities to which sub-paragraph (3) applies.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-3"><num>(3)</num><intro>This sub-paragraph applies to activities which are—</intro><level class="para1" eId="schedule-1-paragraph-9-3-a"><num>(a)</num><content>listed regulated activities, or</content></level><level class="para1" eId="schedule-1-paragraph-9-3-b"><num>(b)</num><content>activities which are not listed regulated activities but consist of the lending of money or of dealing in currency or commodities as principal.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-4"><num>(4)</num><intro>“<term refersTo="#term-listed-regulated-activity" eId="term-listed-regulated-activity">Listed regulated activity</term>” means an activity which is a regulated activity for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 by virtue of any of the following provisions of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2001/544)—</intro><level class="para1" eId="schedule-1-paragraph-9-4-a"><num>(a)</num><content>article 5 (accepting deposits),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-b"><num>(b)</num><content>article 14 (dealing in investments as principal),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-c"><num>(c)</num><content>article 21 (dealing in investments as agent),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-d"><num>(d)</num><content>article 25 (arranging deals in investments),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-e"><num>(e)</num><content>article 40 (safeguarding and administering investments),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-f"><num>(f)</num><content>article 53 (advising on investments), and</content></level><level class="para1" eId="schedule-1-paragraph-9-4-g"><num>(g)</num><content>article 61 (entering into regulated mortgage contracts).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-5"><num>(5)</num><intro>But an activity is not a listed regulated activity in relation to an employee of a taxable company if—</intro><level class="para1" eId="schedule-1-paragraph-9-5-a"><num>(a)</num><content>the taxable company is an insurance company, or a member of the same group as an insurance company, and the activity is carried on wholly on behalf of the insurance company, or</content></level><level class="para1" eId="schedule-1-paragraph-9-5-b"><num>(b)</num><intro>it—</intro><level class="para2" eId="schedule-1-paragraph-9-5-b-i"><num>(i)</num><content>is either of the activities described in the provisions mentioned in sub-paragraph (4)(c) and (d), and</content></level><level class="para2" eId="schedule-1-paragraph-9-5-b-ii"><num>(ii)</num><content>is carried on as part of, or wholly in support of, activities of the taxable company, or of a company which is a member of the same group as the taxable company, and the activities consist of acting as discretionary investment manager for clients none of which is a linked entity.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-6"><num>(6)</num><content>An employee of a taxable company who spends no more than 60 days in the United Kingdom in the tax year 2009-10 is to be treated as not being a relevant banking employee of the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-7"><num>(7)</num><content>In determining for the purposes of sub-paragraph (6) whether an individual spends no more than 60 days in the United Kingdom treat a day as a day spent by the individual in the United Kingdom if (and only if) the individual is present in the United Kingdom at the end of the day.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-8"><num>(8)</num><intro>But in determining that issue for those purposes do not treat as a day spent by the individual in the United Kingdom any day on which the individual arrives in the United Kingdom as a passenger if—</intro><level class="para1" eId="schedule-1-paragraph-9-8-a"><num>(a)</num><content>the individual departs from the United Kingdom on the next day, and</content></level><level class="para1" eId="schedule-1-paragraph-9-8-b"><num>(b)</num><content>during the time between arrival and departure the individual does not engage in activities which are to a substantial extent unrelated to the individual's passage through the United Kingdom.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-multiple-employments"><heading>Multiple employments</heading><paragraph eId="schedule-1-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-1-paragraph-10-1"><num>(1)</num><content>The threshold of £25,000 in paragraph 1(3) applies whether or not an employee has more than one employment as a relevant banking employee with a taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-10-2"><num>(2)</num><content>If relevant remuneration is awarded during the chargeable period to or in respect of a relevant banking employee by reason of the employee's employment as such by a number of associated taxable companies, the threshold in paragraph 1(3) in relation to each of the taxable companies is £25,000 divided by the number of the taxable companies.</content></subparagraph><subparagraph eId="schedule-1-paragraph-10-3"><num>(3)</num><intro>For this purpose taxable companies are associated if—</intro><level class="para1" eId="schedule-1-paragraph-10-3-a"><num>(a)</num><content>one of them is under the control of the other, or</content></level><level class="para1" eId="schedule-1-paragraph-10-3-b"><num>(b)</num><content>one of them is under the control of a third person who controls or is under the control of the other.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-payments-etc-to-intermediaries"><heading>Payments <abbr title="Et cetera" xml:lang="la">etc</abbr> to intermediaries</heading><paragraph eId="schedule-1-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-1-paragraph-11-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-11-1-a"><num>(a)</num><content>an individual personally performs banking services for a taxable company,</content></level><level class="para1" eId="schedule-1-paragraph-11-1-b"><num>(b)</num><content>the banking services are provided not under a contract directly between the individual and the taxable company but under arrangements involving any other person (“the intermediary”), and</content></level><level class="para1" eId="schedule-1-paragraph-11-1-c"><num>(c)</num><content>the circumstances are such that, if the banking services were provided under a contract directly between the taxable company and the individual, the individual would be a relevant banking employee of the taxable company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-11-2"><num>(2)</num><content>The individual is to be regarded as a relevant banking employee of the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-11-3"><num>(3)</num><content>Anything done by the intermediary in relation to the individual which, if the banking services were provided under a contract directly between the taxable company and the individual, would be regarded as the award of relevant remuneration during the chargeable period to or in respect of the individual (as a relevant banking employee) by reason of the employee's employment as a relevant banking employee is to be so regarded.</content></subparagraph><subparagraph eId="schedule-1-paragraph-11-4"><num>(4)</num><content>“<term refersTo="#term-banking-services" eId="term-banking-services">Banking services</term>” means services which are wholly or mainly concerned (whether directly or indirectly) with activities which are activities to which paragraph 9(3) applies.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-arrangements-for-future-payments-etc"><heading>Arrangements for future payments <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-1-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-1-paragraph-12-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-12-1-a"><num>(a)</num><content>arrangements are made during the chargeable period by reason of an employee's employment as a relevant banking employee of a taxable company,</content></level><level class="para1" eId="schedule-1-paragraph-12-1-b"><num>(b)</num><content>the arrangements make provision under which money may be paid, or any money's worth or other benefit provided, to or in respect of the employee in accordance with the arrangements, and</content></level><level class="para1" eId="schedule-1-paragraph-12-1-c"><num>(c)</num><content>were the money so paid, or the money's worth or other benefit so provided, during the chargeable period, it would be relevant remuneration awarded to or in respect of the employee during the chargeable period.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-12-2"><num>(2)</num><content>The making of the arrangements is to be regarded as the awarding of relevant remuneration to or in respect of the relevant banking employee by reason of the employment; and the amount of the relevant remuneration is to regarded as the amount of any money which it is reasonable to assume will be paid, and any money's worth or other benefit which it is reasonable to assume will be provided, as mentioned in sub-paragraph (1).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-loans"><heading>Loans</heading><paragraph eId="schedule-1-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-1-paragraph-13-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-13-1-a"><num>(a)</num><content>at any time during the chargeable period a relevant loan is provided to or in respect of a relevant banking employee of a taxable company by reason of the employee's employment as a relevant banking employee otherwise than pursuant to a contractual obligation arising before the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-13-1-b"><num>(b)</num><content>at any time during the chargeable period there arises a contractual obligation to provide a relevant loan to or in respect of the employee by reason of the employee's employment as a relevant banking employee of the taxable company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-13-2"><num>(2)</num><content>A loan is a “relevant” loan if the main purpose, or one of the main purposes, of providing it, or undertaking to provide it, is the reduction or elimination of a liability to bank payroll tax or any other tax or national insurance contributions.</content></subparagraph><subparagraph eId="schedule-1-paragraph-13-3"><num>(3)</num><content>The loan is to be regarded as relevant remuneration awarded during the chargeable period to or in respect of the relevant banking employee by reason of the employee's employment as a relevant banking employee; and the amount of the relevant remuneration is to be regarded as the amount which is loaned or (where the amount of the loan is not fixed) the amount which it is reasonable to assume will be loaned.</content></subparagraph><subparagraph eId="schedule-1-paragraph-13-4"><num>(4)</num><content>A contractual obligation to provide a relevant loan is taken to arise for the purposes of this paragraph even if provision of it is dependent on compliance by the relevant banking employee with any conditions.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-antiavoidance"><heading>Anti-avoidance</heading><paragraph eId="schedule-1-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-1-paragraph-14-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-14-1-a"><num>(a)</num><content>relevant arrangements are entered into by one or more persons during the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-14-1-b"><num>(b)</num><content>the main purpose, or one of the main purposes, of the person, or any of the persons, in entering into the relevant arrangements is a relevant tax avoidance purpose.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-2"><num>(2)</num><intro>“<term refersTo="#term-relevant-arrangements" eId="term-relevant-arrangements">Relevant arrangements</term>” means arrangements involving either or both of the following—</intro><level class="para1" eId="schedule-1-paragraph-14-2-a"><num>(a)</num><content>the making of a payment of money, or the provision of any money's worth or other benefit, otherwise than during the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-14-2-b"><num>(b)</num><content>the giving otherwise than in the form of relevant remuneration of any reward which equates in substance to relevant remuneration.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-3"><num>(3)</num><intro>A “relevant tax avoidance purpose” is the reduction or elimination of a liability to bank payroll tax which would exist if—</intro><level class="para1" eId="schedule-1-paragraph-14-3-a"><num>(a)</num><content>in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money's worth or other benefit provided, during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-14-3-b"><num>(b)</num><content>in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-4"><num>(4)</num><intro>Liability to bank payroll tax is to be determined as it would have been if—</intro><level class="para1" eId="schedule-1-paragraph-14-4-a"><num>(a)</num><content>in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money's worth or other benefit provided, during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-14-4-b"><num>(b)</num><content>in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-no-deduction-in-computing-profits"><heading>No deduction in computing profits</heading><paragraph eId="schedule-1-paragraph-15" class="schProv1"><num>15</num><content>No amount of bank payroll tax is to be taken into account in calculating profits or losses for the purposes of income tax or corporation tax.</content></paragraph></hcontainer></part>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-the-tax"><heading>The tax</heading><paragraph eId="schedule-1-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-1-paragraph-1-1"><num>(1)</num><content>This Schedule makes provision for taxable companies to be charged to a tax to be known as “<term refersTo="#term-bank-payroll-tax" eId="term-bank-payroll-tax">bank payroll tax</term>”.</content></subparagraph><subparagraph eId="schedule-1-paragraph-1-2"><num>(2)</num><content>Bank payroll tax is chargeable on the aggregate of the amounts of chargeable relevant remuneration awarded during the chargeable period to or in respect of relevant banking employees of a taxable company by reason of their employment as relevant banking employees.</content></subparagraph><subparagraph eId="schedule-1-paragraph-1-3"><num>(3)</num><content>Relevant remuneration awarded during the chargeable period to or in respect of a relevant banking employee of a taxable company by reason of the employee's employment as a relevant banking employee is “chargeable” relevant remuneration only if and to the extent that its amount exceeds £25,000.</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-rate"><heading>Rate</heading><paragraph eId="schedule-1-paragraph-2" class="schProv1"><num>2</num><content>Bank payroll tax is charged at the rate of 50%.</content></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>Transitional provision: opening value of trustees’ double tax relief pool</heading><paragraph eId="schedule-13-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-13-paragraph-4-1"><num>(1)</num><content>This paragraph applies, and section <ref href="#d25e16929">943C</ref> of ITA 2007 does not apply, in relation to the determination of the amount of the trustees’ double tax relief pool as at the start of the tax year 2009-10.</content></subparagraph><subparagraph eId="schedule-13-paragraph-4-2"><num>(2)</num><intro>That amount is—</intro><level class="para1" eId="schedule-13-paragraph-4-2-a"><num>(a)</num><content>if amounts A and B are both greater than £20,000, the lower of those amounts, and</content></level><level class="para1" eId="schedule-13-paragraph-4-2-b"><num>(b)</num><content>in any other case, nil.</content></level></subparagraph><subparagraph eId="schedule-13-paragraph-4-3"><num>(3)</num><intro>Amount A is the sum of—</intro><level class="para1" eId="schedule-13-paragraph-4-3-a"><num>(a)</num><intro>any amount by which the liability of the trustees to income tax for the tax year 2007-08 is reduced under—</intro><level class="para2" eId="schedule-13-paragraph-4-3-a-i"><num>(i)</num><content>sections 2 and 6 of TIOPA 2010 (double taxation arrangements: relief by agreement), or</content></level><level class="para2" eId="schedule-13-paragraph-4-3-a-ii"><num>(ii)</num><content>section 18(1)(b) and (2) of that Act (relief for foreign tax where no double taxation arrangements), and</content></level></level><level class="para1" eId="schedule-13-paragraph-4-3-b"><num>(b)</num><content>any amount by which the liability of the trustees to income tax for the following tax year is so reduced.</content></level></subparagraph><subparagraph eId="schedule-13-paragraph-4-4"><num>(4)</num><content>Amount B is 20% of the amount (if any) of the trustees’ income pool as at the start of the tax year 2009-10 (calculated in accordance with section 943 of ITA 2007).</content></subparagraph></paragraph></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-3" class="schProv1"><num>3</num><intro>“<term refersTo="#term-taxable-company" eId="term-taxable-company">Taxable company</term>” means a company which—</intro><level class="para1" eId="schedule-1-paragraph-3-a"><num>(a)</num><content>is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank or a relevant foreign bank,</content></level><level class="para1" eId="schedule-1-paragraph-3-b"><num>(b)</num><intro>is a company not within paragraph (a) which is a member of a banking group and—</intro><level class="para2" eId="schedule-1-paragraph-3-b-i"><num>(i)</num><content>is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident investment company or a <abbr class="acronym" title="United Kingdom">UK</abbr> resident financial trading company, or</content></level><level class="para2" eId="schedule-1-paragraph-3-b-ii"><num>(ii)</num><content>is a relevant foreign financial trading company, or</content></level></level><level class="para1" eId="schedule-1-paragraph-3-c"><num>(c)</num><content>is a building society or is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident investment company, or a <abbr class="acronym" title="United Kingdom">UK</abbr> resident financial trading company, which is a member of the same group as a building society.</content></level></paragraph>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-1-paragraph-3-a"><num>(a)</num><content>is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank or a relevant foreign bank,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-1-paragraph-3-b"><num>(b)</num><intro>is a company not within paragraph (a) which is a member of a banking group and—</intro><level class="para2" eId="schedule-1-paragraph-3-b-i"><num>(i)</num><content>is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident investment company or a <abbr class="acronym" title="United Kingdom">UK</abbr> resident financial trading company, or</content></level><level class="para2" eId="schedule-1-paragraph-3-b-ii"><num>(ii)</num><content>is a relevant foreign financial trading company, or</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-1-paragraph-3-c"><num>(c)</num><content>is a building society or is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident investment company, or a <abbr class="acronym" title="United Kingdom">UK</abbr> resident financial trading company, which is a member of the same group as a building society.</content></level>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-6-paragraph-1-1"><num>(1)</num><intro>For the purposes of the enactments to which this Part applies “charity” means a body of persons or trust that—</intro><level class="para1" eId="schedule-6-paragraph-1-1-a"><num>(a)</num><content>is established for charitable purposes only,</content></level><level class="para1" eId="schedule-6-paragraph-1-1-b"><num>(b)</num><content>meets the jurisdiction condition (see paragraph <ref href="#schedule-6-paragraph-2">2</ref>),</content></level><level class="para1" eId="schedule-6-paragraph-1-1-c"><num>(c)</num><content>meets the registration condition (see paragraph <ref href="#schedule-6-paragraph-3">3</ref>), and</content></level><level class="para1" eId="schedule-6-paragraph-1-1-d"><num>(d)</num><content>meets the management condition (see paragraph <ref href="#schedule-6-paragraph-4">4</ref>).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-1-2"><num>(2)</num><intro>For the purposes of the enactments to which this Part applies—</intro><hcontainer name="definition"><content>“charitable company” means a charity that is a body of persons;</content></hcontainer><hcontainer name="definition"><content>“charitable trust” means a charity that is a trust.</content></hcontainer></subparagraph><subparagraph eId="schedule-6-paragraph-1-3"><num>(3)</num><content>Sub-paragraphs (1) and (2) are subject to any express provision to the contrary.</content></subparagraph><subparagraph eId="schedule-6-paragraph-1-4"><num>(4)</num><intro>For the meaning of “charitable purpose”, see section 2 of the Charities Act 2006 (which—</intro><level class="para1" eId="schedule-6-paragraph-1-4-a"><num>(a)</num><content>applies regardless of where the body of persons or trust in question is established, and</content></level><level class="para1" eId="schedule-6-paragraph-1-4-b"><num>(b)</num><content>for this purpose forms part of the law of each part of the United Kingdom (see section 80(3) to (6) of that Act)).</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-6-paragraph-5-1"><num>(1)</num><content>This paragraph applies in relation to any period throughout which the management condition is not met.</content></subparagraph><subparagraph eId="schedule-6-paragraph-5-2"><num>(2)</num><intro>The management condition is treated as met throughout the period if the Commissioners for Her Majesty’s Revenue and Customs consider that—</intro><level class="para1" eId="schedule-6-paragraph-5-2-a"><num>(a)</num><content>the failure to meet the management condition has not prejudiced the charitable purposes of the body or trust, or</content></level><level class="para1" eId="schedule-6-paragraph-5-2-b"><num>(b)</num><content>it is just and reasonable in all the circumstances for the condition to be treated as met throughout the period.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-22" class="schProv1"><num>22</num><content>In section 18(3)(b)(i) of F(No.2)A 2005 (authorised unit trusts and OEICS: specific powers) omit “(within the meaning of section 989 of ITA 2007)”.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-6-paragraph-25-1"><num>(1)</num><content>CTA 2009 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-25-2"><num>(2)</num><content>In section 1319 (other definitions), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-25-3"><num>(3)</num><content>In Schedule 4 (index of defined expressions), in the entry for “charity”, for “section 1319” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-28" class="schProv1"><num>28</num><content>In section 326(3) of TIOPA 2010 (charities), omit the definition of “charity” and the “and” immediately after it.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-8-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-8-paragraph-8-1"><num>(1)</num><content>The amendments made by paragraph <ref href="#schedule-8-paragraph-1">1</ref> have effect in relation to gifts made on or after 24 March 2010.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-2"><num>(2)</num><content>An amendment corresponding to that made by paragraph <ref href="#schedule-8-paragraph-1-2">1(2)</ref>, having effect in relation to gifts made on or after that date, is to be treated as having been made in ICTA.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-3"><num>(3)</num><content>The amendments made by paragraph <ref href="#schedule-8-paragraph-2">2</ref> have effect in relation to payments representing expenditure incurred on or after 24 March.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-4"><num>(4)</num><content>An amendment corresponding to that made by paragraph <ref href="#schedule-8-paragraph-2-2">2(2)</ref>, having effect in relation to payments representing expenditure incurred on or after that date, is to be treated as having been made in ICTA.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-5"><num>(5)</num><content>The amendments made by paragraph <ref href="#schedule-8-paragraph-3">3</ref> have effect in relation to gifts made on or after 6 April 2010.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-6"><num>(6)</num><content>The amendments made by paragraphs <ref href="#schedule-8-paragraph-4">4</ref> and <ref href="#schedule-8-paragraph-6">6</ref> have effect in relation to claims whenever made.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-13-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-13-paragraph-4-1"><num>(1)</num><content>This paragraph applies, and section <ref href="#d25e16929">943C</ref> of ITA 2007 does not apply, in relation to the determination of the amount of the trustees’ double tax relief pool as at the start of the tax year 2009-10.</content></subparagraph><subparagraph eId="schedule-13-paragraph-4-2"><num>(2)</num><intro>That amount is—</intro><level class="para1" eId="schedule-13-paragraph-4-2-a"><num>(a)</num><content>if amounts A and B are both greater than £20,000, the lower of those amounts, and</content></level><level class="para1" eId="schedule-13-paragraph-4-2-b"><num>(b)</num><content>in any other case, nil.</content></level></subparagraph><subparagraph eId="schedule-13-paragraph-4-3"><num>(3)</num><intro>Amount A is the sum of—</intro><level class="para1" eId="schedule-13-paragraph-4-3-a"><num>(a)</num><intro>any amount by which the liability of the trustees to income tax for the tax year 2007-08 is reduced under—</intro><level class="para2" eId="schedule-13-paragraph-4-3-a-i"><num>(i)</num><content>sections 2 and 6 of TIOPA 2010 (double taxation arrangements: relief by agreement), or</content></level><level class="para2" eId="schedule-13-paragraph-4-3-a-ii"><num>(ii)</num><content>section 18(1)(b) and (2) of that Act (relief for foreign tax where no double taxation arrangements), and</content></level></level><level class="para1" eId="schedule-13-paragraph-4-3-b"><num>(b)</num><content>any amount by which the liability of the trustees to income tax for the following tax year is so reduced.</content></level></subparagraph><subparagraph eId="schedule-13-paragraph-4-4"><num>(4)</num><content>Amount B is 20% of the amount (if any) of the trustees’ income pool as at the start of the tax year 2009-10 (calculated in accordance with section 943 of ITA 2007).</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-18-paragraph-1" class="schProv1"><num>1</num><content>Chapter 3 of Part 9 of CTA 2010 (sale of lessors: leasing business carried on by company alone) is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-18-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-18-paragraph-2-1"><num>(1)</num><content>Section 382 (introduction to Chapter) is amended as follows.</content></subparagraph><subparagraph eId="schedule-18-paragraph-2-2"><num>(2)</num><intro>In subsection (1)—</intro><level class="para1" eId="schedule-18-paragraph-2-2-a"><num>(a)</num><content>for “qualifying change of ownership in relation to” substitute “relevant change in the relationship between”, and</content></level><level class="para1" eId="schedule-18-paragraph-2-2-b"><num>(b)</num><content>insert at the end “and a principal company of the company.”</content></level></subparagraph><subparagraph eId="schedule-18-paragraph-2-3"><num>(3)</num><content>In subsection (3), for ““qualifying change of ownership”, see sections 392 to 398.” substitute ““relevant change in the relationship between a company and a principal company of the company”, see sections 392 to 394.”</content></subparagraph></paragraph>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1"><num>(b)</num><content>under the terms of a contract, or that individual’s employment, with a company which is a member of the same group of companies as the team (within the meaning given by section 152 of CTA 2010);</content></level>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-18-paragraph-3" class="schProv1"><num>3</num><content><mod>In section 383 (income and matching expense in different accounting periods), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e20317"><num>(1A)</num><content>For the meaning of “qualifying change of ownership”, see sections 394A to 398A</content></subsection></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-18-paragraph-4" class="schProv1"><num>4</num><content><mod>For section 392 (and the italic heading before it) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e20330"><heading>“Relevant change in relationship”</heading><section eId="d25e20336"><num>392</num><heading>“Relevant change in relationship”</heading><content>For the purposes of the sales of lessors Chapters there is a relevant change in the relationship between a company (“A”) and a principal company of A on any day in any of the circumstances in section 393 or 394 (qualifying 75% subsidiaries and consortium relationships).</content></section></hcontainer></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-18-paragraph-5" class="schProv1"><num>5</num><content><mod>After section 394 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e20349"><heading>“Qualifying change of ownership”</heading><section eId="d25e20355"><num>394A</num><heading>“Qualifying change of ownership”</heading><intro>For the purposes of the sales of lessors Chapters there is a qualifying change of ownership in relation to a company (“A”) on any day if there is a relevant change in the relationship on that day between A and a principal company of A unless any of the following apply—</intro><level class="para1" eId="d25e20361"><num>(a)</num><content>section 395(2),</content></level><level class="para1" eId="d25e20367"><num>(b)</num><content>section 396(2), or</content></level><level class="para1" eId="d25e20373"><num>(c)</num><content>section 398A(2) or (5).</content></level></section></hcontainer></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-18-paragraph-6" class="schProv1"><num>6</num><content><mod>After section 398 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e20386"><heading>Election out of qualifying change of ownership</heading><section eId="d25e20392"><num>398A</num><heading>Election out of qualifying change of ownership</heading><subsection eId="d25e20396"><num>(1)</num><intro>This section applies if—</intro><level class="para1" eId="d25e20402"><num>(a)</num><content>on any day (“the relevant day”) a company (“A”) carries on a business of leasing plant or machinery otherwise than in partnership,</content></level><level class="para1" eId="d25e20408"><num>(b)</num><content>there is a relevant change in the relationship between A and a principal company of A (“P”) on the relevant day, and</content></level><level class="para1" eId="d25e20414"><num>(c)</num><content>an election that this section is to apply is made by A.</content></level></subsection><subsection eId="d25e20420"><num>(2)</num><intro>For the purposes of the sales of lessors Chapters, there is no qualifying change of ownership in relation to A on the relevant day as a result of the change in the relationship but—</intro><level class="para1" eId="d25e20426"><num>(a)</num><content>subsections (2)(b) and (4)(b) of section 383 nevertheless apply,</content></level><level class="para1" eId="d25e20432"><num>(b)</num><content>section 398D (and section 398C so far as relating to it) has effect during the relevant period, and</content></level><level class="para1" eId="d25e20438"><num>(c)</num><content>sections 398E to 398G (and section 398C so far as relating to section 398E) have effect on the relevant day and during the relevant period.</content></level></subsection><subsection eId="d25e20444"><num>(3)</num><intro>“The relevant period” is the period—</intro><level class="para1" eId="d25e20450"><num>(a)</num><content>beginning with the day after the relevant day, and</content></level><level class="para1" eId="d25e20456"><num>(b)</num><content>ending with the day on which there is next a relevant change in the relationship between A and a principal company of A falling within subsection (4) (or continuing indefinitely if there is not another such relevant change).</content></level></subsection><subsection eId="d25e20462"><num>(4)</num><content>A relevant change in the relationship between A and a principal company of A falls within this subsection if, as a result of it, the (unadjusted) basic amount (see section 399) is (or, but for a further election, would be) treated as a receipt of the business of leasing plant or machinery carried on by A.</content></subsection><subsection eId="d25e20468"><num>(5)</num><content>Where during the relevant period there is a relevant change in the relationship between A and a principal company of A but the relevant period is not brought to an end by it, for the purposes of the sales of lessors Chapters there is no qualifying change of ownership in relation to A as a result of the change in the relationship.</content></subsection></section><section eId="d25e20477"><num>398B</num><heading>The election</heading><subsection eId="d25e20481"><num>(1)</num><content>The election under section 398A must state the date of the relevant day.</content></subsection><subsection eId="d25e20487"><num>(2)</num><intro>The election must be made—</intro><level class="para1" eId="d25e20493"><num>(a)</num><content>by notice to an officer of Revenue and Customs, and</content></level><level class="para1" eId="d25e20499"><num>(b)</num><content>during the period of two years beginning with the relevant day.</content></level></subsection><subsection eId="d25e20505"><num>(3)</num><content>The election is irrevocable.</content></subsection><subsection eId="d25e20511"><num>(4)</num><content>All such assessments and adjustments of assessments are to be made as are necessary to give effect to the election.</content></subsection></section><section eId="d25e20520"><num>398C</num><heading>Special treatment of A’s trade or business that includes leasing</heading><subsection eId="d25e20524"><num>(1)</num><content>Sections 398D and 398E make special provision about the trade or property business consisting of or including A’s business of leasing plant or machinery.</content></subsection><subsection eId="d25e20530"><num>(2)</num><intro>In those sections “the relevant activity” means—</intro><level class="para1" eId="d25e20536"><num>(a)</num><content>if A’s business of leasing plant or machinery constitutes or forms part of a trade, that trade, and</content></level><level class="para1" eId="d25e20542"><num>(b)</num><content>if it forms part of a property business, that property business.</content></level></subsection></section><section eId="d25e20551"><num>398D</num><heading>Restrictions on use of losses etc</heading><subsection eId="d25e20555"><num>(1)</num><intro>No loss may be deducted under—</intro><level class="para1" eId="d25e20561"><num>(a)</num><content>Chapter 2 of Part 4,</content></level><level class="para1" eId="d25e20567"><num>(b)</num><content>section 62, or</content></level><level class="para1" eId="d25e20573"><num>(c)</num><content>section 189,</content></level><wrapUp>from so much of the total profits of A as are attributable to the carrying on of the relevant activity except to the extent that the loss or charge is attributable to the carrying on of the relevant activity.</wrapUp></subsection><subsection eId="d25e20581"><num>(2)</num><content>Group relief is not to be given under Part 5 against so much of the total profits of A as are attributable to the carrying on of the relevant activity.</content></subsection><subsection eId="d25e20587"><num>(3)</num><content>No deficit may be set off under section 461 of CTA 2009 (non-trading deficit from loan relationship) against profits attributable to the carrying on of the relevant activity except to the extent that the deficit is attributable to the carrying on of the relevant activity.</content></subsection><subsection eId="d25e20593"><num>(4)</num><content>No loss may be set off under section 753 of CTA 2009 (non-trading loss on intangible fixed assets) against so much of the total profits of A as are attributable to the carrying on of the relevant activity except to the extent that the loss or charge is attributable to the carrying on of the relevant activity.</content></subsection><subsection eId="d25e20599"><num>(5)</num><content>No deduction is to be allowed under section 1219 of CTA 2009 (expenses of management of investment business) from so much of the total profits of A as are attributable to the carrying on of the relevant activity except to the extent that the expenses concerned are attributable to the carrying on of the relevant activity.</content></subsection><subsection eId="d25e20605"><num>(6)</num><content>If A is a controlled foreign company within the meaning of Chapter 4 of Part 17 of ICTA in relation to which an apportionment falls to be made under section 747(3) of that Act in respect of the accounting period ending with the relevant day, no sum may be set off under paragraph 1 of Schedule 26 to ICTA by any person in respect of so much of the chargeable profits of A as are apportioned to the person and are attributable to the carrying on of the relevant activity.</content></subsection><subsection eId="d25e20611"><num>(7)</num><content>If A would otherwise be a tonnage tax company under Schedule 22 to FA 2000 (tonnage tax) it is to be treated as not being such a company.</content></subsection></section><section eId="d25e20620"><num>398E</num><heading>Restriction on artificial losses or reductions in profits</heading><subsection eId="d25e20624"><num>(1)</num><content>This section applies if any expenditure incurred by A in carrying on the relevant activity has an unallowable purpose.</content></subsection><subsection eId="d25e20630"><num>(2)</num><content>In calculating the profits or losses of A for any accounting period for the purposes of corporation tax so much of the expenditure as, on a just and reasonable apportionment, is attributable to the unallowable purpose is to be left out of account.</content></subsection><subsection eId="d25e20636"><num>(3)</num><content>Expenditure has an unallowable purpose if the main purpose, or one of the main purposes, of A in incurring it is to obtain a relevant tax advantage (“the unallowable purpose”).</content></subsection><subsection eId="d25e20642"><num>(4)</num><intro>A “relevant tax advantage” is—</intro><level class="para1" eId="d25e20648"><num>(a)</num><content>a reduction in the profits which, for the purposes of corporation tax, are attributable to the carrying on of the relevant activity by A,</content></level><level class="para1" eId="d25e20654"><num>(b)</num><content>the creation of a loss which, for those purposes, is so attributable, or</content></level><level class="para1" eId="d25e20660"><num>(c)</num><content>an increase in losses which, for those purposes, are so attributable.</content></level></subsection></section><section eId="d25e20669"><num>398F</num><heading>Limit on availability of capital allowances to A</heading><subsection eId="d25e20673"><num>(1)</num><content>Expenditure incurred by A in providing plant or machinery is not qualifying expenditure for the purposes of Part 2 of CAA 2001 if the expenditure is incurred on the acquisition or creation of an independent asset.</content></subsection><subsection eId="d25e20679"><num>(2)</num><intro>An asset is an “independent” asset if, in the normal course of business—</intro><level class="para1" eId="d25e20685"><num>(a)</num><content>it could be used individually (whether or not it could also be used in conjunction with another asset or other assets as a constituent part of a single asset consisting of more than one asset (a “combined asset”)), or</content></level><level class="para1" eId="d25e20691"><num>(b)</num><content>it could be used (at different times) as a constituent part of different combined assets.</content></level></subsection></section><section eId="d25e20700"><num>398G</num><heading>Transfers into and out of A</heading><subsection eId="d25e20704"><num>(1)</num><content>Section 948 does not apply where A is the predecessor or the successor.</content></subsection><subsection eId="d25e20710"><num>(2)</num><content>Where section 948 does not apply as a result of subsection (1), the plant or machinery belonging to the trade is to be treated for the purposes of the Corporation Tax Acts as sold by the predecessor to the successor on the day of cessation for an amount equal to its market value on that day.</content></subsection><subsection eId="d25e20716"><num>(3)</num><intro>Where A is the predecessor, section 265(2)(b) of CAA 2001 (successions) applies—</intro><level class="para1" eId="d25e20722"><num>(a)</num><content>even if the relevant property has been sold to the successor, and</content></level><level class="para1" eId="d25e20728"><num>(b)</num><content>as if the reference to market value were to market value as determined in accordance with section 437(9).</content></level></subsection></section></hcontainer></quotedStructure></mod></content></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-taxable-company"><heading> “Taxable company” </heading><paragraph eId="schedule-1-paragraph-3" class="schProv1"><num>3</num><intro>“<term refersTo="#term-taxable-company" eId="term-taxable-company">Taxable company</term>” means a company which—</intro><level class="para1" eId="schedule-1-paragraph-3-a"><num>(a)</num><content>is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank or a relevant foreign bank,</content></level><level class="para1" eId="schedule-1-paragraph-3-b"><num>(b)</num><intro>is a company not within paragraph (a) which is a member of a banking group and—</intro><level class="para2" eId="schedule-1-paragraph-3-b-i"><num>(i)</num><content>is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident investment company or a <abbr class="acronym" title="United Kingdom">UK</abbr> resident financial trading company, or</content></level><level class="para2" eId="schedule-1-paragraph-3-b-ii"><num>(ii)</num><content>is a relevant foreign financial trading company, or</content></level></level><level class="para1" eId="schedule-1-paragraph-3-c"><num>(c)</num><content>is a building society or is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident investment company, or a <abbr class="acronym" title="United Kingdom">UK</abbr> resident financial trading company, which is a member of the same group as a building society.</content></level></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>Other amendments</heading><paragraph eId="schedule-3-paragraph-10" class="schProv1"><num>10</num><intro>In FA 2009, in Schedule 6, in paragraph 1(11)—</intro><level class="para1" eId="schedule-3-paragraph-10-a"><num>(a)</num><content>in paragraph (b), for “74B” substitute “74ZA”,</content></level><level class="para1" eId="schedule-3-paragraph-10-b"><num>(b)</num><content>at the end of paragraph (c), insert “and”, and</content></level><level class="para1" eId="schedule-3-paragraph-10-c"><num>(c)</num><content>omit paragraph (e) (and the “and” before it).</content></level></paragraph></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-1-paragraph-4-1"><num>(1)</num><intro>“<term refersTo="#term-relevant-remuneration" eId="term-relevant-remuneration">Relevant remuneration</term>”, in relation to a relevant banking employee of a taxable company, means anything that—</intro><level class="para1" eId="schedule-1-paragraph-4-1-a"><num>(a)</num><content>constitutes earnings (within the meaning of section 62 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003) in relation to the employee's employment by the taxable company as a relevant banking employee, or</content></level><level class="para1" eId="schedule-1-paragraph-4-1-b"><num>(b)</num><content>while not constituting earnings, constitutes a benefit provided by reason of that employment.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-4-2"><num>(2)</num><content>Whether or not the relevant banking employee is chargeable to income tax in respect of anything is irrelevant in determining whether or not it is relevant remuneration.</content></subparagraph><subparagraph eId="schedule-1-paragraph-4-3"><num>(3)</num><content>Excluded remuneration is not relevant remuneration.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-1-paragraph-7-1"><num>(1)</num><intro>Subject to sub-paragraphs (2) to (4), the amount of any relevant remuneration is—</intro><level class="para1" eId="schedule-1-paragraph-7-1-a"><num>(a)</num><content>if it is money, its amount when awarded,</content></level><level class="para1" eId="schedule-1-paragraph-7-1-b"><num>(b)</num><content>if it is money's worth, the amount of the money's worth when awarded, or</content></level><level class="para1" eId="schedule-1-paragraph-7-1-c"><num>(c)</num><content>if it is a benefit not constituting earnings, the cost of providing it.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-7-2"><num>(2)</num><content>Where relevant remuneration is awarded to or in respect of an employee by virtue of paragraph 6(1)(a) and its amount is not fixed when it is awarded, its amount is such as it is reasonable at that time to assume would be its amount (in accordance with sub-paragraph (1)) if and when paid or provided.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-3"><num>(3)</num><content>Where the market value of any relevant remuneration at the time it is awarded exceeds, or would exceed, what would otherwise be its amount, its amount is that market value.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-4"><num>(4)</num><content>Where anything constituting relevant remuneration is or would be, when awarded, subject to any restriction or restrictions, the restriction is, or restrictions are, to be ignored in arriving at its amount.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-5"><num>(5)</num><content>For this purpose “<term refersTo="#term-restriction" eId="term-restriction">restriction</term>” means any condition, restriction or other similar provision which causes the value of the relevant remuneration to be less than it otherwise would be.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-1-paragraph-10-1"><num>(1)</num><content>The threshold of £25,000 in paragraph 1(3) applies whether or not an employee has more than one employment as a relevant banking employee with a taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-10-2"><num>(2)</num><content>If relevant remuneration is awarded during the chargeable period to or in respect of a relevant banking employee by reason of the employee's employment as such by a number of associated taxable companies, the threshold in paragraph 1(3) in relation to each of the taxable companies is £25,000 divided by the number of the taxable companies.</content></subparagraph><subparagraph eId="schedule-1-paragraph-10-3"><num>(3)</num><intro>For this purpose taxable companies are associated if—</intro><level class="para1" eId="schedule-1-paragraph-10-3-a"><num>(a)</num><content>one of them is under the control of the other, or</content></level><level class="para1" eId="schedule-1-paragraph-10-3-b"><num>(b)</num><content>one of them is under the control of a third person who controls or is under the control of the other.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-1-paragraph-13-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-13-1-a"><num>(a)</num><content>at any time during the chargeable period a relevant loan is provided to or in respect of a relevant banking employee of a taxable company by reason of the employee's employment as a relevant banking employee otherwise than pursuant to a contractual obligation arising before the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-13-1-b"><num>(b)</num><content>at any time during the chargeable period there arises a contractual obligation to provide a relevant loan to or in respect of the employee by reason of the employee's employment as a relevant banking employee of the taxable company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-13-2"><num>(2)</num><content>A loan is a “relevant” loan if the main purpose, or one of the main purposes, of providing it, or undertaking to provide it, is the reduction or elimination of a liability to bank payroll tax or any other tax or national insurance contributions.</content></subparagraph><subparagraph eId="schedule-1-paragraph-13-3"><num>(3)</num><content>The loan is to be regarded as relevant remuneration awarded during the chargeable period to or in respect of the relevant banking employee by reason of the employee's employment as a relevant banking employee; and the amount of the relevant remuneration is to be regarded as the amount which is loaned or (where the amount of the loan is not fixed) the amount which it is reasonable to assume will be loaned.</content></subparagraph><subparagraph eId="schedule-1-paragraph-13-4"><num>(4)</num><content>A contractual obligation to provide a relevant loan is taken to arise for the purposes of this paragraph even if provision of it is dependent on compliance by the relevant banking employee with any conditions.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-1-paragraph-18-1"><num>(1)</num><content>In order to establish the amount of bank payroll tax payable by it, every taxable company must deliver a return to HMRC.</content></subparagraph><subparagraph eId="schedule-1-paragraph-18-2"><num>(2)</num><content>The return must be delivered on or before 31 August 2010.</content></subparagraph><subparagraph eId="schedule-1-paragraph-18-3"><num>(3)</num><content>A return under this paragraph is referred to as a bank payroll tax return.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-1-paragraph-21-1"><num>(1)</num><content>A taxable company may amend its bank payroll tax return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-2"><num>(2)</num><content>An amendment under this paragraph is made by notice to <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> in such form, and accompanied by such information, as <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may reasonably require.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-3"><num>(3)</num><content>No such amendment may be made after 31 August 2011.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-4"><num>(4)</num><content>Nothing in sub-paragraph (1) permits a taxable company to amend its return to revise an amount determined under paragraph 7(2), 12(2) or 13(3) merely because the amount determined under that provision differs from the amount which is actually paid or provided (or loaned).</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-1-paragraph-24-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may determine to the best of their knowledge and belief the amount of bank payroll tax payable by a taxable company if the company has not delivered a bank payroll tax return on or before 31 August 2010.</content></subparagraph><subparagraph eId="schedule-1-paragraph-24-2"><num>(2)</num><intro>Notice of the determination—</intro><level class="para1" eId="schedule-1-paragraph-24-2-a"><num>(a)</num><content>must be served on the company, and</content></level><level class="para1" eId="schedule-1-paragraph-24-2-b"><num>(b)</num><content>must state the date on which it is given.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-24-3"><num>(3)</num><content>The amount determined by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> is taken to be the amount payable by the company (in the same way as if it were an assessment) unless and until the determination is superseded by a relevant assessment.</content></subparagraph><subparagraph eId="schedule-1-paragraph-24-4"><num>(4)</num><intro>A relevant assessment is an assessment—</intro><level class="para1" eId="schedule-1-paragraph-24-4-a"><num>(a)</num><content>included in a bank payroll tax return delivered by the company within the period of 12 months beginning with the date on which notice of the determination was given, or</content></level><level class="para1" eId="schedule-1-paragraph-24-4-b"><num>(b)</num><content>made by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> under paragraph 20 following delivery of such a return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-24-5"><num>(5)</num><intro>If—</intro><level class="para1" eId="schedule-1-paragraph-24-5-a"><num>(a)</num><content>proceedings have been commenced for the recovery of an amount determined by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> under this paragraph, and</content></level><level class="para1" eId="schedule-1-paragraph-24-5-b"><num>(b)</num><content>before the proceedings are concluded, the determination is superseded by a relevant assessment,</content></level><wrapUp>the proceedings may be continued as if they were proceedings for the recovery of so much of the tax shown in the assessment as has not been paid.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-24-6"><num>(6)</num><content>No determination may be made under this paragraph after 31 August 2013.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-30" class="schProv1"><num>30</num><subparagraph eId="schedule-1-paragraph-30-1"><num>(1)</num><content>This paragraph applies if an order is made under section 104(3) of FA 2009 appointing a day on which sections 101 to 103 of that Act are to come into force for the purposes of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-30-2"><num>(2)</num><intro>Part 2 of Schedule 53 to that Act (which makes special provision about the late payment interest start date) has effect for those purposes as if—</intro><level class="para1" eId="schedule-1-paragraph-30-2-a"><num>(a)</num><content>the reference in paragraph 4(1) to income tax or capital gains tax included a reference to bank payroll tax, and</content></level><level class="para1" eId="schedule-1-paragraph-30-2-b"><num>(b)</num><content>the Part included a provision that the late payment interest start date in respect of an amount of bank payroll tax assessed and recoverable under paragraph 25(1)(c) of this Schedule is 31 August 2010.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-30-3"><num>(3)</num><content>Interest charged under section 101 of FA 2009 on an amount of bank payroll tax may be enforced as if it were an amount of bank payroll tax payable by the taxable company.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-10" class="schProv1"><num>10</num><intro>In FA 2009, in Schedule 6, in paragraph 1(11)—</intro><level class="para1" eId="schedule-3-paragraph-10-a"><num>(a)</num><content>in paragraph (b), for “74B” substitute “74ZA”,</content></level><level class="para1" eId="schedule-3-paragraph-10-b"><num>(b)</num><content>at the end of paragraph (c), insert “and”, and</content></level><level class="para1" eId="schedule-3-paragraph-10-c"><num>(c)</num><content>omit paragraph (e) (and the “and” before it).</content></level></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><content>Chapter 3 of Part 8 of ITA 2007 (relief for gifts by individuals of shares, securities and real property to charities etc) is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-11-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-11-paragraph-1-1"><num>(1)</num><content>Paragraph 3 of Schedule 28AB to ICTA (schemes about effect of paying foreign tax) is amended as follows.</content></subparagraph><subparagraph eId="schedule-11-paragraph-1-2"><num>(2)</num><intro>In sub-paragraph (2)—</intro><level class="para1" eId="schedule-11-paragraph-1-2-a"><num>(a)</num><content>in paragraph (a), after “paid” insert “or payable”, and</content></level><level class="para1" eId="schedule-11-paragraph-1-2-b"><num>(b)</num><content>in paragraph (b), for “of the payment of that amount of foreign tax on the foreign tax total” substitute “on the foreign tax total of that amount being so paid or payable”.</content></level></subparagraph><subparagraph eId="schedule-11-paragraph-1-3"><num>(3)</num><content>In sub-paragraph (3)(b), for “the payment by the claimant of that amount of foreign tax” substitute “that amount of foreign tax being paid or payable by the claimant”.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-11-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-11-paragraph-6-1"><num>(1)</num><intro>In section 86 of TIOPA 2010 (schemes about claims or elections etc)—</intro><level class="para1" eId="schedule-11-paragraph-6-1-a"><num>(a)</num><content>in subsection (1), omit “under the scheme or arrangement”, and</content></level><level class="para1" eId="schedule-11-paragraph-6-1-b"><num>(b)</num><content><mod>after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e15917"><num>(3A)</num><content>Reference in subsection (1) to a step that is taken or not taken by a participant includes one that was taken or not taken by a participant before the scheme or arrangement was made.</content></subsection><subsection eId="d25e15923"><num>(3B)</num><content>The reason for taking or not taking a step does not matter so long as it has the effect mentioned in subsection (1).</content></subsection></quotedStructure></mod></content></level></subparagraph><subparagraph eId="schedule-11-paragraph-6-2"><num>(2)</num><intro>The amendments made by this paragraph have effect in relation to amounts of foreign tax payable—</intro><level class="para1" eId="schedule-11-paragraph-6-2-a"><num>(a)</num><content>as regards corporation tax, on or after 1 April 2010, and</content></level><level class="para1" eId="schedule-11-paragraph-6-2-b"><num>(b)</num><content>as regards income tax or capital gains tax, on or after 6 April 2010.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-16-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-16-paragraph-5-1"><num>(1)</num><content>The amendments made by this Schedule have effect in relation to accounting periods that begin on or after 1 April 2010 (“the commencement date”).</content></subparagraph><subparagraph eId="schedule-16-paragraph-5-2"><num>(2)</num><intro>Where a company has an accounting period (“the straddling accounting period”) that—</intro><level class="para1" eId="schedule-16-paragraph-5-2-a"><num>(a)</num><content>begins before the commencement date, and</content></level><level class="para1" eId="schedule-16-paragraph-5-2-b"><num>(b)</num><content>ends on or after that date,</content></level><wrapUp>the straddling accounting period is to be treated as split.</wrapUp></subparagraph><subparagraph eId="schedule-16-paragraph-5-3"><num>(3)</num><content>Where this paragraph provides that the straddling accounting period is to be treated as split, that part of the straddling accounting period that falls before the commencement date and that part of the straddling accounting period that falls on or after that date are to be treated for the purposes of the amendments made by this Schedule as separate accounting periods.</content></subparagraph><subparagraph eId="schedule-16-paragraph-5-4"><num>(4)</num><intro>In relation to the first accounting period of a company in relation to which the amendments made by this Schedule have effect—</intro><level class="para1" eId="schedule-16-paragraph-5-4-a"><num>(a)</num><content>section <ref href="#d25e19063">937I</ref> of CTA 2010 (as inserted by paragraph <ref href="#schedule-16-paragraph-3">3</ref> above) does not apply, and</content></level><level class="para1" eId="schedule-16-paragraph-5-4-b"><num>(b)</num><content>as at the beginning of the period, the amounts of the company’s losses pool and profits pool for any risk transfer scheme to which the company is a party is nil.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-7-paragraph-2-1"><num>(1)</num><content>Section 437 (value of net benefit to charity) is amended as follows.</content></subparagraph><subparagraph eId="schedule-7-paragraph-2-2"><num>(2)</num><content>In subsection (1), for “market” (in both places) substitute “relevant”.</content></subparagraph><subparagraph eId="schedule-7-paragraph-2-3"><num>(3)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e13011"><num>(1A)</num><intro>In subsection (1) “relevant value” means—</intro><level class="para1" eId="d25e13017"><num>(a)</num><content>where subsection (1B) applies, the lower of the market value and the acquisition value, and</content></level><level class="para1" eId="d25e13023"><num>(b)</num><content>otherwise, the market value.</content></level></subsection><subsection eId="d25e13029"><num>(1B)</num><intro>This subsection applies where—</intro><level class="para1" eId="d25e13035"><num>(a)</num><content>the qualifying investment, or anything from which it derives or which it represents (whether in whole or in part and whether directly or indirectly), was acquired by the individual making the disposal within the period of 4 years ending with the day on which the disposal is made,</content></level><level class="para1" eId="d25e13041"><num>(b)</num><content>the acquisition was made as part of a scheme, and</content></level><level class="para1" eId="d25e13047"><num>(c)</num><content>the main purpose, or one of the main purposes, of the individual in entering into the scheme was to obtain relief, or an increased amount of relief, under this Chapter.</content></level></subsection><subsection eId="d25e13053"><num>(1C)</num><content>In subsection (1B) “scheme” includes any scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-4"><num>(4)</num><content><mod>In subsection (2), after the entry relating to section 438 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>section 438A (acquisition value of qualifying investments),</item></blockList></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-11-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-11-paragraph-2-1"><num>(1)</num><content>Section 85 of TIOPA 2010 (schemes about effect of paying foreign tax) is amended as follows.</content></subparagraph><subparagraph eId="schedule-11-paragraph-2-2"><num>(2)</num><intro>In subsection (2)—</intro><level class="para1" eId="schedule-11-paragraph-2-2-a"><num>(a)</num><content><mod>for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e15652"><num>(a)</num><content>an amount of foreign tax (“the FT amount”) is paid or payable by C, and</content></level></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-11-paragraph-2-2-b"><num>(b)</num><content>in paragraph (b), for “of the payment of the FT amount on the foreign-tax total” substitute “on the foreign-tax total of the FT amount being so paid or payable”.</content></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-3"><num>(3)</num><content>In subsection (3), in paragraph (b) of the definition of “the foreign-tax total”, for “the payment by C of the FT amount” substitute “the FT amount being paid or payable by C”.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><content><mod>After section 438 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13083"><num>438A</num><heading>Acquisition value of qualifying investments</heading><subsection eId="d25e13087"><num>(1)</num><intro>For the purposes of this Chapter the acquisition value of a qualifying investment disposed of by an individual is—</intro><level class="para1" eId="d25e13093"><num>(a)</num><content>where the qualifying investment was acquired by the individual within the period of 4 years ending with the day on which the disposal is made, the cost to the individual of acquiring it, or</content></level><level class="para1" eId="d25e13099"><num>(b)</num><content>where something from which the qualifying investment derives or which it represents was so acquired, such proportion of the cost to the individual of acquiring that thing as is just and reasonable to attribute to the qualifying investment.</content></level></subsection><subsection eId="d25e13105"><num>(2)</num><intro>A reference in subsection (1) to the cost to the individual of an acquisition is to—</intro><level class="para1" eId="d25e13111"><num>(a)</num><content>the consideration given by the individual for the acquisition, less</content></level><level class="para1" eId="d25e13117"><num>(b)</num><content>any amount that is received in connection with the acquisition, by the individual or a person connected with the individual, as part of the scheme in question.</content></level></subsection></section></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-11-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-11-paragraph-3-1"><num>(1)</num><content>The amendments made by paragraphs 1 and 2 have effect in relation to amounts of foreign tax payable on or after 21 October 2009.</content></subparagraph><subparagraph eId="schedule-11-paragraph-3-2"><num>(2)</num><content>But see paragraph 5 for amounts of foreign tax payable on or after 1 April 2010 (as regards corporation tax) or 6 April 2010 (as regards income tax or capital gains tax).</content></subparagraph></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-relevant-remuneration"><heading> “Relevant remuneration” </heading><paragraph eId="schedule-1-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-1-paragraph-4-1"><num>(1)</num><intro>“<term refersTo="#term-relevant-remuneration" eId="term-relevant-remuneration">Relevant remuneration</term>”, in relation to a relevant banking employee of a taxable company, means anything that—</intro><level class="para1" eId="schedule-1-paragraph-4-1-a"><num>(a)</num><content>constitutes earnings (within the meaning of section 62 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003) in relation to the employee's employment by the taxable company as a relevant banking employee, or</content></level><level class="para1" eId="schedule-1-paragraph-4-1-b"><num>(b)</num><content>while not constituting earnings, constitutes a benefit provided by reason of that employment.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-4-2"><num>(2)</num><content>Whether or not the relevant banking employee is chargeable to income tax in respect of anything is irrelevant in determining whether or not it is relevant remuneration.</content></subparagraph><subparagraph eId="schedule-1-paragraph-4-3"><num>(3)</num><content>Excluded remuneration is not relevant remuneration.</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-excluded-remuneration"><heading> “Excluded remuneration” </heading><paragraph eId="schedule-1-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-1-paragraph-5-1"><num>(1)</num><intro>“<term refersTo="#term-excluded-remuneration" eId="term-excluded-remuneration">Excluded remuneration</term>” means—</intro><level class="para1" eId="schedule-1-paragraph-5-1-a"><num>(a)</num><content>anything which is regular salary or wages or a regular benefit,</content></level><level class="para1" eId="schedule-1-paragraph-5-1-b"><num>(b)</num><content>anything in the case of which a contractual obligation to pay or provide it to or in respect of the employee concerned arose before the beginning of the chargeable period,</content></level><level class="para1" eId="schedule-1-paragraph-5-1-c"><num>(c)</num><content>any shares awarded under an approved share incentive plan (within the meaning of section 488 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003), or</content></level><level class="para1" eId="schedule-1-paragraph-5-1-d"><num>(d)</num><content>any share option granted under an approved <abbr class="acronym" title="Save As You Earn">SAYE</abbr> option scheme (within the meaning of section 516 of that Act).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-2"><num>(2)</num><intro>In sub-paragraph (1)(a) “<term refersTo="#term-regular" eId="term-regular">regular</term>”, in relation to salary or wages or a benefit, means so much of the amount of the salary or wages or benefit as cannot vary according to—</intro><level class="para1" eId="schedule-1-paragraph-5-2-a"><num>(a)</num><intro>the performance of, or of any part of—</intro><level class="para2" eId="schedule-1-paragraph-5-2-a-i"><num>(i)</num><content>any business of the taxable company concerned, or</content></level><level class="para2" eId="schedule-1-paragraph-5-2-a-ii"><num>(ii)</num><content>any business of a person connected with the taxable company,</content></level></level><level class="para1" eId="schedule-1-paragraph-5-2-b"><num>(b)</num><content>the contribution made by the employee concerned to the performance of, or of any part of, any business within paragraph (a)(i) or (ii),</content></level><level class="para1" eId="schedule-1-paragraph-5-2-c"><num>(c)</num><content>the performance by the employee of any of the duties of the employment, or</content></level><level class="para1" eId="schedule-1-paragraph-5-2-d"><num>(d)</num><content>any similar considerations.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-3"><num>(3)</num><intro>For the purposes of sub-paragraph (1)(b) a contractual obligation to pay or provide something to or in respect of the employee does not arise until—</intro><level class="para1" eId="schedule-1-paragraph-5-3-a"><num>(a)</num><content>the amount to be paid or provided is fixed or is capable of becoming fixed without the exercise of discretion by any person, or</content></level><level class="para1" eId="schedule-1-paragraph-5-3-b"><num>(b)</num><content>the total amount of things to be paid or provided to or in respect of a number of employees including the employee is fixed or is capable of becoming fixed without the exercise of discretion by any person.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-4"><num>(4)</num><content>A contractual obligation to pay or provide something is taken to arise for those purposes even if payment or provision of it is dependent on compliance by the employee with any conditions.</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-awarded"><heading> “Awarded” </heading><paragraph eId="schedule-1-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-1-paragraph-6-1"><num>(1)</num><intro>Relevant remuneration is “awarded” during the chargeable period if—</intro><level class="para1" eId="schedule-1-paragraph-6-1-a"><num>(a)</num><content>a contractual obligation to pay or provide it arises during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-6-1-b"><num>(b)</num><content>the relevant remuneration is paid or provided during the chargeable period without any such obligation having arisen during the chargeable period,</content></level><wrapUp>but subject to sub-paragraph (3).</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-6-2"><num>(2)</num><content>Sub-paragraph (3)(a) of paragraph 5 applies for the purposes of sub-paragraph (1) as for the purposes of sub-paragraph (1)(b) of that paragraph.</content></subparagraph><subparagraph eId="schedule-1-paragraph-6-3"><num>(3)</num><intro>Relevant remuneration is not to be taken to be awarded during the chargeable period by virtue of sub-paragraph (1)(a) if—</intro><level class="para1" eId="schedule-1-paragraph-6-3-a"><num>(a)</num><content>it is required to be paid or provided at intervals,</content></level><level class="para1" eId="schedule-1-paragraph-6-3-b"><num>(b)</num><content>it is to be paid or provided in respect of contribution, performance or similar considerations only for times after the end of the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-6-3-c"><num>(c)</num><content>the reduction or elimination of a liability to bank payroll tax is not the main purpose or one of the main purposes of any person in assuming the obligation to pay or provide it.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-6-4"><num>(4)</num><content>Sub-paragraph (4) of paragraph 5 applies for the purposes of this paragraph as for the purposes of sub-paragraph (1)(b) of that paragraph.</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-amount-of-remuneration"><heading> “Amount” of remuneration</heading><paragraph eId="schedule-1-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-1-paragraph-7-1"><num>(1)</num><intro>Subject to sub-paragraphs (2) to (4), the amount of any relevant remuneration is—</intro><level class="para1" eId="schedule-1-paragraph-7-1-a"><num>(a)</num><content>if it is money, its amount when awarded,</content></level><level class="para1" eId="schedule-1-paragraph-7-1-b"><num>(b)</num><content>if it is money's worth, the amount of the money's worth when awarded, or</content></level><level class="para1" eId="schedule-1-paragraph-7-1-c"><num>(c)</num><content>if it is a benefit not constituting earnings, the cost of providing it.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-7-2"><num>(2)</num><content>Where relevant remuneration is awarded to or in respect of an employee by virtue of paragraph 6(1)(a) and its amount is not fixed when it is awarded, its amount is such as it is reasonable at that time to assume would be its amount (in accordance with sub-paragraph (1)) if and when paid or provided.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-3"><num>(3)</num><content>Where the market value of any relevant remuneration at the time it is awarded exceeds, or would exceed, what would otherwise be its amount, its amount is that market value.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-4"><num>(4)</num><content>Where anything constituting relevant remuneration is or would be, when awarded, subject to any restriction or restrictions, the restriction is, or restrictions are, to be ignored in arriving at its amount.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-5"><num>(5)</num><content>For this purpose “<term refersTo="#term-restriction" eId="term-restriction">restriction</term>” means any condition, restriction or other similar provision which causes the value of the relevant remuneration to be less than it otherwise would be.</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-the-chargeable-period"><heading> “The chargeable period” </heading><paragraph eId="schedule-1-paragraph-8" class="schProv1"><num>8</num><intro>“The chargeable period” is the period—</intro><level class="para1" eId="schedule-1-paragraph-8-a"><num>(a)</num><content>beginning at 12.30 pm on 9 December 2009, and</content></level><level class="para1" eId="schedule-1-paragraph-8-b"><num>(b)</num><content>ending with 5 April 2010.</content></level></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-relevant-banking-employee"><heading> “Relevant banking employee” </heading><paragraph eId="schedule-1-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-1-paragraph-9-1"><num>(1)</num><intro>An employee of a taxable company is a relevant banking employee of the taxable company if—</intro><level class="para1" eId="schedule-1-paragraph-9-1-a"><num>(a)</num><content>the employment in which the employee is employed by the taxable company is a banking employment, and</content></level><level class="para1" eId="schedule-1-paragraph-9-1-b"><num>(b)</num><intro>either—</intro><level class="para2" eId="schedule-1-paragraph-9-1-b-i"><num>(i)</num><content>the employee is resident in the United Kingdom in the tax year 2009-10, or</content></level><level class="para2" eId="schedule-1-paragraph-9-1-b-ii"><num>(ii)</num><content>the duties of the banking employment are at any time in that tax year performed wholly or partly in the United Kingdom.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-2"><num>(2)</num><content>“<term refersTo="#term-banking-employment" eId="term-banking-employment">Banking employment</term>” means an employment the duties of which are wholly or mainly concerned (whether directly or indirectly) with activities to which sub-paragraph (3) applies.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-3"><num>(3)</num><intro>This sub-paragraph applies to activities which are—</intro><level class="para1" eId="schedule-1-paragraph-9-3-a"><num>(a)</num><content>listed regulated activities, or</content></level><level class="para1" eId="schedule-1-paragraph-9-3-b"><num>(b)</num><content>activities which are not listed regulated activities but consist of the lending of money or of dealing in currency or commodities as principal.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-4"><num>(4)</num><intro>“<term refersTo="#term-listed-regulated-activity" eId="term-listed-regulated-activity">Listed regulated activity</term>” means an activity which is a regulated activity for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 by virtue of any of the following provisions of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2001/544)—</intro><level class="para1" eId="schedule-1-paragraph-9-4-a"><num>(a)</num><content>article 5 (accepting deposits),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-b"><num>(b)</num><content>article 14 (dealing in investments as principal),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-c"><num>(c)</num><content>article 21 (dealing in investments as agent),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-d"><num>(d)</num><content>article 25 (arranging deals in investments),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-e"><num>(e)</num><content>article 40 (safeguarding and administering investments),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-f"><num>(f)</num><content>article 53 (advising on investments), and</content></level><level class="para1" eId="schedule-1-paragraph-9-4-g"><num>(g)</num><content>article 61 (entering into regulated mortgage contracts).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-5"><num>(5)</num><intro>But an activity is not a listed regulated activity in relation to an employee of a taxable company if—</intro><level class="para1" eId="schedule-1-paragraph-9-5-a"><num>(a)</num><content>the taxable company is an insurance company, or a member of the same group as an insurance company, and the activity is carried on wholly on behalf of the insurance company, or</content></level><level class="para1" eId="schedule-1-paragraph-9-5-b"><num>(b)</num><intro>it—</intro><level class="para2" eId="schedule-1-paragraph-9-5-b-i"><num>(i)</num><content>is either of the activities described in the provisions mentioned in sub-paragraph (4)(c) and (d), and</content></level><level class="para2" eId="schedule-1-paragraph-9-5-b-ii"><num>(ii)</num><content>is carried on as part of, or wholly in support of, activities of the taxable company, or of a company which is a member of the same group as the taxable company, and the activities consist of acting as discretionary investment manager for clients none of which is a linked entity.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-6"><num>(6)</num><content>An employee of a taxable company who spends no more than 60 days in the United Kingdom in the tax year 2009-10 is to be treated as not being a relevant banking employee of the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-7"><num>(7)</num><content>In determining for the purposes of sub-paragraph (6) whether an individual spends no more than 60 days in the United Kingdom treat a day as a day spent by the individual in the United Kingdom if (and only if) the individual is present in the United Kingdom at the end of the day.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-8"><num>(8)</num><intro>But in determining that issue for those purposes do not treat as a day spent by the individual in the United Kingdom any day on which the individual arrives in the United Kingdom as a passenger if—</intro><level class="para1" eId="schedule-1-paragraph-9-8-a"><num>(a)</num><content>the individual departs from the United Kingdom on the next day, and</content></level><level class="para1" eId="schedule-1-paragraph-9-8-b"><num>(b)</num><content>during the time between arrival and departure the individual does not engage in activities which are to a substantial extent unrelated to the individual's passage through the United Kingdom.</content></level></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-multiple-employments"><heading>Multiple employments</heading><paragraph eId="schedule-1-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-1-paragraph-10-1"><num>(1)</num><content>The threshold of £25,000 in paragraph 1(3) applies whether or not an employee has more than one employment as a relevant banking employee with a taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-10-2"><num>(2)</num><content>If relevant remuneration is awarded during the chargeable period to or in respect of a relevant banking employee by reason of the employee's employment as such by a number of associated taxable companies, the threshold in paragraph 1(3) in relation to each of the taxable companies is £25,000 divided by the number of the taxable companies.</content></subparagraph><subparagraph eId="schedule-1-paragraph-10-3"><num>(3)</num><intro>For this purpose taxable companies are associated if—</intro><level class="para1" eId="schedule-1-paragraph-10-3-a"><num>(a)</num><content>one of them is under the control of the other, or</content></level><level class="para1" eId="schedule-1-paragraph-10-3-b"><num>(b)</num><content>one of them is under the control of a third person who controls or is under the control of the other.</content></level></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-payments-etc-to-intermediaries"><heading>Payments <abbr title="Et cetera" xml:lang="la">etc</abbr> to intermediaries</heading><paragraph eId="schedule-1-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-1-paragraph-11-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-11-1-a"><num>(a)</num><content>an individual personally performs banking services for a taxable company,</content></level><level class="para1" eId="schedule-1-paragraph-11-1-b"><num>(b)</num><content>the banking services are provided not under a contract directly between the individual and the taxable company but under arrangements involving any other person (“the intermediary”), and</content></level><level class="para1" eId="schedule-1-paragraph-11-1-c"><num>(c)</num><content>the circumstances are such that, if the banking services were provided under a contract directly between the taxable company and the individual, the individual would be a relevant banking employee of the taxable company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-11-2"><num>(2)</num><content>The individual is to be regarded as a relevant banking employee of the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-11-3"><num>(3)</num><content>Anything done by the intermediary in relation to the individual which, if the banking services were provided under a contract directly between the taxable company and the individual, would be regarded as the award of relevant remuneration during the chargeable period to or in respect of the individual (as a relevant banking employee) by reason of the employee's employment as a relevant banking employee is to be so regarded.</content></subparagraph><subparagraph eId="schedule-1-paragraph-11-4"><num>(4)</num><content>“<term refersTo="#term-banking-services" eId="term-banking-services">Banking services</term>” means services which are wholly or mainly concerned (whether directly or indirectly) with activities which are activities to which paragraph 9(3) applies.</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-arrangements-for-future-payments-etc"><heading>Arrangements for future payments <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-1-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-1-paragraph-12-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-12-1-a"><num>(a)</num><content>arrangements are made during the chargeable period by reason of an employee's employment as a relevant banking employee of a taxable company,</content></level><level class="para1" eId="schedule-1-paragraph-12-1-b"><num>(b)</num><content>the arrangements make provision under which money may be paid, or any money's worth or other benefit provided, to or in respect of the employee in accordance with the arrangements, and</content></level><level class="para1" eId="schedule-1-paragraph-12-1-c"><num>(c)</num><content>were the money so paid, or the money's worth or other benefit so provided, during the chargeable period, it would be relevant remuneration awarded to or in respect of the employee during the chargeable period.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-12-2"><num>(2)</num><content>The making of the arrangements is to be regarded as the awarding of relevant remuneration to or in respect of the relevant banking employee by reason of the employment; and the amount of the relevant remuneration is to regarded as the amount of any money which it is reasonable to assume will be paid, and any money's worth or other benefit which it is reasonable to assume will be provided, as mentioned in sub-paragraph (1).</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-loans"><heading>Loans</heading><paragraph eId="schedule-1-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-1-paragraph-13-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-13-1-a"><num>(a)</num><content>at any time during the chargeable period a relevant loan is provided to or in respect of a relevant banking employee of a taxable company by reason of the employee's employment as a relevant banking employee otherwise than pursuant to a contractual obligation arising before the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-13-1-b"><num>(b)</num><content>at any time during the chargeable period there arises a contractual obligation to provide a relevant loan to or in respect of the employee by reason of the employee's employment as a relevant banking employee of the taxable company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-13-2"><num>(2)</num><content>A loan is a “relevant” loan if the main purpose, or one of the main purposes, of providing it, or undertaking to provide it, is the reduction or elimination of a liability to bank payroll tax or any other tax or national insurance contributions.</content></subparagraph><subparagraph eId="schedule-1-paragraph-13-3"><num>(3)</num><content>The loan is to be regarded as relevant remuneration awarded during the chargeable period to or in respect of the relevant banking employee by reason of the employee's employment as a relevant banking employee; and the amount of the relevant remuneration is to be regarded as the amount which is loaned or (where the amount of the loan is not fixed) the amount which it is reasonable to assume will be loaned.</content></subparagraph><subparagraph eId="schedule-1-paragraph-13-4"><num>(4)</num><content>A contractual obligation to provide a relevant loan is taken to arise for the purposes of this paragraph even if provision of it is dependent on compliance by the relevant banking employee with any conditions.</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-antiavoidance"><heading>Anti-avoidance</heading><paragraph eId="schedule-1-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-1-paragraph-14-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-14-1-a"><num>(a)</num><content>relevant arrangements are entered into by one or more persons during the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-14-1-b"><num>(b)</num><content>the main purpose, or one of the main purposes, of the person, or any of the persons, in entering into the relevant arrangements is a relevant tax avoidance purpose.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-2"><num>(2)</num><intro>“<term refersTo="#term-relevant-arrangements" eId="term-relevant-arrangements">Relevant arrangements</term>” means arrangements involving either or both of the following—</intro><level class="para1" eId="schedule-1-paragraph-14-2-a"><num>(a)</num><content>the making of a payment of money, or the provision of any money's worth or other benefit, otherwise than during the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-14-2-b"><num>(b)</num><content>the giving otherwise than in the form of relevant remuneration of any reward which equates in substance to relevant remuneration.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-3"><num>(3)</num><intro>A “relevant tax avoidance purpose” is the reduction or elimination of a liability to bank payroll tax which would exist if—</intro><level class="para1" eId="schedule-1-paragraph-14-3-a"><num>(a)</num><content>in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money's worth or other benefit provided, during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-14-3-b"><num>(b)</num><content>in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-4"><num>(4)</num><intro>Liability to bank payroll tax is to be determined as it would have been if—</intro><level class="para1" eId="schedule-1-paragraph-14-4-a"><num>(a)</num><content>in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money's worth or other benefit provided, during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-14-4-b"><num>(b)</num><content>in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.</content></level></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-no-deduction-in-computing-profits"><heading>No deduction in computing profits</heading><paragraph eId="schedule-1-paragraph-15" class="schProv1"><num>15</num><content>No amount of bank payroll tax is to be taken into account in calculating profits or losses for the purposes of income tax or corporation tax.</content></paragraph></hcontainer>

<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-1-part-2"><num>Part 2</num><heading>Collection and management of tax</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-responsibility-for-collection-and-management"><heading>Responsibility for collection and management</heading><paragraph eId="schedule-1-paragraph-16" class="schProv1"><num>16</num><content>The Commissioners are responsible for the collection and management of bank payroll tax.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-due-date-for-payment"><heading>Due date for payment</heading><paragraph eId="schedule-1-paragraph-17" class="schProv1"><num>17</num><content>Bank payroll tax is payable by taxable companies on or before 31 August 2010.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-obligation-to-deliver-return"><heading>Obligation to deliver return</heading><paragraph eId="schedule-1-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-1-paragraph-18-1"><num>(1)</num><content>In order to establish the amount of bank payroll tax payable by it, every taxable company must deliver a return to HMRC.</content></subparagraph><subparagraph eId="schedule-1-paragraph-18-2"><num>(2)</num><content>The return must be delivered on or before 31 August 2010.</content></subparagraph><subparagraph eId="schedule-1-paragraph-18-3"><num>(3)</num><content>A return under this paragraph is referred to as a bank payroll tax return.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-content-etc-of-return"><heading>Content <abbr title="Et cetera" xml:lang="la">etc</abbr> of return</heading><paragraph eId="schedule-1-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-1-paragraph-19-1"><num>(1)</num><intro><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may publish requirements as to—</intro><level class="para1" eId="schedule-1-paragraph-19-1-a"><num>(a)</num><content>the information to be contained in bank payroll tax returns,</content></level><level class="para1" eId="schedule-1-paragraph-19-1-b"><num>(b)</num><content>the form in which they must be made,</content></level><level class="para1" eId="schedule-1-paragraph-19-1-c"><num>(c)</num><content>the manner in which they must be delivered, and</content></level><level class="para1" eId="schedule-1-paragraph-19-1-d"><num>(d)</num><content>the documents to be delivered with them.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-19-2"><num>(2)</num><intro>A bank payroll tax return must include—</intro><level class="para1" eId="schedule-1-paragraph-19-2-a"><num>(a)</num><content>an assessment (a “self-assessment”) of the amount of bank payroll tax payable by the taxable company on the basis of the information contained in it, and</content></level><level class="para1" eId="schedule-1-paragraph-19-2-b"><num>(b)</num><content>a declaration by the person making it that, to the best of that person's knowledge, it is correct and complete.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-failure-to-include-selfassessment"><heading>Failure to include self-assessment</heading><paragraph eId="schedule-1-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-1-paragraph-20-1"><num>(1)</num><content>If a taxable company delivers a bank payroll tax return but fails to include a self-assessment, <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may make the assessment on the company's behalf on the basis of the information contained in it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-20-2"><num>(2)</num><content>The assessment is treated for the purposes of this Schedule as a self-assessment and as included in the return.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-amendment-of-return-by-company"><heading>Amendment of return by company</heading><paragraph eId="schedule-1-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-1-paragraph-21-1"><num>(1)</num><content>A taxable company may amend its bank payroll tax return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-2"><num>(2)</num><content>An amendment under this paragraph is made by notice to <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> in such form, and accompanied by such information, as <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may reasonably require.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-3"><num>(3)</num><content>No such amendment may be made after 31 August 2011.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-4"><num>(4)</num><content>Nothing in sub-paragraph (1) permits a taxable company to amend its return to revise an amount determined under paragraph 7(2), 12(2) or 13(3) merely because the amount determined under that provision differs from the amount which is actually paid or provided (or loaned).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-correction-of-return-by-hmrc"><heading>Correction of return by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr></heading><paragraph eId="schedule-1-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-1-paragraph-22-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may amend a bank payroll tax return so as to correct obvious errors or omissions in it (whether errors of principle, arithmetical mistakes or otherwise).</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-2"><num>(2)</num><content>A correction under this paragraph is made by notice to the taxable company concerned.</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-3"><num>(3)</num><intro>No such correction may be made more than 9 months after—</intro><level class="para1" eId="schedule-1-paragraph-22-3-a"><num>(a)</num><content>the day on which the return was delivered, or</content></level><level class="para1" eId="schedule-1-paragraph-22-3-b"><num>(b)</num><content>if the correction is required in consequence of an amendment made under paragraph 21, the day on which that amendment was made.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-22-4"><num>(4)</num><content>A correction under this paragraph is of no effect if the taxable company gives notice rejecting it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-5"><num>(5)</num><intro>Notice of rejection must be given—</intro><level class="para1" eId="schedule-1-paragraph-22-5-a"><num>(a)</num><content>to the officer of Revenue and Customs by whom the correction notice was given, and</content></level><level class="para1" eId="schedule-1-paragraph-22-5-b"><num>(b)</num><content>before the end of the period of 30 days beginning with the date on which the correction notice was given.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-enquiry-into-return"><heading>Enquiry into return</heading><paragraph eId="schedule-1-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-1-paragraph-23-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may enquire into a bank payroll tax return if they give notice to the taxable company of their intention to do so within the time allowed.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-2"><num>(2)</num><content>If the return was delivered on or before 31 August 2010, notice of enquiry may be given at any time on or before 31 August 2011.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-3"><num>(3)</num><content>If the return was delivered after 31 August 2010, notice of enquiry may be given at any time up to and including whichever of 31 January, 30 April, 31 July or 31 October next follows the first anniversary of the day on which the return was delivered.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-4"><num>(4)</num><content>An enquiry extends to anything contained in the return or required to be contained in the return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-5"><num>(5)</num><intro>The following provisions of Schedule 18 to FA 1998 apply to an enquiry into a bank payroll tax return under this Schedule as they apply to an enquiry into a company tax return under that Schedule—</intro><level class="para1" eId="schedule-1-paragraph-23-5-a"><num>(a)</num><content>paragraph 24(4) to (5) (notice of enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-b"><num>(b)</num><content>paragraph 25(2) (enquiry following amendment by company) (but as if the reference there to paragraph 24(2) or (3) were to sub-paragraph (2) or (3) of this paragraph),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-c"><num>(c)</num><content>paragraph 31 (amendment of return by company during enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-d"><num>(d)</num><content>paragraphs 31A to 31D (referral of questions to the tribunal during enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-e"><num>(e)</num><content>paragraph 32(1) (completion of enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-f"><num>(f)</num><content>paragraph 33 (direction to complete enquiry), and</content></level><level class="para1" eId="schedule-1-paragraph-23-5-g"><num>(g)</num><content>paragraph 34 (amendment of return after enquiry).</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-determination-by-hmrc"><heading>Determination by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr></heading><paragraph eId="schedule-1-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-1-paragraph-24-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may determine to the best of their knowledge and belief the amount of bank payroll tax payable by a taxable company if the company has not delivered a bank payroll tax return on or before 31 August 2010.</content></subparagraph><subparagraph eId="schedule-1-paragraph-24-2"><num>(2)</num><intro>Notice of the determination—</intro><level class="para1" eId="schedule-1-paragraph-24-2-a"><num>(a)</num><content>must be served on the company, and</content></level><level class="para1" eId="schedule-1-paragraph-24-2-b"><num>(b)</num><content>must state the date on which it is given.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-24-3"><num>(3)</num><content>The amount determined by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> is taken to be the amount payable by the company (in the same way as if it were an assessment) unless and until the determination is superseded by a relevant assessment.</content></subparagraph><subparagraph eId="schedule-1-paragraph-24-4"><num>(4)</num><intro>A relevant assessment is an assessment—</intro><level class="para1" eId="schedule-1-paragraph-24-4-a"><num>(a)</num><content>included in a bank payroll tax return delivered by the company within the period of 12 months beginning with the date on which notice of the determination was given, or</content></level><level class="para1" eId="schedule-1-paragraph-24-4-b"><num>(b)</num><content>made by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> under paragraph 20 following delivery of such a return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-24-5"><num>(5)</num><intro>If—</intro><level class="para1" eId="schedule-1-paragraph-24-5-a"><num>(a)</num><content>proceedings have been commenced for the recovery of an amount determined by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> under this paragraph, and</content></level><level class="para1" eId="schedule-1-paragraph-24-5-b"><num>(b)</num><content>before the proceedings are concluded, the determination is superseded by a relevant assessment,</content></level><wrapUp>the proceedings may be continued as if they were proceedings for the recovery of so much of the tax shown in the assessment as has not been paid.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-24-6"><num>(6)</num><content>No determination may be made under this paragraph after 31 August 2013.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-discovery-assessment-by-hmrc"><heading>Discovery assessment by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr></heading><paragraph eId="schedule-1-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-1-paragraph-25-1"><num>(1)</num><intro>This paragraph applies if <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> discover, with respect to a taxable company, any of the following situations—</intro><level class="para1" eId="schedule-1-paragraph-25-1-a"><num>(a)</num><content>an amount which ought to have been assessed to bank payroll tax has not been assessed,</content></level><level class="para1" eId="schedule-1-paragraph-25-1-b"><num>(b)</num><content>an assessment to bank payroll tax is insufficient, or</content></level><level class="para1" eId="schedule-1-paragraph-25-1-c"><num>(c)</num><content>an amount of bank payroll tax has been repaid which ought not to have been repaid.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-25-2"><num>(2)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may make an assessment (a “discovery assessment”) in the amount or further amount which ought in their opinion to be charged or recovered in order to make good to the Crown the loss of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-3"><num>(3)</num><content>If the company has delivered a bank payroll tax return, <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may only make a discovery assessment if condition A or condition B is met.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-4"><num>(4)</num><content>Condition A is that the situation discovered by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> was brought about carelessly or deliberately by the company or a person acting on its behalf.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-5"><num>(5)</num><intro>Condition B is that <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> could not reasonably have been expected to be aware of the situation at the time when they—</intro><level class="para1" eId="schedule-1-paragraph-25-5-a"><num>(a)</num><content>ceased to be entitled to give notice of enquiry into the return, or</content></level><level class="para1" eId="schedule-1-paragraph-25-5-b"><num>(b)</num><content>completed their enquiries into the return.</content></level></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-26" class="schProv1"><num>26</num><intro>Notice of a discovery assessment—</intro><level class="para1" eId="schedule-1-paragraph-26-a"><num>(a)</num><content>must be served on the taxable company, and</content></level><level class="para1" eId="schedule-1-paragraph-26-b"><num>(b)</num><content>must state the date on which it is given and the time by which an appeal may be brought against it.</content></level></paragraph><paragraph eId="schedule-1-paragraph-27" class="schProv1"><num>27</num><subparagraph eId="schedule-1-paragraph-27-1"><num>(1)</num><content>No discovery assessment may be made after the relevant deadline.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-2"><num>(2)</num><intro>The relevant deadline is 5 April 2030 if the situation—</intro><level class="para1" eId="schedule-1-paragraph-27-2-a"><num>(a)</num><content>was brought about deliberately by the taxable company, or</content></level><level class="para1" eId="schedule-1-paragraph-27-2-b"><num>(b)</num><content>was attributable to the taxable company's careless failure to deliver a bank payroll tax return on or before 31 August 2010.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-27-3"><num>(3)</num><content>Subject to sub-paragraph (2)(b), the relevant deadline is 5 April 2016 if the situation was brought about carelessly by the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-4"><num>(4)</num><content>In all other cases, the relevant deadline is 5 April 2014.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-5"><num>(5)</num><intro>In this paragraph—</intro><level class="para1" eId="schedule-1-paragraph-27-5-a"><num>(a)</num><content>references to the situation are to the one discovered by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr>, and</content></level><level class="para1" eId="schedule-1-paragraph-27-5-b"><num>(b)</num><content>references to the taxable company include a person acting on the company's behalf.</content></level></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-1-paragraph-28-1"><num>(1)</num><content>If a discovery assessment is made with respect to a taxable company, the company may appeal against it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-28-2"><num>(2)</num><intro>Notice of appeal must be given—</intro><level class="para1" eId="schedule-1-paragraph-28-2-a"><num>(a)</num><content>in writing,</content></level><level class="para1" eId="schedule-1-paragraph-28-2-b"><num>(b)</num><content>within the period of 30 days beginning with the date on which notice of the assessment was given, and</content></level><level class="para1" eId="schedule-1-paragraph-28-2-c"><num>(c)</num><content>to the officer of Revenue and Customs by whom notice of the assessment was given.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-28-3"><num>(3)</num><content>Any objection to a discovery assessment on the ground that paragraph 25, 26 or 27 was not complied with can only be made on an appeal against the assessment under this paragraph.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-collection-and-recovery"><heading>Collection and recovery</heading><paragraph eId="schedule-1-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-1-paragraph-29-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may publish requirements as to the method or methods of payment to be used by taxable companies for paying bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-29-2"><num>(2)</num><content>Part 6 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (collection and recovery) applies in relation to a charge to bank payroll tax as it applies in relation to a charge to corporation tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-29-3"><num>(3)</num><content>See also Chapter 5 of Part 7 of FA 2008 (which makes general provision about payment and enforcement).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-interest-on-late-payments-and-repayments"><heading>Interest on late payments and repayments</heading><paragraph eId="schedule-1-paragraph-30" class="schProv1"><num>30</num><subparagraph eId="schedule-1-paragraph-30-1"><num>(1)</num><content>This paragraph applies if an order is made under section 104(3) of FA 2009 appointing a day on which sections 101 to 103 of that Act are to come into force for the purposes of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-30-2"><num>(2)</num><intro>Part 2 of Schedule 53 to that Act (which makes special provision about the late payment interest start date) has effect for those purposes as if—</intro><level class="para1" eId="schedule-1-paragraph-30-2-a"><num>(a)</num><content>the reference in paragraph 4(1) to income tax or capital gains tax included a reference to bank payroll tax, and</content></level><level class="para1" eId="schedule-1-paragraph-30-2-b"><num>(b)</num><content>the Part included a provision that the late payment interest start date in respect of an amount of bank payroll tax assessed and recoverable under paragraph 25(1)(c) of this Schedule is 31 August 2010.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-30-3"><num>(3)</num><content>Interest charged under section 101 of FA 2009 on an amount of bank payroll tax may be enforced as if it were an amount of bank payroll tax payable by the taxable company.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-overpaid-tax-etc"><heading>Overpaid tax <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-1-paragraph-31" class="schProv1"><num>31</num><subparagraph eId="schedule-1-paragraph-31-1"><num>(1)</num><content>Paragraphs 50 to 51G of Schedule 18 to FA 1998 (overpaid tax <abbr title="Et cetera" xml:lang="la">etc</abbr>) apply (so far as relevant) to bank payroll tax assessable for the chargeable period as they apply to corporation tax assessable for an accounting period, subject to the following modifications.</content></subparagraph><subparagraph eId="schedule-1-paragraph-31-2"><num>(2)</num><content>With respect to bank payroll tax, a claim under paragraph 51 may not be made after 31 August 2014.</content></subparagraph><subparagraph eId="schedule-1-paragraph-31-3"><num>(3)</num><intro>For the purposes of paragraph 51E, the relevant restrictions for making a discovery assessment under this Schedule are—</intro><level class="para1" eId="schedule-1-paragraph-31-3-a"><num>(a)</num><content>the conditions mentioned in paragraph 25(3), and</content></level><level class="para1" eId="schedule-1-paragraph-31-3-b"><num>(b)</num><content>expiry of the relevant deadline as defined in paragraph 27.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-31-4"><num>(4)</num><content>Nothing in sub-paragraph (1) permits a taxable company to make a claim under paragraph 51 of Schedule 18 to FA 1998 with respect to bank payroll tax merely because an amount determined under paragraph 7(2), 12(2) or 13(3) differs from the amount which is actually paid or provided (or loaned).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-appeals-and-other-proceedings"><heading>Appeals and other proceedings</heading><paragraph eId="schedule-1-paragraph-32" class="schProv1"><num>32</num><subparagraph eId="schedule-1-paragraph-32-1"><num>(1)</num><content>Part 5 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (appeals and other proceedings) applies in relation to an appeal against a discovery assessment to bank payroll tax as it applies in relation to an appeal against an assessment to corporation tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-32-2"><num>(2)</num><content>References in that Part to tax are to be read accordingly.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-1-paragraph-33-1"><num>(1)</num><content>Where a provision of FA 1998 is applied by this Part of this Schedule, a reference in section 46D of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (questions to be determined by the relevant tribunal) to that provision includes a reference to that provision as so applied.</content></subparagraph><subparagraph eId="schedule-1-paragraph-33-2"><num>(2)</num><content>A reference in section 48 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (application to appeals and other proceedings) to the Taxes Acts includes a reference to those Acts as applied by this Part of this Schedule.</content></subparagraph><subparagraph eId="schedule-1-paragraph-33-3"><num>(3)</num><intro>Where a provision of FA 1998 is applied by this Part of this Schedule—</intro><level class="para1" eId="schedule-1-paragraph-33-3-a"><num>(a)</num><content>a reference in section 55 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (recovery of tax not postponed) to that provision includes a reference to that provision as so applied, and</content></level><level class="para1" eId="schedule-1-paragraph-33-3-b"><num>(b)</num><content>references in that section to tax are to be read accordingly.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-obligation-to-preserve-records"><heading>Obligation to preserve records</heading><paragraph eId="schedule-1-paragraph-34" class="schProv1"><num>34</num><subparagraph eId="schedule-1-paragraph-34-1"><num>(1)</num><intro>Each taxable company must—</intro><level class="para1" eId="schedule-1-paragraph-34-1-a"><num>(a)</num><content>keep such records as may be needed to enable it to establish and verify the amount of bank payroll tax payable by it and to deliver a correct and complete bank payroll tax return, and</content></level><level class="para1" eId="schedule-1-paragraph-34-1-b"><num>(b)</num><content>preserve those records, and any other relevant records, until the end of 31 August 2016.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-2"><num>(2)</num><intro>Other relevant records are records that—</intro><level class="para1" eId="schedule-1-paragraph-34-2-a"><num>(a)</num><content>may be needed for a purpose mentioned in sub-paragraph (1)(a), and</content></level><level class="para1" eId="schedule-1-paragraph-34-2-b"><num>(b)</num><content>are in the company's possession or power immediately before the commencement of this Schedule.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-3"><num>(3)</num><intro>The obligation under sub-paragraph (1)(b) may be discharged by—</intro><level class="para1" eId="schedule-1-paragraph-34-3-a"><num>(a)</num><content>preserving the records in any form and by any means, or</content></level><level class="para1" eId="schedule-1-paragraph-34-3-b"><num>(b)</num><content>preserving the information contained in them in any form and by any means.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-4"><num>(4)</num><content>The obligation under sub-paragraph (1)(b) includes an obligation to preserve supporting documents (such as contracts, accounts and correspondence).</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-1-paragraph-35-1"><num>(1)</num><content>A taxable company which fails to comply with paragraph 34 is liable to a penalty of an amount not exceeding £3,000.</content></subparagraph><subparagraph eId="schedule-1-paragraph-35-2"><num>(2)</num><content>Sections 100 to 102 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 apply to a penalty under this paragraph as they apply to a penalty under section 12B(5) of that Act.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-information-powers"><heading>Information powers</heading><paragraph eId="schedule-1-paragraph-36" class="schProv1"><num>36</num><subparagraph eId="schedule-1-paragraph-36-1"><num>(1)</num><content>Schedule 36 to FA 2008 (information and inspection powers) has effect as if the definition of tax in paragraph 63(1) included bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-36-2"><num>(2)</num><intro>Paragraph 21 of that Schedule (taxpayer notices) applies where a taxable company has made a bank payroll tax return as it applies where a person has made a company tax return and, in relation to bank payroll tax—</intro><level class="para1" eId="schedule-1-paragraph-36-2-a"><num>(a)</num><content>a reference in that paragraph to a chargeable period is to the chargeable period within the meaning of this Schedule, and</content></level><level class="para1" eId="schedule-1-paragraph-36-2-b"><num>(b)</num><content>a reference in that paragraph to a notice of enquiry is to a notice of enquiry under paragraph 23 of this Schedule.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-penalties"><heading>Penalties</heading><paragraph eId="schedule-1-paragraph-37" class="schProv1"><num>37</num><subparagraph eId="schedule-1-paragraph-37-1"><num>(1)</num><intro>Schedule 24 to FA 2007 (penalties for errors) has effect as if in the Table in paragraph 1—</intro><level class="para1" eId="schedule-1-paragraph-37-1-a"><num>(a)</num><content>the list of taxes included bank payroll tax, and</content></level><level class="para1" eId="schedule-1-paragraph-37-1-b"><num>(b)</num><content>the list of documents included a bank payroll tax return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-37-2"><num>(2)</num><content>In relation to bank payroll tax, any reference in that Schedule to a tax period is to the chargeable period within the meaning of this Schedule.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-1-paragraph-38-1"><num>(1)</num><intro>Schedule 55 to FA 2009 (penalties for failure to make returns <abbr title="Et cetera" xml:lang="la">etc</abbr>) has effect as if—</intro><level class="para1" eId="schedule-1-paragraph-38-1-a"><num>(a)</num><content>a bank payroll tax return were specified in the Table in paragraph 1 (and bank payroll tax were specified in relation to it), and</content></level><level class="para1" eId="schedule-1-paragraph-38-1-b"><num>(b)</num><content>the reference in paragraph 2 to a return falling within certain items in the Table included a reference to a bank payroll tax return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-38-2"><num>(2)</num><content>Schedule 55 to FA 2009 has effect for the purposes of bank payroll tax in accordance with this paragraph whether or not it has come into force for other purposes.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-1-paragraph-39-1"><num>(1)</num><content>Schedule 56 to FA 2009 (penalties for failure to make payments on time <abbr title="Et cetera" xml:lang="la">etc</abbr>) has effect for the purposes of bank payroll tax as follows.</content></subparagraph><subparagraph eId="schedule-1-paragraph-39-2"><num>(2)</num><intro>The part of the Table in paragraph 1 headed “Principal amounts” has effect as if bank payroll tax were specified in column 2 and, in relation to that tax—</intro><level class="para1" eId="schedule-1-paragraph-39-2-a"><num>(a)</num><content>an amount shown (or treated as shown) in a bank payroll tax return were specified in column 3, and</content></level><level class="para1" eId="schedule-1-paragraph-39-2-b"><num>(b)</num><content>31 August 2010 were specified in column 4.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-39-3"><num>(3)</num><intro>The part of that Table headed “Amounts payable in default of a return being made” has effect as if bank payroll tax were specified in column 2 and, in relation to that tax—</intro><level class="para1" eId="schedule-1-paragraph-39-3-a"><num>(a)</num><content>an amount shown in a determination under paragraph 24 of this Schedule were specified in column 3, and</content></level><level class="para1" eId="schedule-1-paragraph-39-3-b"><num>(b)</num><content>31 August 2010 were specified in column 4.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-39-4"><num>(4)</num><intro>The part of that Table headed “Amount shown to be due in other assessments, determinations, <abbr title="Et cetera" xml:lang="la">etc</abbr>” has effect as if—</intro><level class="para1" eId="schedule-1-paragraph-39-4-a"><num>(a)</num><content>bank payroll tax were a tax falling within any of items 1 to 6, 9 or 10, and</content></level><level class="para1" eId="schedule-1-paragraph-39-4-b"><num>(b)</num><content>an amount shown (or treated as shown) in a bank payroll tax return were an amount falling within any of those items.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-39-5"><num>(5)</num><content>Paragraph 2 (assessments and determinations in default of return) has effect as if the reference in paragraph (a) to a return falling within any item in the Table in Schedule 55 included a reference to a bank payroll tax return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-39-6"><num>(6)</num><content>Paragraph 3 (amount of penalty) has effect as if sub-paragraph (1)(a) included a reference to a payment of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-39-7"><num>(7)</num><content>Schedule 56 to FA 2009 has effect for the purposes of bank payroll tax in accordance with this paragraph whether or not it has come into force for other purposes.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-miscellaneous"><heading>Miscellaneous</heading><paragraph eId="schedule-1-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-1-paragraph-40-1"><num>(1)</num><intro>The following provisions of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 apply for the purposes of bank payroll tax and this Schedule as they apply for the purposes of corporation tax and the Taxes Acts—</intro><level class="para1" eId="schedule-1-paragraph-40-1-a"><num>(a)</num><content>section 108 (responsibility of company officers),</content></level><level class="para1" eId="schedule-1-paragraph-40-1-b"><num>(b)</num><content>section 112 (loss, destruction or damage to assessments, returns <abbr title="Et cetera" xml:lang="la">etc</abbr>),</content></level><level class="para1" eId="schedule-1-paragraph-40-1-c"><num>(c)</num><content>section 114 (want of form), and</content></level><level class="para1" eId="schedule-1-paragraph-40-1-d"><num>(d)</num><content>section 115 (delivery and service of documents).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-40-2"><num>(2)</num><content>The application of section 115 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 in relation to the delivery of bank payroll tax returns is subject to any requirements published under paragraph 19(1) of this Schedule.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-41" class="schProv1"><num>41</num><content>Chapter 6 of Part 22 of CTA 2010 (collection <abbr title="Et cetera" xml:lang="la">etc</abbr> of tax from <abbr class="acronym" title="United Kingdom">UK</abbr> representatives of non-UK resident companies) applies to this Part of this Schedule as it applies to enactments relating to corporation tax.</content></paragraph><paragraph eId="schedule-1-paragraph-42" class="schProv1"><num>42</num><content>Section 118(5) to (7) of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (meaning of carelessly <abbr title="Et cetera" xml:lang="la">etc</abbr>) applies for the interpretation of this Part of this Schedule, with references to tax being read as references to bank payroll tax.</content></paragraph></hcontainer></part>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-vata-1994" eId="term-vata-1994"><abbr class="acronym" title="Value Added Tax Act">VATA</abbr> 1994</term>” means the Value Added Tax Act 1994;</content></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-16" class="schProv1"><num>16</num><content>The Commissioners are responsible for the collection and management of bank payroll tax.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-1-paragraph-19-1"><num>(1)</num><intro><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may publish requirements as to—</intro><level class="para1" eId="schedule-1-paragraph-19-1-a"><num>(a)</num><content>the information to be contained in bank payroll tax returns,</content></level><level class="para1" eId="schedule-1-paragraph-19-1-b"><num>(b)</num><content>the form in which they must be made,</content></level><level class="para1" eId="schedule-1-paragraph-19-1-c"><num>(c)</num><content>the manner in which they must be delivered, and</content></level><level class="para1" eId="schedule-1-paragraph-19-1-d"><num>(d)</num><content>the documents to be delivered with them.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-19-2"><num>(2)</num><intro>A bank payroll tax return must include—</intro><level class="para1" eId="schedule-1-paragraph-19-2-a"><num>(a)</num><content>an assessment (a “self-assessment”) of the amount of bank payroll tax payable by the taxable company on the basis of the information contained in it, and</content></level><level class="para1" eId="schedule-1-paragraph-19-2-b"><num>(b)</num><content>a declaration by the person making it that, to the best of that person's knowledge, it is correct and complete.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-1-paragraph-22-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may amend a bank payroll tax return so as to correct obvious errors or omissions in it (whether errors of principle, arithmetical mistakes or otherwise).</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-2"><num>(2)</num><content>A correction under this paragraph is made by notice to the taxable company concerned.</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-3"><num>(3)</num><intro>No such correction may be made more than 9 months after—</intro><level class="para1" eId="schedule-1-paragraph-22-3-a"><num>(a)</num><content>the day on which the return was delivered, or</content></level><level class="para1" eId="schedule-1-paragraph-22-3-b"><num>(b)</num><content>if the correction is required in consequence of an amendment made under paragraph 21, the day on which that amendment was made.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-22-4"><num>(4)</num><content>A correction under this paragraph is of no effect if the taxable company gives notice rejecting it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-5"><num>(5)</num><intro>Notice of rejection must be given—</intro><level class="para1" eId="schedule-1-paragraph-22-5-a"><num>(a)</num><content>to the officer of Revenue and Customs by whom the correction notice was given, and</content></level><level class="para1" eId="schedule-1-paragraph-22-5-b"><num>(b)</num><content>before the end of the period of 30 days beginning with the date on which the correction notice was given.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-1-paragraph-25-1"><num>(1)</num><intro>This paragraph applies if <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> discover, with respect to a taxable company, any of the following situations—</intro><level class="para1" eId="schedule-1-paragraph-25-1-a"><num>(a)</num><content>an amount which ought to have been assessed to bank payroll tax has not been assessed,</content></level><level class="para1" eId="schedule-1-paragraph-25-1-b"><num>(b)</num><content>an assessment to bank payroll tax is insufficient, or</content></level><level class="para1" eId="schedule-1-paragraph-25-1-c"><num>(c)</num><content>an amount of bank payroll tax has been repaid which ought not to have been repaid.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-25-2"><num>(2)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may make an assessment (a “discovery assessment”) in the amount or further amount which ought in their opinion to be charged or recovered in order to make good to the Crown the loss of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-3"><num>(3)</num><content>If the company has delivered a bank payroll tax return, <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may only make a discovery assessment if condition A or condition B is met.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-4"><num>(4)</num><content>Condition A is that the situation discovered by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> was brought about carelessly or deliberately by the company or a person acting on its behalf.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-5"><num>(5)</num><intro>Condition B is that <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> could not reasonably have been expected to be aware of the situation at the time when they—</intro><level class="para1" eId="schedule-1-paragraph-25-5-a"><num>(a)</num><content>ceased to be entitled to give notice of enquiry into the return, or</content></level><level class="para1" eId="schedule-1-paragraph-25-5-b"><num>(b)</num><content>completed their enquiries into the return.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-31" class="schProv1"><num>31</num><subparagraph eId="schedule-1-paragraph-31-1"><num>(1)</num><content>Paragraphs 50 to 51G of Schedule 18 to FA 1998 (overpaid tax <abbr title="Et cetera" xml:lang="la">etc</abbr>) apply (so far as relevant) to bank payroll tax assessable for the chargeable period as they apply to corporation tax assessable for an accounting period, subject to the following modifications.</content></subparagraph><subparagraph eId="schedule-1-paragraph-31-2"><num>(2)</num><content>With respect to bank payroll tax, a claim under paragraph 51 may not be made after 31 August 2014.</content></subparagraph><subparagraph eId="schedule-1-paragraph-31-3"><num>(3)</num><intro>For the purposes of paragraph 51E, the relevant restrictions for making a discovery assessment under this Schedule are—</intro><level class="para1" eId="schedule-1-paragraph-31-3-a"><num>(a)</num><content>the conditions mentioned in paragraph 25(3), and</content></level><level class="para1" eId="schedule-1-paragraph-31-3-b"><num>(b)</num><content>expiry of the relevant deadline as defined in paragraph 27.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-31-4"><num>(4)</num><content>Nothing in sub-paragraph (1) permits a taxable company to make a claim under paragraph 51 of Schedule 18 to FA 1998 with respect to bank payroll tax merely because an amount determined under paragraph 7(2), 12(2) or 13(3) differs from the amount which is actually paid or provided (or loaned).</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-1-paragraph-40-1"><num>(1)</num><intro>The following provisions of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 apply for the purposes of bank payroll tax and this Schedule as they apply for the purposes of corporation tax and the Taxes Acts—</intro><level class="para1" eId="schedule-1-paragraph-40-1-a"><num>(a)</num><content>section 108 (responsibility of company officers),</content></level><level class="para1" eId="schedule-1-paragraph-40-1-b"><num>(b)</num><content>section 112 (loss, destruction or damage to assessments, returns <abbr title="Et cetera" xml:lang="la">etc</abbr>),</content></level><level class="para1" eId="schedule-1-paragraph-40-1-c"><num>(c)</num><content>section 114 (want of form), and</content></level><level class="para1" eId="schedule-1-paragraph-40-1-d"><num>(d)</num><content>section 115 (delivery and service of documents).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-40-2"><num>(2)</num><content>The application of section 115 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 in relation to the delivery of bank payroll tax returns is subject to any requirements published under paragraph 19(1) of this Schedule.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-9" class="schProv1"><num>9</num><content>The amendments made by this Schedule have effect in relation to any disposal made to a charity on or after 15 December 2009.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-1" class="schProv1"><num>1</num><content>Chapter 1 of Part 13 of ITA 2007 (transactions in securities: income tax advantages) is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-17-paragraph-6" class="schProv1"><num>6</num><content><mod>After section 313 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e19882"><num>313ZA</num><heading>Duty to provide details of clients</heading><subsection eId="d25e19886"><num>(1)</num><intro>This section applies where a person who is a promoter in relation to notifiable arrangements is providing (or has provided) services to any person (“the client”) in connection with the notifiable arrangements and either—</intro><level class="para1" eId="d25e19892"><num>(a)</num><content>the promoter is subject to the reference number information requirement, or</content></level><level class="para1" eId="d25e19898"><num>(b)</num><content>the promoter has failed to comply with section 308(1) or (3) in relation to the notifiable arrangements (or the notifiable proposal for them) but would be subject to the reference number information requirement if a reference number had been allocated to the notifiable arrangements.</content></level></subsection><subsection eId="d25e19904"><num>(2)</num><content>For the purposes of this section “the reference number information requirement” is the requirement under section 312(2) to provide to the client prescribed information relating to the reference number allocated to the notifiable arrangements.</content></subsection><subsection eId="d25e19910"><num>(3)</num><content>The promoter must, within the prescribed period after the end of the relevant period, provide HMRC with prescribed information in relation to the client.</content></subsection><subsection eId="d25e19916"><num>(4)</num><content>In subsection (3) “the relevant period” means such period during which the promoter is or would be subject to the reference number information requirement as is prescribed.</content></subsection><subsection eId="d25e19922"><num>(5)</num><content>The promoter need not comply with subsection (3) in relation to any notifiable arrangements at any time after HMRC have given notice under section 312(6) in relation to the notifiable arrangements.</content></subsection></section></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-17-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-17-paragraph-11-1"><num>(1)</num><content>The amendments made by this Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint.</content></subparagraph><subparagraph eId="schedule-17-paragraph-11-2"><num>(2)</num><content>An order may appoint different days for different provisions or for different purposes.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-26" class="schProv1"><num>26</num><intro>Notice of a discovery assessment—</intro><level class="para1" eId="schedule-1-paragraph-26-a"><num>(a)</num><content>must be served on the taxable company, and</content></level><level class="para1" eId="schedule-1-paragraph-26-b"><num>(b)</num><content>must state the date on which it is given and the time by which an appeal may be brought against it.</content></level></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-41" class="schProv1"><num>41</num><content>Chapter 6 of Part 22 of CTA 2010 (collection <abbr title="Et cetera" xml:lang="la">etc</abbr> of tax from <abbr class="acronym" title="United Kingdom">UK</abbr> representatives of non-UK resident companies) applies to this Part of this Schedule as it applies to enactments relating to corporation tax.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-7-paragraph-10" class="schProv1"><num>10</num><content>Amendments corresponding to the ones made by paragraphs 6 and 7, having effect in relation to any such disposal, are to be treated as having been made in section 587B of ICTA.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-2" class="schProv1"><num>2</num><content><mod>For sections 682 to 694 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e16025"><heading>Introduction</heading><section eId="d25e16031"><num>682</num><heading>Overview of Chapter</heading><content>This Chapter makes provision for counteracting income tax advantages from transactions in securities.</content></section><section eId="d25e16040"><num>683</num><heading>Provisions of Chapter</heading><subsection eId="d25e16044"><num>(1)</num><content>Sections 684 to 687 specify when a person is liable to counteraction of income tax advantages from transactions in securities.</content></subsection><subsection eId="d25e16050"><num>(2)</num><content>Sections 695 to 700 make provision about the procedure for counteraction of such income tax advantages.</content></subsection><subsection eId="d25e16056"><num>(3)</num><content>Sections 701 and 702 make provision for a clearance procedure.</content></subsection><subsection eId="d25e16062"><num>(4)</num><content>Section 705 makes provision for appeals against counteraction notices.</content></subsection><subsection eId="d25e16068"><num>(5)</num><content>Sections 712 deals with cases in which a person liable to counteraction dies.</content></subsection><subsection eId="d25e16074"><num>(6)</num><content>Section 713 contains interpretative provisions.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e16080"><heading>Person liable to counteraction of income tax advantages</heading><section eId="d25e16086"><num>684</num><heading>Person liable to counteraction of income tax advantage</heading><subsection eId="d25e16090"><num>(1)</num><intro>This section applies to a person where—</intro><level class="para1" eId="d25e16096"><num>(a)</num><content>the person is a party to a transaction in securities or two or more transactions in securities (see subsection (2)),</content></level><level class="para1" eId="d25e16102"><num>(b)</num><content>the circumstances are covered by section 685 and not excluded by section 686,</content></level><level class="para1" eId="d25e16108"><num>(c)</num><content>the main purpose, or one of the main purposes, of the person in being a party to the transaction in securities, or any of the transactions in securities, is to obtain an income tax advantage, and</content></level><level class="para1" eId="d25e16114"><num>(d)</num><content>the person obtains an income tax advantage in consequence of the transaction or the combined effect of the transactions.</content></level></subsection><subsection eId="d25e16120"><num>(2)</num><intro>In this Chapter “transaction in securities” means a transaction, of whatever description, relating to securities, and includes in particular—</intro><level class="para1" eId="d25e16126"><num>(a)</num><content>the purchase, sale or exchange of securities,</content></level><level class="para1" eId="d25e16132"><num>(b)</num><content>issuing or securing the issue of new securities,</content></level><level class="para1" eId="d25e16138"><num>(c)</num><content>applying or subscribing for new securities, and</content></level><level class="para1" eId="d25e16144"><num>(d)</num><content>altering or securing the alteration of the rights attached to securities.</content></level></subsection><subsection eId="d25e16150"><num>(3)</num><content>Section 687 defines “income tax advantage”.</content></subsection><subsection eId="d25e16156"><num>(4)</num><content>This section is subject to—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>section 696(3) (disapplication of this section where person receiving preliminary notification that section 684 may apply makes statutory declaration and relevant officer of Revenue and Customs sees no reason to take further action), and</item><item>section 697(5) (determination by tribunal that there is no prima facie case that section 684 applies).</item></blockList></content></subsection></section><section eId="d25e16174"><num>685</num><heading>Receipt of consideration in connection with distribution by or assets of close company</heading><subsection eId="d25e16178"><num>(1)</num><content>The circumstances covered by this section are circumstances where condition A or condition B is met.</content></subsection><subsection eId="d25e16184"><num>(2)</num><intro>Condition A is that, as a result of the transaction in securities or any one or more of the transactions in securities, the person receives relevant consideration in connection with—</intro><level class="para1" eId="d25e16190"><num>(a)</num><content>the distribution, transfer or realisation of assets of a close company,</content></level><level class="para1" eId="d25e16196"><num>(b)</num><content>the application of assets of a close company in discharge of liabilities, or</content></level><level class="para1" eId="d25e16202"><num>(c)</num><content>the direct or indirect transfer of assets of one close company to another close company,</content></level><wrapUp>and does not pay or bear income tax on the consideration (apart from this Chapter).</wrapUp></subsection><subsection eId="d25e16210"><num>(3)</num><intro>Condition B is that—</intro><level class="para1" eId="d25e16216"><num>(a)</num><content>the person receives relevant consideration in connection with the transaction in securities or any one or more of the transactions in securities,</content></level><level class="para1" eId="d25e16222"><num>(b)</num><content>two or more close companies are concerned in the transaction or transactions in securities concerned, and</content></level><level class="para1" eId="d25e16228"><num>(c)</num><content>the person does not pay or bear income tax on the consideration (apart from this Chapter).</content></level></subsection><subsection eId="d25e16234"><num>(4)</num><intro>In a case within subsection (2)(a) or (b) “relevant consideration” means consideration which—</intro><level class="para1" eId="d25e16240"><num>(a)</num><intro>is or represents the value of—</intro><level class="para2" eId="d25e16246"><num>(i)</num><content>assets which are available for distribution by way of dividend by the company, or</content></level><level class="para2" eId="d25e16252"><num>(ii)</num><content>assets which would have been so available apart from anything done by the company,</content></level></level><level class="para1" eId="d25e16258"><num>(b)</num><content>is received in respect of future receipts of the company, or</content></level><level class="para1" eId="d25e16264"><num>(c)</num><content>is or represents the value of trading stock of the company.</content></level></subsection><subsection eId="d25e16270"><num>(5)</num><intro>In a case within subsection (2)(c) or (3) “relevant consideration” means consideration which consists of any share capital or any security issued by a close company and which is or represents the value of assets which—</intro><level class="para1" eId="d25e16276"><num>(a)</num><content>are available for distribution by way of dividend by the company,</content></level><level class="para1" eId="d25e16282"><num>(b)</num><content>would have been so available apart from anything done by the company, or</content></level><level class="para1" eId="d25e16288"><num>(c)</num><content>are trading stock of the company.</content></level></subsection><subsection eId="d25e16294"><num>(6)</num><content>The references in subsection (2)(a) and (b) to assets do not include assets which are shown to represent a return of sums paid by subscribers on the issue of securities, despite the fact that under the law of the country in which the company is incorporated assets of that description are available for distribution by way of dividend.</content></subsection><subsection eId="d25e16300"><num>(7)</num><content>So far as subsection (2)(c) or (3) relates to share capital other than redeemable share capital, it applies only so far as the share capital is repaid (on a winding up or otherwise); and for this purpose any distribution made in respect of any shares on a winding up or dissolution of the company is to be treated as a repayment of share capital.</content></subsection><subsection eId="d25e16306"><num>(8)</num><content>References in this section to the receipt of consideration include references to the receipt of any money or money’s worth.</content></subsection><subsection eId="d25e16312"><num>(9)</num><intro>In this section—</intro><hcontainer name="definition"><content>“security” includes securities not creating or evidencing a charge on assets;</content></hcontainer><hcontainer name="definition"><content>“share” includes stock and any other interest of a member in a company.</content></hcontainer></subsection></section><section eId="d25e16330"><num>686</num><heading>Excluded circumstances: fundamental change of ownership</heading><subsection eId="d25e16334"><num>(1)</num><intro>Circumstances are excluded by this section if—</intro><level class="para1" eId="d25e16340"><num>(a)</num><content>immediately before the transaction in securities (or the first of the transactions in securities) the person (referred to in this section as “the party”) holds shares or an interest in shares in the close company, and</content></level><level class="para1" eId="d25e16346"><num>(b)</num><content>there is a fundamental change of ownership of the close company.</content></level></subsection><subsection eId="d25e16352"><num>(2)</num><intro>There is a fundamental change of ownership of the close company if—</intro><level class="para1" eId="d25e16358"><num>(a)</num><content>as a result of the transaction or transactions in securities, conditions A, B and C are met, and</content></level><level class="para1" eId="d25e16364"><num>(b)</num><content>those conditions continue to be met for a period of 2 years.</content></level></subsection><subsection eId="d25e16370"><num>(3)</num><intro>Condition A is that at least 75% of the ordinary share capital of the close company is held beneficially by—</intro><level class="para1" eId="d25e16376"><num>(a)</num><content>a person who is not connected with the party and has not been so connected within the period of 2 years ending with the day on which the transaction in securities (or the first of the transactions in securities) takes place, or</content></level><level class="para1" eId="d25e16382"><num>(b)</num><content>persons none of whom is so connected or has been so connected within that period.</content></level></subsection><subsection eId="d25e16388"><num>(4)</num><content>Condition B is that shares in the close company held by that person or those persons carry an entitlement to at least 75% of the distributions which may be made by the company.</content></subsection><subsection eId="d25e16394"><num>(5)</num><content>Condition C is that shares so held carry at least 75% of the total voting rights in the close company.</content></subsection></section><section eId="d25e16403"><num>687</num><heading>Income tax advantage</heading><subsection eId="d25e16407"><num>(1)</num><intro>For the purposes of this Chapter the person obtains an income tax advantage if—</intro><level class="para1" eId="d25e16413"><num>(a)</num><content>the amount of any income tax which would be payable by the person in respect of the relevant consideration if it constituted a qualifying distribution exceeds the amount of any capital gains tax payable in respect of it, or</content></level><level class="para1" eId="d25e16419"><num>(b)</num><content>income tax would be payable by the person in respect of the relevant consideration if it constituted a qualifying distribution and no capital gains tax is payable in respect of it.</content></level></subsection><subsection eId="d25e16425"><num>(2)</num><content>So much of the relevant consideration as exceeds the maximum amount that could in any circumstances have been paid to the person by way of a qualifying distribution at the time when the relevant consideration is received is to be left out of account for the purposes of subsection (1).</content></subsection><subsection eId="d25e16431"><num>(3)</num><content>The amount of the income tax advantage is the amount of the excess or (if no capital gains tax is payable) the amount of the income tax which would be payable.</content></subsection><subsection eId="d25e16437"><num>(4)</num><content>In this section “relevant consideration” has the same meaning as in section 685.</content></subsection></section></hcontainer></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-17-paragraph-7" class="schProv1"><num>7</num><content>In section 316 (information to be provided in manner and form specified by HMRC), for “and 313(1) and (3)” substitute “, 313(1) and (3) and 313ZA(3)”.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-27" class="schProv1"><num>27</num><subparagraph eId="schedule-1-paragraph-27-1"><num>(1)</num><content>No discovery assessment may be made after the relevant deadline.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-2"><num>(2)</num><intro>The relevant deadline is 5 April 2030 if the situation—</intro><level class="para1" eId="schedule-1-paragraph-27-2-a"><num>(a)</num><content>was brought about deliberately by the taxable company, or</content></level><level class="para1" eId="schedule-1-paragraph-27-2-b"><num>(b)</num><content>was attributable to the taxable company's careless failure to deliver a bank payroll tax return on or before 31 August 2010.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-27-3"><num>(3)</num><content>Subject to sub-paragraph (2)(b), the relevant deadline is 5 April 2016 if the situation was brought about carelessly by the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-4"><num>(4)</num><content>In all other cases, the relevant deadline is 5 April 2014.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-5"><num>(5)</num><intro>In this paragraph—</intro><level class="para1" eId="schedule-1-paragraph-27-5-a"><num>(a)</num><content>references to the situation are to the one discovered by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr>, and</content></level><level class="para1" eId="schedule-1-paragraph-27-5-b"><num>(b)</num><content>references to the taxable company include a person acting on the company's behalf.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-42" class="schProv1"><num>42</num><content>Section 118(5) to (7) of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (meaning of carelessly <abbr title="Et cetera" xml:lang="la">etc</abbr>) applies for the interpretation of this Part of this Schedule, with references to tax being read as references to bank payroll tax.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-3" class="schProv1"><num>3</num><intro>In section 698(6) (counteraction notices), omit—</intro><level class="para1" eId="schedule-12-paragraph-3-a"><num>(a)</num><content>the entry relating to section 699, and</content></level><level class="para1" eId="schedule-12-paragraph-3-b"><num>(b)</num><content>in the entry relating to section 700, “in section 690 cases”.</content></level></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-17-paragraph-8" class="schProv1"><num>8</num><content>In section 317(2) (regulations), after “may” insert “make different provision for different cases and may”.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-1-paragraph-28-1"><num>(1)</num><content>If a discovery assessment is made with respect to a taxable company, the company may appeal against it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-28-2"><num>(2)</num><intro>Notice of appeal must be given—</intro><level class="para1" eId="schedule-1-paragraph-28-2-a"><num>(a)</num><content>in writing,</content></level><level class="para1" eId="schedule-1-paragraph-28-2-b"><num>(b)</num><content>within the period of 30 days beginning with the date on which notice of the assessment was given, and</content></level><level class="para1" eId="schedule-1-paragraph-28-2-c"><num>(c)</num><content>to the officer of Revenue and Customs by whom notice of the assessment was given.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-28-3"><num>(3)</num><content>Any objection to a discovery assessment on the ground that paragraph 25, 26 or 27 was not complied with can only be made on an appeal against the assessment under this paragraph.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-4" class="schProv1"><num>4</num><content>Omit section 699 (limit on amount assessed in section 689 and 690 cases).</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-5" class="schProv1"><num>5</num><intro>In section 700 (timing of assessments in section 690 cases)—</intro><level class="para1" eId="schedule-12-paragraph-5-a"><num>(a)</num><content>in subsection (1), for “690 (receipt of relevant company assets (circumstance E))” substitute “685(2)(c) or (3)”, and</content></level><level class="para1" eId="schedule-12-paragraph-5-b"><num>(b)</num><content>in the heading, omit “in section 690 cases”.</content></level></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-6" class="schProv1"><num>6</num><content>In the heading before section 701, omit “and information powers”.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-12-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-12-paragraph-7-1"><num>(1)</num><content>Section 713 (interpretation) is amended as follows.</content></subparagraph><subparagraph eId="schedule-12-paragraph-7-2"><num>(2)</num><content><mod>Before the definition of “company” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“close company” includes a company that would be a close company if it were resident in the United Kingdom,</content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-12-paragraph-7-3"><num>(3)</num><content>Omit the definition of “transaction in securities”.</content></subparagraph></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-responsibility-for-collection-and-management"><heading>Responsibility for collection and management</heading><paragraph eId="schedule-1-paragraph-16" class="schProv1"><num>16</num><content>The Commissioners are responsible for the collection and management of bank payroll tax.</content></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-due-date-for-payment"><heading>Due date for payment</heading><paragraph eId="schedule-1-paragraph-17" class="schProv1"><num>17</num><content>Bank payroll tax is payable by taxable companies on or before 31 August 2010.</content></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-obligation-to-deliver-return"><heading>Obligation to deliver return</heading><paragraph eId="schedule-1-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-1-paragraph-18-1"><num>(1)</num><content>In order to establish the amount of bank payroll tax payable by it, every taxable company must deliver a return to HMRC.</content></subparagraph><subparagraph eId="schedule-1-paragraph-18-2"><num>(2)</num><content>The return must be delivered on or before 31 August 2010.</content></subparagraph><subparagraph eId="schedule-1-paragraph-18-3"><num>(3)</num><content>A return under this paragraph is referred to as a bank payroll tax return.</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-content-etc-of-return"><heading>Content <abbr title="Et cetera" xml:lang="la">etc</abbr> of return</heading><paragraph eId="schedule-1-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-1-paragraph-19-1"><num>(1)</num><intro><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may publish requirements as to—</intro><level class="para1" eId="schedule-1-paragraph-19-1-a"><num>(a)</num><content>the information to be contained in bank payroll tax returns,</content></level><level class="para1" eId="schedule-1-paragraph-19-1-b"><num>(b)</num><content>the form in which they must be made,</content></level><level class="para1" eId="schedule-1-paragraph-19-1-c"><num>(c)</num><content>the manner in which they must be delivered, and</content></level><level class="para1" eId="schedule-1-paragraph-19-1-d"><num>(d)</num><content>the documents to be delivered with them.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-19-2"><num>(2)</num><intro>A bank payroll tax return must include—</intro><level class="para1" eId="schedule-1-paragraph-19-2-a"><num>(a)</num><content>an assessment (a “self-assessment”) of the amount of bank payroll tax payable by the taxable company on the basis of the information contained in it, and</content></level><level class="para1" eId="schedule-1-paragraph-19-2-b"><num>(b)</num><content>a declaration by the person making it that, to the best of that person's knowledge, it is correct and complete.</content></level></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-failure-to-include-selfassessment"><heading>Failure to include self-assessment</heading><paragraph eId="schedule-1-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-1-paragraph-20-1"><num>(1)</num><content>If a taxable company delivers a bank payroll tax return but fails to include a self-assessment, <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may make the assessment on the company's behalf on the basis of the information contained in it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-20-2"><num>(2)</num><content>The assessment is treated for the purposes of this Schedule as a self-assessment and as included in the return.</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-amendment-of-return-by-company"><heading>Amendment of return by company</heading><paragraph eId="schedule-1-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-1-paragraph-21-1"><num>(1)</num><content>A taxable company may amend its bank payroll tax return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-2"><num>(2)</num><content>An amendment under this paragraph is made by notice to <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> in such form, and accompanied by such information, as <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may reasonably require.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-3"><num>(3)</num><content>No such amendment may be made after 31 August 2011.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-4"><num>(4)</num><content>Nothing in sub-paragraph (1) permits a taxable company to amend its return to revise an amount determined under paragraph 7(2), 12(2) or 13(3) merely because the amount determined under that provision differs from the amount which is actually paid or provided (or loaned).</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-correction-of-return-by-hmrc"><heading>Correction of return by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr></heading><paragraph eId="schedule-1-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-1-paragraph-22-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may amend a bank payroll tax return so as to correct obvious errors or omissions in it (whether errors of principle, arithmetical mistakes or otherwise).</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-2"><num>(2)</num><content>A correction under this paragraph is made by notice to the taxable company concerned.</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-3"><num>(3)</num><intro>No such correction may be made more than 9 months after—</intro><level class="para1" eId="schedule-1-paragraph-22-3-a"><num>(a)</num><content>the day on which the return was delivered, or</content></level><level class="para1" eId="schedule-1-paragraph-22-3-b"><num>(b)</num><content>if the correction is required in consequence of an amendment made under paragraph 21, the day on which that amendment was made.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-22-4"><num>(4)</num><content>A correction under this paragraph is of no effect if the taxable company gives notice rejecting it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-5"><num>(5)</num><intro>Notice of rejection must be given—</intro><level class="para1" eId="schedule-1-paragraph-22-5-a"><num>(a)</num><content>to the officer of Revenue and Customs by whom the correction notice was given, and</content></level><level class="para1" eId="schedule-1-paragraph-22-5-b"><num>(b)</num><content>before the end of the period of 30 days beginning with the date on which the correction notice was given.</content></level></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-enquiry-into-return"><heading>Enquiry into return</heading><paragraph eId="schedule-1-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-1-paragraph-23-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may enquire into a bank payroll tax return if they give notice to the taxable company of their intention to do so within the time allowed.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-2"><num>(2)</num><content>If the return was delivered on or before 31 August 2010, notice of enquiry may be given at any time on or before 31 August 2011.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-3"><num>(3)</num><content>If the return was delivered after 31 August 2010, notice of enquiry may be given at any time up to and including whichever of 31 January, 30 April, 31 July or 31 October next follows the first anniversary of the day on which the return was delivered.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-4"><num>(4)</num><content>An enquiry extends to anything contained in the return or required to be contained in the return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-5"><num>(5)</num><intro>The following provisions of Schedule 18 to FA 1998 apply to an enquiry into a bank payroll tax return under this Schedule as they apply to an enquiry into a company tax return under that Schedule—</intro><level class="para1" eId="schedule-1-paragraph-23-5-a"><num>(a)</num><content>paragraph 24(4) to (5) (notice of enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-b"><num>(b)</num><content>paragraph 25(2) (enquiry following amendment by company) (but as if the reference there to paragraph 24(2) or (3) were to sub-paragraph (2) or (3) of this paragraph),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-c"><num>(c)</num><content>paragraph 31 (amendment of return by company during enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-d"><num>(d)</num><content>paragraphs 31A to 31D (referral of questions to the tribunal during enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-e"><num>(e)</num><content>paragraph 32(1) (completion of enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-f"><num>(f)</num><content>paragraph 33 (direction to complete enquiry), and</content></level><level class="para1" eId="schedule-1-paragraph-23-5-g"><num>(g)</num><content>paragraph 34 (amendment of return after enquiry).</content></level></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-determination-by-hmrc"><heading>Determination by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr></heading><paragraph eId="schedule-1-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-1-paragraph-24-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may determine to the best of their knowledge and belief the amount of bank payroll tax payable by a taxable company if the company has not delivered a bank payroll tax return on or before 31 August 2010.</content></subparagraph><subparagraph eId="schedule-1-paragraph-24-2"><num>(2)</num><intro>Notice of the determination—</intro><level class="para1" eId="schedule-1-paragraph-24-2-a"><num>(a)</num><content>must be served on the company, and</content></level><level class="para1" eId="schedule-1-paragraph-24-2-b"><num>(b)</num><content>must state the date on which it is given.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-24-3"><num>(3)</num><content>The amount determined by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> is taken to be the amount payable by the company (in the same way as if it were an assessment) unless and until the determination is superseded by a relevant assessment.</content></subparagraph><subparagraph eId="schedule-1-paragraph-24-4"><num>(4)</num><intro>A relevant assessment is an assessment—</intro><level class="para1" eId="schedule-1-paragraph-24-4-a"><num>(a)</num><content>included in a bank payroll tax return delivered by the company within the period of 12 months beginning with the date on which notice of the determination was given, or</content></level><level class="para1" eId="schedule-1-paragraph-24-4-b"><num>(b)</num><content>made by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> under paragraph 20 following delivery of such a return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-24-5"><num>(5)</num><intro>If—</intro><level class="para1" eId="schedule-1-paragraph-24-5-a"><num>(a)</num><content>proceedings have been commenced for the recovery of an amount determined by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> under this paragraph, and</content></level><level class="para1" eId="schedule-1-paragraph-24-5-b"><num>(b)</num><content>before the proceedings are concluded, the determination is superseded by a relevant assessment,</content></level><wrapUp>the proceedings may be continued as if they were proceedings for the recovery of so much of the tax shown in the assessment as has not been paid.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-24-6"><num>(6)</num><content>No determination may be made under this paragraph after 31 August 2013.</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-discovery-assessment-by-hmrc"><heading>Discovery assessment by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr></heading><paragraph eId="schedule-1-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-1-paragraph-25-1"><num>(1)</num><intro>This paragraph applies if <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> discover, with respect to a taxable company, any of the following situations—</intro><level class="para1" eId="schedule-1-paragraph-25-1-a"><num>(a)</num><content>an amount which ought to have been assessed to bank payroll tax has not been assessed,</content></level><level class="para1" eId="schedule-1-paragraph-25-1-b"><num>(b)</num><content>an assessment to bank payroll tax is insufficient, or</content></level><level class="para1" eId="schedule-1-paragraph-25-1-c"><num>(c)</num><content>an amount of bank payroll tax has been repaid which ought not to have been repaid.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-25-2"><num>(2)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may make an assessment (a “discovery assessment”) in the amount or further amount which ought in their opinion to be charged or recovered in order to make good to the Crown the loss of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-3"><num>(3)</num><content>If the company has delivered a bank payroll tax return, <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may only make a discovery assessment if condition A or condition B is met.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-4"><num>(4)</num><content>Condition A is that the situation discovered by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> was brought about carelessly or deliberately by the company or a person acting on its behalf.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-5"><num>(5)</num><intro>Condition B is that <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> could not reasonably have been expected to be aware of the situation at the time when they—</intro><level class="para1" eId="schedule-1-paragraph-25-5-a"><num>(a)</num><content>ceased to be entitled to give notice of enquiry into the return, or</content></level><level class="para1" eId="schedule-1-paragraph-25-5-b"><num>(b)</num><content>completed their enquiries into the return.</content></level></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-26" class="schProv1"><num>26</num><intro>Notice of a discovery assessment—</intro><level class="para1" eId="schedule-1-paragraph-26-a"><num>(a)</num><content>must be served on the taxable company, and</content></level><level class="para1" eId="schedule-1-paragraph-26-b"><num>(b)</num><content>must state the date on which it is given and the time by which an appeal may be brought against it.</content></level></paragraph><paragraph eId="schedule-1-paragraph-27" class="schProv1"><num>27</num><subparagraph eId="schedule-1-paragraph-27-1"><num>(1)</num><content>No discovery assessment may be made after the relevant deadline.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-2"><num>(2)</num><intro>The relevant deadline is 5 April 2030 if the situation—</intro><level class="para1" eId="schedule-1-paragraph-27-2-a"><num>(a)</num><content>was brought about deliberately by the taxable company, or</content></level><level class="para1" eId="schedule-1-paragraph-27-2-b"><num>(b)</num><content>was attributable to the taxable company's careless failure to deliver a bank payroll tax return on or before 31 August 2010.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-27-3"><num>(3)</num><content>Subject to sub-paragraph (2)(b), the relevant deadline is 5 April 2016 if the situation was brought about carelessly by the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-4"><num>(4)</num><content>In all other cases, the relevant deadline is 5 April 2014.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-5"><num>(5)</num><intro>In this paragraph—</intro><level class="para1" eId="schedule-1-paragraph-27-5-a"><num>(a)</num><content>references to the situation are to the one discovered by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr>, and</content></level><level class="para1" eId="schedule-1-paragraph-27-5-b"><num>(b)</num><content>references to the taxable company include a person acting on the company's behalf.</content></level></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-1-paragraph-28-1"><num>(1)</num><content>If a discovery assessment is made with respect to a taxable company, the company may appeal against it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-28-2"><num>(2)</num><intro>Notice of appeal must be given—</intro><level class="para1" eId="schedule-1-paragraph-28-2-a"><num>(a)</num><content>in writing,</content></level><level class="para1" eId="schedule-1-paragraph-28-2-b"><num>(b)</num><content>within the period of 30 days beginning with the date on which notice of the assessment was given, and</content></level><level class="para1" eId="schedule-1-paragraph-28-2-c"><num>(c)</num><content>to the officer of Revenue and Customs by whom notice of the assessment was given.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-28-3"><num>(3)</num><content>Any objection to a discovery assessment on the ground that paragraph 25, 26 or 27 was not complied with can only be made on an appeal against the assessment under this paragraph.</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-collection-and-recovery"><heading>Collection and recovery</heading><paragraph eId="schedule-1-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-1-paragraph-29-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may publish requirements as to the method or methods of payment to be used by taxable companies for paying bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-29-2"><num>(2)</num><content>Part 6 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (collection and recovery) applies in relation to a charge to bank payroll tax as it applies in relation to a charge to corporation tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-29-3"><num>(3)</num><content>See also Chapter 5 of Part 7 of FA 2008 (which makes general provision about payment and enforcement).</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-interest-on-late-payments-and-repayments"><heading>Interest on late payments and repayments</heading><paragraph eId="schedule-1-paragraph-30" class="schProv1"><num>30</num><subparagraph eId="schedule-1-paragraph-30-1"><num>(1)</num><content>This paragraph applies if an order is made under section 104(3) of FA 2009 appointing a day on which sections 101 to 103 of that Act are to come into force for the purposes of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-30-2"><num>(2)</num><intro>Part 2 of Schedule 53 to that Act (which makes special provision about the late payment interest start date) has effect for those purposes as if—</intro><level class="para1" eId="schedule-1-paragraph-30-2-a"><num>(a)</num><content>the reference in paragraph 4(1) to income tax or capital gains tax included a reference to bank payroll tax, and</content></level><level class="para1" eId="schedule-1-paragraph-30-2-b"><num>(b)</num><content>the Part included a provision that the late payment interest start date in respect of an amount of bank payroll tax assessed and recoverable under paragraph 25(1)(c) of this Schedule is 31 August 2010.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-30-3"><num>(3)</num><content>Interest charged under section 101 of FA 2009 on an amount of bank payroll tax may be enforced as if it were an amount of bank payroll tax payable by the taxable company.</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-overpaid-tax-etc"><heading>Overpaid tax <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-1-paragraph-31" class="schProv1"><num>31</num><subparagraph eId="schedule-1-paragraph-31-1"><num>(1)</num><content>Paragraphs 50 to 51G of Schedule 18 to FA 1998 (overpaid tax <abbr title="Et cetera" xml:lang="la">etc</abbr>) apply (so far as relevant) to bank payroll tax assessable for the chargeable period as they apply to corporation tax assessable for an accounting period, subject to the following modifications.</content></subparagraph><subparagraph eId="schedule-1-paragraph-31-2"><num>(2)</num><content>With respect to bank payroll tax, a claim under paragraph 51 may not be made after 31 August 2014.</content></subparagraph><subparagraph eId="schedule-1-paragraph-31-3"><num>(3)</num><intro>For the purposes of paragraph 51E, the relevant restrictions for making a discovery assessment under this Schedule are—</intro><level class="para1" eId="schedule-1-paragraph-31-3-a"><num>(a)</num><content>the conditions mentioned in paragraph 25(3), and</content></level><level class="para1" eId="schedule-1-paragraph-31-3-b"><num>(b)</num><content>expiry of the relevant deadline as defined in paragraph 27.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-31-4"><num>(4)</num><content>Nothing in sub-paragraph (1) permits a taxable company to make a claim under paragraph 51 of Schedule 18 to FA 1998 with respect to bank payroll tax merely because an amount determined under paragraph 7(2), 12(2) or 13(3) differs from the amount which is actually paid or provided (or loaned).</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-appeals-and-other-proceedings"><heading>Appeals and other proceedings</heading><paragraph eId="schedule-1-paragraph-32" class="schProv1"><num>32</num><subparagraph eId="schedule-1-paragraph-32-1"><num>(1)</num><content>Part 5 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (appeals and other proceedings) applies in relation to an appeal against a discovery assessment to bank payroll tax as it applies in relation to an appeal against an assessment to corporation tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-32-2"><num>(2)</num><content>References in that Part to tax are to be read accordingly.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-1-paragraph-33-1"><num>(1)</num><content>Where a provision of FA 1998 is applied by this Part of this Schedule, a reference in section 46D of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (questions to be determined by the relevant tribunal) to that provision includes a reference to that provision as so applied.</content></subparagraph><subparagraph eId="schedule-1-paragraph-33-2"><num>(2)</num><content>A reference in section 48 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (application to appeals and other proceedings) to the Taxes Acts includes a reference to those Acts as applied by this Part of this Schedule.</content></subparagraph><subparagraph eId="schedule-1-paragraph-33-3"><num>(3)</num><intro>Where a provision of FA 1998 is applied by this Part of this Schedule—</intro><level class="para1" eId="schedule-1-paragraph-33-3-a"><num>(a)</num><content>a reference in section 55 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (recovery of tax not postponed) to that provision includes a reference to that provision as so applied, and</content></level><level class="para1" eId="schedule-1-paragraph-33-3-b"><num>(b)</num><content>references in that section to tax are to be read accordingly.</content></level></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7"><heading>Schemes about deemed foreign tax</heading><paragraph eId="schedule-11-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-11-paragraph-4-1"><num>(1)</num><content><mod>In TIOPA 2010, after section 85 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e15705"><num>85A</num><heading>Section 83(2) and (4): schemes involving deemed foreign tax</heading><subsection eId="d25e15709"><num>(1)</num><intro>This section applies to a scheme or arrangement if in relation to a claimant—</intro><level class="para1" eId="d25e15715"><num>(a)</num><content>an amount (“amount X”) is treated by virtue of a provision of the Tax Acts as if it were an amount of foreign tax paid or payable by the claimant in respect of a source of income, and</content></level><level class="para1" eId="d25e15721"><num>(b)</num><content>condition A or B is met.</content></level></subsection><subsection eId="d25e15727"><num>(2)</num><content>Condition A is met if, when the claimant entered into the scheme or arrangement, it could reasonably be expected that, under the scheme or arrangement, no real foreign tax would be paid or payable by a participant.</content></subsection><subsection eId="d25e15733"><num>(3)</num><intro>Condition B is met if, when the claimant entered into the scheme or arrangement, it could reasonably be expected that, under the scheme or arrangement—</intro><level class="para1" eId="d25e15739"><num>(a)</num><content>an amount of real foreign tax (“the RFT amount”) would be paid or payable by a participant, but</content></level><level class="para1" eId="d25e15745"><num>(b)</num><content>the effect on the foreign-tax total of the RFT amount being so paid or payable would be to increase the foreign-tax total by less than the amount allowable to the claimant as a credit in respect of amount X.</content></level></subsection><subsection eId="d25e15751"><num>(4)</num><intro>In this section—</intro><hcontainer name="definition"><content>“claimant” means a person who for a chargeable period has claimed, or is in a position to claim, for any credit that under the arrangements is to be allowed for foreign tax;</content></hcontainer><hcontainer name="definition"><content>“the foreign-tax total” has the meaning given by section 85(3), except that the reference to “the FT amount being paid or payable by C” must be read as a reference to “the RFT amount being paid or payable by any of them”;</content></hcontainer><hcontainer name="definition"><content>“income” includes a chargeable gain;</content></hcontainer><hcontainer name="definition"><content>“participant” means a person who is party to, or concerned in, the scheme or arrangement;</content></hcontainer><hcontainer name="definition"><intro>“real foreign tax” means—</intro><level class="para1"><num>(a)</num><content>in a case involving section 10 (accrued income profits), the foreign tax chargeable in respect of the interest on the securities, as mentioned in subsection (1)(c) of that section,</content></level><level class="para1"><num>(b)</num><content>in a case involving section 792 or 794 of CTA 2010 (manufactured overseas dividends), the foreign tax chargeable in respect of the overseas dividend of which the manufactured overseas dividend is representative, as mentioned in section 790 of that Act, and</content></level><level class="para1"><num>(c)</num><content>in any other case, the foreign tax chargeable in respect of the source of income of which the source mentioned in subsection (1)(a) is representative.</content></level></hcontainer></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-11-paragraph-4-2"><num>(2)</num><content>The amendment made by this paragraph has effect in relation to amounts treated as if they were amounts of foreign tax paid or payable on or after 21 October 2009.</content></subparagraph><subparagraph eId="schedule-11-paragraph-4-3"><num>(3)</num><content>A corresponding amendment, having effect in relation to such amounts, is to be treated as having been made in Schedule 28AB to ICTA.</content></subparagraph></paragraph></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-34" class="schProv1"><num>34</num><subparagraph eId="schedule-1-paragraph-34-1"><num>(1)</num><intro>Each taxable company must—</intro><level class="para1" eId="schedule-1-paragraph-34-1-a"><num>(a)</num><content>keep such records as may be needed to enable it to establish and verify the amount of bank payroll tax payable by it and to deliver a correct and complete bank payroll tax return, and</content></level><level class="para1" eId="schedule-1-paragraph-34-1-b"><num>(b)</num><content>preserve those records, and any other relevant records, until the end of 31 August 2016.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-2"><num>(2)</num><intro>Other relevant records are records that—</intro><level class="para1" eId="schedule-1-paragraph-34-2-a"><num>(a)</num><content>may be needed for a purpose mentioned in sub-paragraph (1)(a), and</content></level><level class="para1" eId="schedule-1-paragraph-34-2-b"><num>(b)</num><content>are in the company's possession or power immediately before the commencement of this Schedule.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-3"><num>(3)</num><intro>The obligation under sub-paragraph (1)(b) may be discharged by—</intro><level class="para1" eId="schedule-1-paragraph-34-3-a"><num>(a)</num><content>preserving the records in any form and by any means, or</content></level><level class="para1" eId="schedule-1-paragraph-34-3-b"><num>(b)</num><content>preserving the information contained in them in any form and by any means.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-4"><num>(4)</num><content>The obligation under sub-paragraph (1)(b) includes an obligation to preserve supporting documents (such as contracts, accounts and correspondence).</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-1-paragraph-45-1"><num>(1)</num><intro>A company is a “member of a banking group” at any time if—</intro><level class="para1" eId="schedule-1-paragraph-45-1-a"><num>(a)</num><content>it is within sub-paragraph (2) at that time, or</content></level><level class="para1" eId="schedule-1-paragraph-45-1-b"><num>(b)</num><content>it was within that sub-paragraph immediately before the chargeable period.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-2"><num>(2)</num><intro>A company is within this sub-paragraph if—</intro><level class="para1" eId="schedule-1-paragraph-45-2-a"><num>(a)</num><content>it is a member of a group,</content></level><level class="para1" eId="schedule-1-paragraph-45-2-b"><num>(b)</num><content>any of conditions A to C is met, and</content></level><level class="para1" eId="schedule-1-paragraph-45-2-c"><num>(c)</num><content>the group does not meet the exempt activities test.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-3"><num>(3)</num><content>Condition A is that the principal company of the group is a UK resident bank or a relevant foreign bank.</content></subparagraph><subparagraph eId="schedule-1-paragraph-45-4"><num>(4)</num><intro>Condition B is that—</intro><level class="para1" eId="schedule-1-paragraph-45-4-a"><num>(a)</num><content>the principal company of the group is a company which is not resident in the United Kingdom but which (if it were so resident) would be a UK resident bank, or</content></level><level class="para1" eId="schedule-1-paragraph-45-4-b"><num>(b)</num><content>the principal company of the group is a company which is not resident in the United Kingdom, and is a member of a partnership which is not so resident, but which (if both the company and the partnership were so resident) would be a UK resident bank,</content></level><wrapUp>and (in either case) any member of the group is a UK resident bank or a relevant foreign bank.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-45-5"><num>(5)</num><intro>Condition C is that—</intro><level class="para1" eId="schedule-1-paragraph-45-5-a"><num>(a)</num><content>the principal company is the holding company of another company, and</content></level><level class="para1" eId="schedule-1-paragraph-45-5-b"><num>(b)</num><content>if that other company were the principal company of the group, condition A or B would be met.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-6"><num>(6)</num><intro>For the purposes of condition C a company (“H”) is a “holding company” of another company (“S”) if—</intro><level class="para1" eId="schedule-1-paragraph-45-6-a"><num>(a)</num><content>H is an investment company, and</content></level><level class="para1" eId="schedule-1-paragraph-45-6-b"><num>(b)</num><intro>S is—</intro><level class="para2" eId="schedule-1-paragraph-45-6-b-i"><num>(i)</num><content>an effective 51% subsidiary of H, and</content></level><level class="para2" eId="schedule-1-paragraph-45-6-b-ii"><num>(ii)</num><content>not an effective 51% subsidiary of any company which is not an investment company.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-7"><num>(7)</num><content>A group meets the exempt activities test if at least 90% of the trading income of the group for the relevant period is derived from exempt activities.</content></subparagraph><subparagraph eId="schedule-1-paragraph-45-8"><num>(8)</num><intro>For this purpose—</intro><hcontainer name="definition"><intro>“exempt activities” means—</intro><level class="para1"><num>(a)</num><content>insurance activities, asset management activities and related activities, and</content></level><level class="para1"><num>(b)</num><content>activities carried on by a company which is not a financial trading company (or a company which would be a financial trading company if it were resident in the United Kingdom) other than lending activities or dealing on own account,</content></level></hcontainer><hcontainer name="definition"><content>“the relevant period”, in relation to a group, means the last period of account of the group ending no later than the end of the chargeable period, and</content></hcontainer><hcontainer name="definition"><content>“the trading income of the group” for the relevant period is to be calculated in accordance with paragraph 46.</content></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-45-9"><num>(9)</num><intro>In sub-paragraph (8)—</intro><hcontainer name="definition"><intro>“insurance activities” means—</intro><level class="para1"><num>(a)</num><content>the effecting or carrying out of contracts of insurance by a regulated insurer, and</content></level><level class="para1"><num>(b)</num><content>investment business that arises directly from activities falling within paragraph (a);</content></level></hcontainer><hcontainer name="definition"><intro>“lending activities” means—</intro><level class="para1"><num>(a)</num><content>acceptance of deposits or other repayable funds,</content></level><level class="para1"><num>(b)</num><content>lending of money, including consumer credit, mortgage credit, factoring (with or without recourse) and financing of commercial transactions (including forfeiting),</content></level><level class="para1"><num>(c)</num><content>finance leasing (as lessor),</content></level><level class="para1"><num>(d)</num><content>issuing and administering means of payment,</content></level><level class="para1"><num>(e)</num><content>provision of guarantees or commitments to provide money,</content></level><level class="para1"><num>(f)</num><content>money transmission services,</content></level><level class="para1"><num>(g)</num><content>provision of alternative finance arrangements, and</content></level><level class="para1"><num>(h)</num><content>other activities carried on in connection with activities falling within any of paragraphs (a) to (g);</content></level></hcontainer><hcontainer name="definition"><intro>“related activities” means—</intro><level class="para1"><num>(a)</num><content>activities which are ancillary to insurance activities or asset management activities of any company which is a member of the group (whether or not the company carrying on the insurance activities or asset management activities), and</content></level><level class="para1"><num>(b)</num><content>activities which would not be carried on but for such insurance activities or asset management activities being carried on,</content></level><wrapUp>but does not include dealing on own account.</wrapUp></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-45-10"><num>(10)</num><intro>In sub-paragraph (9)—</intro><hcontainer name="definition"><content>“activities” includes buying, holding, managing and selling assets;</content></hcontainer><hcontainer name="definition"><intro>“regulated insurer”, in relation to a group, means a member of the group that—</intro><level class="para1"><num>(a)</num><content>is authorised under the law of any territory to carry on insurance business, or</content></level><level class="para1"><num>(b)</num><content>is a member of a body or organisation which is so authorised.</content></level></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-45-11"><num>(11)</num><intro>A company which is a member of a banking group ceases to be a member of a banking group when it ceases to be within sub-paragraph (2), but only if it ceases to be within that provision as a result of—</intro><level class="para1" eId="schedule-1-paragraph-45-11-a"><num>(a)</num><content>an arm’s length transaction undertaken for wholly commercial purposes, or</content></level><level class="para1" eId="schedule-1-paragraph-45-11-b"><num>(b)</num><content>following a recommendation of a relevant regulatory body.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-12"><num>(12)</num><content>For the purposes of sub-paragraph (11) obtaining a tax advantage is not a commercial purpose.</content></subparagraph><subparagraph eId="schedule-1-paragraph-45-13"><num>(13)</num><intro>“Tax advantage” means—</intro><level class="para1" eId="schedule-1-paragraph-45-13-a"><num>(a)</num><content>a relief from tax or increased relief from tax (relief here including a tax credit),</content></level><level class="para1" eId="schedule-1-paragraph-45-13-b"><num>(b)</num><content>a repayment of tax or increased repayment of tax,</content></level><level class="para1" eId="schedule-1-paragraph-45-13-c"><num>(c)</num><content>the avoidance or reduction of a charge to tax or an assessment to tax (obtained in any way), or</content></level><level class="para1" eId="schedule-1-paragraph-45-13-d"><num>(d)</num><content>the avoidance of a possible assessment to tax (so obtained),</content></level><wrapUp>and, for this purpose, “tax” includes bank payroll tax and any other tax.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-45-14"><num>(14)</num><intro>In sub-paragraph (11) “relevant regulatory body” means—</intro><level class="para1" eId="schedule-1-paragraph-45-14-a"><num>(a)</num><content>the Financial Services Authority, or</content></level><level class="para1" eId="schedule-1-paragraph-45-14-b"><num>(b)</num><content>a body discharging functions under the law of a country or territory outside the United Kingdom corresponding to functions discharged by the Financial Services Authority.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-15"><num>(15)</num><content>In this paragraph “dealing on own account” has the same meaning as in Directive <ref eId="c00009" href="http://www.legislation.gov.uk/european/directive/2004/0039">2004/39/EC</ref> of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (see Article 4(1)(6)).</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-48" class="schProv1"><num>48</num><subparagraph eId="schedule-1-paragraph-48-1"><num>(1)</num><intro>“Financial trading company” means a company which—</intro><level class="para1" eId="schedule-1-paragraph-48-1-a"><num>(a)</num><content>is an authorised person for the purposes of FISMA 2000 (see section 31 of that Act), or</content></level><level class="para1" eId="schedule-1-paragraph-48-1-b"><num>(b)</num><content>is not within paragraph (a) but carries on a trade consisting wholly or partly in dealing in securities.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-48-2"><num>(2)</num><content>“UK resident financial trading company” means a financial trading company which is resident in the United Kingdom.</content></subparagraph><subparagraph eId="schedule-1-paragraph-48-3"><num>(3)</num><content>“Relevant foreign financial trading company” means a company which meets conditions A and B.</content></subparagraph><subparagraph eId="schedule-1-paragraph-48-4"><num>(4)</num><intro>Condition A is that the company—</intro><level class="para1" eId="schedule-1-paragraph-48-4-a"><num>(a)</num><content>is not resident in the United Kingdom, and</content></level><level class="para1" eId="schedule-1-paragraph-48-4-b"><num>(b)</num><content>carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-48-5"><num>(5)</num><content>Condition B is that, disregarding any activities of the company other than those carried on through that permanent establishment, the company is a financial trading company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-48-6"><num>(6)</num><intro>In this paragraph “securities” includes—</intro><level class="para1" eId="schedule-1-paragraph-48-6-a"><num>(a)</num><content>shares,</content></level><level class="para1" eId="schedule-1-paragraph-48-6-b"><num>(b)</num><content>rights of unit holders in unit trust schemes to which TCGA 1992 applies as a result of section 99 of that Act, and</content></level><level class="para1" eId="schedule-1-paragraph-48-6-c"><num>(c)</num><content>in the case of a company with no share capital, interests in the company possessed by members of the company.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-8" class="schProv1"><num>8</num><content>In section 129(1) of FA 1982 (stamp duty: exemption from duty on grants, transfers to charities etc), for “a body of persons established for charitable purposes only or to the trustees of a trust so established” substitute “a charitable company or to the trustees of a charitable trust”.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-11" class="schProv1"><num>11</num><intro>In section 90(7) of FA 1986 (stamp duty reserve tax: exceptions from principal charge)—</intro><level class="para1" eId="schedule-6-paragraph-11-a"><num>(a)</num><content>in paragraph (a), for “a body of persons established for charitable purposes only” substitute “a charitable company”, and</content></level><level class="para1" eId="schedule-6-paragraph-11-b"><num>(b)</num><content>in paragraph (b), for “a trust so established” substitute “a charitable trust”.</content></level></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-14" class="schProv1"><num>14</num><content>In section 35(3)(a) of F(No.2)A 1997 (transitional relief for charities) omit “(as defined in section 506(1) of the Taxes Act 1988)”.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-6-paragraph-17-1"><num>(1)</num><content>ITEPA 2003 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-2"><num>(2)</num><content>In section 99(3)(b)(ii) (accommodation provided for performance of duties), for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-3"><num>(3)</num><content>In section 216(3)(b) (provisions not applicable to lower-paid employments) for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-4"><num>(4)</num><content>In section 223(7)(b)(ii) (payments on account of director’s tax other than by the director), for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-5"><num>(5)</num><content>In section 290(5) (accommodation benefits of ministers of religion), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-6"><num>(6)</num><content>In section 351 (expenses of ministers of religion), omit subsection (5).</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-7"><num>(7)</num><content>In section 714(2) (payroll giving: meaning of “donation”), in the definition of “charity”, omit “means any body of persons or trust established for charitable purposes only and”.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-8-paragraph-1-1"><num>(1)</num><content><mod>In ITA 2007, after section 521 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13347"><num>521A</num><heading>Gifts under payroll deduction schemes: income tax liability and exemption</heading><subsection eId="d25e13351"><num>(1)</num><content>This section applies if gifts are made to charitable trusts by individuals and the gifts are donations for the purposes of Part 12 of ITEPA 2003 (payroll giving).</content></subsection><subsection eId="d25e13357"><num>(2)</num><content>Income tax is charged on the gifts under this section.</content></subsection><subsection eId="d25e13363"><num>(3)</num><content>It is charged on the full amount of the gifts arising in the tax year.</content></subsection><subsection eId="d25e13369"><num>(4)</num><content>But a gift is not taken into account in calculating total income so far as it is applied to charitable purposes only.</content></subsection><subsection eId="d25e13375"><num>(5)</num><content>The trustees of the charitable trust are liable for any tax charged under this section.</content></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-2"><num>(2)</num><content><mod>In CTA 2010, after section 472 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13391"><num>472A</num><heading>Gifts under payroll deduction schemes: corporation tax liability and exemption</heading><subsection eId="d25e13395"><num>(1)</num><content>If a charitable company receives a gift from an individual and the gift is a donation for the purposes of Part 12 of ITEPA 2003 (payroll giving), the gift is treated as an amount in respect of which the charitable company is chargeable to corporation tax, under the charge to corporation tax on income.</content></subsection><subsection eId="d25e13401"><num>(2)</num><content>But the gift is not taken into account in calculating total profits so far as it is applied to charitable purposes only.</content></subsection><subsection eId="d25e13407"><num>(3)</num><content>The exemption under subsection (2) requires a claim.</content></subsection></section></quotedStructure></mod></content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-8-paragraph-4-1"><num>(1)</num><content>Section 42 of TMA 1970 (procedure for making claims etc) is amended as follows.</content></subparagraph><subparagraph eId="schedule-8-paragraph-4-2"><num>(2)</num><content>In subsection (2), for “(3A)” substitute “(3ZA)”.</content></subparagraph><subparagraph eId="schedule-8-paragraph-4-3"><num>(3)</num><content><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e13501"><num>(3ZA)</num><content>Subsection (2) above shall not apply in relation to any claim by the trustees of a charitable trust for an amount to be exempt from tax by virtue of section 521(4) of ITA 2007 (gifts entitling donor to gift aid relief: charitable trusts).</content></subsection></quotedStructure></mod></content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-11-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-11-paragraph-4-1"><num>(1)</num><content><mod>In TIOPA 2010, after section 85 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e15705"><num>85A</num><heading>Section 83(2) and (4): schemes involving deemed foreign tax</heading><subsection eId="d25e15709"><num>(1)</num><intro>This section applies to a scheme or arrangement if in relation to a claimant—</intro><level class="para1" eId="d25e15715"><num>(a)</num><content>an amount (“amount X”) is treated by virtue of a provision of the Tax Acts as if it were an amount of foreign tax paid or payable by the claimant in respect of a source of income, and</content></level><level class="para1" eId="d25e15721"><num>(b)</num><content>condition A or B is met.</content></level></subsection><subsection eId="d25e15727"><num>(2)</num><content>Condition A is met if, when the claimant entered into the scheme or arrangement, it could reasonably be expected that, under the scheme or arrangement, no real foreign tax would be paid or payable by a participant.</content></subsection><subsection eId="d25e15733"><num>(3)</num><intro>Condition B is met if, when the claimant entered into the scheme or arrangement, it could reasonably be expected that, under the scheme or arrangement—</intro><level class="para1" eId="d25e15739"><num>(a)</num><content>an amount of real foreign tax (“the RFT amount”) would be paid or payable by a participant, but</content></level><level class="para1" eId="d25e15745"><num>(b)</num><content>the effect on the foreign-tax total of the RFT amount being so paid or payable would be to increase the foreign-tax total by less than the amount allowable to the claimant as a credit in respect of amount X.</content></level></subsection><subsection eId="d25e15751"><num>(4)</num><intro>In this section—</intro><hcontainer name="definition"><content>“claimant” means a person who for a chargeable period has claimed, or is in a position to claim, for any credit that under the arrangements is to be allowed for foreign tax;</content></hcontainer><hcontainer name="definition"><content>“the foreign-tax total” has the meaning given by section 85(3), except that the reference to “the FT amount being paid or payable by C” must be read as a reference to “the RFT amount being paid or payable by any of them”;</content></hcontainer><hcontainer name="definition"><content>“income” includes a chargeable gain;</content></hcontainer><hcontainer name="definition"><content>“participant” means a person who is party to, or concerned in, the scheme or arrangement;</content></hcontainer><hcontainer name="definition"><intro>“real foreign tax” means—</intro><level class="para1"><num>(a)</num><content>in a case involving section 10 (accrued income profits), the foreign tax chargeable in respect of the interest on the securities, as mentioned in subsection (1)(c) of that section,</content></level><level class="para1"><num>(b)</num><content>in a case involving section 792 or 794 of CTA 2010 (manufactured overseas dividends), the foreign tax chargeable in respect of the overseas dividend of which the manufactured overseas dividend is representative, as mentioned in section 790 of that Act, and</content></level><level class="para1"><num>(c)</num><content>in any other case, the foreign tax chargeable in respect of the source of income of which the source mentioned in subsection (1)(a) is representative.</content></level></hcontainer></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-11-paragraph-4-2"><num>(2)</num><content>The amendment made by this paragraph has effect in relation to amounts treated as if they were amounts of foreign tax paid or payable on or after 21 October 2009.</content></subparagraph><subparagraph eId="schedule-11-paragraph-4-3"><num>(3)</num><content>A corresponding amendment, having effect in relation to such amounts, is to be treated as having been made in Schedule 28AB to ICTA.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-11-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-11-paragraph-7-1"><num>(1)</num><content><mod>In section 112 of TIOPA 2010 (deduction from income for foreign tax), after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e15961"><num>(2A)</num><content>But if X is less than Y, an amount equal to the difference between X and Y must be subtracted from the amount by which any income of a person (“the relevant income”) is reduced under subsection (1)(a).</content></subsection><subsection eId="d25e15967"><num>(2B)</num><intro>In subsection (2A)—</intro><hcontainer name="definition"><content>X is the amount of the relevant income that the person would (disregarding this section) be required to bring into account for income tax or corporation tax purposes, less any deduction that the person would be allowed to make for the amount paid in respect of non-UK tax, and</content></hcontainer><hcontainer name="definition"><content>Y is the amount of the relevant income (that is to say, the amount on which the amount in respect of non-UK tax is paid).</content></hcontainer></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-11-paragraph-7-2"><num>(2)</num><intro>The amendment made by this paragraph has effect in relation to amounts in respect of non-UK tax that are paid—</intro><level class="para1" eId="schedule-11-paragraph-7-2-a"><num>(a)</num><content>as regards corporation tax, on or after 1 April 2010, and</content></level><level class="para1" eId="schedule-11-paragraph-7-2-b"><num>(b)</num><content>as regards income tax, on or after 6 April 2010.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-16-paragraph-1" class="schProv1"><num>1</num><content>CTA 2010 is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-17-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-17-paragraph-2-1"><num>(1)</num><content>Section 307 (meaning of “promoter”) is amended as follows.</content></subparagraph><subparagraph eId="schedule-17-paragraph-2-2"><num>(2)</num><content><mod>In paragraph (a) of subsection (1), for the words from “business” to “makes” substitute “business, the person (“P”)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para2" eId="d25e19702"><num>(i)</num><content>is to any extent responsible for the design of the proposed arrangements,</content></level><level class="para2" eId="d25e19708"><num>(ii)</num><content>makes a firm approach to another person (“C”) in relation to the notifiable proposal with a view to P making the notifiable proposal available for implementation by C or any other person, or</content></level><level class="para2" eId="d25e19714"><num>(iii)</num><content>makes</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-2-3"><num>(3)</num><content>In paragraph (b) of that subsection, after “(a)(ii)” insert “or (iii)”.</content></subparagraph><subparagraph eId="schedule-17-paragraph-2-4"><num>(4)</num><content><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e19735"><num>(1A)</num><content>For the purposes of this Part a person is an introducer in relation to a notifiable proposal if the person makes a marketing contact with another person in relation to the notifiable proposal.</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-2-5"><num>(5)</num><content><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e19748"><num>(4A)</num><content>For the purposes of this Part a person makes a firm approach to another person in relation to a notifiable proposal if the person makes a marketing contact with the other person in relation to the notifiable proposal at a time when the proposed arrangements have been substantially designed.</content></subsection><subsection eId="d25e19754"><num>(4B)</num><intro>For the purposes of this Part a person makes a marketing contact with another person in relation to a notifiable proposal if—</intro><level class="para1" eId="d25e19760"><num>(a)</num><content>the person communicates information about the notifiable proposal to the other person,</content></level><level class="para1" eId="d25e19766"><num>(b)</num><content>the communication is made with a view to that other person, or any other person, entering into transactions forming part of the proposed arrangements, and</content></level><level class="para1" eId="d25e19772"><num>(c)</num><content>the information communicated includes an explanation of the advantage in relation to any tax that might be expected to be obtained from the proposed arrangements.</content></level></subsection><subsection eId="d25e19778"><num>(4C)</num><intro>For the purposes of subsection (4A) proposed arrangements have been substantially designed at any time if by that time the nature of the transactions to form part of them has been sufficiently developed for it to be reasonable to believe that a person who wished to obtain the advantage mentioned in subsection (4B)(c) might enter into—</intro><level class="para1" eId="d25e19784"><num>(a)</num><content>transactions of the nature developed, or</content></level><level class="para1" eId="d25e19792"><num>(b)</num><content>transactions not substantially different from transactions of that nature.</content></level></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-2-6"><num>(6)</num><content>In subsection (5), after “promoter” insert “or introducer”.</content></subparagraph><subparagraph eId="schedule-17-paragraph-2-7"><num>(7)</num><content>In subsection (6), after “promoter” (in both places) insert “or introducer”.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-1-paragraph-35-1"><num>(1)</num><content>A taxable company which fails to comply with paragraph 34 is liable to a penalty of an amount not exceeding £3,000.</content></subparagraph><subparagraph eId="schedule-1-paragraph-35-2"><num>(2)</num><content>Sections 100 to 102 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 apply to a penalty under this paragraph as they apply to a penalty under section 12B(5) of that Act.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-8-paragraph-5-1"><num>(1)</num><content>ITA 2007 is amended as follows.</content></subparagraph><subparagraph eId="schedule-8-paragraph-5-2"><num>(2)</num><content>In section 518(4) (overview of Part 10), for “section 538” substitute “sections 538 and 538A”.</content></subparagraph><subparagraph eId="schedule-8-paragraph-5-3"><num>(3)</num><content><mod>After section 538 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13533"><num>538A</num><heading>Claims in relation to gift aid relief</heading><subsection eId="d25e13537"><num>(1)</num><content>This section applies to claims for amounts to be exempt from tax by virtue of section 521(4) (gifts entitling donor to gift aid relief: charitable trusts).</content></subsection><subsection eId="d25e13543"><num>(2)</num><intro>A claim to which this section applies may be made—</intro><level class="para1" eId="d25e13549"><num>(a)</num><content>to an officer of Revenue and Customs, or</content></level><level class="para1" eId="d25e13555"><num>(b)</num><content>by being included in a return under section 8A of TMA 1970 (trustee’s self-assessment return).</content></level></subsection><subsection eId="d25e13561"><num>(3)</num><intro>In this section—</intro><hcontainer name="definition"><content>“free-standing claim” means a claim made as mentioned in subsection (2)(a), and</content></hcontainer><hcontainer name="definition"><content>“tax return claim” means a claim made as mentioned in subsection (2)(b).</content></hcontainer></subsection><subsection eId="d25e13576"><num>(4)</num><intro>The Commissioners for Her Majesty’s Revenue and Customs may by regulations make provision—</intro><level class="para1" eId="d25e13582"><num>(a)</num><content>limiting the number of free-standing claims that may be made by a person in a tax year, or</content></level><level class="para1" eId="d25e13588"><num>(b)</num><content>requiring a claim for an amount below an amount specified in the regulations to be made as a tax return claim.</content></level></subsection><subsection eId="d25e13594"><num>(5)</num><content>The regulations may make different provision for different cases or purposes.</content></subsection></section></quotedStructure></mod></content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-16-paragraph-2" class="schProv1"><num>2</num><content><mod>In section 1(4) (overview of Act) omit the “and” at the end of paragraph (g), insert “, and” at the end of paragraph (h) and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e18427"><num>(i)</num><content>risk transfer schemes (see Part 21A).</content></level></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-17-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-17-paragraph-3-1"><num>(1)</num><content>Section 308(2) (duties of promoter) is amended as follows.</content></subparagraph><subparagraph eId="schedule-17-paragraph-3-2"><num>(2)</num><content>For “earlier” substitute “earliest”.</content></subparagraph><subparagraph eId="schedule-17-paragraph-3-3"><num>(3)</num><content><mod>Before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e19833"><num>(za)</num><content>the date on which the promoter first makes a firm approach to another person in relation to a notifiable proposal,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1998/Math/MathML" eId="schedule-16-paragraph-3" class="schProv1"><num>3</num><content><mod>After Part 21 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><part eId="d25e18440"><num>Part 21A</num><heading>Risk transfer schemes</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e18445"><heading>Introduction</heading><section eId="d25e18451"><num>937A</num><heading>Overview</heading><content>This Part contains rules about the treatment of certain losses made by companies as a result of risk transfer schemes.</content></section><section eId="d25e18460"><num>937B</num><heading>Group schemes and single company schemes</heading><subsection eId="d25e18464"><num>(1)</num><intro>A risk transfer scheme may be—</intro><level class="para1" eId="d25e18470"><num>(a)</num><content>a group scheme, or</content></level><level class="para1" eId="d25e18476"><num>(b)</num><content>a risk transfer scheme other than a group scheme (a “single-company scheme”).</content></level></subsection><subsection eId="d25e18482"><num>(2)</num><intro>A risk transfer scheme to which a company (“company A”) is a party is a “group scheme” if at least one company other than company A is at any time both—</intro><level class="para1" eId="d25e18488"><num>(a)</num><content>associated with company A, and</content></level><level class="para1" eId="d25e18494"><num>(b)</num><content>a party to the scheme.</content></level></subsection><subsection eId="d25e18500"><num>(3)</num><intro>In this Part “the relevant group” means—</intro><level class="para1" eId="d25e18506"><num>(a)</num><content>company A, and</content></level><level class="para1" eId="d25e18512"><num>(b)</num><content>each company other than company A in relation to which the condition in subsection (2) is met.</content></level></subsection><subsection eId="d25e18518"><num>(4)</num><content>In its application in relation to single company schemes, this Part applies subject to the following modifications.</content></subsection><subsection eId="d25e18524"><num>(5)</num><intro>The modifications are that—</intro><level class="para1" eId="d25e18530"><num>(a)</num><content>references to the relevant group, a member of the relevant group, or the members of the relevant group, are treated as references to company A, and</content></level><level class="para1" eId="d25e18536"><num>(b)</num><content>sections <ref href="#d25e18672">937E</ref><ref href="#d25e18700">(2)</ref> and <ref href="#d25e19348">937L</ref><ref href="#d25e19358">(2)</ref> are treated as omitted.</content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e18552"><heading>Basic definitions</heading><section eId="d25e18558"><num>937C</num><heading>Meaning of “risk transfer scheme”</heading><subsection eId="d25e18562"><num>(1)</num><content>A scheme to which a company (“company A”) is a party is a “risk transfer scheme” if conditions 1 to 3 are met.</content></subsection><subsection eId="d25e18568"><num>(2)</num><content>Condition 1 is that the purpose, or one of the main purposes, of any member of the relevant group on entering into the scheme is to obtain a financial advantage for the relevant group that it is reasonable to assume could not otherwise have been obtained without the relevant group becoming subject to (or incurring the cost of avoiding) a relevant risk.</content></subsection><subsection eId="d25e18574"><num>(3)</num><intro>In subsection <ref href="#d25e18568">(2)</ref> “a relevant risk” means a risk that the relevant group would make economic losses in one or more accounting periods of company A as a result of fluctuations in—</intro><level class="para1" eId="d25e18583"><num>(a)</num><content>the rate of exchange between any two currencies,</content></level><level class="para1" eId="d25e18589"><num>(b)</num><content>the retail prices index (or any similar general index of prices) or any other index, or</content></level><level class="para1" eId="d25e18595"><num>(c)</num><content>any price or other value.</content></level></subsection><subsection eId="d25e18601"><num>(4)</num><intro>Condition 2 is that, as a result of the scheme, and disregarding the effect of this Part, the relevant group—</intro><level class="para1" eId="d25e18607"><num>(a)</num><content>is not subject to the relevant risk, or</content></level><level class="para1" eId="d25e18613"><num>(b)</num><content>is subject only to a negligible proportion of that risk.</content></level></subsection><subsection eId="d25e18619"><num>(5)</num><content>Condition 3 is that, disregarding the effect of the provisions of the Corporation Tax Acts, condition 2 would not be met.</content></subsection><subsection eId="d25e18625"><num>(6)</num><intro>For the purposes of this section the relevant group obtains a “financial advantage” from a scheme if, taking into account the effect of the scheme on each member of the group, the scheme—</intro><level class="para1" eId="d25e18631"><num>(a)</num><content>increases the return on any investment,</content></level><level class="para1" eId="d25e18637"><num>(b)</num><content>reduces the costs of any borrowing, or</content></level><level class="para1" eId="d25e18643"><num>(c)</num><content>has an effect economically equivalent to that mentioned in paragraph (a) or (b).</content></level></subsection></section><section eId="d25e18652"><num>937D</num><heading>Meaning of “the scheme rate, index or value”</heading><content>In this Part “the scheme rate, index or value”, in relation to a risk transfer scheme, means the rate, index or value mentioned in section <ref href="#d25e18558">937C</ref><ref href="#d25e18583">(3)(a)</ref>, <ref href="#d25e18589">(b)</ref> or <ref href="#d25e18595">(c)</ref> in relation to the relevant risk for the scheme.</content></section><section eId="d25e18672"><num>937E</num><heading>Scheme losses and scheme profits</heading><subsection eId="d25e18676"><num>(1)</num><intro>A loss or profit made by a company in an accounting period is a “scheme loss” or “scheme profit” in relation to a risk transfer scheme to which the company is a party at any time in the period if the loss or profit—</intro><level class="para1" eId="d25e18682"><num>(a)</num><content>is from a loan relationship, or derivative contract, that is part of the scheme,</content></level><level class="para1" eId="d25e18688"><num>(b)</num><content>would, apart from this Part, be brought into account in determining a debit or credit for the purposes of Part 5 of CTA 2009 (loan relationships) or Part 7 of that Act (derivative contracts), and</content></level><level class="para1" eId="d25e18694"><num>(c)</num><content>arises as a result of fluctuations in the scheme rate, index or value.</content></level></subsection><subsection eId="d25e18700"><num>(2)</num><content>References in this Part to a scheme loss or scheme profit made by a company in a period that is not an accounting period of that company are to the scheme loss or scheme profit that the company would have made in the period from the loan relationship or derivative contract in question if the period had been an accounting period of the company.</content></subsection><subsection eId="d25e18706"><num>(3)</num><intro>References in this section to a loss or profit from a loan relationship or a derivative contract include—</intro><level class="para1" eId="d25e18712"><num>(a)</num><content>a loss or profit from a related transaction, and</content></level><level class="para1" eId="d25e18718"><num>(b)</num><content>a loss or profit of a capital nature.</content></level></subsection><subsection eId="d25e18724"><num>(4)</num><intro>In subsection (3)(a) “related transaction” has the meaning given by—</intro><level class="para1" eId="d25e18730"><num>(a)</num><content>section 304 of CTA 2009 (in relation to a loan relationship), or</content></level><level class="para1" eId="d25e18736"><num>(b)</num><content>section 596 of that Act (in relation to a derivative contract).</content></level></subsection></section><section eId="d25e18745"><num>937F</num><heading>Ring-fenced scheme losses and relevant scheme profits</heading><subsection eId="d25e18749"><num>(1)</num><intro>Subsection (2) applies if—</intro><level class="para1" eId="d25e18755"><num>(a)</num><content>a company makes one or more scheme losses in an accounting period in relation to a risk transfer scheme, and</content></level><level class="para1" eId="d25e18761"><num>(b)</num><content>disregarding any profits or losses made otherwise than as a result of the scheme, the relevant group makes a pre-tax economic loss in the period as a result of fluctuations in the scheme rate, index or value.</content></level></subsection><subsection eId="d25e18767"><num>(2)</num><content>The relevant proportion of each scheme loss made by the company in the accounting period is a “ring-fenced scheme loss”.</content></subsection><subsection eId="d25e18773"><num>(3)</num><content>For this purpose “the relevant proportion” means—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_011"><default:mfrac linethickness="1" denomalign="center" numalign="center"><default:mrow><default:mi mathvariant="normal">A</default:mi><default:mo>−</default:mo><default:mi mathvariant="normal">B</default:mi><default:mo>−</default:mo><default:mi mathvariant="normal">C</default:mi></default:mrow><default:mrow><default:mi mathvariant="normal">A</default:mi></default:mrow></default:mfrac></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A is the total of the scheme losses made in the period in relation to the scheme by the members of the relevant group,</tblock><tblock class="definition">B is the total of the scheme profits made in the period in relation to the scheme by the members of the relevant group, and</tblock><tblock class="definition">C is the pre-tax economic loss referred to in subsection (1)(b).</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e18813"><num>(4)</num><intro>Subsection (5) applies if—</intro><level class="para1" eId="d25e18819"><num>(a)</num><content>a company makes one or more scheme profits in an accounting period in relation to a risk transfer scheme, and</content></level><level class="para1" eId="d25e18825"><num>(b)</num><content>disregarding any profits or losses made otherwise than as a result of the scheme, the relevant group makes a pre-tax economic profit in the period as a result of fluctuations in the scheme rate, index or value.</content></level></subsection><subsection eId="d25e18831"><num>(5)</num><content>The relevant proportion of each scheme profit made by the company in the accounting period is a “relevant scheme profit”.</content></subsection><subsection eId="d25e18837"><num>(6)</num><content>For this purpose “the relevant proportion” means—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_012"><default:mfrac linethickness="1" denomalign="center" numalign="center"><default:mrow><default:mi mathvariant="normal">A</default:mi><default:mo>−</default:mo><default:mi mathvariant="normal">B</default:mi><default:mo>−</default:mo><default:mi mathvariant="normal">C</default:mi></default:mrow><default:mrow><default:mi mathvariant="normal">A</default:mi></default:mrow></default:mfrac></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A is the total of the scheme profits made in the period in relation to the scheme by the members of the relevant group,</tblock><tblock class="definition">B is the total of the scheme losses made in the period in relation to the scheme by the members of the relevant group, and</tblock><tblock class="definition">C is the pre-tax economic profit referred to in subsection (4)(b).</tblock></blockContainer></tblock></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e18877"><heading>Treatment of ring-fenced scheme losses</heading><section eId="d25e18883"><num>937G</num><heading>Ring-fenced scheme loss: treatment in period in which made</heading><subsection eId="d25e18887"><num>(1)</num><content>This section applies for the purpose of determining the amount (if any) of a ring-fenced scheme loss that may be brought into account by a company in the accounting period in which it is made.</content></subsection><subsection eId="d25e18893"><num>(2)</num><content>If the amount of the company’s profits pool for the scheme as at the beginning of the period is nil, the ring-fenced scheme loss may not be brought into account.</content></subsection><subsection eId="d25e18899"><num>(3)</num><intro>If the amount of the company’s profits pool for the scheme as at the beginning of the period is—</intro><level class="para1" eId="d25e18905"><num>(a)</num><content>greater than nil, and</content></level><level class="para1" eId="d25e18911"><num>(b)</num><content>less than the total of the ring-fenced scheme losses made in the period in relation to the scheme by the company,</content></level><wrapUp>only the relevant proportion of the ring-fenced scheme loss may be brought into account.</wrapUp></subsection><subsection eId="d25e18919"><num>(4)</num><content>For this purpose “the relevant proportion” means—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_013"><default:mfrac linethickness="1" denomalign="center" numalign="center"><default:mrow><default:mi mathvariant="normal">A</default:mi></default:mrow><default:mrow><default:mi mathvariant="normal">B</default:mi></default:mrow></default:mfrac></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A is the amount of the company’s profits pool as at the beginning of the period, and</tblock><tblock class="definition">B is the total of the ring-fenced scheme losses made in the period in relation to the scheme by the company.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e18947"><num>(5)</num><content>If the amount of the company’s profits pool for the scheme as at the beginning of the period is equal to or greater than the total of the ring-fenced scheme losses made in the period in relation to the scheme by the company, the ring-fenced scheme loss may be brought into account in full.</content></subsection><subsection eId="d25e18953"><num>(6)</num><content>A reference in this paragraph to bringing a ring-fenced scheme loss into account is to bringing it into account in determining a debit or credit for the purposes of Part 5 of CTA 2009 (loan relationships) or Part 7 of that Act (derivative contracts).</content></subsection></section><section eId="d25e18962"><num>937H</num><heading>Ring-fenced scheme loss: treatment in subsequent periods</heading><subsection eId="d25e18966"><num>(1)</num><intro>This section applies where—</intro><level class="para1" eId="d25e18972"><num>(a)</num><content>a company makes one or more scheme profits in an accounting period in relation to a risk transfer scheme,</content></level><level class="para1" eId="d25e18978"><num>(b)</num><content>disregarding any profits or losses made otherwise than as a result of the scheme, the relevant group makes a pre-tax economic profit in the period as a result of fluctuations in the scheme rate, index or value, and</content></level><level class="para1" eId="d25e18984"><num>(c)</num><content>the amount of the company’s losses pool for the scheme as at the beginning of the period is greater than nil.</content></level></subsection><subsection eId="d25e18990"><num>(2)</num><content>The company may bring into account, as if it were a loss made in the period from a loan relationship—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_014"><default:mrow><default:mi mathvariant="normal">A</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">B</default:mi></default:mrow></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A is so much of the amount of the company’s losses pool as at the beginning of the period as does not exceed the total of the relevant scheme profits made in the period in relation to the scheme by the company, and</tblock><tblock class="definition">B is the proportion of the total of the relevant scheme profits made in the period in relation to the scheme by the company that consists of profits made from its loan relationships.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e19019"><num>(3)</num><content>The company may bring into account, as if it were a loss made in the period from a derivative contract—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_015"><default:mrow><default:mi mathvariant="normal">A</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">C</default:mi></default:mrow></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A has the same meaning as in subsection <ref href="#d25e18990">(2)</ref>, and</tblock><tblock class="definition">C is the proportion of the total of the relevant scheme profits made in the period in relation to the scheme by the company that consists of profits made from its derivative contracts.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e19051"><num>(4)</num><content>A reference in this section to bringing an amount into account is to bringing it into account in determining a debit or credit for the purposes of Part 5 of CTA 2009 (loan relationships) or Part 7 of that Act (derivative contracts).</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e19057"><heading>A company’s losses pool and profits pool</heading><section eId="d25e19063"><num>937I</num><heading>A company’s losses pool and profits pool</heading><subsection eId="d25e19067"><num>(1)</num><content>The amount of a company’s losses pool for a risk transfer scheme as at the beginning of an accounting period (“the current accounting period”) is—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_016"><default:mi mathvariant="normal">A</default:mi><default:mo>+</default:mo><default:mi mathvariant="normal">B</default:mi><default:mo>−</default:mo><default:mi mathvariant="normal">C</default:mi></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A is—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>the amount of the pool as at the beginning of the previous accounting period, or</item><item><num>(b)</num>if the risk transfer scheme began in the current accounting period, nil,</item></blockList></tblock><tblock class="definition">B is the total amount, if any, of ring-fenced scheme losses made in the previous accounting period in relation to the scheme by the company that, as a result of the application of section <ref href="#d25e18883">937G</ref><ref href="#d25e18893">(2)</ref> or <ref href="#d25e18899">(3)</ref>, are not brought into account in that period, and</tblock><tblock class="definition">C is the total amount (if any) that, as a result of the application of section <ref href="#d25e18962">937H</ref><ref href="#d25e18990">(2)</ref> or <ref href="#d25e18899">(3)</ref>, is brought into account in the previous accounting period in relation to the scheme by the company.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e19127"><num>(2)</num><content>The amount of a company’s profits pool for a risk transfer scheme as at the beginning of an accounting period (“the current accounting period”) is—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_017"><default:mi mathvariant="normal">A</default:mi><default:mo>+</default:mo><default:mi mathvariant="normal">B</default:mi><default:mo>−</default:mo><default:mi mathvariant="normal">C</default:mi></default:math></foreign><blockContainer class="where">where—<tblock class="definition">A is—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>the amount of the pool as at the beginning of the previous accounting period, or</item><item><num>(b)</num>if the risk transfer scheme began in the current accounting period, nil,</item></blockList></tblock><tblock class="definition">B is—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>the total of any relevant scheme profits made in the previous accounting period in relation to the scheme by the company, less</item><item><num>(b)</num>the total amount (if any) that, as a result of the application of section <ref href="#d25e18962">937H</ref><ref href="#d25e18990">(2)</ref> or <ref href="#d25e18899">(3)</ref>, is brought into account in that accounting period in relation to the scheme by the company, and</item></blockList></tblock><tblock class="definition">C is the total amount (if any) of ring-fenced scheme losses made in the previous accounting period in relation to the scheme by the company that, as a result of the application of section <ref href="#d25e18883">937G</ref><ref href="#d25e18899">(3)</ref> or <ref href="#d25e18947">(5)</ref>, are brought into account in that period.</tblock></blockContainer></tblock></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e19196"><heading>General</heading><section eId="d25e19202"><num>937J</num><heading>Tax capacity assumption</heading><subsection eId="d25e19206"><num>(1)</num><content>This section applies for the purpose of determining whether condition 2 in section <ref href="#d25e18558">937C</ref> is met.</content></subsection><subsection eId="d25e19215"><num>(2)</num><content>Where a member of the relevant group (“the company”) makes a scheme loss in an accounting period, the economic profits and losses made by the relevant group in the period must be calculated on the assumption that the company obtained the full tax benefit of the loss.</content></subsection><subsection eId="d25e19221"><num>(3)</num><intro>The “full tax benefit” of the loss is the reduction in the corporation tax liability of the company that would result if—</intro><level class="para1" eId="d25e19227"><num>(a)</num><content>the loss were brought into account, and</content></level><level class="para1" eId="d25e19233"><num>(b)</num><content>the company’s profits chargeable to corporation tax, before doing so, were equal to the debit (or the reduction in any credit) determined by reference to the loss.</content></level></subsection><subsection eId="d25e19239"><num>(4)</num><content>A reference in this section to bringing a loss into account is to bringing it into account in determining a debit or credit for the purposes of Part 5 of CTA 2009 (loan relationships) or Part 7 of that Act (derivative contracts).</content></subsection></section><section eId="d25e19248"><num>937K</num><heading>Meaning of “associated with”</heading><subsection eId="d25e19252"><num>(1)</num><content>For the purposes of this Part a company (“company B”) is associated with another company (“company A”) at a time (“the relevant time”) if any of the following five conditions is met.</content></subsection><subsection eId="d25e19258"><num>(2)</num><content>The first condition is that the financial results of company A and company B, for a period that includes the relevant time, meet the consolidation condition.</content></subsection><subsection eId="d25e19264"><num>(3)</num><content>The second condition is that there is a connection between company A and company B for the accounting period of company A in which the relevant time falls.</content></subsection><subsection eId="d25e19270"><num>(4)</num><content>The third condition is that, at the relevant time, company A has a major interest in company B or company B has a major interest in company A.</content></subsection><subsection eId="d25e19276"><num>(5)</num><intro>The fourth condition is that—</intro><level class="para1" eId="d25e19282"><num>(a)</num><content>the financial results of company A and a third company, for a period that includes the relevant time, meet the consolidation condition, and</content></level><level class="para1" eId="d25e19288"><num>(b)</num><content>at the relevant time the third company has a major interest in company B.</content></level></subsection><subsection eId="d25e19294"><num>(6)</num><intro>The fifth condition is that—</intro><level class="para1" eId="d25e19300"><num>(a)</num><content>there is a connection between company A and a third company for the accounting period of company A in which the relevant time falls, and</content></level><level class="para1" eId="d25e19306"><num>(b)</num><content>at the relevant time the third company has a major interest in company B.</content></level></subsection><subsection eId="d25e19312"><num>(7)</num><intro>In this section the financial results of any two companies for any period meet “the consolidation condition” if—</intro><level class="para1" eId="d25e19318"><num>(a)</num><content>they are required to be comprised in group accounts prepared under section 399 of the Companies Act 2006 (duty of certain parent companies to prepare group accounts), or</content></level><level class="para1" eId="d25e19324"><num>(b)</num><content>they would be required to be comprised in such accounts but for the application of an exemption mentioned in subsection (3) of that section.</content></level></subsection><subsection eId="d25e19330"><num>(8)</num><content>The following provisions apply for the purposes of this section—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>sections 466 to 471 of CTA 2009 (companies connected for accounting period), and</item><item>sections 473 and 474 of CTA 2009 (meaning of “major interest”).</item></blockList></content></subsection></section><section eId="d25e19348"><num>937L</num><heading>Interpretation of references to economic losses and profits</heading><subsection eId="d25e19352"><num>(1)</num><content>A reference in this Part to an “economic” loss or profit made by any person in a period is to a loss or profit made by that person in that period, computed taking into account unrealised (as well as realised) losses and profits.</content></subsection><subsection eId="d25e19358"><num>(2)</num><content>For the purposes of this Part an economic loss or profit is made “by the relevant group” if it is made by the members of the relevant group considered together.</content></subsection><subsection eId="d25e19364"><num>(3)</num><intro>Where—</intro><level class="para1" eId="d25e19370"><num>(a)</num><content>any member of the relevant group makes a scheme loss or profit in an accounting period, and</content></level><level class="para1" eId="d25e19376"><num>(b)</num><content>that scheme loss or profit is, under generally accepted accounting practice, calculated by reference to fluctuations in the scheme rate, index or value over a longer period,</content></level><wrapUp>the economic loss or profit made by the group in the accounting period as a result of those fluctuations is, so far as it relates to that scheme loss or profit, to be computed over that longer period.</wrapUp></subsection><subsection eId="d25e19384"><num>(4)</num><intro>In determining for the purposes of this Part the amount of an economic loss or profit made by the relevant group in any period, the economic losses and profits of each member of the relevant group—</intro><level class="para1" eId="d25e19390"><num>(a)</num><content>are (subject to subsection (3)) to be computed over that period (whether or not that period is an accounting period of the member), but</content></level><level class="para1" eId="d25e19396"><num>(b)</num><content>are only to be taken into account to the extent that they are attributable to times at which the member is a party to the risk transfer scheme in question.</content></level></subsection><subsection eId="d25e19402"><num>(5)</num><content>A reference in this Part to a “pre-tax” economic loss or profit is a reference to an economic loss or profit determined disregarding any loss or gain made as a result of the operation of any provision of the Corporation Tax Acts.</content></subsection></section><section eId="d25e19411"><num>937M</num><heading>Foreign currency accounting</heading><subsection eId="d25e19415"><num>(1)</num><content>In determining under this Part amounts that a company may or may not bring into account in an accounting period, economic losses and profits are to be computed in the tax calculation currency of that company in that accounting period.</content></subsection><subsection eId="d25e19421"><num>(2)</num><content>Section 17(5) of CTA 2010 (meaning of references to the tax calculation currency of a company) applies for the purposes of this section.</content></subsection></section><section eId="d25e19430"><num>937N</num><heading>Meaning of “scheme”</heading><content>In this Part “scheme” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e19436"><heading>Power to amend this Part</heading><section eId="d25e19442"><num>937O</num><heading>Power to amend this Part in its application to dealers in securities</heading><subsection eId="d25e19446"><num>(1)</num><content>The Treasury may by order amend any enactment contained in this Part so as to apply (with or without modifications) the rules in this Part about scheme losses and scheme profits to losses and profits made in a trade.</content></subsection><subsection eId="d25e19452"><num>(2)</num><content>The power conferred by subsection (1) may only be exercised in relation to losses and profits made by a company that carries on a banking business, an insurance business or a business consisting wholly or partly of dealing in securities.</content></subsection><subsection eId="d25e19458"><num>(3)</num><intro>In this section “securities” includes—</intro><level class="para1" eId="d25e19464"><num>(a)</num><content>shares,</content></level><level class="para1" eId="d25e19470"><num>(b)</num><content>rights of unit holders in unit trust schemes to which TCGA 1992 applies as a result of section 99 of that Act, and</content></level><level class="para1" eId="d25e19476"><num>(c)</num><content>in the case of a company with no share capital, interests in the company possessed by members of the company.</content></level></subsection><subsection eId="d25e19482"><num>(4)</num><intro>An order under this section—</intro><level class="para1" eId="d25e19488"><num>(a)</num><content>may make different provision for different cases or purposes, and</content></level><level class="para1" eId="d25e19494"><num>(b)</num><content>may include incidental, consequential, supplementary or transitional provision.</content></level></subsection></section></hcontainer></part></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-17-paragraph-4" class="schProv1"><num>4</num><content>In section 313A(1) (pre-disclosure enquiry), for “of a proposal or arrangements” substitute “or introducer of a proposal, or the promoter of arrangements,”.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-17-paragraph-5" class="schProv1"><num>5</num><content><mod>In section 318(1) (interpretation), after the definition of “HMRC” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="definition"><content>“introducer”, in relation to a notifiable proposal, has the meaning given by section 307;</content></hcontainer><hcontainer name="definition"><content>“make a firm approach” has the meaning given by section 307(4A);</content></hcontainer><hcontainer name="definition"><content>“make a marketing contact” has the meaning given by section 307(4B);</content></hcontainer></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-obligation-to-preserve-records"><heading>Obligation to preserve records</heading><paragraph eId="schedule-1-paragraph-34" class="schProv1"><num>34</num><subparagraph eId="schedule-1-paragraph-34-1"><num>(1)</num><intro>Each taxable company must—</intro><level class="para1" eId="schedule-1-paragraph-34-1-a"><num>(a)</num><content>keep such records as may be needed to enable it to establish and verify the amount of bank payroll tax payable by it and to deliver a correct and complete bank payroll tax return, and</content></level><level class="para1" eId="schedule-1-paragraph-34-1-b"><num>(b)</num><content>preserve those records, and any other relevant records, until the end of 31 August 2016.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-2"><num>(2)</num><intro>Other relevant records are records that—</intro><level class="para1" eId="schedule-1-paragraph-34-2-a"><num>(a)</num><content>may be needed for a purpose mentioned in sub-paragraph (1)(a), and</content></level><level class="para1" eId="schedule-1-paragraph-34-2-b"><num>(b)</num><content>are in the company's possession or power immediately before the commencement of this Schedule.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-3"><num>(3)</num><intro>The obligation under sub-paragraph (1)(b) may be discharged by—</intro><level class="para1" eId="schedule-1-paragraph-34-3-a"><num>(a)</num><content>preserving the records in any form and by any means, or</content></level><level class="para1" eId="schedule-1-paragraph-34-3-b"><num>(b)</num><content>preserving the information contained in them in any form and by any means.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-4"><num>(4)</num><content>The obligation under sub-paragraph (1)(b) includes an obligation to preserve supporting documents (such as contracts, accounts and correspondence).</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-1-paragraph-35-1"><num>(1)</num><content>A taxable company which fails to comply with paragraph 34 is liable to a penalty of an amount not exceeding £3,000.</content></subparagraph><subparagraph eId="schedule-1-paragraph-35-2"><num>(2)</num><content>Sections 100 to 102 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 apply to a penalty under this paragraph as they apply to a penalty under section 12B(5) of that Act.</content></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-information-powers"><heading>Information powers</heading><paragraph eId="schedule-1-paragraph-36" class="schProv1"><num>36</num><subparagraph eId="schedule-1-paragraph-36-1"><num>(1)</num><content>Schedule 36 to FA 2008 (information and inspection powers) has effect as if the definition of tax in paragraph 63(1) included bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-36-2"><num>(2)</num><intro>Paragraph 21 of that Schedule (taxpayer notices) applies where a taxable company has made a bank payroll tax return as it applies where a person has made a company tax return and, in relation to bank payroll tax—</intro><level class="para1" eId="schedule-1-paragraph-36-2-a"><num>(a)</num><content>a reference in that paragraph to a chargeable period is to the chargeable period within the meaning of this Schedule, and</content></level><level class="para1" eId="schedule-1-paragraph-36-2-b"><num>(b)</num><content>a reference in that paragraph to a notice of enquiry is to a notice of enquiry under paragraph 23 of this Schedule.</content></level></subparagraph></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-miscellaneous"><heading>Miscellaneous</heading><paragraph eId="schedule-1-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-1-paragraph-40-1"><num>(1)</num><intro>The following provisions of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 apply for the purposes of bank payroll tax and this Schedule as they apply for the purposes of corporation tax and the Taxes Acts—</intro><level class="para1" eId="schedule-1-paragraph-40-1-a"><num>(a)</num><content>section 108 (responsibility of company officers),</content></level><level class="para1" eId="schedule-1-paragraph-40-1-b"><num>(b)</num><content>section 112 (loss, destruction or damage to assessments, returns <abbr title="Et cetera" xml:lang="la">etc</abbr>),</content></level><level class="para1" eId="schedule-1-paragraph-40-1-c"><num>(c)</num><content>section 114 (want of form), and</content></level><level class="para1" eId="schedule-1-paragraph-40-1-d"><num>(d)</num><content>section 115 (delivery and service of documents).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-40-2"><num>(2)</num><content>The application of section 115 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 in relation to the delivery of bank payroll tax returns is subject to any requirements published under paragraph 19(1) of this Schedule.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-41" class="schProv1"><num>41</num><content>Chapter 6 of Part 22 of CTA 2010 (collection <abbr title="Et cetera" xml:lang="la">etc</abbr> of tax from <abbr class="acronym" title="United Kingdom">UK</abbr> representatives of non-UK resident companies) applies to this Part of this Schedule as it applies to enactments relating to corporation tax.</content></paragraph><paragraph eId="schedule-1-paragraph-42" class="schProv1"><num>42</num><content>Section 118(5) to (7) of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (meaning of carelessly <abbr title="Et cetera" xml:lang="la">etc</abbr>) applies for the interpretation of this Part of this Schedule, with references to tax being read as references to bank payroll tax.</content></paragraph></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-control" eId="term-control">control</term>” and “<term refersTo="#term-listed-company" eId="term-listed-company">listed company</term>” have the same meaning as in paragraph 17 of Schedule 4 to that Act.</content></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-1-paragraph-43-1"><num>(1)</num><content>“<term refersTo="#term-uk-resident-bank" eId="term-uk-resident-bank"><abbr class="acronym" title="United Kingdom">UK</abbr> resident bank</term>” means a company which—</content></subparagraph><level class="para1" eId="schedule-1-paragraph-43-a"><num>(a)</num><content>is resident in the United Kingdom,</content></level><level class="para1" eId="schedule-1-paragraph-43-b"><num>(b)</num><content>is an authorised person for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 (see section 31 of that Act),</content></level><level class="para1" eId="schedule-1-paragraph-43-c"><num>(c)</num><intro>is a person—</intro><level class="para2" eId="schedule-1-paragraph-43-c-i"><num>(i)</num><content>whose activities include the relevant regulated activity described in the provision mentioned in paragraph 44(1)(a), or</content></level><level class="para2" eId="schedule-1-paragraph-43-c-ii"><num>(ii)</num><content>which is both a BIPRU 730k firm and a full scope BIPRU investment firm, whose activities consist wholly or mainly of any of the relevant regulated activities described in the provisions mentioned in paragraph 44(1)(b) to (f) and which meets the capital resources condition,</content></level></level><level class="para1" eId="schedule-1-paragraph-43-d"><num>(d)</num><content>carries on that relevant regulated activity, or those relevant regulated activities, wholly or mainly in the course of trade, and</content></level><level class="para1" eId="schedule-1-paragraph-43-e"><num>(e)</num><content>is not an excluded company.</content></level><subparagraph eId="schedule-1-paragraph-43-2"><num>(2)</num><intro>“<abbr class="acronym" title="United Kingdom">UK</abbr> resident bank” also includes a company which—</intro><level class="para1" eId="schedule-1-paragraph-43-2-a"><num>(a)</num><content>meets the conditions in sub-paragraph (1)(a) and (e), and</content></level><level class="para1" eId="schedule-1-paragraph-43-2-b"><num>(b)</num><content>is a member of a partnership which meets the conditions in sub-paragraph (1)(b) to (d).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-43-3"><num>(3)</num><intro>“<term refersTo="#term-relevant-foreign-bank" eId="term-relevant-foreign-bank">Relevant foreign bank</term>” means a company which—</intro><level class="para1" eId="schedule-1-paragraph-43-3-a"><num>(a)</num><content>is not resident in the United Kingdom,</content></level><level class="para1" eId="schedule-1-paragraph-43-3-b"><num>(b)</num><content>is an authorised person for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 (see section 31 of that Act),</content></level><level class="para1" eId="schedule-1-paragraph-43-3-c"><num>(c)</num><intro>is a person which carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom and—</intro><level class="para2" eId="schedule-1-paragraph-43-3-c-i"><num>(i)</num><content>whose activities include the relevant regulated activity described in the provision mentioned in paragraph 44(1)(a), or</content></level><level class="para2" eId="schedule-1-paragraph-43-3-c-ii"><num>(ii)</num><content>which is both a BIPRU 730k firm and a full scope BIPRU investment firm, whose activities consist wholly or mainly of any of the relevant regulated activities described in the provisions mentioned in paragraph 44(1)(b) to (f) and which meets the capital resources condition,</content></level></level><level class="para1" eId="schedule-1-paragraph-43-3-d"><num>(d)</num><content>carries on that relevant regulated activity, or those relevant regulated activities, wholly or mainly in the course of that trade, and</content></level><level class="para1" eId="schedule-1-paragraph-43-3-e"><num>(e)</num><content>is not an excluded company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-43-4"><num>(4)</num><intro>“Relevant foreign bank” also includes a company which—</intro><level class="para1" eId="schedule-1-paragraph-43-4-a"><num>(a)</num><content>meets the conditions in sub-paragraph (3)(a) and (e), and</content></level><level class="para1" eId="schedule-1-paragraph-43-4-b"><num>(b)</num><content>is a member of a partnership which meets the conditions in sub-paragraph (1)(b) to (d).</content></level></subparagraph></paragraph>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-1-paragraph-43-a"><num>(a)</num><content>is resident in the United Kingdom,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-1-paragraph-43-b"><num>(b)</num><content>is an authorised person for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 (see section 31 of that Act),</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-1-paragraph-43-c"><num>(c)</num><intro>is a person—</intro><level class="para2" eId="schedule-1-paragraph-43-c-i"><num>(i)</num><content>whose activities include the relevant regulated activity described in the provision mentioned in paragraph 44(1)(a), or</content></level><level class="para2" eId="schedule-1-paragraph-43-c-ii"><num>(ii)</num><content>which is both a BIPRU 730k firm and a full scope BIPRU investment firm, whose activities consist wholly or mainly of any of the relevant regulated activities described in the provisions mentioned in paragraph 44(1)(b) to (f) and which meets the capital resources condition,</content></level></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-1-paragraph-43-d"><num>(d)</num><content>carries on that relevant regulated activity, or those relevant regulated activities, wholly or mainly in the course of trade, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-1-paragraph-43-e"><num>(e)</num><content>is not an excluded company.</content></level>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-1-paragraph-46-1"><num>(1)</num><content>This paragraph applies for calculating the “trading income of the group” for the relevant period for the purposes of paragraph 45.</content></subparagraph><subparagraph eId="schedule-1-paragraph-46-2"><num>(2)</num><intro>The trading income for the group for the relevant period is the aggregate of—</intro><level class="para1" eId="schedule-1-paragraph-46-2-a"><num>(a)</num><content>the gross income calculated in accordance with sub-paragraph (3), and</content></level><level class="para1" eId="schedule-1-paragraph-46-2-b"><num>(b)</num><content>the net income calculated in accordance with sub-paragraph (4).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-46-3"><num>(3)</num><intro>The income referred to in sub-paragraph (2)(a) is the gross income—</intro><level class="para1" eId="schedule-1-paragraph-46-3-a"><num>(a)</num><content>arising from the activities of the group (other than net-basis activities), and</content></level><level class="para1" eId="schedule-1-paragraph-46-3-b"><num>(b)</num><content>disclosed as such in the financial statements of the group,</content></level><wrapUp>without taking account of any deductions (whether for expenses or otherwise).</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-46-4"><num>(4)</num><intro>The income referred to in sub-paragraph (2)(b) is the net income arising from the net-basis activities of the group that—</intro><level class="para1" eId="schedule-1-paragraph-46-4-a"><num>(a)</num><content>is accounted for as such under international accounting standards or in accordance with practice which is generally accepted accounting practice in the territory in which the principal company of the group is resident, or</content></level><level class="para1" eId="schedule-1-paragraph-46-4-b"><num>(b)</num><content>would be accounted for as such if income arising from such activities were accounted for under such standards or in accordance with such practice.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-46-5"><num>(5)</num><content>In this paragraph “net-basis activities” means activities normally reported on a net basis in financial statements prepared in accordance with such standards or practice.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-1-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-1-paragraph-49-1"><num>(1)</num><intro>In this Schedule—</intro><hcontainer name="definition"><content>“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);</content></hcontainer><hcontainer name="definition"><content>“benefit” includes a facility of any kind;</content></hcontainer><hcontainer name="definition"><content>“building society” means a building society within the meaning of the Building Societies Act 1986;</content></hcontainer><hcontainer name="definition"><content>“the Commissioners” means the Commissioners of Her Majesty’s Revenue and Customs;</content></hcontainer><hcontainer name="definition"><content>“contract of insurance” has the meaning given by section 431(2) of ICTA;</content></hcontainer><hcontainer name="definition"><content>“control” has the meaning given by section 995 of ITA 2007;</content></hcontainer><hcontainer name="definition"><content>“employment”, “employee” and “employer” have the same meaning as in the employment income Parts of ITEPA 2003 (see sections 4 and 5 of that Act);</content></hcontainer><hcontainer name="definition"><content>“enactment” includes an enactment or instrument (whenever passed or made);</content></hcontainer><hcontainer name="definition"><content>“HMRC” means Her Majesty’s Revenue and Customs;</content></hcontainer><hcontainer name="definition"><content>“insurance company” and “insurance special purpose vehicle” have the meaning given by section 431(2) of ICTA;</content></hcontainer><hcontainer name="definition"><content>“market value” has the same meaning it has for the purposes of TCGA 1992 by virtue of Part 8 of that Act;</content></hcontainer><hcontainer name="definition"><content>“money’s worth” has the meaning given by section 62(3) of ITEPA 2003;</content></hcontainer><hcontainer name="definition"><intro>“partnership” includes—</intro><level class="para1"><num>(a)</num><content>a limited liability partnership, and</content></level><level class="para1"><num>(b)</num><content>an entity established under the law of a territory outside the United Kingdom of a similar character to a partnership (and “member”, in relation to a partnership, is to be read accordingly);</content></level></hcontainer><hcontainer name="definition"><content>“period of account” and “permanent establishment” have the meaning given by section 1119 of CTA 2010;</content></hcontainer><hcontainer name="definition"><content>“the tax year 2009-10” has the same meaning as in the Income Tax Acts (see section 989 of ITA 2007).</content></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-49-2"><num>(2)</num><content>Section 170(2) to (11) of TCGA 1992 (“group”, “principal company”, “effective 51% subsidiary”, “company” etc) has effect for the interpretation of this Schedule as for the interpretation of sections 171 to 181 of that Act.</content></subparagraph><subparagraph eId="schedule-1-paragraph-49-3"><num>(3)</num><content>Section 993 of ITA 2007 (meaning of “connected” persons) applies for the purposes of this Schedule.</content></subparagraph><subparagraph eId="schedule-1-paragraph-49-4"><num>(4)</num><content>For the purposes of this Schedule the territory in which a company is resident is to be determined as for the purposes of the Corporation Tax Acts.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-6-paragraph-33-1"><num>(1)</num><content>Part <ref href="#schedule-6-part-1">1</ref> is treated as having come into force on 6 April 2010.</content></subparagraph><subparagraph eId="schedule-6-paragraph-33-2"><num>(2)</num><content>But the definitions of “charity”, “charitable company” and “charitable trust” in that Part do not apply for the purposes of an enactment in relation to which, on that date, another definition applies until such time as that other definition ceases to have effect on the coming into force of provision made by or under Part <ref href="#schedule-6-part-2">2</ref>.</content></subparagraph><subparagraph eId="schedule-6-paragraph-33-3"><num>(3)</num><content>For provision about the coming into force of provision made by that Part, see paragraph <ref href="#schedule-6-paragraph-34">34</ref>.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-14-paragraph-1" class="schProv1"><num>1</num><content>Chapter 12 of Part 5 of CTA 2009 (loan relationships: special rules for particular kinds of securities) is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-14-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-14-paragraph-9-1"><num>(1)</num><intro>This paragraph applies in relation to an accounting period of a company beginning before 9 December 2009 if, apart from this paragraph—</intro><level class="para1" eId="schedule-14-paragraph-9-1-a"><num>(a)</num><content>an amount to be brought into account for the purposes of Part 5 of CTA 2009 in respect of an index-linked gilt-edged security falls to be determined by reference to its value at two different times, and</content></level><level class="para1" eId="schedule-14-paragraph-9-1-b"><num>(b)</num><content>the earlier time is before 9 December 2009 and the later time is on or after that date.</content></level></subparagraph><subparagraph eId="schedule-14-paragraph-9-2"><num>(2)</num><intro>Instead of bringing into account the amount determined as mentioned in sub-paragraph <ref href="#schedule-14-paragraph-9-1-a">(1)(a)</ref>, the company is to bring into account the amounts that it would have brought into account for—</intro><level class="para1" eId="schedule-14-paragraph-9-2-a"><num>(a)</num><content>that part of the accounting period that falls before 9 December 2009, and</content></level><level class="para1" eId="schedule-14-paragraph-9-2-b"><num>(b)</num><content>that part of the accounting period that falls on or after that date,</content></level><wrapUp>had those parts been separate periods of account (and so separate accounting periods).</wrapUp></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-19-paragraph-1" class="schProv1"><num>1</num><content><mod>In Chapter 18 of Part 5 of CTA 2009 (loan relationships: general and supplementary provision), before section 466 (and the heading before it) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e20864"><heading>Changes in accounting standards</heading><section eId="d25e20870"><num>465A</num><heading>Power to make regulations where accounting standards change</heading><subsection eId="d25e20874"><num>(1)</num><content>The Treasury may by regulations make provision for cases where, in consequence of a change in accounting standards, there is a relevant accounting change.</content></subsection><subsection eId="d25e20880"><num>(2)</num><content>“Change in accounting standards” means the issue, revocation, amendment or recognition of, or withdrawal of recognition from, an accounting standard by an accounting body.</content></subsection><subsection eId="d25e20886"><num>(3)</num><intro>“Relevant accounting change” means a change in the way in which a company is permitted or required, for accounting purposes, to recognise amounts which—</intro><level class="para1" eId="d25e20892"><num>(a)</num><content>are brought into account by the company as credits or debits for any period for the purposes of this Part, or</content></level><level class="para1" eId="d25e20898"><num>(b)</num><content>would be so brought into account but for any provision made by or under this Part.</content></level></subsection><subsection eId="d25e20904"><num>(4)</num><content>Regulations under subsection (1) may amend this Part (apart from this section).</content></subsection><subsection eId="d25e20910"><num>(5)</num><intro>Regulations under subsection (1) may—</intro><level class="para1" eId="d25e20916"><num>(a)</num><content>make different provision for different cases,</content></level><level class="para1" eId="d25e20922"><num>(b)</num><content>make incidental, supplemental, consequential and transitional provision and savings, and</content></level><level class="para1" eId="d25e20928"><num>(c)</num><content>make provision subject to an election or other specified circumstances.</content></level></subsection><subsection eId="d25e20934"><num>(6)</num><content>Regulations making consequential provision by virtue of subsection (5)(b) may, in particular, include provision amending a provision of the Corporation Tax Acts.</content></subsection><subsection eId="d25e20940"><num>(7)</num><content>Regulations under subsection (1) may apply to a pre-commencement period if they make provision in relation to a relevant accounting change which may or must be adopted, for accounting purposes, for a period of account, or part of a period of account, which coincides with that pre-commencement period.</content></subsection><subsection eId="d25e20946"><num>(8)</num><intro>In this section—</intro><hcontainer name="definition"><content>“accounting body” means the International Accounting Standards Board or the Accounting Standards Board, or a successor body to either of those Boards;</content></hcontainer><hcontainer name="definition"><content>“accounting standard” includes any statement of practice, guidance or other similar document;</content></hcontainer><hcontainer name="definition"><content>“pre-commencement period”, in relation to regulations, means an accounting period, or part of an accounting period, which begins before the regulations are made.</content></hcontainer></subsection></section></hcontainer></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-20-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-20-paragraph-3-1"><num>(1)</num><content>This paragraph applies if conditions A and B are met.</content></subparagraph><subparagraph eId="schedule-20-paragraph-3-2"><num>(2)</num><content>Condition A is that arrangements have been made which, but for this paragraph, would result in a person obtaining exemption under paragraph 1 in respect of particular income.</content></subparagraph><subparagraph eId="schedule-20-paragraph-3-3"><num>(3)</num><content>Condition B is that those arrangements have, or form part of arrangements which have, as their main purpose, or one of their main purposes, the obtaining of that exemption.</content></subparagraph><subparagraph eId="schedule-20-paragraph-3-4"><num>(4)</num><content>Paragraph 1(2) does not apply to that income.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-14-paragraph-2" class="schProv1"><num>2</num><content><mod>In section 398(2) (overview of Chapter), for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e17230"><num>(a)</num><content>sections 399 to <ref href="#d25e17542">400C</ref> (index-linked gilt-edged securities),</content></level><level class="para1" eId="d25e17239"><num>(aa)</num><content>sections 401 to 405 (other gilt-edged securities),</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-14-paragraph-3" class="schProv1"><num>3</num><content><mod>For the heading before section 399 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><heading ukl:Context="Pblock">Index-linked gilt-edged securities</heading></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-14-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-14-paragraph-4-1"><num>(1)</num><content>Section 399 (index-linked gilt-edged securities: basic rules) is amended as follows.</content></subparagraph><subparagraph eId="schedule-14-paragraph-4-2"><num>(2)</num><content>For the heading substitute “Basic rules”.</content></subparagraph><subparagraph eId="schedule-14-paragraph-4-3"><num>(3)</num><content><mod>For subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17285"><num>(3)</num><content>For provision requiring adjustments to be made to amounts determined under subsection (2), see sections 400 to <ref href="#d25e17542">400C</ref> (adjustments for changes in index).</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-14-paragraph-4-4"><num>(4)</num><content>In subsection (4), for “section 400” substitute “sections 400 to <ref href="#d25e17542">400C</ref>”.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-14-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-14-paragraph-5-1"><num>(1)</num><content>Section 400 (index-linked gilt-edged securities: adjustments for changes in index) is amended as follows.</content></subparagraph><subparagraph eId="schedule-14-paragraph-5-2"><num>(2)</num><content>For the heading substitute “Adjustments for changes in index”.</content></subparagraph><subparagraph eId="schedule-14-paragraph-5-3"><num>(3)</num><intro>In subsection (1)(a)—</intro><level class="para1" eId="schedule-14-paragraph-5-3-a"><num>(a)</num><content>for “the amounts” substitute “an amount”, and</content></level><level class="para1" eId="schedule-14-paragraph-5-3-b"><num>(b)</num><content>for “fall” substitute “falls”.</content></level></subparagraph><subparagraph eId="schedule-14-paragraph-5-4"><num>(4)</num><content><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17347"><num>(2A)</num><content>Subsection (2) is subject to sections <ref href="#d25e17369">400A</ref> to <ref href="#d25e17542">400C</ref> (relevant hedging schemes).</content></subsection></quotedStructure></mod></content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-14-paragraph-6" class="schProv1"><num>6</num><content><mod>After section 400 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e17369"><num>400A</num><heading>Adjustments for changes in index: relevant hedging schemes</heading><subsection eId="d25e17373"><num>(1)</num><intro>This section applies where—</intro><level class="para1" eId="d25e17379"><num>(a)</num><content>section 400 applies in relation to an amount to be brought into account for an accounting period of a company (“company A”) in respect of a security, and</content></level><level class="para1" eId="d25e17385"><num>(b)</num><content>conditions 1 to 3 are met.</content></level></subsection><subsection eId="d25e17391"><num>(2)</num><content>Condition 1 is that company A is a party to a relevant hedging scheme at any time in the accounting period.</content></subsection><subsection eId="d25e17397"><num>(3)</num><content>Condition 2 is that there is an increase in the retail prices index between the times mentioned in subsection (1) of section 400.</content></subsection><subsection eId="d25e17403"><num>(4)</num><content>Condition 3 is that the index-linked capital return on the security in the accounting period, or a proportion of it, is hedged.</content></subsection><subsection eId="d25e17409"><num>(5)</num><intro>Where this section applies, any increase in the carrying value of the security at the earlier of the times mentioned in subsection (1) of section 400 that would, apart from this section, be made under subsection (2) of that section is reduced—</intro><level class="para1" eId="d25e17415"><num>(a)</num><content>in a case in which the index-linked capital return on the security in the accounting period is wholly hedged, to nil, and</content></level><level class="para1" eId="d25e17421"><num>(b)</num><content>in a case in which only a proportion of that return is hedged, by the same proportion.</content></level></subsection><subsection eId="d25e17427"><num>(6)</num><content>For the purposes of this section “a relevant hedging scheme” means a scheme the purpose, or one of the main purposes, of any party to which, on entering into the scheme, is to secure that the index-linked capital return on the security, or a proportion of it, is hedged.</content></subsection><subsection eId="d25e17433"><num>(7)</num><intro>For the purposes of this section the “index-linked capital return” of the security is so much of the return on the security as—</intro><level class="para1" eId="d25e17439"><num>(a)</num><content>would, disregarding section 400, result in an increase in the carrying value of the security between the times mentioned in subsection (1) of that section, and</content></level><level class="para1" eId="d25e17445"><num>(b)</num><content>is attributable to an increase in the retail prices index.</content></level></subsection><subsection eId="d25e17451"><num>(8)</num><content>For the purposes of this section the index-linked capital return on the security, or any proportion of that return, is “hedged” if (whether because of the operation of a swap or otherwise) the pre-tax economic profit or loss made by the relevant group or company in the accounting period is unaffected by it.</content></subsection><subsection eId="d25e17457"><num>(9)</num><intro>In subsection (8) “the relevant group or company” means—</intro><level class="para1" eId="d25e17463"><num>(a)</num><intro>company A and every other company that is at any time in the accounting period—</intro><level class="para2" eId="d25e17469"><num>(i)</num><content>associated with company A, and</content></level><level class="para2" eId="d25e17475"><num>(ii)</num><content>a party to the relevant hedging scheme, or</content></level></level><level class="para1" eId="d25e17481"><num>(b)</num><content>if there is no such other company, company A.</content></level></subsection><subsection eId="d25e17487"><num>(10)</num><content>In this section “scheme” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></section><section eId="d25e17499"><num>400B</num><heading>Interpretation of section <ref href="#d25e17369">400A</ref>: economic profits and losses</heading><subsection eId="d25e17503"><num>(1)</num><content>A reference in section <ref href="#d25e17369">400A</ref> to an “economic” profit or loss made by any person in a period is to a profit or loss made by that person in that period, computed taking into account unrealised (as well as realised) profits and losses.</content></subsection><subsection eId="d25e17512"><num>(2)</num><content>For the purposes of section <ref href="#d25e17369">400A</ref> an economic profit or loss is made by a group of companies if it is made by the members of the group considered together.</content></subsection><subsection eId="d25e17521"><num>(3)</num><content>In determining for the purposes of section <ref href="#d25e17369">400A</ref> the amount of an economic profit or loss made by a group of companies in any period, the economic profits and losses of each member of the group are to be computed over that period (whether or not that period is an accounting period of the member).</content></subsection><subsection eId="d25e17530"><num>(4)</num><content>A reference in section <ref href="#d25e17369">400A</ref> to a “pre-tax” economic profit or loss is a reference to an economic profit or loss determined disregarding any gain or loss made as a result of the operation of any provision of the Corporation Tax Acts.</content></subsection></section><section eId="d25e17542"><num>400C</num><heading>Meaning of “associated with”</heading><subsection eId="d25e17546"><num>(1)</num><content>For the purposes of section <ref href="#d25e17369">400A</ref>, a company (“company B”) is associated with company A at a time (“the relevant time”) during an accounting period of company A (“the accounting period”) if any of the following five conditions is met.</content></subsection><subsection eId="d25e17555"><num>(2)</num><content>The first condition is that the financial results of company A and company B, for a period that includes the relevant time, meet the consolidation condition.</content></subsection><subsection eId="d25e17561"><num>(3)</num><content>The second condition is that there is a connection between company A and company B for the accounting period.</content></subsection><subsection eId="d25e17567"><num>(4)</num><content>The third condition is that, at the relevant time, company A has a major interest in company B or company B has a major interest in company A.</content></subsection><subsection eId="d25e17573"><num>(5)</num><intro>The fourth condition is that—</intro><level class="para1" eId="d25e17579"><num>(a)</num><content>the financial results of company A and a third company, for a period that includes the relevant time, meet the consolidation condition, and</content></level><level class="para1" eId="d25e17585"><num>(b)</num><content>at the relevant time the third company has a major interest in company B.</content></level></subsection><subsection eId="d25e17591"><num>(6)</num><intro>The fifth condition is that—</intro><level class="para1" eId="d25e17597"><num>(a)</num><content>there is a connection between company A and a third company for the accounting period, and</content></level><level class="para1" eId="d25e17603"><num>(b)</num><content>at the relevant time the third company has a major interest in company B.</content></level></subsection><subsection eId="d25e17609"><num>(7)</num><intro>In this paragraph the financial results of any two companies for any period meet “the consolidation condition” if—</intro><level class="para1" eId="d25e17615"><num>(a)</num><content>they are required to be comprised in group accounts prepared under section 399 of the Companies Act 2006 (duty of certain parent companies to prepare group accounts), or</content></level><level class="para1" eId="d25e17621"><num>(b)</num><content>they would be required to be comprised in such accounts but for the application of an exemption mentioned in subsection (3) of that section.</content></level></subsection><subsection eId="d25e17627"><num>(8)</num><content>Section 466 (companies connected for an accounting period) applies for the purposes of this section.</content></subsection><subsection eId="d25e17633"><num>(9)</num><content>In this section “scheme” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></section><heading ukl:Context="Pblock">Other gilt-edged securities</heading></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-3-crossheading-uk-resident-bank-and-relevant-foreign-bank"><heading> “<abbr class="acronym" title="United Kingdom">UK</abbr> resident bank” and “relevant foreign bank”</heading><paragraph eId="schedule-1-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-1-paragraph-43-1"><num>(1)</num><content>“<term refersTo="#term-uk-resident-bank" eId="term-uk-resident-bank"><abbr class="acronym" title="United Kingdom">UK</abbr> resident bank</term>” means a company which—</content></subparagraph><level class="para1" eId="schedule-1-paragraph-43-a"><num>(a)</num><content>is resident in the United Kingdom,</content></level><level class="para1" eId="schedule-1-paragraph-43-b"><num>(b)</num><content>is an authorised person for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 (see section 31 of that Act),</content></level><level class="para1" eId="schedule-1-paragraph-43-c"><num>(c)</num><intro>is a person—</intro><level class="para2" eId="schedule-1-paragraph-43-c-i"><num>(i)</num><content>whose activities include the relevant regulated activity described in the provision mentioned in paragraph 44(1)(a), or</content></level><level class="para2" eId="schedule-1-paragraph-43-c-ii"><num>(ii)</num><content>which is both a BIPRU 730k firm and a full scope BIPRU investment firm, whose activities consist wholly or mainly of any of the relevant regulated activities described in the provisions mentioned in paragraph 44(1)(b) to (f) and which meets the capital resources condition,</content></level></level><level class="para1" eId="schedule-1-paragraph-43-d"><num>(d)</num><content>carries on that relevant regulated activity, or those relevant regulated activities, wholly or mainly in the course of trade, and</content></level><level class="para1" eId="schedule-1-paragraph-43-e"><num>(e)</num><content>is not an excluded company.</content></level><subparagraph eId="schedule-1-paragraph-43-2"><num>(2)</num><intro>“<abbr class="acronym" title="United Kingdom">UK</abbr> resident bank” also includes a company which—</intro><level class="para1" eId="schedule-1-paragraph-43-2-a"><num>(a)</num><content>meets the conditions in sub-paragraph (1)(a) and (e), and</content></level><level class="para1" eId="schedule-1-paragraph-43-2-b"><num>(b)</num><content>is a member of a partnership which meets the conditions in sub-paragraph (1)(b) to (d).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-43-3"><num>(3)</num><intro>“<term refersTo="#term-relevant-foreign-bank" eId="term-relevant-foreign-bank">Relevant foreign bank</term>” means a company which—</intro><level class="para1" eId="schedule-1-paragraph-43-3-a"><num>(a)</num><content>is not resident in the United Kingdom,</content></level><level class="para1" eId="schedule-1-paragraph-43-3-b"><num>(b)</num><content>is an authorised person for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 (see section 31 of that Act),</content></level><level class="para1" eId="schedule-1-paragraph-43-3-c"><num>(c)</num><intro>is a person which carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom and—</intro><level class="para2" eId="schedule-1-paragraph-43-3-c-i"><num>(i)</num><content>whose activities include the relevant regulated activity described in the provision mentioned in paragraph 44(1)(a), or</content></level><level class="para2" eId="schedule-1-paragraph-43-3-c-ii"><num>(ii)</num><content>which is both a BIPRU 730k firm and a full scope BIPRU investment firm, whose activities consist wholly or mainly of any of the relevant regulated activities described in the provisions mentioned in paragraph 44(1)(b) to (f) and which meets the capital resources condition,</content></level></level><level class="para1" eId="schedule-1-paragraph-43-3-d"><num>(d)</num><content>carries on that relevant regulated activity, or those relevant regulated activities, wholly or mainly in the course of that trade, and</content></level><level class="para1" eId="schedule-1-paragraph-43-3-e"><num>(e)</num><content>is not an excluded company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-43-4"><num>(4)</num><intro>“Relevant foreign bank” also includes a company which—</intro><level class="para1" eId="schedule-1-paragraph-43-4-a"><num>(a)</num><content>meets the conditions in sub-paragraph (3)(a) and (e), and</content></level><level class="para1" eId="schedule-1-paragraph-43-4-b"><num>(b)</num><content>is a member of a partnership which meets the conditions in sub-paragraph (1)(b) to (d).</content></level></subparagraph></paragraph></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-1" class="schProv1"><num>1</num><content>Part 4 of FA 2004 (pension schemes etc) is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1998/Math/MathML" eId="schedule-2-paragraph-2" class="schProv1"><num>2</num><content><mod>After section 213 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e8107"><heading>High income excess relief charge</heading><section eId="d25e8113"><num>213A</num><heading>High income excess relief charge</heading><subsection eId="d25e8117"><num>(1)</num><intro>A charge to income tax, to be known as the high income excess relief charge, arises where—</intro><level class="para1" eId="d25e8123"><num>(a)</num><content>an individual who is a member of one or more registered pension schemes has a high income for a tax year, and</content></level><level class="para1" eId="d25e8129"><num>(b)</num><content>there is a total pension savings amount in the case of the individual for the tax year.</content></level></subsection><subsection eId="d25e8135"><num>(2)</num><content>The person liable to the high income excess relief charge is the individual.</content></subsection><subsection eId="d25e8141"><num>(3)</num><intro>The individual is liable to the high income excess relief charge whether or not—</intro><level class="para1" eId="d25e8147"><num>(a)</num><content>the individual, and</content></level><level class="para1" eId="d25e8153"><num>(b)</num><content>the scheme administrator of the pension scheme or schemes concerned,</content></level><wrapUp>are UK resident, ordinarily UK resident or domiciled in the United Kingdom.</wrapUp></subsection><subsection eId="d25e8161"><num>(4)</num><content>The high income excess relief charge is a charge at the appropriate rate in respect of the total pension savings amount.</content></subsection><subsection eId="d25e8167"><num>(5)</num><content>The total pension savings amount is not to be treated as income for any purpose of the Tax Acts apart from this Part.</content></subsection><subsection eId="d25e8173"><num>(6)</num><content>In calculating the individual’s liability to income tax for the tax year the amount of any income tax to which the individual is liable under this section is to be added at Step 7 of the calculation in section 23 of ITA 2007 (which applies as if this section were a provision listed in section 30 of that Act).</content></subsection><subsection eId="d25e8179"><num>(7)</num><intro>The following sections make further provision about the high income excess relief charge—</intro><level class="para1" eId="d25e8185"><num>(a)</num><content>sections 213B to 213D (high income),</content></level><level class="para1" eId="d25e8191"><num>(b)</num><content>section 213E (the appropriate rate),</content></level><level class="para1" eId="d25e8197"><num>(c)</num><content>sections 213F to 213N (total pension savings amount),</content></level><level class="para1" eId="d25e8203"><num>(d)</num><content>section 213O (anti-avoidance), and</content></level><level class="para1" eId="d25e8209"><num>(e)</num><content>section 213P (power to amend).</content></level></subsection></section><section eId="d25e8218"><num>213B</num><heading>High income</heading><intro>An individual has a high income for a tax year if—</intro><level class="para1" eId="d25e8224"><num>(a)</num><content>the individual’s gross income for the tax year is £150,000 or more, and</content></level><level class="para1" eId="d25e8230"><num>(b)</num><content>the individual’s relevant income for the tax year is not less than £130,000.</content></level></section><section eId="d25e8239"><num>213C</num><heading>Gross income</heading><content>To find the individual’s gross income for a tax year take the following steps—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>Step 1Identify the individual’s total income for the tax year.</item><item>Step 2Add the amount of any deductions made from any employment income of the individual for the tax year under Part 12 of ITEPA 2003 (payroll giving), under section 193(2) of this Act or under Chapter 2 of Part 5 of ITEPA 2003 (employee’s expenses) in accordance with paragraph 51 of Schedule 36 to this Act.</item><item>Step 3Deduct the amount of any relief under the provisions listed in section 24 of ITA 2007, other than Chapter 3 of Part 8 of that Act (gifts of shares, securities or real property to charity) and sections 193(4) and 194(1) of this Act, to which the individual is entitled for the tax year.</item><item>Step 4Add so much of the amount that is the total pension savings amount in the case of the individual for the tax year as remains after deducting from it the amount of any relievable pension contributions paid by or on behalf of the individual during the tax year.</item></blockList></content></section><section eId="d25e8277"><num>213D</num><heading>Relevant income</heading><subsection eId="d25e8281"><num>(1)</num><content>To find the individual’s relevant income for a tax year take the following steps—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>Step 1Identify the individual’s total income for the tax year.</item><item>Step 2Add the amount of any deductions made from any employment income of the individual for the tax year under Part 12 of ITEPA 2003 (payroll giving), under section 193(2) of this Act or under Chapter 2 of Part 5 of ITEPA 2003 (employee’s expenses) in accordance with paragraph 51 of Schedule 36 to this Act.</item><item>Step 3Deduct the amount of any relief under the provisions listed in section 24 of ITA 2007, other than Chapter 3 of Part 8 of that Act (gifts of shares, securities or real property to charity) and sections 193(4) and 194(1) of this Act, to which the individual is entitled for the tax year.</item><item>Step 4Add any amount by which what would otherwise be general earnings or specific employment income of the individual for the tax year has been reduced by relevant salary sacrifice arrangements or relevant flexible remuneration arrangements.</item></blockList>The result is the individual’s relevant income for the tax year.</content></subsection><subsection eId="d25e8319"><num>(2)</num><intro>In subsection (1)—</intro><hcontainer name="definition"><content>“relevant salary sacrifice arrangements” means arrangements under which the individual gives up the right to receive general earnings or specific employment income in return for the making of relevant pension provision and which are made on or after 22 April 2009 (whether before or after the employment in question began);</content></hcontainer><hcontainer name="definition"><content>“relevant flexible remuneration arrangements” means arrangements under which the individual and an employer of the individual agree that relevant pension provision is to be made rather than the individual receive some description of employment income and which are made on or after 22 April 2009 (whether before or after the employment in question began).</content></hcontainer></subsection><subsection eId="d25e8334"><num>(3)</num><content>In subsection (2) “relevant pension provision” means the payment of contributions (or additional contributions) to a pension scheme in respect of the individual or otherwise (by an employer of the individual or any other person) to secure an increase in the amount of benefits to which the individual or any person who is a dependant of, or is connected with, the individual is actually or prospectively entitled under a pension scheme.</content></subsection><subsection eId="d25e8340"><num>(4)</num><content>Section 993 of ITA 2007 (meaning of “connected” persons) applies for the purposes of subsection (3).</content></subsection></section><section eId="d25e8349"><num>213E</num><heading>The appropriate rate</heading><subsection eId="d25e8353"><num>(1)</num><intro>“The appropriate rate”, in relation to the total pension savings amount in the case of the individual for a tax year, is—</intro><level class="para1" eId="d25e8359"><num>(a)</num><content>0% in relation to so much (if any) of that amount as, when added to the individual’s reduced net income for the tax year, does not exceed the basic rate limit,</content></level><level class="para1" eId="d25e8365"><num>(b)</num><content>20% in relation to so much (if any) of that amount as, when so added, exceeds the basic rate limit but does not exceed the higher rate limit, and</content></level><level class="para1" eId="d25e8371"><num>(c)</num><content>30% in relation to so much (if any) of that amount as, when so added, exceeds the higher rate limit.</content></level></subsection><subsection eId="d25e8377"><num>(2)</num><content>But where the individual’s gross income for the tax year is less than £180,000, the percentages in subsection (1)(b) and (c) are each reduced (but to no less than 0%) by 1 percentage point for every £1,000 by which it is less than £180,000.</content></subsection><subsection eId="d25e8383"><num>(3)</num><content>The individual’s reduced net income for the tax year is the amount after taking step 3 in section 23 of ITA 2007 in the case of the individual for the tax year.</content></subsection><subsection eId="d25e8389"><num>(4)</num><content>Where the basic rate limit or the higher rate limit for the tax year is (in accordance with section 192 of this Act and section 414 of ITA 2007) increased in the case of the individual, the references to the limit in subsection (1) are to the limit as so increased.</content></subsection></section><section eId="d25e8398"><num>213F</num><heading>Total pension savings amount</heading><subsection eId="d25e8402"><num>(1)</num><content>The total pension savings amount in the case of an individual for a tax year is arrived at by aggregating the pension savings amounts in respect of each arrangement relating to the individual under a registered pension scheme of which the individual is a member.</content></subsection><subsection eId="d25e8408"><num>(2)</num><intro>The pension savings amount in respect of an arrangement—</intro><level class="para1" eId="d25e8414"><num>(a)</num><content>is the amount arrived at under section 213G if it is a money purchase arrangement other than a cash balance arrangement,</content></level><level class="para1" eId="d25e8420"><num>(b)</num><content>is the amount arrived at under section 213H if it is a cash balance arrangement,</content></level><level class="para1" eId="d25e8426"><num>(c)</num><content>is the amount arrived at under section 213J if it is a defined benefits arrangement, and</content></level><level class="para1" eId="d25e8432"><num>(d)</num><content>is the amount arrived at under section 213N if it is a hybrid arrangement.</content></level></subsection><subsection eId="d25e8438"><num>(3)</num><content>Where the pension savings amount in respect of an arrangement would otherwise be a negative amount it is to be taken to be nil.</content></subsection><subsection eId="d25e8444"><num>(4)</num><intro>Where—</intro><level class="para1" eId="d25e8450"><num>(a)</num><content>the total pension input amount in the case of the individual under section 229 for the tax year, exceeds</content></level><level class="para1" eId="d25e8456"><num>(b)</num><content>the amount of the annual allowance for the tax year,</content></level><wrapUp>the total pension savings amount in the case of the individual for the tax year is reduced by the amount of the excess.</wrapUp></subsection><subsection eId="d25e8464"><num>(5)</num><intro>The Treasury may by regulations make provision—</intro><level class="para1" eId="d25e8470"><num>(a)</num><content>for an arrangement relating to the individual to be left out of account in arriving at the total pension savings amount in the case of the individual for a tax year if the individual meets the condition in subsection (6) throughout the tax year and such conditions as are prescribed by the regulations are met, and</content></level><level class="para1" eId="d25e8476"><num>(b)</num><content>for modifying the operation of any of the provisions relating to the high income excess relief charge in relation to an arrangement relating to the individual for a tax year if the individual meets the condition in subsection (6) for only part of the tax year and such conditions as are prescribed by the regulations are met.</content></level></subsection><subsection eId="d25e8482"><num>(6)</num><content>The condition in this subsection, in relation to the individual and an arrangement under a pension scheme, is that the individual is a deferred member of the pension scheme (or would be if it were the only arrangement under the pension scheme relating to the individual).</content></subsection></section><section eId="d25e8491"><num>213G</num><heading>Money purchase arrangements other than cash balance arrangements</heading><subsection eId="d25e8495"><num>(1)</num><intro>The pension savings amount in respect of a money purchase arrangement other than a cash balance arrangement is the total of—</intro><level class="para1" eId="d25e8501"><num>(a)</num><content>any relievable pension contributions paid by or on behalf of the individual under the arrangement, and</content></level><level class="para1" eId="d25e8507"><num>(b)</num><content>contributions paid in respect of the individual under the arrangement by an employer of the individual,</content></level><wrapUp>during the tax year.</wrapUp></subsection><subsection eId="d25e8515"><num>(2)</num><intro>The references to contributions in subsection (1)(a) and (b) do not include minimum payments under—</intro><level class="para1" eId="d25e8521"><num>(a)</num><content>section 8 of the Pension Schemes Act 1993, or</content></level><level class="para1" eId="d25e8527"><num>(b)</num><content>section 4 of the Pension Schemes (Northern Ireland) Act 1993,</content></level><wrapUp>or any amount recovered under regulations made under subsection (3) of either of those sections.</wrapUp></subsection><subsection eId="d25e8535"><num>(3)</num><content>When at any time contributions paid under a pension scheme by an employer otherwise than in respect of any individual become held for the purposes of the provision under an arrangement under the pension scheme of benefits to or in respect of an individual, they are to be treated as being contributions paid at that time in respect of the individual under the arrangement.</content></subsection><subsection eId="d25e8541"><num>(4)</num><content>If during the tax year the individual becomes entitled to a serious ill-health lump sum under the arrangement or dies, the pension savings amount in the case of the individual in respect of the arrangement is nil.</content></subsection></section><section eId="d25e8550"><num>213H</num><heading>Cash balance arrangements</heading><subsection eId="d25e8554"><num>(1)</num><content>The pension savings amount in respect of a cash balance arrangement is the appropriate increase.</content></subsection><subsection eId="d25e8560"><num>(2)</num><content>The appropriate increase is—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_001"><default:mo>(</default:mo><default:mrow><default:mrow><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">C</default:mi><default:mi mathvariant="normal">R</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">C</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">F</default:mi></default:mrow></default:mrow><default:mo>)</default:mo><default:mo>−</default:mo><default:mo>(</default:mo><default:mrow><default:mrow><default:mi mathvariant="normal">U</default:mi><default:mi mathvariant="normal">O</default:mi><default:mi mathvariant="normal">R</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">O</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">F</default:mi></default:mrow></default:mrow><default:mo>)</default:mo></default:math></foreign><blockContainer class="where">where—<tblock class="definition">ACR is the amount of the closing rights (see subsection (3)), adjusted in accordance with section 213I,</tblock><tblock class="definition">CARARF is the factor which is the appropriate age-related factor (see section 213L) in relation to the closing rights,</tblock><tblock class="definition">UOR is the amount of the opening rights (see subsection (4)), uprated in accordance with section 213M, and</tblock><tblock class="definition">OARARF is the factor which is the appropriate age-related factor (see section 213L) in relation to the opening rights.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e8645"><num>(3)</num><content>The amount of the closing rights is the amount which would, on the relevant assumptions, be available for the provision of benefits to or in respect of the individual under the arrangement if the individual became entitled to the benefits at the end of the tax year.</content></subsection><subsection eId="d25e8651"><num>(4)</num><content>The amount of the opening rights is the amount which would, on the relevant assumptions, be available for the provision of benefits to or in respect of the individual under the arrangement if the individual became entitled to the benefits at the end of the preceding tax year.</content></subsection><subsection eId="d25e8657"><num>(5)</num><intro>If, during the tax year, minimum payments are made under—</intro><level class="para1" eId="d25e8663"><num>(a)</num><content>section 8 of the Pension Schemes Act 1993, or</content></level><level class="para1" eId="d25e8669"><num>(b)</num><content>section 4 of the Pension Schemes (Northern Ireland) Act 1993,</content></level><wrapUp>in relation to the individual in connection with a cash balance arrangement, the amount is to be subtracted from what would otherwise be the pension savings amount in the case of the individual in respect of the arrangement.</wrapUp></subsection><subsection eId="d25e8677"><num>(6)</num><content>If during the tax year the individual becomes entitled to a serious ill-health lump sum under the arrangement or dies, the pension savings amount in the case of the individual in respect of the arrangement is nil.</content></subsection><subsection eId="d25e8683"><num>(7)</num><intro>In this section and section 213J “the relevant assumptions” means—</intro><level class="para1" eId="d25e8689"><num>(a)</num><content>the valuation assumptions (see section 277) as modified by regulations made by the Treasury, and</content></level><level class="para1" eId="d25e8695"><num>(b)</num><content>such other assumptions as the Treasury may by regulations prescribe.</content></level></subsection></section><section eId="d25e8704"><num>213I</num><heading>Adjustment of closing rights</heading><subsection eId="d25e8708"><num>(1)</num><content>This section applies for adjusting ACR under section 213H.</content></subsection><subsection eId="d25e8714"><num>(2)</num><content>If, during the tax year, the rights of the individual under the arrangement have been reduced by having become subject to a pension debit, the amount of the reduction is to be added to ACR.</content></subsection><subsection eId="d25e8720"><num>(3)</num><content>If, during the tax year, the rights of the individual under the arrangement have been increased by the individual having become entitled to a pension credit deriving from the same or another registered pension scheme, the amount of the increase is to be subtracted from ACR.</content></subsection><subsection eId="d25e8726"><num>(4)</num><intro>If, during the tax year, the rights of the individual under the arrangement have been reduced by reason of a transfer relating to the individual of any sums or assets held for the purposes of, or representing accrued rights under, the arrangement so as to become held for the purposes of, or to represent rights under, any other pension scheme that is—</intro><level class="para1" eId="d25e8732"><num>(a)</num><content>a registered pension scheme, or</content></level><level class="para1" eId="d25e8738"><num>(b)</num><content>a qualifying recognised overseas pension scheme,</content></level><wrapUp>the amount of the reduction is to be added to ACR.</wrapUp></subsection><subsection eId="d25e8746"><num>(5)</num><content>If, during the tax year, the rights of the individual under the arrangement have been increased by reason of a transfer relating to the individual of any sums or assets held for the purposes of, or representing accrued rights under, any pension scheme so as to become held for the purposes of, or to represent rights under, the arrangement, the amount of the increase is to be subtracted from ACR.</content></subsection><subsection eId="d25e8752"><num>(6)</num><content>If, during the tax year, the rights of the individual under the arrangement have been reduced by any surrender made, or similar action taken, pursuant to an option available to the individual under the arrangement, the amount of the reduction is to be added to ACR.</content></subsection><subsection eId="d25e8758"><num>(7)</num><intro>If, during the tax year—</intro><level class="para1" eId="d25e8764"><num>(a)</num><content>benefit crystallisation event 1, 2, 3, or 4 occurs in relation to the individual and the arrangement,</content></level><level class="para1" eId="d25e8770"><num>(b)</num><content>benefit crystallisation event 6 so occurs by virtue of the individual becoming entitled to a pension commencement lump sum or a lifetime allowance excess lump sum, or</content></level><level class="para1" eId="d25e8776"><num>(c)</num><content>there is an allocation of rights of the individual under the arrangement (not falling within paragraph (a)),</content></level><wrapUp>the amount of the reduction in the amount of the rights available for the provision of benefits to or in respect of the individual occurring by reason of the event or allocation is to be added to ACR.</wrapUp></subsection></section><section eId="d25e8787"><num>213J</num><heading>Defined benefits arrangements</heading><subsection eId="d25e8791"><num>(1)</num><intro>The pension savings amount in respect of a defined benefits arrangement is the aggregate of—</intro><level class="para1" eId="d25e8797"><num>(a)</num><content>the appropriate pension increase (see subsection (2)), and</content></level><level class="para1" eId="d25e8803"><num>(b)</num><content>the appropriate lump sum increase (see subsection (5)).</content></level></subsection><subsection eId="d25e8809"><num>(2)</num><content>The appropriate pension increase is—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_002"><default:mo>(</default:mo><default:mrow><default:mrow><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">C</default:mi><default:mi mathvariant="normal">P</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">C</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">P</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">F</default:mi></default:mrow></default:mrow><default:mo>)</default:mo><default:mo>−</default:mo><default:mo>(</default:mo><default:mrow><default:mrow><default:mi mathvariant="normal">U</default:mi><default:mi mathvariant="normal">O</default:mi><default:mi mathvariant="normal">P</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">O</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">P</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">F</default:mi></default:mrow></default:mrow><default:mo>)</default:mo></default:math></foreign><blockContainer class="where">where—<tblock class="definition">ACP is the amount of the closing pension (see subsection (3)), adjusted in accordance with section 213K,</tblock><tblock class="definition">CAPARF is the factor which is the appropriate age-related factor (see section 213L) in relation to the closing pension,</tblock><tblock class="definition">UOP is the amount of the opening pension (see subsection (4)), uprated in accordance with section 213M, and</tblock><tblock class="definition">OAPARF is the factor which is the appropriate age-related factor (see section 213L) in relation to the opening pension.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e8894"><num>(3)</num><content>The amount of the closing pension is the annual rate of the pension to which the individual would, on the relevant assumptions, be entitled under the arrangement if the individual became entitled to it at the end of the tax year.</content></subsection><subsection eId="d25e8900"><num>(4)</num><content>The amount of the opening pension is the annual rate of the pension to which the individual would, on the relevant assumptions, be entitled under the arrangement if the individual became entitled to it at the end of the preceding tax year.</content></subsection><subsection eId="d25e8906"><num>(5)</num><content>The appropriate lump sum increase is—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_003"><default:mo>(</default:mo><default:mrow><default:mrow><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">C</default:mi><default:mi mathvariant="normal">L</default:mi><default:mi mathvariant="normal">S</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">C</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">L</default:mi><default:mi mathvariant="normal">S</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">F</default:mi></default:mrow></default:mrow><default:mo>)</default:mo><default:mo>−</default:mo><default:mo>(</default:mo><default:mrow><default:mi mathvariant="normal">U</default:mi><default:mi mathvariant="normal">O</default:mi><default:mi mathvariant="normal">L</default:mi><default:mrow><default:mi mathvariant="normal">S</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi mathvariant="normal">O</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">L</default:mi><default:mi mathvariant="normal">S</default:mi><default:mi mathvariant="normal">A</default:mi><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">F</default:mi></default:mrow></default:mrow><default:mo>)</default:mo></default:math></foreign><blockContainer class="where">where—<tblock class="definition">ACLS is the amount of the closing lump sum (see subsection (6)), adjusted in accordance with section 213K,</tblock><tblock class="definition">CALSARF is the factor which is the appropriate age-related factor (see section 213L) in relation to the closing lump sum,</tblock><tblock class="definition">UOLS is the amount of the opening lump sum (see subsection (7)), uprated in accordance with section 213M, and</tblock><tblock class="definition">OALSARF is the factor which is the appropriate age-related factor (see section 213L) in relation to the opening lump sum.</tblock></blockContainer></tblock></content></subsection><subsection eId="d25e8999"><num>(6)</num><content>The amount of the closing lump sum is the amount of the lump sum to which the individual would, on the relevant assumptions, be entitled under the arrangement if the individual became entitled to it at the end of the tax year.</content></subsection><subsection eId="d25e9005"><num>(7)</num><content>The amount of the opening lump sum is the amount of the lump sum to which the individual would, on the relevant assumptions, be entitled under the arrangement if the individual became entitled to it at the end of the preceding tax year.</content></subsection><subsection eId="d25e9011"><num>(8)</num><intro>If, during the tax year, minimum payments are made under—</intro><level class="para1" eId="d25e9017"><num>(a)</num><content>section 8 of the Pension Schemes Act 1993, or</content></level><level class="para1" eId="d25e9023"><num>(b)</num><content>section 4 of the Pension Schemes (Northern Ireland) Act 1993,</content></level><wrapUp>in relation to the individual in connection with a defined benefits arrangement, the amount is to be subtracted from what would otherwise be the pension savings amount in the case of the individual in respect of the arrangement.</wrapUp></subsection><subsection eId="d25e9031"><num>(9)</num><content>If during the tax year the individual becomes entitled to a serious ill-health lump sum under the arrangement or dies, the pension savings amount in the case of the individual in respect of the arrangement is nil.</content></subsection></section><section eId="d25e9041"><num>213K</num><heading>Adjustment of closing pension and lump sum</heading><subsection eId="d25e9045"><num>(1)</num><content>This section applies for adjusting ACP and ACLS under section 213J.</content></subsection><subsection eId="d25e9051"><num>(2)</num><content>If, during the tax year, the annual rate of the pension, or the amount of the lump sum, to which the individual would be entitled under the arrangement has been reduced by having become subject to a pension debit, the amount of the reduction is to be added to ACP or ACLS.</content></subsection><subsection eId="d25e9057"><num>(3)</num><content>If, during the tax year, the annual rate of the pension, or the amount of the lump sum, to which the individual would be entitled under the arrangement has been increased by the individual having become entitled to a pension credit deriving from the same or another registered pension scheme, the amount of the increase is to be subtracted from ACP or ACLS.</content></subsection><subsection eId="d25e9063"><num>(4)</num><intro>If, during the tax year, the annual rate of the pension, or the amount of the lump sum, to which the individual would be entitled under the arrangement has been reduced by reason of a transfer relating to the individual of any sums or assets held for the purposes of, or representing accrued rights under, the arrangement so as to become held for the purposes of, or to represent rights under, any other pension scheme that is—</intro><level class="para1" eId="d25e9069"><num>(a)</num><content>a registered pension scheme, or</content></level><level class="para1" eId="d25e9075"><num>(b)</num><content>a qualifying recognised overseas pension scheme,</content></level><wrapUp>the amount of the reduction is to be added to ACP or ACLS.</wrapUp></subsection><subsection eId="d25e9083"><num>(5)</num><content>If, during the tax year, the annual rate of the pension, or the amount of the lump sum, to which the individual would be entitled under the arrangement has been increased by reason of a transfer relating to the individual of any sums or assets held for the purposes of, or representing accrued rights under, any pension scheme so as to become held for the purposes of, or to represent rights under, the arrangement, the amount of the increase is to be subtracted from ACP or ACLS.</content></subsection><subsection eId="d25e9089"><num>(6)</num><content>If, during the tax year, the annual rate of the pension, or the amount of the lump sum, to which the individual would be entitled under the arrangement has been reduced by any commutation, allocation or surrender made, or similar action taken, pursuant to an option available to the individual under the arrangement, the amount of the reduction is to be added to ACP or ACLS.</content></subsection><subsection eId="d25e9095"><num>(7)</num><intro>If, during the tax year—</intro><level class="para1" eId="d25e9101"><num>(a)</num><content>benefit crystallisation event 2 or 3 occurs in relation to the individual and the arrangement, or</content></level><level class="para1" eId="d25e9107"><num>(b)</num><content>benefit crystallisation event 6 occurs in relation to the individual and the arrangement by virtue of the individual becoming entitled to a pension commencement lump sum or a lifetime allowance excess lump sum,</content></level><wrapUp>the annual rate of the pension, or the amount of the lump sum, to which the individual became entitled (otherwise than by commutation of lump sum or of pension) is to be added to ACP or ACLS.</wrapUp></subsection></section><section eId="d25e9118"><num>213L</num><heading>Age-related factors</heading><subsection eId="d25e9122"><num>(1)</num><content>The Treasury must make regulations about age-related factors.</content></subsection><subsection eId="d25e9128"><num>(2)</num><content>Different provision may be made in relation to rights age-related factors and lump sum age-related factors, on the one hand, and pension age-related factors on the other.</content></subsection><subsection eId="d25e9134"><num>(3)</num><content>For the purposes of sections 213H and 213J the “appropriate” age-related factor is the age-related factor which applies in the case of the individual, and the amount of the rights or lump sum, or rate of the pension, in accordance with the regulations.</content></subsection><subsection eId="d25e9140"><num>(4)</num><intro>Regulations under subsection (1) must make provision for the age-related factor or factors applying in the case of the individual to be arrived at by reference to—</intro><level class="para1" eId="d25e9146"><num>(a)</num><content>the age of the individual, and</content></level><level class="para1" eId="d25e9152"><num>(b)</num><content>the relevant normal pension age,</content></level><wrapUp>at the relevant time.</wrapUp></subsection><subsection eId="d25e9160"><num>(5)</num><content>The relevant time, in relation to factors for a tax year, is the end of the tax year unless the case is one in which there is a change in the relevant normal pension age during the tax year.</content></subsection><subsection eId="d25e9166"><num>(6)</num><content>In that case, the relevant time, in relation to the relevant normal pension age and the opening rights, opening pension or opening lump sum for the tax year, is the end of the previous tax year.</content></subsection><subsection eId="d25e9172"><num>(7)</num><content>Regulations under subsection (1) may make provision for the age-related factor or factors applying in the case of an individual and an arrangement to vary according to the nature and extent of the benefits which may be provided to or in respect of the individual under the arrangement.</content></subsection><subsection eId="d25e9178"><num>(8)</num><content>Before making the first regulations under subsection (1) the Treasury must seek advice from the Government Actuary or the Deputy Government Actuary.</content></subsection><subsection eId="d25e9184"><num>(9)</num><content>Before making any other regulations under subsection (1) the Treasury must carry out a review of the provision made by the regulations for the time being in force under this section; and when conducting such a review the Treasury must seek advice from the Government Actuary or the Deputy Government Actuary.</content></subsection><subsection eId="d25e9190"><num>(10)</num><intro>The Treasury must carry out a review of the provision made by the regulations for the time being in force under subsection (1)—</intro><level class="para1" eId="d25e9196"><num>(a)</num><content>no later than the end of the period of 5 years beginning with the day on which the first regulations are made under this section, and</content></level><level class="para1" eId="d25e9202"><num>(b)</num><content>no later than the end of the period of 5 years beginning with the last review of the provision made by the regulations for the time being in force under this section.</content></level></subsection><subsection eId="d25e9208"><num>(11)</num><content>In this section “the relevant normal pension age”, in relation to an individual and an arrangement, means the age at which the individual would be unconditionally entitled to benefits under the arrangement without any reduction on account of age (assuming that the individual were a deferred member of the pension scheme under which it is an arrangement and it were the only arrangement under the pension scheme relating to the individual).</content></subsection><subsection eId="d25e9215"><num>(12)</num><content>But the Treasury may by regulations make provision for the relevant normal pension age to be the age specified in, or determined in accordance with, the regulations in cases of such descriptions as are specified in the regulations.</content></subsection><subsection eId="d25e9221"><num>(13)</num><content>The Treasury may by regulations make provision modifying the operation of sections 213H to 213K in relation to cases where the relevant normal pension age in relation to an individual and an arrangement is not the same in relation to all the rights or benefits under the arrangement.</content></subsection></section><section eId="d25e9230"><num>213M</num><heading>Uprating of opening rights, pension and lump sum</heading><subsection eId="d25e9234"><num>(1)</num><content>This section applies for uprating UOR under section 213H and UOP and UOLS under section 213J.</content></subsection><subsection eId="d25e9240"><num>(2)</num><content>Each is to be increased by the appropriate percentage.</content></subsection><subsection eId="d25e9246"><num>(3)</num><content>The appropriate percentage for a tax year is the percentage arrived at for the tax year in accordance with provision made by order made by the Treasury.</content></subsection><subsection eId="d25e9252"><num>(4)</num><intro>An order under subsection (3)—</intro><level class="para1" eId="d25e9258"><num>(a)</num><content>must make provision for securing that the appropriate percentage for a tax year reflects any decrease in the value of money over a specified period, and</content></level><level class="para1" eId="d25e9264"><num>(b)</num><content>may do so by reference to any movement in a specified index, or an average of any movements in specified indices, over a specified period.</content></level></subsection><subsection eId="d25e9270"><num>(5)</num><content>If an order is made under subsection (3) which amends any provision included in an order by virtue of subsection (4)(b), the Treasury must as soon as reasonably practicable after the making of the order carry out a review of the provision made by the regulations for the time being in force under section 213L(1).</content></subsection></section><section eId="d25e9279"><num>213N</num><heading>Hybrid arrangements</heading><subsection eId="d25e9283"><num>(1)</num><content>The pension savings amount in respect of a hybrid arrangement is the greater or greatest of such of amounts A, B and C as are relevant amounts.</content></subsection><subsection eId="d25e9289"><num>(2)</num><content>An amount is a relevant amount in the case of a hybrid arrangement if, in any circumstances, the benefits that may be provided to or in respect of the individual under the arrangement may be benefits of the variety mentioned in the definition of that amount.</content></subsection><subsection eId="d25e9295"><num>(3)</num><content>Amount A is what would be the pension savings amount under section 213G if the benefits provided to or in respect of the individual under the arrangement were money purchase benefits other than cash balance benefits.</content></subsection><subsection eId="d25e9301"><num>(4)</num><content>Amount B is what would be the pension savings amount under section 213H if the benefits provided to or in respect of the individual under the arrangement were cash balance benefits.</content></subsection><subsection eId="d25e9307"><num>(5)</num><content>Amount C is what would be the pension savings amount under section 213J if the benefits provided to or in respect of the individual under the arrangement were defined benefits.</content></subsection></section><section eId="d25e9316"><num>213O</num><heading>Anti-avoidance</heading><subsection eId="d25e9320"><num>(1)</num><content>This section applies if a high income excess relief charge scheme applies in the case of the individual for the tax year.</content></subsection><subsection eId="d25e9326"><num>(2)</num><content>A scheme is a high income excess relief charge scheme if in the case of the individual for the tax year conditions A to C are met.</content></subsection><subsection eId="d25e9332"><num>(3)</num><content>Condition A is that it is reasonable to assume that the main purpose, or one of the main purposes, of the scheme is to avoid the whole or any part of the liability of the individual to the high income excess relief charge for the tax year.</content></subsection><subsection eId="d25e9338"><num>(4)</num><intro>Condition B is that the scheme involves either or both of the following—</intro><level class="para1" eId="d25e9344"><num>(a)</num><content>reducing the individual’s gross income or relevant income for the tax year, and</content></level><level class="para1" eId="d25e9350"><num>(b)</num><content>reducing the total pension savings amount in the case of the individual for the tax year.</content></level></subsection><subsection eId="d25e9356"><num>(5)</num><intro>Condition C is that the scheme involves the reduction, or any of the reductions, being redressed by—</intro><level class="para1" eId="d25e9362"><num>(a)</num><content>an increase in the individual’s gross income or relevant income, or the total pension savings amount in the case of the individual, for a different tax year, or</content></level><level class="para1" eId="d25e9368"><num>(b)</num><content>the provision at any time of some other benefit to or for the benefit of the individual or any person who is a dependant of, or is connected with, the individual.</content></level></subsection><subsection eId="d25e9374"><num>(6)</num><intro>The individual is to be treated for the purposes of the high income excess relief charge as if—</intro><level class="para1" eId="d25e9380"><num>(a)</num><content>the individual’s gross income and relevant income for the tax year, and</content></level><level class="para1" eId="d25e9386"><num>(b)</num><content>the total pension savings amount in the case of the individual for the tax year,</content></level><wrapUp>were what they would be apart from the scheme.</wrapUp></subsection><subsection eId="d25e9394"><num>(7)</num><content>In this section “scheme” includes any arrangement, agreement, understanding, transaction or series of transactions (whether or not legally enforceable).</content></subsection><subsection eId="d25e9400"><num>(8)</num><content>Section 993 of ITA 2007 (meaning of “connected” persons) applies for the purposes of subsection (5).</content></subsection></section><section eId="d25e9409"><num>213P</num><heading>Power to make regulations about charge</heading><subsection eId="d25e9413"><num>(1)</num><content>The Treasury may by regulations make provision about the high income excess relief charge.</content></subsection><subsection eId="d25e9419"><num>(2)</num><content>The provision may include modifications of any provision made in sections 213A to 213O.</content></subsection><subsection eId="d25e9425"><num>(3)</num><content>The provision may include provision consequential on, or supplementary or incidental to, the provision made by those sections and transitional provisions (including provision making modifications of enactments).</content></subsection><subsection eId="d25e9431"><num>(4)</num><content>The provision may not include provision increasing any person’s liability to tax.</content></subsection><subsection eId="d25e9437"><num>(5)</num><content>“Modifications” includes amendments.</content></subsection></section></hcontainer></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-2-paragraph-3-1"><num>(1)</num><content>Section 282 (orders and regulations) is amended as follows.</content></subparagraph><subparagraph eId="schedule-2-paragraph-3-2"><num>(2)</num><content><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e9460"><num>(1A)</num><content>The first regulations under section 213L(1) may not be made unless a draft of the instrument containing them has been laid before, and approved by a resolution of, the House of Commons.</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-2-paragraph-3-3"><num>(3)</num><content>In subsection (2), after “Part” insert “(other than one of which a draft has been approved by a resolution of the House of Commons)”.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-2-paragraph-4" class="schProv1"><num>4</num><content><mod>In Schedule 34 (non-UK schemes: application of certain charges), after paragraph 7A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="crossheading" class="schGroup7" eId="d25e9479"><heading>High income excess relief charge</heading><paragraph eId="d25e9482" class="schProv1"><num>7B</num><subparagraph eId="d25e9486"><num>(1)</num><content>The Commissioners for Her Majesty’s Revenue and Customs may by regulations make provision for the provisions of this Part of this Act relating to the high income excess relief charge to apply in relation to individuals who are or have been members of a currently-relieved non-UK pension scheme subject to modifications contained in the regulations.</content></subparagraph><subparagraph eId="d25e9492"><num>(2)</num><intro>Regulations under sub-paragraph (1) may—</intro><level class="para1" eId="d25e9498"><num>(a)</num><content>include provision having effect in relation to times before they are made,</content></level><level class="para1" eId="d25e9504"><num>(b)</num><content>confer discretion on the Commissioners for Her Majesty’s Revenue and Customs or officers of Revenue and Customs, and</content></level><level class="para1" eId="d25e9510"><num>(c)</num><content>make different provision for different cases.</content></level></subparagraph></paragraph></hcontainer></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-2-paragraph-5" class="schProv1"><num>5</num><content>The amendments made by this Schedule have effect for the tax year 2011-12 and subsequent tax years.</content></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-3"><num>SCHEDULE 3<authorialNote class="referenceNote">Section 24</authorialNote></num><heading>Sideways relief etc</heading><hcontainer name="crossheading" class="schGroup7"><heading>Amendments of Chapter 2 of Part 4 of ITA 2007</heading><paragraph eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><content>Chapter 2 of Part 4 of ITA 2007 (trade losses) is amended as follows.</content></paragraph><paragraph eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><content>In section 60(1)(c) (overview of Chapter), for “(see sections 75” substitute “and capital gains relief (see sections 74ZA”.</content></paragraph><paragraph eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><intro>In section 64(8) (deduction of losses from general income)—</intro><level class="para1" eId="schedule-3-paragraph-3-a"><num>(a)</num><content>in paragraph (ba), for “74A” substitute “74ZA”,</content></level><level class="para1" eId="schedule-3-paragraph-3-b"><num>(b)</num><content>at the end of paragraph (c), insert “and”, and</content></level><level class="para1" eId="schedule-3-paragraph-3-c"><num>(c)</num><content>omit paragraph (e).</content></level></paragraph><paragraph eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><intro>In section 72(5) (relief for individuals for losses in first 4 years of trade)—</intro><level class="para1" eId="schedule-3-paragraph-4-a"><num>(a)</num><content>in paragraph (ba), for “74A” substitute “74ZA”,</content></level><level class="para1" eId="schedule-3-paragraph-4-b"><num>(b)</num><content>at the end of paragraph (c), insert “and”, and</content></level><level class="para1" eId="schedule-3-paragraph-4-c"><num>(c)</num><content>omit paragraph (e).</content></level></paragraph><paragraph eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><content><mod>Before section 74A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e9604"><num>74ZA</num><heading>No relief for tax-generated losses</heading><subsection eId="d25e9608"><num>(1)</num><intro>This section applies if—</intro><level class="para1" eId="d25e9614"><num>(a)</num><content>during a tax year a person carries on (alone or in partnership) a trade, profession or vocation (“the relevant activity”),</content></level><level class="para1" eId="d25e9620"><num>(b)</num><content>the person makes a loss in the relevant activity in that tax year, and</content></level><level class="para1" eId="d25e9626"><num>(c)</num><content>the loss arises directly or indirectly in consequence of, or otherwise in connection with, relevant tax avoidance arrangements.</content></level></subsection><subsection eId="d25e9632"><num>(2)</num><content>No sideways relief or capital gains relief may be given to the person for the loss (but subject to subsection (5)).</content></subsection><subsection eId="d25e9638"><num>(3)</num><intro>In subsection (1) “relevant tax avoidance arrangements” means arrangements—</intro><level class="para1" eId="d25e9644"><num>(a)</num><content>to which the person is a party, and</content></level><level class="para1" eId="d25e9650"><num>(b)</num><content>the main purpose, or one of the main purposes, of which is the obtaining of a reduction in tax liability by means of sideways relief or capital gains relief.</content></level></subsection><subsection eId="d25e9656"><num>(4)</num><content>In subsection (3) “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</content></subsection><subsection eId="d25e9662"><num>(5)</num><content>This section has no effect in relation to any loss that derives wholly from qualifying film expenditure (see section 74D).</content></subsection><subsection eId="d25e9668"><num>(6)</num><intro>For the purposes of this section—</intro><level class="para1" eId="d25e9674"><num>(a)</num><content>capital gains relief is, in relation to a loss, the treatment of a loss as an allowable loss by virtue of section 261B of TCGA 1992 (use of trading loss as a CGT loss), and</content></level><level class="para1" eId="d25e9680"><num>(b)</num><content>capital gains relief is given for a loss when it is so treated.</content></level></subsection></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><content>Omit section 74B (no relief for tax-generated losses in case of non-active individuals carrying on trade).</content></paragraph><paragraph eId="schedule-3-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-3-paragraph-7-1"><num>(1)</num><content>Section 74C (meaning of “non-active capacity” for purposes of sections 74A and 74B etc) is amended as follows.</content></subparagraph><subparagraph eId="schedule-3-paragraph-7-2"><num>(2)</num><content>In subsection (1), for “sections 74A and 74B” substitute “section 74A”.</content></subparagraph><subparagraph eId="schedule-3-paragraph-7-3"><num>(3)</num><content>In the heading, for “sections 74A and 74B” substitute “section 74A”.</content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-3-paragraph-8-1"><num>(1)</num><content>Section 74D (meaning of “qualifying film expenditure” for purposes of sections 74A and 74B) is amended as follows.</content></subparagraph><subparagraph eId="schedule-3-paragraph-8-2"><num>(2)</num><content>In subsections (1) and (4), for “74A and 74B” substitute “74ZA and 74A”.</content></subparagraph><subparagraph eId="schedule-3-paragraph-8-3"><num>(3)</num><content>In the heading, for “74A and 74B” substitute “74ZA and 74A”.</content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-9" class="schProv1"><num>9</num><content>Omit section 81 (dealings in commodity futures).</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Other amendments</heading><paragraph eId="schedule-3-paragraph-10" class="schProv1"><num>10</num><intro>In FA 2009, in Schedule 6, in paragraph 1(11)—</intro><level class="para1" eId="schedule-3-paragraph-10-a"><num>(a)</num><content>in paragraph (b), for “74B” substitute “74ZA”,</content></level><level class="para1" eId="schedule-3-paragraph-10-b"><num>(b)</num><content>at the end of paragraph (c), insert “and”, and</content></level><level class="para1" eId="schedule-3-paragraph-10-c"><num>(c)</num><content>omit paragraph (e) (and the “and” before it).</content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-3-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-3-paragraph-11-1"><num>(1)</num><intro>The amendments made by this Schedule have effect in relation to a loss if it arises directly or indirectly in consequence of, or otherwise in connection with—</intro><level class="para1" eId="schedule-3-paragraph-11-1-a"><num>(a)</num><content>arrangements which are entered into on or after 21 October 2009, or</content></level><level class="para1" eId="schedule-3-paragraph-11-1-b"><num>(b)</num><content>any transaction forming part of arrangements which is entered into on or after that date.</content></level></subparagraph><subparagraph eId="schedule-3-paragraph-11-2"><num>(2)</num><content>But those amendments do not have effect where the arrangements are, or any such transaction is, entered into pursuant to an unconditional obligation in a contract made before that date.</content></subparagraph><subparagraph eId="schedule-3-paragraph-11-3"><num>(3)</num><content>“An unconditional obligation” means an obligation which may not be varied or extinguished by the exercise of a right (whether or not under the contract).</content></subparagraph></paragraph></hcontainer></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7"><heading>Amendments of Chapter 2 of Part 4 of ITA 2007</heading><paragraph eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><content>Chapter 2 of Part 4 of ITA 2007 (trade losses) is amended as follows.</content></paragraph><paragraph eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><content>In section 60(1)(c) (overview of Chapter), for “(see sections 75” substitute “and capital gains relief (see sections 74ZA”.</content></paragraph><paragraph eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><intro>In section 64(8) (deduction of losses from general income)—</intro><level class="para1" eId="schedule-3-paragraph-3-a"><num>(a)</num><content>in paragraph (ba), for “74A” substitute “74ZA”,</content></level><level class="para1" eId="schedule-3-paragraph-3-b"><num>(b)</num><content>at the end of paragraph (c), insert “and”, and</content></level><level class="para1" eId="schedule-3-paragraph-3-c"><num>(c)</num><content>omit paragraph (e).</content></level></paragraph><paragraph eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><intro>In section 72(5) (relief for individuals for losses in first 4 years of trade)—</intro><level class="para1" eId="schedule-3-paragraph-4-a"><num>(a)</num><content>in paragraph (ba), for “74A” substitute “74ZA”,</content></level><level class="para1" eId="schedule-3-paragraph-4-b"><num>(b)</num><content>at the end of paragraph (c), insert “and”, and</content></level><level class="para1" eId="schedule-3-paragraph-4-c"><num>(c)</num><content>omit paragraph (e).</content></level></paragraph><paragraph eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><content><mod>Before section 74A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e9604"><num>74ZA</num><heading>No relief for tax-generated losses</heading><subsection eId="d25e9608"><num>(1)</num><intro>This section applies if—</intro><level class="para1" eId="d25e9614"><num>(a)</num><content>during a tax year a person carries on (alone or in partnership) a trade, profession or vocation (“the relevant activity”),</content></level><level class="para1" eId="d25e9620"><num>(b)</num><content>the person makes a loss in the relevant activity in that tax year, and</content></level><level class="para1" eId="d25e9626"><num>(c)</num><content>the loss arises directly or indirectly in consequence of, or otherwise in connection with, relevant tax avoidance arrangements.</content></level></subsection><subsection eId="d25e9632"><num>(2)</num><content>No sideways relief or capital gains relief may be given to the person for the loss (but subject to subsection (5)).</content></subsection><subsection eId="d25e9638"><num>(3)</num><intro>In subsection (1) “relevant tax avoidance arrangements” means arrangements—</intro><level class="para1" eId="d25e9644"><num>(a)</num><content>to which the person is a party, and</content></level><level class="para1" eId="d25e9650"><num>(b)</num><content>the main purpose, or one of the main purposes, of which is the obtaining of a reduction in tax liability by means of sideways relief or capital gains relief.</content></level></subsection><subsection eId="d25e9656"><num>(4)</num><content>In subsection (3) “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</content></subsection><subsection eId="d25e9662"><num>(5)</num><content>This section has no effect in relation to any loss that derives wholly from qualifying film expenditure (see section 74D).</content></subsection><subsection eId="d25e9668"><num>(6)</num><intro>For the purposes of this section—</intro><level class="para1" eId="d25e9674"><num>(a)</num><content>capital gains relief is, in relation to a loss, the treatment of a loss as an allowable loss by virtue of section 261B of TCGA 1992 (use of trading loss as a CGT loss), and</content></level><level class="para1" eId="d25e9680"><num>(b)</num><content>capital gains relief is given for a loss when it is so treated.</content></level></subsection></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><content>Omit section 74B (no relief for tax-generated losses in case of non-active individuals carrying on trade).</content></paragraph><paragraph eId="schedule-3-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-3-paragraph-7-1"><num>(1)</num><content>Section 74C (meaning of “non-active capacity” for purposes of sections 74A and 74B etc) is amended as follows.</content></subparagraph><subparagraph eId="schedule-3-paragraph-7-2"><num>(2)</num><content>In subsection (1), for “sections 74A and 74B” substitute “section 74A”.</content></subparagraph><subparagraph eId="schedule-3-paragraph-7-3"><num>(3)</num><content>In the heading, for “sections 74A and 74B” substitute “section 74A”.</content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-3-paragraph-8-1"><num>(1)</num><content>Section 74D (meaning of “qualifying film expenditure” for purposes of sections 74A and 74B) is amended as follows.</content></subparagraph><subparagraph eId="schedule-3-paragraph-8-2"><num>(2)</num><content>In subsections (1) and (4), for “74A and 74B” substitute “74ZA and 74A”.</content></subparagraph><subparagraph eId="schedule-3-paragraph-8-3"><num>(3)</num><content>In the heading, for “74A and 74B” substitute “74ZA and 74A”.</content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-9" class="schProv1"><num>9</num><content>Omit section 81 (dealings in commodity futures).</content></paragraph></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><content>Chapter 2 of Part 4 of ITA 2007 (trade losses) is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><content>In section 60(1)(c) (overview of Chapter), for “(see sections 75” substitute “and capital gains relief (see sections 74ZA”.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><intro>In section 64(8) (deduction of losses from general income)—</intro><level class="para1" eId="schedule-3-paragraph-3-a"><num>(a)</num><content>in paragraph (ba), for “74A” substitute “74ZA”,</content></level><level class="para1" eId="schedule-3-paragraph-3-b"><num>(b)</num><content>at the end of paragraph (c), insert “and”, and</content></level><level class="para1" eId="schedule-3-paragraph-3-c"><num>(c)</num><content>omit paragraph (e).</content></level></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><intro>In section 72(5) (relief for individuals for losses in first 4 years of trade)—</intro><level class="para1" eId="schedule-3-paragraph-4-a"><num>(a)</num><content>in paragraph (ba), for “74A” substitute “74ZA”,</content></level><level class="para1" eId="schedule-3-paragraph-4-b"><num>(b)</num><content>at the end of paragraph (c), insert “and”, and</content></level><level class="para1" eId="schedule-3-paragraph-4-c"><num>(c)</num><content>omit paragraph (e).</content></level></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><content><mod>Before section 74A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e9604"><num>74ZA</num><heading>No relief for tax-generated losses</heading><subsection eId="d25e9608"><num>(1)</num><intro>This section applies if—</intro><level class="para1" eId="d25e9614"><num>(a)</num><content>during a tax year a person carries on (alone or in partnership) a trade, profession or vocation (“the relevant activity”),</content></level><level class="para1" eId="d25e9620"><num>(b)</num><content>the person makes a loss in the relevant activity in that tax year, and</content></level><level class="para1" eId="d25e9626"><num>(c)</num><content>the loss arises directly or indirectly in consequence of, or otherwise in connection with, relevant tax avoidance arrangements.</content></level></subsection><subsection eId="d25e9632"><num>(2)</num><content>No sideways relief or capital gains relief may be given to the person for the loss (but subject to subsection (5)).</content></subsection><subsection eId="d25e9638"><num>(3)</num><intro>In subsection (1) “relevant tax avoidance arrangements” means arrangements—</intro><level class="para1" eId="d25e9644"><num>(a)</num><content>to which the person is a party, and</content></level><level class="para1" eId="d25e9650"><num>(b)</num><content>the main purpose, or one of the main purposes, of which is the obtaining of a reduction in tax liability by means of sideways relief or capital gains relief.</content></level></subsection><subsection eId="d25e9656"><num>(4)</num><content>In subsection (3) “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</content></subsection><subsection eId="d25e9662"><num>(5)</num><content>This section has no effect in relation to any loss that derives wholly from qualifying film expenditure (see section 74D).</content></subsection><subsection eId="d25e9668"><num>(6)</num><intro>For the purposes of this section—</intro><level class="para1" eId="d25e9674"><num>(a)</num><content>capital gains relief is, in relation to a loss, the treatment of a loss as an allowable loss by virtue of section 261B of TCGA 1992 (use of trading loss as a CGT loss), and</content></level><level class="para1" eId="d25e9680"><num>(b)</num><content>capital gains relief is given for a loss when it is so treated.</content></level></subsection></section></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><content>Omit section 74B (no relief for tax-generated losses in case of non-active individuals carrying on trade).</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-3-paragraph-7-1"><num>(1)</num><content>Section 74C (meaning of “non-active capacity” for purposes of sections 74A and 74B etc) is amended as follows.</content></subparagraph><subparagraph eId="schedule-3-paragraph-7-2"><num>(2)</num><content>In subsection (1), for “sections 74A and 74B” substitute “section 74A”.</content></subparagraph><subparagraph eId="schedule-3-paragraph-7-3"><num>(3)</num><content>In the heading, for “sections 74A and 74B” substitute “section 74A”.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-3-paragraph-8-1"><num>(1)</num><content>Section 74D (meaning of “qualifying film expenditure” for purposes of sections 74A and 74B) is amended as follows.</content></subparagraph><subparagraph eId="schedule-3-paragraph-8-2"><num>(2)</num><content>In subsections (1) and (4), for “74A and 74B” substitute “74ZA and 74A”.</content></subparagraph><subparagraph eId="schedule-3-paragraph-8-3"><num>(3)</num><content>In the heading, for “74A and 74B” substitute “74ZA and 74A”.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-9" class="schProv1"><num>9</num><content>Omit section 81 (dealings in commodity futures).</content></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>TCGA 1992</heading><paragraph eId="schedule-6-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-6-paragraph-13-1"><num>(1)</num><content>TCGA 1992 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-2"><num>(2)</num><content>In section 222(8B)(b)(iii) (relief on disposal of private residence), for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-3"><num>(3)</num><content>In section 256 (charities), omit subsections (6) and (8).</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-4"><num>(4)</num><content>In section 256C (attributing gains to the non-exempt amount: charitable companies), omit subsection (6).</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-5"><num>(5)</num><content>In section 256D (how gains are attributed to the non-exempt amount: charitable companies), omit subsection (7).</content></subparagraph></paragraph></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-3-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-3-paragraph-11-1"><num>(1)</num><intro>The amendments made by this Schedule have effect in relation to a loss if it arises directly or indirectly in consequence of, or otherwise in connection with—</intro><level class="para1" eId="schedule-3-paragraph-11-1-a"><num>(a)</num><content>arrangements which are entered into on or after 21 October 2009, or</content></level><level class="para1" eId="schedule-3-paragraph-11-1-b"><num>(b)</num><content>any transaction forming part of arrangements which is entered into on or after that date.</content></level></subparagraph><subparagraph eId="schedule-3-paragraph-11-2"><num>(2)</num><content>But those amendments do not have effect where the arrangements are, or any such transaction is, entered into pursuant to an unconditional obligation in a contract made before that date.</content></subparagraph><subparagraph eId="schedule-3-paragraph-11-3"><num>(3)</num><content>“An unconditional obligation” means an obligation which may not be varied or extinguished by the exercise of a right (whether or not under the contract).</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-10" class="schProv1"><num>10</num><content>In section 272 of IHTA 1984 (general interpretation), omit the definitions of “charity” and “charitable”.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-6-paragraph-13-1"><num>(1)</num><content>TCGA 1992 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-2"><num>(2)</num><content>In section 222(8B)(b)(iii) (relief on disposal of private residence), for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-3"><num>(3)</num><content>In section 256 (charities), omit subsections (6) and (8).</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-4"><num>(4)</num><content>In section 256C (attributing gains to the non-exempt amount: charitable companies), omit subsection (6).</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-5"><num>(5)</num><content>In section 256D (how gains are attributed to the non-exempt amount: charitable companies), omit subsection (7).</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-16" class="schProv1"><num>16</num><intro>In section 63(2) of CAA 2001 (cases in which disposal value is nil)—</intro><level class="para1" eId="schedule-6-paragraph-16-a"><num>(a)</num><content>in paragraph (a), omit “within the meaning of Part 10 of ITA 2007 (see section 519 of that Act)”, and</content></level><level class="para1" eId="schedule-6-paragraph-16-b"><num>(b)</num><content>in paragraph (aa), omit “within the meaning of Part 11 of CTA 2010 (see section 467 of that Act)”.</content></level></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-1" class="schProv1"><num>1</num><content>Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:default="http://www.w3.org/1998/Math/MathML" eId="schedule-4-paragraph-2" class="schProv1"><num>2</num><content><mod>After Chapter 16 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><chapter eId="d25e9840"><num>Chapter 16A</num><heading>Avoidance involving allowance buying</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e9845"><heading>Introduction</heading><section eId="d25e9851"><num>212A</num><heading>Scope of Chapter</heading><content>This Chapter provides for restrictions on the ways in which effect may be given to an allowance in certain circumstances where there has been a qualifying change in relation to a company (“C”).</content></section><section eId="d25e9860"><num>212B</num><heading>Where Chapter applies</heading><subsection eId="d25e9864"><num>(1)</num><intro>This Chapter applies where—</intro><level class="para1" eId="d25e9870"><num>(a)</num><content>C carries on a trade (“the relevant trade”) (whether or not in partnership with another person or other persons),</content></level><level class="para1" eId="d25e9876"><num>(b)</num><content>there is a qualifying change in relation to C on any day (“the relevant day”),</content></level><level class="para1" eId="d25e9882"><num>(c)</num><content>C, or (where the relevant trade is carried on in partnership) the partnership (“P”), has a relevant excess of allowances in relation to the relevant trade, and</content></level><level class="para1" eId="d25e9888"><num>(d)</num><content>the qualifying change has an unallowable purpose.</content></level></subsection><subsection eId="d25e9894"><num>(2)</num><content>Sections 212C to 212I specify when there is a qualifying change in relation to C on the relevant day.</content></subsection><subsection eId="d25e9900"><num>(3)</num><content>Sections 212J to 212L specify when C or P has a relevant excess of allowances in relation to the relevant trade.</content></subsection><subsection eId="d25e9906"><num>(4)</num><content>Section 212M specifies when the qualifying change has an unallowable purpose.</content></subsection><subsection eId="d25e9912"><num>(5)</num><content>Sections 212N to 212S make provision about what happens when this Chapter applies.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e9918"><heading>Qualifying change</heading><section eId="d25e9924"><num>212C</num><heading>When there is qualifying change in relation to C</heading><subsection eId="d25e9928"><num>(1)</num><content>There is a qualifying change in relation to C on the relevant day if one or more of conditions A to D is met.</content></subsection><subsection eId="d25e9934"><num>(2)</num><intro>Condition A is that—</intro><level class="para1" eId="d25e9940"><num>(a)</num><content>the principal company or companies of C at the beginning of the relevant day is not, or are not, the same as at the end of that day, or</content></level><level class="para1" eId="d25e9946"><num>(b)</num><content>there is no principal company of C at the beginning of the relevant day but there is one, or are more than one, at the end of the relevant day.</content></level></subsection><subsection eId="d25e9952"><num>(3)</num><intro>Condition B is that—</intro><level class="para1" eId="d25e9958"><num>(a)</num><content>any principal company of C is a consortium principal company (“CPC”), and</content></level><level class="para1" eId="d25e9964"><num>(b)</num><content>CPC’s ownership proportion at the end of the relevant day is more than at the beginning of the relevant day.</content></level></subsection><subsection eId="d25e9970"><num>(4)</num><intro>Condition C is that on the relevant day—</intro><level class="para1" eId="d25e9976"><num>(a)</num><content>C ceases to carry on the whole or part of the relevant trade, and</content></level><level class="para1" eId="d25e9982"><num>(b)</num><content>it begins to be carried on in partnership by two or more companies,</content></level><wrapUp>in circumstances in which Chapter 1 of Part 22 of CTA 2010 (transfers of trade without change of ownership) applies in relation to the transfer of the relevant trade.</wrapUp></subsection><subsection eId="d25e9990"><num>(5)</num><intro>Condition D is that—</intro><level class="para1" eId="d25e9996"><num>(a)</num><content>the relevant trade is, at the beginning of the relevant day, carried on by C in partnership, and</content></level><level class="para1" eId="d25e10002"><num>(b)</num><content>C’s relevant percentage share in the relevant trade at the end of the relevant day is less than at the beginning of the relevant day (or is nil).</content></level></subsection></section><section eId="d25e10011"><num>212D</num><heading>Guide to sections explaining section 212C</heading><subsection eId="d25e10015"><num>(1)</num><intro>Section 212E explains—</intro><level class="para1" eId="d25e10021"><num>(a)</num><content>what are principal companies of C, and</content></level><level class="para1" eId="d25e10027"><num>(b)</num><content>which are consortium principal companies of C,</content></level><wrapUp>for the purposes of section 212C(2) and (3).</wrapUp></subsection><subsection eId="d25e10035"><num>(2)</num><intro>Section 212F explains—</intro><level class="para1" eId="d25e10041"><num>(a)</num><content>when a company is owned by a consortium, and</content></level><level class="para1" eId="d25e10047"><num>(b)</num><content>who are the members of the consortium,</content></level><wrapUp>for the purposes of section 212E.</wrapUp></subsection><subsection eId="d25e10055"><num>(3)</num><content>Section 212G explains the meaning of “qualifying 75% subsidiary” for the purposes of sections 212E and 212F.</content></subsection><subsection eId="d25e10061"><num>(4)</num><content>Section 212H explains the meaning of “ownership proportion” in section 212C(3).</content></subsection><subsection eId="d25e10067"><num>(5)</num><content>Section 212I explains the meaning of “relevant percentage share” in section 212C(5).</content></subsection></section><section eId="d25e10076"><num>212E</num><heading>Principal companies</heading><subsection eId="d25e10080"><num>(1)</num><intro>A company (“U”) is a principal company of C if—</intro><level class="para1" eId="d25e10086"><num>(a)</num><content>C is a qualifying 75% subsidiary of U, and</content></level><level class="para1" eId="d25e10092"><num>(b)</num><content>U is not a qualifying 75% subsidiary of another company.</content></level></subsection><subsection eId="d25e10098"><num>(2)</num><intro>A company (“V”) is a principal company of C if—</intro><level class="para1" eId="d25e10104"><num>(a)</num><content>C is a qualifying 75% subsidiary of U,</content></level><level class="para1" eId="d25e10110"><num>(b)</num><content>U is a qualifying 75% subsidiary of V, and</content></level><level class="para1" eId="d25e10116"><num>(c)</num><content>V is not a qualifying 75% subsidiary of another company.</content></level></subsection><subsection eId="d25e10122"><num>(3)</num><content>If V is a qualifying 75% subsidiary of another company (“W”), W is a principal company of C unless W is a qualifying 75% subsidiary of another company, and so on.</content></subsection><subsection eId="d25e10128"><num>(4)</num><intro>A company (“X”) is a principal company of C if—</intro><level class="para1" eId="d25e10134"><num>(a)</num><content>C is owned by a consortium of which X is a member, or</content></level><level class="para1" eId="d25e10140"><num>(b)</num><content>C is a qualifying 75% subsidiary of a company owned by a consortium of which X is a member,</content></level><wrapUp>and X is not a qualifying 75% subsidiary of another company.</wrapUp></subsection><subsection eId="d25e10148"><num>(5)</num><intro>A company (“Y”) is a principal company of C if—</intro><level class="para1" eId="d25e10154"><num>(a)</num><content>C is owned by a consortium of which X is a member, or</content></level><level class="para1" eId="d25e10160"><num>(b)</num><content>C is a qualifying 75% subsidiary of a company owned by a consortium of which X is a member,</content></level><wrapUp>and X is a qualifying 75% subsidiary of Y but Y is not a qualifying 75% subsidiary of another company.</wrapUp></subsection><subsection eId="d25e10168"><num>(6)</num><content>If Y is a qualifying 75% subsidiary of another company (“Z”), Z is a principal company of C unless Z is a qualifying 75% subsidiary of another company, and so on.</content></subsection><subsection eId="d25e10174"><num>(7)</num><content>A company that is a principal company of C by virtue of any of subsections (4) to (6) is a consortium principal company of C.</content></subsection></section><section eId="d25e10183"><num>212F</num><heading>When company is owned by consortium and consortium members</heading><subsection eId="d25e10187"><num>(1)</num><content>This section defines what a company being owned by, or a member of, a consortium means for the purposes of section 212E.</content></subsection><subsection eId="d25e10193"><num>(2)</num><intro>A company is owned by a consortium if—</intro><level class="para1" eId="d25e10199"><num>(a)</num><content>it is not a qualifying 75% subsidiary of another company,</content></level><level class="para1" eId="d25e10205"><num>(b)</num><content>at least 75% of its ordinary share capital is beneficially owned between them by other companies, and</content></level><level class="para1" eId="d25e10211"><num>(c)</num><content>none of those other companies owns less than 5% of that capital.</content></level></subsection><subsection eId="d25e10217"><num>(3)</num><content>Those other companies are the members of the consortium.</content></subsection></section><section eId="d25e10226"><num>212G</num><heading>Qualifying 75% subsidiaries</heading><subsection eId="d25e10230"><num>(1)</num><content>For the purposes of sections 212E and 212F a company (“the subsidiary company”) is a qualifying 75% subsidiary of another company (“the parent company”) if condition 1 or 2 is met and condition 3 is met.</content></subsection><subsection eId="d25e10236"><num>(2)</num><intro>Condition 1 is that—</intro><level class="para1" eId="d25e10242"><num>(a)</num><content>the subsidiary company has ordinary share capital, and</content></level><level class="para1" eId="d25e10248"><num>(b)</num><content>the subsidiary company is a 75% subsidiary of the parent company (see section 1154(3) of CTA 2010).</content></level></subsection><subsection eId="d25e10254"><num>(3)</num><intro>Condition 2 is that—</intro><level class="para1" eId="d25e10260"><num>(a)</num><content>the subsidiary company does not have ordinary share capital, and</content></level><level class="para1" eId="d25e10266"><num>(b)</num><content>the parent company has control of the subsidiary company.</content></level></subsection><subsection eId="d25e10272"><num>(4)</num><intro>Condition 3 is that the parent company—</intro><level class="para1" eId="d25e10278"><num>(a)</num><content>is beneficially entitled to at least 75% of any profits available for distribution to equity holders of the subsidiary company, and</content></level><level class="para1" eId="d25e10284"><num>(b)</num><content>would be beneficially entitled to at least 75% of any assets of the subsidiary company available for distribution to its equity holders on a winding-up.</content></level></subsection><subsection eId="d25e10290"><num>(5)</num><content>Chapter 6 of Part 5 of CTA 2010 (equity holders and profits or assets available for distribution) applies for the purposes of subsection (4) as that Chapter applies for the purposes of section 151(4)(a) and (b) of that Act (meaning of “75% subsidiary”).</content></subsection><subsection eId="d25e10296"><num>(6)</num><content>But in a case where the subsidiary company does not have ordinary share capital, Chapter 6 of Part 5 of that Act applies for those purposes as if the members of that company were equity holders of that company for the purposes of that Chapter.</content></subsection></section><section eId="d25e10305"><num>212H</num><heading>Ownership proportion</heading><subsection eId="d25e10309"><num>(1)</num><intro>For the purposes of section 212C(3) CPC’s “ownership proportion” is the lowest of—</intro><level class="para1" eId="d25e10315"><num>(a)</num><content>the percentage of the ordinary share capital of C that is beneficially owned by CPC,</content></level><level class="para1" eId="d25e10321"><num>(b)</num><content>the percentage to which CPC is beneficially entitled of any profits available for distribution to equity holders of C, and</content></level><level class="para1" eId="d25e10327"><num>(c)</num><content>the percentage to which CPC would be beneficially entitled of any assets of C available for distribution to its equity holders on a winding-up.</content></level></subsection><subsection eId="d25e10333"><num>(2)</num><content>Chapter 6 of Part 5 of CTA 2010 applies for the purposes of subsection (1) as that Chapter applies for the purposes of section 143(3)(b) and (c) (condition 1: surrendering company owned by consortium) and section 144(3)(b) and (c) (condition 1: claimant company owned by consortium) of that Act.</content></subsection><subsection eId="d25e10339"><num>(3)</num><content>But in a case where the subsidiary company does not have ordinary share capital, Chapter 6 of Part 5 of that Act applies for those purposes as if the members of that company were equity holders of that company for the purposes of that Chapter.</content></subsection></section><section eId="d25e10348"><num>212I</num><heading>Relevant percentage share</heading><subsection eId="d25e10352"><num>(1)</num><content>For the purposes of section 212C(5) C’s “relevant percentage share” is C’s percentage share in the profits or losses of the trade.</content></subsection><subsection eId="d25e10358"><num>(2)</num><content>For this purpose C’s percentage share in the profits or losses of a trade at any time is determined on a just and reasonable basis.</content></subsection><subsection eId="d25e10364"><num>(3)</num><content>In making that determination regard must be had, in particular, to any matter that would be taken into account in determining under section 1262 of CTA 2009 (but without regard to sections 1263 and 1264 of that Act) the company’s share at that time in the profits or losses of the trade.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e10370"><heading>Relevant excess of allowances</heading><section eId="d25e10376"><num>212J</num><heading>Relevant excess of allowances</heading><subsection eId="d25e10380"><num>(1)</num><content>C or P has a relevant excess of allowances in relation to the relevant trade if—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_004"><default:mi mathvariant="normal">R</default:mi><default:mi mathvariant="normal">T</default:mi><default:mi mathvariant="normal">W</default:mi><default:mi mathvariant="normal">D</default:mi><default:mi mathvariant="normal">V</default:mi><default:mo>></default:mo><default:mrow><default:mi mathvariant="normal">B</default:mi><default:mi mathvariant="normal">S</default:mi><default:mi mathvariant="normal">V</default:mi></default:mrow></default:math></foreign></tblock></content></subsection><subsection eId="d25e10407"><num>(2)</num><content>Section 212K defines RTWDV and section 212L defines BSV.</content></subsection><subsection eId="d25e10413"><num>(3)</num><content>References in this Chapter to plant and machinery do not include excluded plant and machinery.</content></subsection><subsection eId="d25e10419"><num>(4)</num><intro>Plant and machinery is “excluded plant and machinery” if—</intro><level class="para1" eId="d25e10425"><num>(a)</num><content>expenditure incurred on the provision of it is not, as a result of section 34A, qualifying expenditure for the purposes of this Part, or</content></level><level class="para1" eId="d25e10431"><num>(b)</num><content>it is, as a result of section 67, treated for the purposes of this Part as owned otherwise than by C or P.</content></level></subsection></section><section eId="d25e10440"><num>212K</num><heading>Relevant tax written-down value</heading><subsection eId="d25e10444"><num>(1)</num><content>RTWDV is the relevant tax written-down value and is to be found by adding together amounts 1 and 2.</content></subsection><subsection eId="d25e10450"><num>(2)</num><intro>Amount 1 is the total amount of any unrelieved qualifying expenditure in respect of plant and machinery contained in—</intro><level class="para1" eId="d25e10456"><num>(a)</num><content>single asset pools,</content></level><level class="para1" eId="d25e10462"><num>(b)</num><content>class pools, or</content></level><level class="para1" eId="d25e10468"><num>(c)</num><content>the main pool,</content></level><wrapUp>which is available to be carried forward (in accordance with section 59) from the old period and used in calculating the profits of the relevant trade.</wrapUp></subsection><subsection eId="d25e10476"><num>(3)</num><content>Amount 2 is the total of any qualifying expenditure incurred on the provision of a ship for the purposes of the relevant trade which, at the end of the old period, is unrelieved by virtue of notice having been given under section 130.</content></subsection><subsection eId="d25e10482"><num>(4)</num><intro>For the purposes of this Part the amount of unrelieved qualifying expenditure contained in any pool which is available to be carried forward (in accordance with section 59) from the old period and used in calculating the profits of the relevant trade is to be calculated on the assumptions—</intro><level class="para1" eId="d25e10488"><num>(a)</num><content>that any qualifying expenditure that could have been (but was not) allocated to the pool before the end of the old period had been so allocated at the end of the old period,</content></level><level class="para1" eId="d25e10494"><num>(b)</num><content>that any qualifying expenditure prevented from being allocated to the pool by section 58(5) had been so allocated at the end of the old period, and</content></level><level class="para1" eId="d25e10500"><num>(c)</num><content>that any transaction taking place on the relevant day that has the effect of reducing the amount of unrelieved qualifying expenditure in the pool had not taken place.</content></level></subsection><subsection eId="d25e10506"><num>(5)</num><intro>Where condition C in section 212C is met—</intro><level class="para1" eId="d25e10512"><num>(a)</num><content>references in subsection (2) to any unrelieved qualifying expenditure in respect of plant and machinery contained in a pool which is available to be carried forward (in accordance with section 59) from the old period and used in calculating the profits of the relevant trade, and</content></level><level class="para1" eId="d25e10518"><num>(b)</num><content>the reference in subsection (3) to any qualifying expenditure incurred on the provision of a ship for the purposes of the relevant trade which, at the end of the old period, is unrelieved by virtue of notice having been given under section 130,</content></level><wrapUp>are to what it would have been but for the qualifying change.</wrapUp></subsection><subsection eId="d25e10526"><num>(6)</num><content>In this section “the old period” means the period which is the old period for the purposes of section 212O (or would be if this Chapter applied): see section 212N(3).</content></subsection><subsection eId="d25e10532"><num>(7)</num><content>The plant and machinery in respect of which there is unrelieved qualifying expenditure such as is mentioned in subsection (2), or qualifying expenditure such as is mentioned in subsection (3), is referred to in the following provisions as “the relevant plant and machinery”.</content></subsection></section><section eId="d25e10541"><num>212L</num><heading>Balance sheet value</heading><subsection eId="d25e10545"><num>(1)</num><content>BSV is the balance sheet value of the relevant plant and machinery and is to be found by adding together the amounts (if any) which would be shown in respect of it in the appropriate balance sheet of C or P.</content></subsection><subsection eId="d25e10551"><num>(2)</num><intro>For this purpose the amounts shown in the appropriate balance sheet in respect of the relevant plant or machinery are—</intro><level class="para1" eId="d25e10557"><num>(a)</num><content>the amounts shown in that balance sheet as the net book value (or carrying amount) in respect of it, and</content></level><level class="para1" eId="d25e10563"><num>(b)</num><content>the amounts shown in that balance sheet as the net investment in respect of finance leases of it.</content></level></subsection><subsection eId="d25e10569"><num>(3)</num><intro>If—</intro><level class="para1" eId="d25e10575"><num>(a)</num><content>any of the relevant plant or machinery is a fixture in any land, and</content></level><level class="para1" eId="d25e10581"><num>(b)</num><content>the amount which falls (or would fall) to be shown in the appropriate balance sheet as the net book value (or carrying amount) of the land would include an amount in respect of the fixture,</content></level><wrapUp>the amount of the net book value (or carrying amount) in respect of the fixture is determined on a just and reasonable basis.</wrapUp></subsection><subsection eId="d25e10589"><num>(4)</num><intro>If—</intro><level class="para1" eId="d25e10595"><num>(a)</num><content>any of the relevant plant or machinery is subject to a finance lease, and</content></level><level class="para1" eId="d25e10601"><num>(b)</num><content>any land or asset which is not plant or machinery is subject to that lease,</content></level><wrapUp>the amount of the net investment in respect of the finance lease of that plant or machinery is determined on a just and reasonable basis.</wrapUp></subsection><subsection eId="d25e10609"><num>(5)</num><content>In this section any reference to any amount shown in the appropriate balance sheet of C or P is the amount which, assuming that a balance sheet of C or P were drawn up in accordance with subsection (6), would fall to be shown in that balance sheet.</content></subsection><subsection eId="d25e10615"><num>(6)</num><content>A balance sheet is drawn up in accordance with this subsection if it is drawn up in accordance with generally accepted accounting practice so as to reflect the position as at the beginning of the relevant day but adjusted to reflect the disposal of any of the relevant plant or machinery which is disposed of on the relevant day.</content></subsection><subsection eId="d25e10621"><num>(7)</num><intro>In this section—</intro><hcontainer name="definition"><content>“finance lease” means a lease which, in accordance with generally accepted accounting practice, falls (or would fall) to be treated as a finance lease or loan in accounts of C or P;</content></hcontainer><hcontainer name="definition"><intro>“fixture”—</intro><level class="para1"><num>(a)</num><content>means any plant or machinery that is so installed or otherwise fixed in or to a building or other description of land as to become, in law, part of that building or other land, and</content></level><level class="para1"><num>(b)</num><content>includes any boiler or water-filled radiator installed in a building as part of a space or water heating system.</content></level></hcontainer></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e10645"><heading>Unallowable purpose</heading><section eId="d25e10651"><num>212M</num><heading>Unallowable purpose</heading><subsection eId="d25e10655"><num>(1)</num><content>The qualifying change has an unallowable purpose if the main purpose, or one of the main purposes, of change arrangements is to obtain a relevant tax advantage (for any person).</content></subsection><subsection eId="d25e10661"><num>(2)</num><content>“Change arrangements” means any arrangements made to bring about, or otherwise connected with, the qualifying change; and “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</content></subsection><subsection eId="d25e10667"><num>(3)</num><content>“Obtain a relevant tax advantage” means become entitled to a reduction in profits, or an increase in losses, for the purposes of corporation tax in consequence of a claim to allowances in respect of qualifying expenditure in respect of the relevant plant and machinery or qualifying expenditure within section 212K(3).</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e10673"><heading>What happens when Chapter applies</heading><section eId="d25e10679"><num>212N</num><heading>Old and new accounting periods</heading><subsection eId="d25e10683"><num>(1)</num><content>The accounting period of C which is current on the relevant day ends with that day and a new accounting period of C begins with the following day (but subject to subsection (2)).</content></subsection><subsection eId="d25e10689"><num>(2)</num><intro>In a case in which condition A, B or D in section 212C is met and the relevant trade was, at the beginning of the relevant day, carried on by C in partnership with another company or other companies subsection (1) does not apply but—</intro><level class="para1" eId="d25e10695"><num>(a)</num><content>the period which, for the purposes of Part 17 of CTA 2009, is the accounting period of the partnership current on the relevant day ends with that day, and</content></level><level class="para1" eId="d25e10701"><num>(b)</num><intro>there begins with the following day a new accounting period—</intro><level class="para2" eId="d25e10707"><num>(i)</num><content>of the partnership, or</content></level><level class="para2" eId="d25e10713"><num>(ii)</num><content>where condition D is met and C’s relevant percentage share in the relevant trade is nil after the qualifying change, of the company or partnership by which the relevant trade is carried on after the relevant change.</content></level></level></subsection><subsection eId="d25e10719"><num>(3)</num><content>For the purposes of section 212O “the old period” means the accounting period of C or the partnership in which C carries on the relevant trade which ends with the relevant day.</content></subsection><subsection eId="d25e10725"><num>(4)</num><intro>For the purposes of section 212P “the new period” means the accounting period—</intro><level class="para1" eId="d25e10731"><num>(a)</num><content>of C or that partnership, or</content></level><level class="para1" eId="d25e10737"><num>(b)</num><content>where condition D is met and C’s relevant percentage share in the relevant trade is nil after the qualifying change, of the company or partnership by which the relevant trade is carried on after the relevant change,</content></level><wrapUp>which begins with the following day.</wrapUp></subsection></section><section eId="d25e10748"><num>212O</num><heading>When there is excess of allowances in pool: amount of excess</heading><subsection eId="d25e10752"><num>(1)</num><content>Section 212P has effect where C or P has an excess of allowances in any single asset pool, any class pool or the main pool at the end of the old period; and a pool in the case of which there is an excess of allowances is referred to in this section and section 212P as a “relevant pool”.</content></subsection><subsection eId="d25e10758"><num>(2)</num><content>For the purposes of this section C or P has an excess of allowances in a pool if—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_005"><default:mi mathvariant="normal">P</default:mi><default:mi mathvariant="normal">A</default:mi><default:mo>></default:mo><default:mrow><default:mi mathvariant="normal">B</default:mi><default:mi mathvariant="normal">S</default:mi><default:mi mathvariant="normal">V</default:mi><default:mi mathvariant="normal">P</default:mi></default:mrow></default:math></foreign></tblock></content></subsection><subsection eId="d25e10781"><num>(3)</num><intro>In this section and section 212Q—</intro><hcontainer name="definition"><content>PA, in relation to a pool, is the amount specified in section 212K(2) in relation to the pool, and</content></hcontainer><hcontainer name="definition"><content>BSVP, in relation to a pool, is so much of BSV as, on a just and reasonable apportionment, it is appropriate to attribute to the pool.</content></hcontainer></subsection><subsection eId="d25e10796"><num>(4)</num><content>For the purposes of section 212P the amount of the excess of allowances in relation to any relevant pool (“the relevant pool in question”) is the difference between PA and BSVP.</content></subsection><subsection eId="d25e10802"><num>(5)</num><content>But if, in relation to any other pool—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_006"><default:mi mathvariant="normal">B</default:mi><default:mi mathvariant="normal">S</default:mi><default:mi mathvariant="normal">V</default:mi><default:mi mathvariant="normal">P</default:mi><default:mo>></default:mo><default:mrow><default:mi mathvariant="normal">P</default:mi><default:mi mathvariant="normal">A</default:mi></default:mrow></default:math></foreign></tblock>what would otherwise be the amount of the excess of allowances in relation to the relevant pool in question for the purposes of section 212P is reduced by so much of the difference between BSVP and PA as is not taken into account under this subsection in relation to another relevant pool or under section 212Q(8).</content></subsection></section><section eId="d25e10830"><num>212P</num><heading>Effect of excess of allowances on pools</heading><subsection eId="d25e10834"><num>(1)</num><content>The unrelieved qualifying expenditure in each relevant pool is to be taken to be reduced at the beginning of the new period by the amount of the excess of allowances in relation to the pool.</content></subsection><subsection eId="d25e10840"><num>(2)</num><content>The amount of the excess of allowances is to be treated from the beginning of the new period as if it were qualifying expenditure in a new pool of the same description as the relevant pool (and so subject to the same provisions of this Part, other than this Chapter).</content></subsection><subsection eId="d25e10846"><num>(3)</num><content>Where, following the qualifying change, a person ceases to carry on a trade (or part of a trade) and C begins to carry on (whether or not in partnership) the activities of that trade (or part of a trade) as part of its trade, for the purposes of claiming any allowance in respect of qualifying expenditure in the new pool the carrying on of those activities by C is to be regarded as the carrying on of a separate trade.</content></subsection><subsection eId="d25e10852"><num>(4)</num><content>A loss attributable to an allowance claimed in respect of qualifying expenditure in the new pool may not be set off under section 37 of CTA 2010 (trade loss relief against total profits of same or earlier accounting period) otherwise than against the profits of a qualifying activity carried on by C, or any company that is a member of P, at the beginning of the relevant day.</content></subsection><subsection eId="d25e10858"><num>(5)</num><content>And the amount of such a loss which may be so set off by any person is not to exceed the amount of the loss which would have been available for such set off by the person but for the qualifying change.</content></subsection><subsection eId="d25e10864"><num>(6)</num><content>A loss attributable to an allowance claimed in respect of qualifying expenditure in the new pool may not be set off by way of group relief in accordance with Part 5 of CTA 2010 (surrender of losses by way of group relief) by a company (“the claimant company”) unless it would have been available for such set off but for the qualifying change.</content></subsection><subsection eId="d25e10870"><num>(7)</num><content>And the amount of such a loss which is available for such set off by the claimant company is not to exceed the amount of the loss which would have been available for such set off by the claimant company but for the qualifying change.</content></subsection><subsection eId="d25e10876"><num>(8)</num><content>Where any activity not carried on by C, or a company that is a member of P, at the beginning of the relevant day would otherwise be regarded for the purposes of corporation tax as forming part of a qualifying activity carried on by C or the member of P at that time it is not to be so regarded for the purposes of subsection (4).</content></subsection><subsection eId="d25e10882"><num>(9)</num><content>In a case in which condition C in section 212C is met, the references in subsections (1) and (2) to the beginning of the new period are to the time of the qualifying change (and section 948 of CTA 2010 has effect subject to this section).</content></subsection></section><section eId="d25e10891"><num>212Q</num><heading>When there are postponed capital allowances</heading><subsection eId="d25e10895"><num>(1)</num><content>This section has effect where C or P has relevant postponed capital allowances.</content></subsection><subsection eId="d25e10901"><num>(2)</num><content>C or P has relevant postponed capital allowances if amount 2 in section 212K(3) is an amount other than nil.</content></subsection><subsection eId="d25e10907"><num>(3)</num><content>Where, following the qualifying change, a person ceases to carry on a trade (or part of a trade) and C begins to carry on (whether or not in partnership) the activities of that trade (or part of a trade) as part of its trade, for the purposes of claiming any allowance in respect of qualifying expenditure such as is mentioned in section 212K(3) the carrying on of those activities by C is to be regarded as the carrying on of a separate trade.</content></subsection><subsection eId="d25e10913"><num>(4)</num><content>A loss attributable to an allowance claimed in respect of qualifying expenditure such as is mentioned in section 212K(3) may not be set off under section 37 of CTA 2010 otherwise than against the profits of a qualifying activity carried on by C, or any company that is a member of P, at the beginning of the relevant day.</content></subsection><subsection eId="d25e10919"><num>(5)</num><content>And the amount of such a loss which may be so set off by any person is not to exceed the amount of the loss which would have been available for such set off by the person but for the qualifying change.</content></subsection><subsection eId="d25e10925"><num>(6)</num><content>A loss attributable to an allowance claimed in respect of qualifying expenditure such as is mentioned in section 212K(3) may not be set off by way of group relief in accordance with Part 5 of CTA 2010 by a company (“the claimant company”) unless it would have been available for such set off but for the qualifying change.</content></subsection><subsection eId="d25e10931"><num>(7)</num><content>And the amount of such a loss which is available for such set off by the claimant company is not to exceed the amount of the loss which would have been available for such set off by the claimant company but for the qualifying change.</content></subsection><subsection eId="d25e10937"><num>(8)</num><content>If, in relation to any pool—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" display="inline" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_007"><default:mi mathvariant="normal">B</default:mi><default:mi mathvariant="normal">S</default:mi><default:mi mathvariant="normal">V</default:mi><default:mi mathvariant="normal">P</default:mi><default:mo>></default:mo><default:mrow><default:mi mathvariant="normal">P</default:mi><default:mi mathvariant="normal">A</default:mi></default:mrow></default:math></foreign></tblock>what would otherwise be the amount of qualifying expenditure such as is mentioned in section 212K(3) is to be treated for the purposes of this section as reduced by so much of the difference between BSVP and PA in relation to the pool as is not taken into account under section 212O(5) in relation to a relevant pool.</content></subsection><subsection eId="d25e10962"><num>(9)</num><content>Where any activity not carried on by C, or a company that is a member of P, at the beginning of the relevant day would otherwise be regarded for the purposes of corporation tax as forming part of a qualifying activity carried on by C or the member of P at that time it is not to be so regarded for the purposes of subsection (4).</content></subsection></section><section eId="d25e10971"><num>212R</num><heading>Apportionment of proceeds of disposal of relevant plant and machinery</heading><content>Any amount required to be brought into account in connection with a disposal event in respect of any relevant plant and machinery is to be apportioned between the new pool and the relevant pool concerned on a just and reasonable basis.</content></section><section eId="d25e10980"><num>212S</num><heading>Transactions on relevant day</heading><subsection eId="d25e10984"><num>(1)</num><content>This section applies if any plant and machinery is transferred on the relevant day and (apart from subsection (4)(c) of section 212K) the transfer would have the effect of reducing RTWDV (as determined in accordance with that section).</content></subsection><subsection eId="d25e10990"><num>(2)</num><content>No person other than C or P is entitled to claim an allowance in respect of the plant or machinery after the transfer.</content></subsection></section></hcontainer></chapter></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-3" class="schProv1"><num>3</num><content>For the heading of Chapter 17 substitute “O<inline name="smallCaps">ther anti-avoidance</inline>”.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-4-paragraph-4" class="schProv1"><num>4</num><content><mod>Section 247 (giving effect to allowances and charges: trades) is renumbered as subsection (1) of that section; and after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e11012"><num>(2)</num><content>See Chapter 16A for provision restricting in certain circumstances the ways in which effect may be given to an allowance by virtue of subsection (1)(a).</content></subsection></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-5" class="schProv1"><num>5</num><content>The amendments made by this Schedule have effect where the relevant day is on or after 21 July 2009.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-4-paragraph-6" class="schProv1"><num>6</num><intro>But in relation to cases where the relevant day is before 9 December 2009 the amendment made by paragraph 2 has effect—</intro><level class="para1" eId="schedule-4-paragraph-6-a"><num>(a)</num><content>with the omission of section 212C(2)(b),</content></level><level class="para1" eId="schedule-4-paragraph-6-b"><num>(b)</num><content>as if in section 212K(1) “which is amount 1” were substituted for “and is to be found by adding together amounts 1 and 2”,</content></level><level class="para1" eId="schedule-4-paragraph-6-c"><num>(c)</num><content>with the omission of section 212K(3) and (4)(c),</content></level><level class="para1" eId="schedule-4-paragraph-6-d"><num>(d)</num><content>with the omission from section 212O(5) of the words “or under section 212Q(8)”,</content></level><level class="para1" eId="schedule-4-paragraph-6-e"><num>(e)</num><content>with the omission of section 212Q, and</content></level><level class="para1" eId="schedule-4-paragraph-6-f"><num>(f)</num><content>with the omission of section 212S.</content></level></paragraph>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-6-a"><num>(a)</num><content>with the omission of section 212C(2)(b),</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-6-b"><num>(b)</num><content>as if in section 212K(1) “which is amount 1” were substituted for “and is to be found by adding together amounts 1 and 2”,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-6-c"><num>(c)</num><content>with the omission of section 212K(3) and (4)(c),</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-6-d"><num>(d)</num><content>with the omission from section 212O(5) of the words “or under section 212Q(8)”,</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-6-e"><num>(e)</num><content>with the omission of section 212Q, and</content></level>

<level xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" class="para1" eId="schedule-4-paragraph-6-f"><num>(f)</num><content>with the omission of section 212S.</content></level>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“approved” and “<abbr class="acronym" title="Company Share Option Plan">CSOP</abbr> scheme” have the meaning given by section 521 of that Act;</content></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><mod>In Chapter 4 of Part 2 of ITTOIA 2005 (trading income: rules restricting deductions), after section 55A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e11358"><heading>Rental rebates</heading><section eId="d25e11364"><num>55B</num><heading>Rental rebates</heading><subsection eId="d25e11368"><num>(1)</num><intro>Where plant or machinery (“the asset”) is leased and a rental rebate is payable by the lessor, the amount of the deduction allowable in respect of the rebate is limited to—</intro><level class="para1" eId="d25e11374"><num>(a)</num><content>the amount of the lessor’s income from the lease, or</content></level><level class="para1" eId="d25e11380"><num>(b)</num><content>in the case of a finance lease, that amount excluding the finance charge.</content></level></subsection><subsection eId="d25e11386"><num>(2)</num><content>“Rental rebate” means any sum payable to the lessee that is calculated by reference to the termination value of the asset.</content></subsection><subsection eId="d25e11392"><num>(3)</num><intro>For this purpose—</intro><level class="para1" eId="d25e11398"><num>(a)</num><content>the termination value of an asset is the value of the asset at or about the time when the lease terminates,</content></level><level class="para1" eId="d25e11404"><num>(b)</num><intro>calculation by reference to the termination value includes calculation by reference to any one or more of—</intro><level class="para2" eId="d25e11410"><num>(i)</num><content>the proceeds of sale, if the asset is sold,</content></level><level class="para2" eId="d25e11416"><num>(ii)</num><content>any insurance proceeds, compensation or similar sums in respect of the asset,</content></level><level class="para2" eId="d25e11422"><num>(iii)</num><content>an estimate of the market value of the asset, and</content></level></level><level class="para1" eId="d25e11428"><num>(c)</num><intro>calculation by reference to the termination value also includes—</intro><level class="para2" eId="d25e11434"><num>(i)</num><content>determination in a way which, or by reference to factors or criteria which, might reasonably be expected to produce a broadly similar result to calculation by reference to the termination value, or</content></level><level class="para2" eId="d25e11440"><num>(ii)</num><content>any other form of calculation indirectly by reference to the termination value.</content></level></level></subsection><subsection eId="d25e11446"><num>(4)</num><intro>For the purposes of this section—</intro><level class="para1" eId="d25e11452"><num>(a)</num><intro>the income of the lessor from the lease is the total of all the amounts receivable in connection with the lease that have been brought into account in calculating the lessor’s income for income tax purposes, excluding—</intro><level class="para2" eId="d25e11458"><num>(i)</num><content>disposal receipts brought into account under Part 2 of CAA 2001 (see section 60(1) of that Act), and</content></level><level class="para2" eId="d25e11464"><num>(ii)</num><content>so much of any amount as represents charges for services or qualifying UK or foreign tax (within the meaning of section 70YE of that Act) to be paid by the lessor, and</content></level></level><level class="para1" eId="d25e11470"><num>(b)</num><intro>the finance charge, in relation to a finance lease, is—</intro><level class="para2" eId="d25e11476"><num>(i)</num><content>if the lease is one that, under generally accepted accounting practice, falls (or would fall) to be treated as a loan, so much of the rentals under the lease as fall (or would fall) to be treated as interest, or</content></level><level class="para2" eId="d25e11482"><num>(ii)</num><content>in any other case, the amount that, in accordance with generally accepted accounting practice, falls (or would fall) to be treated as the gross return on investment.</content></level></level></subsection><subsection eId="d25e11488"><num>(5)</num><content>Where the asset is acquired by the lessor in a transaction in relation to which an election is made under section 266 of CAA 2001 (election where predecessor and successor are connected persons), this section applies as if the successor had been the lessor at all material times and everything done to or by the predecessor had been done to or by the successor.</content></subsection><subsection eId="d25e11494"><num>(6)</num><intro>Where the whole or part of a rental rebate is disallowed under this section as a deduction in computing profits—</intro><level class="para1" eId="d25e11500"><num>(a)</num><content>the amount disallowed, or</content></level><level class="para1" eId="d25e11506"><num>(b)</num><content>if less, the amount by which the rental rebate exceeds the amount of capital expenditure incurred by the lessor,</content></level><wrapUp>may be treated for the purposes of capital gains tax as an allowable loss accruing to the lessor on the termination of the lease.That allowable loss is deductible only from chargeable gains accruing to the lessor on the disposal of the asset.</wrapUp></subsection><subsection eId="d25e11517"><num>(7)</num><content>This section does not apply to a long funding finance lease (see section 148C).</content></subsection></section></hcontainer></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><content><mod>In Chapter 4 of Part 3 of CTA 2009 (trading income: rules restricting deductions), after section 60 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e11533"><num>60A</num><heading>Rental rebates</heading><subsection eId="d25e11537"><num>(1)</num><intro>Where plant or machinery (“the asset”) is leased and a rental rebate is payable by the lessor, the amount of the deduction allowable in respect of the rebate is limited to—</intro><level class="para1" eId="d25e11543"><num>(a)</num><content>the amount of the lessor’s income from the lease, or</content></level><level class="para1" eId="d25e11549"><num>(b)</num><content>in the case of a finance lease, that amount excluding the finance charge.</content></level></subsection><subsection eId="d25e11555"><num>(2)</num><content>“Rental rebate” means any sum payable to the lessee that is calculated by reference to the termination value of the asset.</content></subsection><subsection eId="d25e11561"><num>(3)</num><intro>For this purpose—</intro><level class="para1" eId="d25e11567"><num>(a)</num><content>the termination value of an asset is the value of the asset at or about the time when the lease terminates,</content></level><level class="para1" eId="d25e11573"><num>(b)</num><intro>calculation by reference to the termination value includes calculation by reference to any one or more of—</intro><level class="para2" eId="d25e11579"><num>(i)</num><content>the proceeds of sale, if the asset is sold,</content></level><level class="para2" eId="d25e11585"><num>(ii)</num><content>any insurance proceeds, compensation or similar sums in respect of the asset, and</content></level><level class="para2" eId="d25e11591"><num>(iii)</num><content>an estimate of the market value of the asset, and</content></level></level><level class="para1" eId="d25e11597"><num>(c)</num><intro>calculation by reference to the termination value also includes—</intro><level class="para2" eId="d25e11603"><num>(i)</num><content>determination in a way which, or by reference to factors or criteria which, might reasonably be expected to produce a broadly similar result to calculation by reference to the termination value, or</content></level><level class="para2" eId="d25e11609"><num>(ii)</num><content>any other form of calculation indirectly by reference to the termination value.</content></level></level></subsection><subsection eId="d25e11615"><num>(4)</num><intro>For the purposes of this section—</intro><level class="para1" eId="d25e11621"><num>(a)</num><intro>the income of the lessor from the lease is the total of all the amounts receivable in connection with the lease that have been brought into account in calculating the lessor’s income for corporation tax purposes, excluding—</intro><level class="para2" eId="d25e11627"><num>(i)</num><content>disposal receipts brought into account under Part 2 of CAA 2001 (see section 60(1) of that Act), and</content></level><level class="para2" eId="d25e11633"><num>(ii)</num><content>so much of any amount as represents charges for services or qualifying UK or foreign tax (within the meaning of section 70YE of that Act) to be paid by the lessor, and</content></level></level><level class="para1" eId="d25e11639"><num>(b)</num><intro>the finance charge, in relation to a finance lease, is—</intro><level class="para2" eId="d25e11645"><num>(i)</num><content>if the lease is one that, under generally accepted accounting practice, falls (or would fall) to be treated as a loan, so much of the rentals under the lease as fall (or would fall) to be treated as interest, or</content></level><level class="para2" eId="d25e11651"><num>(ii)</num><content>in any other case, the amount that, in accordance with generally accepted accounting practice, falls (or would fall) to be treated as the gross return on investment.</content></level></level></subsection><subsection eId="d25e11657"><num>(5)</num><intro>Where the asset is acquired by the lessor in a transaction—</intro><level class="para1" eId="d25e11663"><num>(a)</num><content>to which section 948 of CTA 2010 applies (modified application of CAA 2001 in case of transfer of trade without change of ownership), or</content></level><level class="para1" eId="d25e11669"><num>(b)</num><content>in relation to which an election is made under section 266 of CAA 2001 (election where predecessor and successor are connected persons),</content></level><wrapUp>this section applies as if the successor had been the lessor at all material times and everything done to or by the predecessor had been done to or by the successor.</wrapUp></subsection><subsection eId="d25e11677"><num>(6)</num><intro>Where the whole or part of a rental rebate is disallowed under this section as a deduction in computing profits—</intro><level class="para1" eId="d25e11683"><num>(a)</num><content>the amount disallowed, or</content></level><level class="para1" eId="d25e11689"><num>(b)</num><content>if less, the amount by which the rental rebate exceeds the amount of capital expenditure incurred by the lessor,</content></level><wrapUp>may be treated for the purposes of corporation tax in respect of chargeable gains as an allowable loss accruing to the lessor on the termination of the lease.That allowable loss is deductible only from chargeable gains accruing to the lessor on the disposal of the asset.</wrapUp></subsection><subsection eId="d25e11700"><num>(7)</num><content>This section does not apply to a long funding finance lease (see section 362 of CTA 2010).</content></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><content>The amendments made by this paragraph have effect in relation to rental rebates payable on or after 9 December 2009.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-11-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-11-paragraph-5-1"><num>(1)</num><intro>In section 85 of TIOPA 2010 (schemes about effect of paying foreign tax) as amended by paragraph 2—</intro><level class="para1" eId="schedule-11-paragraph-5-1-a"><num>(a)</num><content>in subsection (1), for “for foreign tax” substitute “in respect of the payment of an amount of foreign tax (“the FT amount”)”,</content></level><level class="para1" eId="schedule-11-paragraph-5-1-b"><num>(b)</num><content><mod>for subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e15829"><num>(2)</num><content>The condition is that, when C entered into the scheme or arrangement, it could reasonably be expected that the effect on the foreign-tax total of the FT amount being paid or payable would be to increase that total by less than amount X.</content></subsection></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-11-paragraph-5-1-c"><num>(c)</num><intro>in subsection (3)—</intro><level class="para2" eId="schedule-11-paragraph-5-1-c-i"><num>(i)</num><content>for “subsection (2)(b)” substitute “subsection (2)”, and</content></level><level class="para2" eId="schedule-11-paragraph-5-1-c-ii"><num>(ii)</num><content>in paragraph (b) of the definition of “the foreign-tax total”, omit “by C”.</content></level></level></subparagraph><subparagraph eId="schedule-11-paragraph-5-2"><num>(2)</num><intro>In section 85A of TIOPA 2010 (schemes involving deemed foreign tax) as inserted by paragraph 4—</intro><level class="para1" eId="schedule-11-paragraph-5-2-a"><num>(a)</num><content>in subsection (1)(a), omit “by the claimant”, and</content></level><level class="para1" eId="schedule-11-paragraph-5-2-b"><num>(b)</num><content>in subsection (4), in the definition of “the foreign-tax total”, omit “by C”.</content></level></subparagraph><subparagraph eId="schedule-11-paragraph-5-3"><num>(3)</num><intro>The amendments made by this paragraph have effect in relation to amounts of foreign tax, or amounts treated as if they were amounts of foreign tax, payable—</intro><level class="para1" eId="schedule-11-paragraph-5-3-a"><num>(a)</num><content>as regards corporation tax, on or after 1 April 2010, and</content></level><level class="para1" eId="schedule-11-paragraph-5-3-b"><num>(b)</num><content>as regards income tax or capital gains tax, on or after 6 April 2010.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-18-paragraph-9" class="schProv1"><num>9</num><content>The amendments made by this Schedule have effect where the relevant day is on or after 9 December 2009.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-18-paragraph-10" class="schProv1"><num>10</num><content>Amendments corresponding to those made by this Schedule, having effect where the relevant day is on or after that date, are to be treated as having been made in Schedule 10 to FA 2006.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-18-paragraph-11" class="schProv1"><num>11</num><intro>Neither section 398F of CTA 2010 (inserted by paragraph 6) nor the corresponding provision treated as inserted by paragraph 10 apply in relation to expenditure incurred in pursuance of a written contract which is finalised by A before 9 December 2009; and for this purpose a contract is finalised on the earliest date on which—</intro><level class="para1" eId="schedule-18-paragraph-11-a"><num>(a)</num><content>it is unconditional or (if conditional) the conditions are met, and</content></level><level class="para1" eId="schedule-18-paragraph-11-b"><num>(b)</num><content>no terms remain to be agreed.</content></level></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-18-paragraph-12" class="schProv1"><num>12</num><intro>Section 398A of CTA 2010 (as inserted by paragraph 6) has effect in relation to a relevant change in the relationship between A and a principal company of A in the case of which the relevant day is before 24 March 2010 as if—</intro><level class="para1" eId="schedule-18-paragraph-12-a"><num>(a)</num><content>in subsection (3)(b), the words “falling within subsection (4)”, and</content></level><level class="para1" eId="schedule-18-paragraph-12-b"><num>(b)</num><content>subsections (4) and (5),</content></level><wrapUp>were omitted.</wrapUp></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-18-paragraph-13" class="schProv1"><num>13</num><intro>Section 398D of CTA 2010 (as inserted by paragraph 6)—</intro><level class="para1" eId="schedule-18-paragraph-13-a"><num>(a)</num><content>has effect with the omission of subsection (6) in relation to accounting periods beginning before 24 March 2010, and</content></level><level class="para1" eId="schedule-18-paragraph-13-b"><num>(b)</num><content>has effect with the omission of subsection (7) until that date.</content></level></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-bgda-1981" eId="term-bgda-1981">BGDA 1981</term>” means the Betting and Gaming Duties Act 1981;</content></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><mod>In Chapter 5 of Part 2 of CAA 2001 (plant and machinery: general provisions about charges and allowances), after section 64 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e11729"><num>64A</num><heading>Leased assets: arrangements reducing disposal value of asset</heading><subsection eId="d25e11733"><num>(1)</num><intro>Where—</intro><level class="para1" eId="d25e11739"><num>(a)</num><content>plant or machinery (“the asset”) is subject to a lease,</content></level><level class="para1" eId="d25e11745"><num>(b)</num><content>a disposal event occurs with the result that a disposal value in respect of the asset is to be brought into account under Item 1, 2 or 7 of the Table in section 61(2), and</content></level><level class="para1" eId="d25e11751"><num>(c)</num><content>arrangements have been entered into that have the effect of reducing the disposal value of the asset in so far as it is attributable to rentals payable under the lease,</content></level><wrapUp>the disposal value is to be determined as if the arrangements had not been entered into.</wrapUp></subsection><subsection eId="d25e11759"><num>(2)</num><intro>Subsection (1) does not apply if—</intro><level class="para1" eId="d25e11765"><num>(a)</num><content>the arrangements take the form of a transfer of relevant receipts within section 809AZA of ITA 2007 and the relevant amount has been treated as income under section 809AZB of that Act, or</content></level><level class="para1" eId="d25e11771"><num>(b)</num><content>the arrangements take the form of a transfer of relevant receipts within section 752 of CTA 2010 and the relevant amount has been treated as income under section 753 of that Act.</content></level></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content>The amendment made by sub-paragraph (1) has effect in relation to disposal events taking place on or after 9 December 2009.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-8-paragraph-6-1"><num>(1)</num><content>Schedule 18 to FA 1998 (company tax returns, assessments and related matters) is amended as follows.</content></subparagraph><subparagraph eId="schedule-8-paragraph-6-2"><num>(2)</num><content><mod>In paragraph 9 (claims that cannot be made without a return), after sub-paragraph (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e13620"><num>(2A)</num><intro>But this paragraph does not apply to a claim by a company for an amount to be exempt from tax by virtue of—</intro><level class="para1" eId="d25e13626"><num>(a)</num><content>section 472 of CTA 2010 (gifts qualifying for gift aid relief: charitable companies), or</content></level><level class="para1" eId="d25e13632"><num>(b)</num><content>section 475 of that Act (gifts qualifying for gift aid relief: eligible bodies).</content></level></subparagraph></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-8-paragraph-6-3"><num>(3)</num><content><mod>In paragraph 57 (claims or elections affecting a single accounting period), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e13645"><num>(1A)</num><intro>But this paragraph does not apply to a claim by a company for an amount to be exempt from tax by virtue of—</intro><level class="para1" eId="d25e13651"><num>(a)</num><content>section 472 of CTA 2010 (gifts qualifying for gift aid relief: charitable companies), or</content></level><level class="para1" eId="d25e13657"><num>(b)</num><content>section 475 of that Act (gifts qualifying for gift aid relief: eligible bodies).</content></level></subparagraph></quotedStructure></mod></content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-12-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-12-paragraph-15-1"><num>(1)</num><content>The amendments made by paragraphs 2 to 5, 7 and 11 to 13 (and paragraph 1 so far as relating to them) have effect in relation to income tax advantages obtained on or after 24 March 2010.</content></subparagraph><subparagraph eId="schedule-12-paragraph-15-2"><num>(2)</num><content>The amendment made by paragraph 6 (and paragraph 1 so far as relating to it) are treated as having come into force on 1 April 2009.</content></subparagraph><subparagraph eId="schedule-12-paragraph-15-3"><num>(3)</num><content>The amendments made by paragraphs 8 to 10 have effect in relation to corporation tax advantages obtained on or after 1 April 2010.</content></subparagraph><subparagraph eId="schedule-12-paragraph-15-4"><num>(4)</num><content>The repeals made by paragraph 14 are treated as having come into force on 1 April 2010.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-17-paragraph-1" class="schProv1"><num>1</num><content>Part 7 of FA 2004 (disclosure of tax avoidance schemes) is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-8-paragraph-7" class="schProv1"><num>7</num><content><mod>In CTA 2010, after section 477 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e13670"><heading>Claims</heading><section eId="d25e13676"><num>477A</num><heading>Claims in relation to gift aid relief</heading><subsection eId="d25e13680"><num>(1)</num><intro>This section applies to claims for amounts to be exempt from tax by virtue of—</intro><level class="para1" eId="d25e13686"><num>(a)</num><content>section 472 (gifts qualifying for gift aid relief: charitable companies), or</content></level><level class="para1" eId="d25e13692"><num>(b)</num><content>section 475 (gifts qualifying for gift aid relief: eligible bodies).</content></level></subsection><subsection eId="d25e13698"><num>(2)</num><intro>A claim to which this section applies may be made—</intro><level class="para1" eId="d25e13704"><num>(a)</num><content>to an officer of Revenue and Customs, or</content></level><level class="para1" eId="d25e13710"><num>(b)</num><content>where the claimant is a company, by being included in the claimant’s company tax return.</content></level></subsection><subsection eId="d25e13716"><num>(3)</num><intro>In this section—</intro><hcontainer name="definition"><content>“free-standing claim” means a claim made as mentioned in subsection (2)(a), and</content></hcontainer><hcontainer name="definition"><content>“tax return claim” means a claim made as mentioned in subsection (2)(b).</content></hcontainer></subsection><subsection eId="d25e13731"><num>(4)</num><intro>The Commissioners for Her Majesty’s Revenue and Customs may by regulations make provision—</intro><level class="para1" eId="d25e13737"><num>(a)</num><content>limiting the number of free-standing claims that may be made by a person in a tax year, or</content></level><level class="para1" eId="d25e13743"><num>(b)</num><content>requiring a claim for an amount below an amount specified in the regulations to be made as a tax return claim.</content></level></subsection><subsection eId="d25e13749"><num>(5)</num><content>The regulations may make different provision for different cases or purposes.</content></subsection></section></hcontainer></quotedStructure></mod></content></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-6"><num>SCHEDULE 6<authorialNote class="referenceNote">Section 30</authorialNote></num><heading>Charities and community amateur sports clubs: definitions</heading><part eId="schedule-6-part-1"><num>Part 1</num><heading>Definition of “charity”, “charitable company” and “charitable trust”</heading><hcontainer name="crossheading" class="schGroup7"><heading>Definition of “charity” etc</heading><paragraph eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-6-paragraph-1-1"><num>(1)</num><intro>For the purposes of the enactments to which this Part applies “charity” means a body of persons or trust that—</intro><level class="para1" eId="schedule-6-paragraph-1-1-a"><num>(a)</num><content>is established for charitable purposes only,</content></level><level class="para1" eId="schedule-6-paragraph-1-1-b"><num>(b)</num><content>meets the jurisdiction condition (see paragraph <ref href="#schedule-6-paragraph-2">2</ref>),</content></level><level class="para1" eId="schedule-6-paragraph-1-1-c"><num>(c)</num><content>meets the registration condition (see paragraph <ref href="#schedule-6-paragraph-3">3</ref>), and</content></level><level class="para1" eId="schedule-6-paragraph-1-1-d"><num>(d)</num><content>meets the management condition (see paragraph <ref href="#schedule-6-paragraph-4">4</ref>).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-1-2"><num>(2)</num><intro>For the purposes of the enactments to which this Part applies—</intro><hcontainer name="definition"><content>“charitable company” means a charity that is a body of persons;</content></hcontainer><hcontainer name="definition"><content>“charitable trust” means a charity that is a trust.</content></hcontainer></subparagraph><subparagraph eId="schedule-6-paragraph-1-3"><num>(3)</num><content>Sub-paragraphs (1) and (2) are subject to any express provision to the contrary.</content></subparagraph><subparagraph eId="schedule-6-paragraph-1-4"><num>(4)</num><intro>For the meaning of “charitable purpose”, see section 2 of the Charities Act 2006 (which—</intro><level class="para1" eId="schedule-6-paragraph-1-4-a"><num>(a)</num><content>applies regardless of where the body of persons or trust in question is established, and</content></level><level class="para1" eId="schedule-6-paragraph-1-4-b"><num>(b)</num><content>for this purpose forms part of the law of each part of the United Kingdom (see section 80(3) to (6) of that Act)).</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Jurisdiction condition</heading><paragraph eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-6-paragraph-2-1"><num>(1)</num><intro>A body of persons or trust meets the jurisdiction condition if it falls to be subject to the control of—</intro><level class="para1" eId="schedule-6-paragraph-2-1-a"><num>(a)</num><content>a relevant UK court in the exercise of its jurisdiction with respect to charities, or</content></level><level class="para1" eId="schedule-6-paragraph-2-1-b"><num>(b)</num><content>any other court in the exercise of a corresponding jurisdiction under the law of a relevant territory.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-2-2"><num>(2)</num><intro>In sub-paragraph (1)(a) “a relevant UK court” means—</intro><level class="para1" eId="schedule-6-paragraph-2-2-a"><num>(a)</num><content>the High Court,</content></level><level class="para1" eId="schedule-6-paragraph-2-2-b"><num>(b)</num><content>the Court of Session, or</content></level><level class="para1" eId="schedule-6-paragraph-2-2-c"><num>(c)</num><content>the High Court in Northern Ireland.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-2-3"><num>(3)</num><intro>In sub-paragraph (1)(b) “a relevant territory” means—</intro><level class="para1" eId="schedule-6-paragraph-2-3-a"><num>(a)</num><content>a member State other than the United Kingdom, or</content></level><level class="para1" eId="schedule-6-paragraph-2-3-b"><num>(b)</num><content>a territory specified in regulations made by the Commissioners for Her Majesty's Revenue and Customs.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-2-4"><num>(4)</num><content>Regulations under this paragraph are to be made by statutory instrument.</content></subparagraph><subparagraph eId="schedule-6-paragraph-2-5"><num>(5)</num><content>A statutory instrument containing regulations under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Registration condition</heading><paragraph eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-6-paragraph-3-1"><num>(1)</num><intro>A body of persons or trust meets the registration condition if—</intro><level class="para1" eId="schedule-6-paragraph-3-1-a"><num>(a)</num><content>in the case of a body of persons or trust that is a charity within the meaning of the Charities Act 1993, condition A is met, and</content></level><level class="para1" eId="schedule-6-paragraph-3-1-b"><num>(b)</num><content>in the case of any other body of persons or trust, condition B is met.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-3-2"><num>(2)</num><content>Condition A is that the body of persons or trust has complied with any requirement to be registered in the register of charities kept under section 3 of the Charities Act 1993.</content></subparagraph><subparagraph eId="schedule-6-paragraph-3-3"><num>(3)</num><content>Condition B is that the body of persons or trust has complied with any requirement under the law of a territory outside England and Wales to be registered in a register corresponding to that mentioned in sub-paragraph (2).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Management condition</heading><paragraph eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-6-paragraph-4-1"><num>(1)</num><content>A body of persons or trust meets the management condition if its managers are fit and proper persons to be managers of the body or trust.</content></subparagraph><subparagraph eId="schedule-6-paragraph-4-2"><num>(2)</num><content>In this paragraph “managers”, in relation to a body of persons or trust, means the persons having the general control and management of the administration of the body or trust.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Periods over which management condition treated as met</heading><paragraph eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-6-paragraph-5-1"><num>(1)</num><content>This paragraph applies in relation to any period throughout which the management condition is not met.</content></subparagraph><subparagraph eId="schedule-6-paragraph-5-2"><num>(2)</num><intro>The management condition is treated as met throughout the period if the Commissioners for Her Majesty’s Revenue and Customs consider that—</intro><level class="para1" eId="schedule-6-paragraph-5-2-a"><num>(a)</num><content>the failure to meet the management condition has not prejudiced the charitable purposes of the body or trust, or</content></level><level class="para1" eId="schedule-6-paragraph-5-2-b"><num>(b)</num><content>it is just and reasonable in all the circumstances for the condition to be treated as met throughout the period.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Publication of names and addresses of bodies or trusts regarded by HMRC as charities</heading><paragraph eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><content>Her Majesty’s Revenue and Customs may publish the name and address of any body of persons or trust that appears to them to meet, or at any time to have met, the definition of a charity in paragraph <ref href="#schedule-6-paragraph-1">1</ref>.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Enactments to which this Part applies</heading><paragraph eId="schedule-6-paragraph-7" class="schProv1"><num>7</num><intro>The enactments to which this Part applies are the enactments relating to—</intro><level class="para1" eId="schedule-6-paragraph-7-a"><num>(a)</num><content>income tax</content></level><level class="para1" eId="schedule-6-paragraph-7-b"><num>(b)</num><content>capital gains tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-c"><num>(c)</num><content>corporation tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-d"><num>(d)</num><content>value added tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-e"><num>(e)</num><content>inheritance tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-f"><num>(f)</num><content>stamp duty,</content></level><level class="para1" eId="schedule-6-paragraph-7-g"><num>(g)</num><content>stamp duty land tax, and</content></level><level class="para1" eId="schedule-6-paragraph-7-h"><num>(h)</num><content>stamp duty reserve tax.</content></level></paragraph></hcontainer></part><part eId="schedule-6-part-2"><num>Part 2</num><heading>Repeals of superseded definitions and other consequential amendments</heading><hcontainer name="crossheading" class="schGroup7"><heading>FA 1982</heading><paragraph eId="schedule-6-paragraph-8" class="schProv1"><num>8</num><content>In section 129(1) of FA 1982 (stamp duty: exemption from duty on grants, transfers to charities etc), for “a body of persons established for charitable purposes only or to the trustees of a trust so established” substitute “a charitable company or to the trustees of a charitable trust”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 1983</heading><paragraph eId="schedule-6-paragraph-9" class="schProv1"><num>9</num><content>In section 46(3) of FA 1983 (Historic Buildings and Monuments Commission for England) for “a body of persons established for charitable purposes only” substitute “a charitable company”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>IHTA 1984</heading><paragraph eId="schedule-6-paragraph-10" class="schProv1"><num>10</num><content>In section 272 of IHTA 1984 (general interpretation), omit the definitions of “charity” and “charitable”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 1986</heading><paragraph eId="schedule-6-paragraph-11" class="schProv1"><num>11</num><intro>In section 90(7) of FA 1986 (stamp duty reserve tax: exceptions from principal charge)—</intro><level class="para1" eId="schedule-6-paragraph-11-a"><num>(a)</num><content>in paragraph (a), for “a body of persons established for charitable purposes only” substitute “a charitable company”, and</content></level><level class="para1" eId="schedule-6-paragraph-11-b"><num>(b)</num><content>in paragraph (b), for “a trust so established” substitute “a charitable trust”.</content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 1989</heading><paragraph eId="schedule-6-paragraph-12" class="schProv1"><num>12</num><content>In paragraph 4 of Schedule 5 to FA 1989 (employee share ownership trusts), omit sub-paragraph (10).</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>TCGA 1992</heading><paragraph eId="schedule-6-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-6-paragraph-13-1"><num>(1)</num><content>TCGA 1992 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-2"><num>(2)</num><content>In section 222(8B)(b)(iii) (relief on disposal of private residence), for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-3"><num>(3)</num><content>In section 256 (charities), omit subsections (6) and (8).</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-4"><num>(4)</num><content>In section 256C (attributing gains to the non-exempt amount: charitable companies), omit subsection (6).</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-5"><num>(5)</num><content>In section 256D (how gains are attributed to the non-exempt amount: charitable companies), omit subsection (7).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>F(No.2)A 1997</heading><paragraph eId="schedule-6-paragraph-14" class="schProv1"><num>14</num><content>In section 35(3)(a) of F(No.2)A 1997 (transitional relief for charities) omit “(as defined in section 506(1) of the Taxes Act 1988)”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 1999</heading><paragraph eId="schedule-6-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-6-paragraph-15-1"><num>(1)</num><content>Schedule 19 to FA 1999 (stamp duty and stamp duty reserve tax: unit trusts) is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-15-2"><num>(2)</num><intro>In paragraph 6(3)—</intro><level class="para1" eId="schedule-6-paragraph-15-2-a"><num>(a)</num><content>in paragraph (a), for “a body of persons established for charitable purposes only” substitute “a charitable company”, and</content></level><level class="para1" eId="schedule-6-paragraph-15-2-b"><num>(b)</num><content>in paragraph (b), for “a trust established for those purposes only” substitute “a charitable trust”.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-15-3"><num>(3)</num><content>In paragraph 15(c), for “bodies of persons established for charitable purposes only or trustees of trusts so established” substitute “charitable companies or trustees of charitable trusts”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>CAA 2001</heading><paragraph eId="schedule-6-paragraph-16" class="schProv1"><num>16</num><intro>In section 63(2) of CAA 2001 (cases in which disposal value is nil)—</intro><level class="para1" eId="schedule-6-paragraph-16-a"><num>(a)</num><content>in paragraph (a), omit “within the meaning of Part 10 of ITA 2007 (see section 519 of that Act)”, and</content></level><level class="para1" eId="schedule-6-paragraph-16-b"><num>(b)</num><content>in paragraph (aa), omit “within the meaning of Part 11 of CTA 2010 (see section 467 of that Act)”.</content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>ITEPA 2003</heading><paragraph eId="schedule-6-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-6-paragraph-17-1"><num>(1)</num><content>ITEPA 2003 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-2"><num>(2)</num><content>In section 99(3)(b)(ii) (accommodation provided for performance of duties), for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-3"><num>(3)</num><content>In section 216(3)(b) (provisions not applicable to lower-paid employments) for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-4"><num>(4)</num><content>In section 223(7)(b)(ii) (payments on account of director’s tax other than by the director), for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-5"><num>(5)</num><content>In section 290(5) (accommodation benefits of ministers of religion), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-6"><num>(6)</num><content>In section 351 (expenses of ministers of religion), omit subsection (5).</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-7"><num>(7)</num><content>In section 714(2) (payroll giving: meaning of “donation”), in the definition of “charity”, omit “means any body of persons or trust established for charitable purposes only and”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 2003</heading><paragraph eId="schedule-6-paragraph-18" class="schProv1"><num>18</num><content>Schedule 8 to FA 2003 (SDLT: charities relief) is amended as follows.</content></paragraph><paragraph eId="schedule-6-paragraph-19" class="schProv1"><num>19</num><content>In paragraph 1 (charities relief), omit sub-paragraph (4).</content></paragraph><paragraph eId="schedule-6-paragraph-20" class="schProv1"><num>20</num><content>In paragraph 4 (charitable trusts), in sub-paragraph (2), omit “and “charity” has the same meaning as in paragraph 1”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>ITTOIA 2005</heading><paragraph eId="schedule-6-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-6-paragraph-21-1"><num>(1)</num><content>ITTOIA 2005 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-2"><num>(2)</num><content>In section 410(3)(b) (when stock dividend income arises), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-3"><num>(3)</num><content>In section 545(1) (definitions for Chapter 9 of Part 4), omit the definition of “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-4"><num>(4)</num><content>In section 568(3) (special rule for certain income of trustees), for “trust established for charitable purposes” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-5"><num>(5)</num><intro>In Part 2 of Schedule 4 (index of defined expressions)—</intro><level class="para1" eId="schedule-6-paragraph-21-5-a"><num>(a)</num><intro>in the entry for “charitable trust (in Chapter 9 of Part 4)”—</intro><level class="para2" eId="schedule-6-paragraph-21-5-a-i"><num>(i)</num><content>omit “(in Chapter 9 of Part 4)”, and</content></level><level class="para2" eId="schedule-6-paragraph-21-5-a-ii"><num>(ii)</num><content>for “section 545(1)” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”, and</content></level></level><level class="para1" eId="schedule-6-paragraph-21-5-b"><num>(b)</num><content>in the entry for “charity”, for “section 989 of ITA 2007” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>F(No.2)A 2005</heading><paragraph eId="schedule-6-paragraph-22" class="schProv1"><num>22</num><content>In section 18(3)(b)(i) of F(No.2)A 2005 (authorised unit trusts and OEICS: specific powers) omit “(within the meaning of section 989 of ITA 2007)”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>ITA 2007</heading><paragraph eId="schedule-6-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-6-paragraph-23-1"><num>(1)</num><content>ITA 2007 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-2"><num>(2)</num><content>In section 479(1)(b) (special rates for trustees’ income), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-3"><num>(3)</num><content>In section 481(1)(c) (other special rates for trustees), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-4"><num>(4)</num><content>Omit section 519 (meaning of “charitable trust”).</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-5"><num>(5)</num><content>In section 873(2) (discretionary or accumulation settlements), in paragraphs (a) and (b), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-6"><num>(6)</num><content>In section 989 (definitions), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-7"><num>(7)</num><intro>In Schedule 4 (index of defined expressions)—</intro><level class="para1" eId="schedule-6-paragraph-23-7-a"><num>(a)</num><intro>in the entry for “charitable trust (in Part 10)”—</intro><level class="para2" eId="schedule-6-paragraph-23-7-a-i"><num>(i)</num><content>omit “(in Part 10)”, and</content></level><level class="para2" eId="schedule-6-paragraph-23-7-a-ii"><num>(ii)</num><content>for “section 519” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”, and</content></level></level><level class="para1" eId="schedule-6-paragraph-23-7-b"><num>(b)</num><content>in the entries for “charity”, “charity (in Chapter 2 of Part 8)” and “charity (in Chapter 3 of Part 8)”, for “section 989” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 2008</heading><paragraph eId="schedule-6-paragraph-24" class="schProv1"><num>24</num><content>In paragraph 60(2) of Schedule 36 to FA 2008 (references to carrying on a business), omit the definition of “charity”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>CTA 2009</heading><paragraph eId="schedule-6-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-6-paragraph-25-1"><num>(1)</num><content>CTA 2009 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-25-2"><num>(2)</num><content>In section 1319 (other definitions), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-25-3"><num>(3)</num><content>In Schedule 4 (index of defined expressions), in the entry for “charity”, for “section 1319” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 2009</heading><paragraph eId="schedule-6-paragraph-26" class="schProv1"><num>26</num><content>In paragraph 8 of Schedule 49 to FA 2009 (general interpretation), omit the definition of “charity”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>CTA 2010</heading><paragraph eId="schedule-6-paragraph-27" class="schProv1"><num>27</num><subparagraph eId="schedule-6-paragraph-27-1"><num>(1)</num><content>CTA 2010 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-2"><num>(2)</num><intro>In section 202 (meaning of “charity” in Chapter 2 of Part 6)—</intro><level class="para1" eId="schedule-6-paragraph-27-2-a"><num>(a)</num><content>for “means” substitute “includes”, and</content></level><level class="para1" eId="schedule-6-paragraph-27-2-b"><num>(b)</num><content>omit paragraph (a).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-27-3"><num>(3)</num><intro>In section 217 (meaning of “charity” in Chapter 3 of Part 6)—</intro><level class="para1" eId="schedule-6-paragraph-27-3-a"><num>(a)</num><content>for “means” substitute “includes”, and</content></level><level class="para1" eId="schedule-6-paragraph-27-3-b"><num>(b)</num><content>omit paragraph (a).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-27-4"><num>(4)</num><content>Omit section 467 (meaning of “charitable company” in Part 11).</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-5"><num>(5)</num><content>In section 610(2)(a) (discretionary payments by trustees to companies), omit “as defined in section 467”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-6"><num>(6)</num><content>In section 1119 (definitions), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-7"><num>(7)</num><intro>In Schedule 4 (index of defined expressions)—</intro><level class="para1" eId="schedule-6-paragraph-27-7-a"><num>(a)</num><intro>in the entry for “charitable company (in Part 11)”—</intro><level class="para2" eId="schedule-6-paragraph-27-7-a-i"><num>(i)</num><content>omit “(in Part 11)”, and</content></level><level class="para2" eId="schedule-6-paragraph-27-7-a-ii"><num>(ii)</num><content>for “section 467” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”,</content></level></level><level class="para1" eId="schedule-6-paragraph-27-7-b"><num>(b)</num><content>in the entry for “charity (except in Chapters 2 and 3 of Part 6)” for “section 1119” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”,</content></level><level class="para1" eId="schedule-6-paragraph-27-7-c"><num>(c)</num><content>in the entry for “charity (in Chapter 2 of Part 6)”, for “section 202” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010 (and see section 202 of this Act)”, and</content></level><level class="para1" eId="schedule-6-paragraph-27-7-d"><num>(d)</num><content>in the entry for “charity (in Chapter 3 of Part 6)”, for “section 217” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010 (and see section 217 of this Act)”.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>TIOPA 2010</heading><paragraph eId="schedule-6-paragraph-28" class="schProv1"><num>28</num><content>In section 326(3) of TIOPA 2010 (charities), omit the definition of “charity” and the “and” immediately after it.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Power to make further consequential provision</heading><paragraph eId="schedule-6-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-6-paragraph-29-1"><num>(1)</num><content>The Commissioners for Her Majesty’s Revenue and Customs may by order make such further consequential, incidental, supplemental, transitional or transitory provision or saving as appears appropriate in consequence of, or otherwise in connection with, Part <ref href="#schedule-6-part-1">1</ref>.</content></subparagraph><subparagraph eId="schedule-6-paragraph-29-2"><num>(2)</num><intro>An order under this paragraph may—</intro><level class="para1" eId="schedule-6-paragraph-29-2-a"><num>(a)</num><content>make different provision for different purposes, and</content></level><level class="para1" eId="schedule-6-paragraph-29-2-b"><num>(b)</num><content>make provision repealing, revoking or otherwise amending any enactment or instrument (whenever passed or made).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-29-3"><num>(3)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph><subparagraph eId="schedule-6-paragraph-29-4"><num>(4)</num><content>A statutory instrument containing an order under this paragraph is subject to annulment in pursuance of an order of the House of Commons.</content></subparagraph></paragraph></hcontainer></part><part eId="schedule-6-part-3"><num>Part 3</num><heading>Meaning of “community amateur sports club”</heading><paragraph eId="schedule-6-paragraph-30" class="schProv1"><num>30</num><content>Chapter 9 of Part 13 of CTA 2010 (community amateur sports clubs) is amended as follows.</content></paragraph><paragraph eId="schedule-6-paragraph-31" class="schProv1"><num>31</num><content><mod>In section 658(1) (meaning) omit the “and” at the end of paragraph (b) and after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e12749"><num>(d)</num><content>meets the location condition (see section <ref href="#d25e12777">661A</ref>), and</content></level><level class="para1" eId="d25e12758"><num>(e)</num><content>meets the management condition (see section <ref href="#d25e12811">661B</ref>).</content></level></quotedStructure></mod></content></paragraph><paragraph eId="schedule-6-paragraph-32" class="schProv1"><num>32</num><content><mod>After section 661 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e12777"><num>661A</num><heading>The location condition</heading><subsection eId="d25e12781"><num>(1)</num><intro>A club meets the location condition for the purposes of section 658 if—</intro><level class="para1" eId="d25e12787"><num>(a)</num><content>it is established in a member State or a relevant territory, and</content></level><level class="para1" eId="d25e12793"><num>(b)</num><content>the facilities that it provides for eligible sports are all located in a single member State or relevant territory.</content></level></subsection><subsection eId="d25e12799"><num>(2)</num><content>In this section “relevant territory” means a territory specified in regulations under paragraph <ref href="#schedule-6-paragraph-2-3-b">2(3)(b)</ref> of Schedule 6 to FA 2010 (definition of “charity” etc).</content></subsection></section><section eId="d25e12811"><num>661B</num><heading>The management condition</heading><subsection eId="d25e12815"><num>(1)</num><content>A club meets the management condition for the purposes of section 658 if its managers are fit and proper persons to be managers of the club.</content></subsection><subsection eId="d25e12821"><num>(2)</num><content>In this paragraph “managers”, in relation to a club, means the persons having the general control and management of the administration of the club.</content></subsection></section><section eId="d25e12830"><num>661C</num><heading>Periods over which management condition treated as met</heading><subsection eId="d25e12834"><num>(1)</num><content>This paragraph applies in relation to any period throughout which the management condition is not met.</content></subsection><subsection eId="d25e12840"><num>(2)</num><intro>The management condition is treated as met throughout the period if the Commissioners for Her Majesty’s Revenue and Customs consider that—</intro><level class="para1" eId="d25e12846"><num>(a)</num><content>the failure to meet the management condition has not prejudiced the purposes of the club, or</content></level><level class="para1" eId="d25e12852"><num>(b)</num><content>it is just and reasonable in all the circumstances for the condition to be treated as met throughout the period.</content></level></subsection></section></quotedStructure></mod></content></paragraph></part><part eId="schedule-6-part-4"><num>Part 4</num><heading>Commencement</heading><hcontainer name="crossheading" class="schGroup7"><heading>Commencement of Part 1</heading><paragraph eId="schedule-6-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-6-paragraph-33-1"><num>(1)</num><content>Part <ref href="#schedule-6-part-1">1</ref> is treated as having come into force on 6 April 2010.</content></subparagraph><subparagraph eId="schedule-6-paragraph-33-2"><num>(2)</num><content>But the definitions of “charity”, “charitable company” and “charitable trust” in that Part do not apply for the purposes of an enactment in relation to which, on that date, another definition applies until such time as that other definition ceases to have effect on the coming into force of provision made by or under Part <ref href="#schedule-6-part-2">2</ref>.</content></subparagraph><subparagraph eId="schedule-6-paragraph-33-3"><num>(3)</num><content>For provision about the coming into force of provision made by that Part, see paragraph <ref href="#schedule-6-paragraph-34">34</ref>.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement of Part 2</heading><paragraph eId="schedule-6-paragraph-34" class="schProv1"><num>34</num><subparagraph eId="schedule-6-paragraph-34-1"><num>(1)</num><intro>The repeal of the definition of “charity” in section 989 of ITA 2007 made by paragraph <ref href="#schedule-6-paragraph-23-6">23(6)</ref> above has effect—</intro><level class="para1" eId="schedule-6-paragraph-34-1-a"><num>(a)</num><content>so far as it applies for the purposes of Chapter 2 of Part 8 of that Act (gift aid), in relation to gifts made on or after 6 April 2010, and</content></level><level class="para1" eId="schedule-6-paragraph-34-1-b"><num>(b)</num><content>so far as it applies for other purposes, in accordance with such provision as the Treasury may make by order.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-34-2"><num>(2)</num><content>The other amendments made by Part <ref href="#schedule-6-part-2">2</ref> come into force in accordance with such provision as the Treasury may make by order.</content></subparagraph><subparagraph eId="schedule-6-paragraph-34-3"><num>(3)</num><intro>An order under this paragraph may—</intro><level class="para1" eId="schedule-6-paragraph-34-3-a"><num>(a)</num><content>make different provision for different purposes, and</content></level><level class="para1" eId="schedule-6-paragraph-34-3-b"><num>(b)</num><content>include transitional provision and savings.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-34-4"><num>(4)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement of Part 3</heading><paragraph eId="schedule-6-paragraph-35" class="schProv1"><num>35</num><content>The amendments made by Part <ref href="#schedule-6-part-3">3</ref> are treated as having come into force on 6 April 2010.</content></paragraph></hcontainer></part></hcontainer>

<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-part-1"><num>Part 1</num><heading>Definition of “charity”, “charitable company” and “charitable trust”</heading><hcontainer name="crossheading" class="schGroup7"><heading>Definition of “charity” etc</heading><paragraph eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-6-paragraph-1-1"><num>(1)</num><intro>For the purposes of the enactments to which this Part applies “charity” means a body of persons or trust that—</intro><level class="para1" eId="schedule-6-paragraph-1-1-a"><num>(a)</num><content>is established for charitable purposes only,</content></level><level class="para1" eId="schedule-6-paragraph-1-1-b"><num>(b)</num><content>meets the jurisdiction condition (see paragraph <ref href="#schedule-6-paragraph-2">2</ref>),</content></level><level class="para1" eId="schedule-6-paragraph-1-1-c"><num>(c)</num><content>meets the registration condition (see paragraph <ref href="#schedule-6-paragraph-3">3</ref>), and</content></level><level class="para1" eId="schedule-6-paragraph-1-1-d"><num>(d)</num><content>meets the management condition (see paragraph <ref href="#schedule-6-paragraph-4">4</ref>).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-1-2"><num>(2)</num><intro>For the purposes of the enactments to which this Part applies—</intro><hcontainer name="definition"><content>“charitable company” means a charity that is a body of persons;</content></hcontainer><hcontainer name="definition"><content>“charitable trust” means a charity that is a trust.</content></hcontainer></subparagraph><subparagraph eId="schedule-6-paragraph-1-3"><num>(3)</num><content>Sub-paragraphs (1) and (2) are subject to any express provision to the contrary.</content></subparagraph><subparagraph eId="schedule-6-paragraph-1-4"><num>(4)</num><intro>For the meaning of “charitable purpose”, see section 2 of the Charities Act 2006 (which—</intro><level class="para1" eId="schedule-6-paragraph-1-4-a"><num>(a)</num><content>applies regardless of where the body of persons or trust in question is established, and</content></level><level class="para1" eId="schedule-6-paragraph-1-4-b"><num>(b)</num><content>for this purpose forms part of the law of each part of the United Kingdom (see section 80(3) to (6) of that Act)).</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Jurisdiction condition</heading><paragraph eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-6-paragraph-2-1"><num>(1)</num><intro>A body of persons or trust meets the jurisdiction condition if it falls to be subject to the control of—</intro><level class="para1" eId="schedule-6-paragraph-2-1-a"><num>(a)</num><content>a relevant UK court in the exercise of its jurisdiction with respect to charities, or</content></level><level class="para1" eId="schedule-6-paragraph-2-1-b"><num>(b)</num><content>any other court in the exercise of a corresponding jurisdiction under the law of a relevant territory.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-2-2"><num>(2)</num><intro>In sub-paragraph (1)(a) “a relevant UK court” means—</intro><level class="para1" eId="schedule-6-paragraph-2-2-a"><num>(a)</num><content>the High Court,</content></level><level class="para1" eId="schedule-6-paragraph-2-2-b"><num>(b)</num><content>the Court of Session, or</content></level><level class="para1" eId="schedule-6-paragraph-2-2-c"><num>(c)</num><content>the High Court in Northern Ireland.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-2-3"><num>(3)</num><intro>In sub-paragraph (1)(b) “a relevant territory” means—</intro><level class="para1" eId="schedule-6-paragraph-2-3-a"><num>(a)</num><content>a member State other than the United Kingdom, or</content></level><level class="para1" eId="schedule-6-paragraph-2-3-b"><num>(b)</num><content>a territory specified in regulations made by the Commissioners for Her Majesty's Revenue and Customs.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-2-4"><num>(4)</num><content>Regulations under this paragraph are to be made by statutory instrument.</content></subparagraph><subparagraph eId="schedule-6-paragraph-2-5"><num>(5)</num><content>A statutory instrument containing regulations under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Registration condition</heading><paragraph eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-6-paragraph-3-1"><num>(1)</num><intro>A body of persons or trust meets the registration condition if—</intro><level class="para1" eId="schedule-6-paragraph-3-1-a"><num>(a)</num><content>in the case of a body of persons or trust that is a charity within the meaning of the Charities Act 1993, condition A is met, and</content></level><level class="para1" eId="schedule-6-paragraph-3-1-b"><num>(b)</num><content>in the case of any other body of persons or trust, condition B is met.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-3-2"><num>(2)</num><content>Condition A is that the body of persons or trust has complied with any requirement to be registered in the register of charities kept under section 3 of the Charities Act 1993.</content></subparagraph><subparagraph eId="schedule-6-paragraph-3-3"><num>(3)</num><content>Condition B is that the body of persons or trust has complied with any requirement under the law of a territory outside England and Wales to be registered in a register corresponding to that mentioned in sub-paragraph (2).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Management condition</heading><paragraph eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-6-paragraph-4-1"><num>(1)</num><content>A body of persons or trust meets the management condition if its managers are fit and proper persons to be managers of the body or trust.</content></subparagraph><subparagraph eId="schedule-6-paragraph-4-2"><num>(2)</num><content>In this paragraph “managers”, in relation to a body of persons or trust, means the persons having the general control and management of the administration of the body or trust.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Periods over which management condition treated as met</heading><paragraph eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-6-paragraph-5-1"><num>(1)</num><content>This paragraph applies in relation to any period throughout which the management condition is not met.</content></subparagraph><subparagraph eId="schedule-6-paragraph-5-2"><num>(2)</num><intro>The management condition is treated as met throughout the period if the Commissioners for Her Majesty’s Revenue and Customs consider that—</intro><level class="para1" eId="schedule-6-paragraph-5-2-a"><num>(a)</num><content>the failure to meet the management condition has not prejudiced the charitable purposes of the body or trust, or</content></level><level class="para1" eId="schedule-6-paragraph-5-2-b"><num>(b)</num><content>it is just and reasonable in all the circumstances for the condition to be treated as met throughout the period.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Publication of names and addresses of bodies or trusts regarded by HMRC as charities</heading><paragraph eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><content>Her Majesty’s Revenue and Customs may publish the name and address of any body of persons or trust that appears to them to meet, or at any time to have met, the definition of a charity in paragraph <ref href="#schedule-6-paragraph-1">1</ref>.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Enactments to which this Part applies</heading><paragraph eId="schedule-6-paragraph-7" class="schProv1"><num>7</num><intro>The enactments to which this Part applies are the enactments relating to—</intro><level class="para1" eId="schedule-6-paragraph-7-a"><num>(a)</num><content>income tax</content></level><level class="para1" eId="schedule-6-paragraph-7-b"><num>(b)</num><content>capital gains tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-c"><num>(c)</num><content>corporation tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-d"><num>(d)</num><content>value added tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-e"><num>(e)</num><content>inheritance tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-f"><num>(f)</num><content>stamp duty,</content></level><level class="para1" eId="schedule-6-paragraph-7-g"><num>(g)</num><content>stamp duty land tax, and</content></level><level class="para1" eId="schedule-6-paragraph-7-h"><num>(h)</num><content>stamp duty reserve tax.</content></level></paragraph></hcontainer></part>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" class="schGroup7"><heading>Derivative contracts</heading><paragraph eId="schedule-19-paragraph-2" class="schProv1"><num>2</num><content><mod>In Chapter 13 of Part 7 of CTA 2009 (derivative contracts: general and supplementary provision), after section 701 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e20975"><heading>Changes to accounting standards</heading><section eId="d25e20981"><num>701A</num><heading>Power to make regulations where accounting standards change</heading><subsection eId="d25e20985"><num>(1)</num><content>The Treasury may by regulations make provision for cases where, in consequence of a change in accounting standards, there is a relevant accounting change.</content></subsection><subsection eId="d25e20991"><num>(2)</num><content>“Change in accounting standards” means the issue, revocation, amendment or recognition of, or withdrawal of recognition from, an accounting standard by an accounting body.</content></subsection><subsection eId="d25e20997"><num>(3)</num><intro>“Relevant accounting change” means a change in the way in which a company is permitted or required, for accounting purposes, to recognise amounts which—</intro><level class="para1" eId="d25e21003"><num>(a)</num><content>are brought into account by the company as credits or debits for any period for the purposes of this Part, or</content></level><level class="para1" eId="d25e21009"><num>(b)</num><content>would be so brought into account but for any provision made by or under this Part.</content></level></subsection><subsection eId="d25e21015"><num>(4)</num><content>Regulations under subsection (1) may amend this Part (apart from this section).</content></subsection><subsection eId="d25e21021"><num>(5)</num><intro>Regulations under subsection (1) may—</intro><level class="para1" eId="d25e21027"><num>(a)</num><content>make different provision for different cases,</content></level><level class="para1" eId="d25e21033"><num>(b)</num><content>make incidental, supplemental, consequential and transitional provision and savings, and</content></level><level class="para1" eId="d25e21039"><num>(c)</num><content>make provision subject to an election or other specified circumstances.</content></level></subsection><subsection eId="d25e21045"><num>(6)</num><content>Regulations making consequential provision by virtue of subsection (5)(b) may, in particular, include provision amending a provision of the Corporation Tax Acts.</content></subsection><subsection eId="d25e21051"><num>(7)</num><content>Regulations under subsection (1) may apply to a pre-commencement period if they make provision in relation to a relevant accounting change which may or must be adopted, for accounting purposes, for a period of account (or part of a period of account) which coincides with that pre-commencement period.</content></subsection><subsection eId="d25e21057"><num>(8)</num><intro>In this section—</intro><hcontainer name="definition"><content>“accounting body” means the International Accounting Standards Board or the Accounting Standards Board, or a successor body to either of those Boards;</content></hcontainer><hcontainer name="definition"><content>“accounting standard” includes any statement of practice, guidance or other similar document;</content></hcontainer><hcontainer name="definition"><content>“pre-commencement period”, in relation to regulations, means an accounting period (or part of an accounting period) which begins before the regulations are made.</content></hcontainer></subsection></section></hcontainer></quotedStructure></mod></content></paragraph></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-6-paragraph-2-1"><num>(1)</num><intro>A body of persons or trust meets the jurisdiction condition if it falls to be subject to the control of—</intro><level class="para1" eId="schedule-6-paragraph-2-1-a"><num>(a)</num><content>a relevant UK court in the exercise of its jurisdiction with respect to charities, or</content></level><level class="para1" eId="schedule-6-paragraph-2-1-b"><num>(b)</num><content>any other court in the exercise of a corresponding jurisdiction under the law of a relevant territory.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-2-2"><num>(2)</num><intro>In sub-paragraph (1)(a) “a relevant UK court” means—</intro><level class="para1" eId="schedule-6-paragraph-2-2-a"><num>(a)</num><content>the High Court,</content></level><level class="para1" eId="schedule-6-paragraph-2-2-b"><num>(b)</num><content>the Court of Session, or</content></level><level class="para1" eId="schedule-6-paragraph-2-2-c"><num>(c)</num><content>the High Court in Northern Ireland.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-2-3"><num>(3)</num><intro>In sub-paragraph (1)(b) “a relevant territory” means—</intro><level class="para1" eId="schedule-6-paragraph-2-3-a"><num>(a)</num><content>a member State other than the United Kingdom, or</content></level><level class="para1" eId="schedule-6-paragraph-2-3-b"><num>(b)</num><content>a territory specified in regulations made by the Commissioners for Her Majesty's Revenue and Customs.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-2-4"><num>(4)</num><content>Regulations under this paragraph are to be made by statutory instrument.</content></subparagraph><subparagraph eId="schedule-6-paragraph-2-5"><num>(5)</num><content>A statutory instrument containing regulations under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.</content></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-10-paragraph-7" class="schProv1"><num>7</num><content>Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and excise wrongdoing) is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-18-paragraph-7" class="schProv1"><num>7</num><content><mod>In section 437 of CTA 2010 (interpretation of the sales of lessors Chapters), after subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e20744"><num>(8A)</num><content>Property business” means a UK property business or an overseas property business.</content></subsection></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-19-paragraph-2" class="schProv1"><num>2</num><content><mod>In Chapter 13 of Part 7 of CTA 2009 (derivative contracts: general and supplementary provision), after section 701 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e20975"><heading>Changes to accounting standards</heading><section eId="d25e20981"><num>701A</num><heading>Power to make regulations where accounting standards change</heading><subsection eId="d25e20985"><num>(1)</num><content>The Treasury may by regulations make provision for cases where, in consequence of a change in accounting standards, there is a relevant accounting change.</content></subsection><subsection eId="d25e20991"><num>(2)</num><content>“Change in accounting standards” means the issue, revocation, amendment or recognition of, or withdrawal of recognition from, an accounting standard by an accounting body.</content></subsection><subsection eId="d25e20997"><num>(3)</num><intro>“Relevant accounting change” means a change in the way in which a company is permitted or required, for accounting purposes, to recognise amounts which—</intro><level class="para1" eId="d25e21003"><num>(a)</num><content>are brought into account by the company as credits or debits for any period for the purposes of this Part, or</content></level><level class="para1" eId="d25e21009"><num>(b)</num><content>would be so brought into account but for any provision made by or under this Part.</content></level></subsection><subsection eId="d25e21015"><num>(4)</num><content>Regulations under subsection (1) may amend this Part (apart from this section).</content></subsection><subsection eId="d25e21021"><num>(5)</num><intro>Regulations under subsection (1) may—</intro><level class="para1" eId="d25e21027"><num>(a)</num><content>make different provision for different cases,</content></level><level class="para1" eId="d25e21033"><num>(b)</num><content>make incidental, supplemental, consequential and transitional provision and savings, and</content></level><level class="para1" eId="d25e21039"><num>(c)</num><content>make provision subject to an election or other specified circumstances.</content></level></subsection><subsection eId="d25e21045"><num>(6)</num><content>Regulations making consequential provision by virtue of subsection (5)(b) may, in particular, include provision amending a provision of the Corporation Tax Acts.</content></subsection><subsection eId="d25e21051"><num>(7)</num><content>Regulations under subsection (1) may apply to a pre-commencement period if they make provision in relation to a relevant accounting change which may or must be adopted, for accounting purposes, for a period of account (or part of a period of account) which coincides with that pre-commencement period.</content></subsection><subsection eId="d25e21057"><num>(8)</num><intro>In this section—</intro><hcontainer name="definition"><content>“accounting body” means the International Accounting Standards Board or the Accounting Standards Board, or a successor body to either of those Boards;</content></hcontainer><hcontainer name="definition"><content>“accounting standard” includes any statement of practice, guidance or other similar document;</content></hcontainer><hcontainer name="definition"><content>“pre-commencement period”, in relation to regulations, means an accounting period (or part of an accounting period) which begins before the regulations are made.</content></hcontainer></subsection></section></hcontainer></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-20-paragraph-2" class="schProv1"><num>2</num><intro>Paragraph 1(2) does not apply to income which arises as a result of—</intro><level class="para1" eId="schedule-20-paragraph-2-a"><num>(a)</num><content>a contract entered into after the final, or</content></level><level class="para1" eId="schedule-20-paragraph-2-b"><num>(b)</num><content>any amendment, after the final, of a contract entered into before the end of the final.</content></level></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-20-paragraph-5" class="schProv1"><num>5</num><intro>References in this Schedule to income are to be read as references to—</intro><level class="para1" eId="schedule-20-paragraph-5-a"><num>(a)</num><content>income that would be employment income but for the provisions of paragraph 1, and</content></level><level class="para1" eId="schedule-20-paragraph-5-b"><num>(b)</num><content>profits of a trade, profession or vocation (including profits treated as arising as a result of provision made by or under sections 13 and 14 of ITTOIA 2005).</content></level></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-10-paragraph-8" class="schProv1"><num>8</num><content><mod>For paragraph 6 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><paragraph eId="d25e14703" class="schProv1"><num>6</num><subparagraph eId="d25e14707"><num>(1)</num><content>This paragraph sets out the penalty payable under paragraph 1.</content></subparagraph><subparagraph eId="d25e14713"><num>(2)</num><intro>If the failure is in category 1, the penalty is—</intro><level class="para1" eId="d25e14719"><num>(a)</num><content>for a deliberate and concealed failure, 100% of the potential lost revenue,</content></level><level class="para1" eId="d25e14725"><num>(b)</num><content>for a deliberate but not concealed failure, 70% of the potential lost revenue, and</content></level><level class="para1" eId="d25e14731"><num>(c)</num><content>for any other case, 30% of the potential lost revenue.</content></level></subparagraph><subparagraph eId="d25e14737"><num>(3)</num><intro>If the failure is in category 2, the penalty is—</intro><level class="para1" eId="d25e14743"><num>(a)</num><content>for a deliberate and concealed failure, 150% of the potential lost revenue,</content></level><level class="para1" eId="d25e14749"><num>(b)</num><content>for a deliberate but not concealed failure, 105% of the potential lost revenue, and</content></level><level class="para1" eId="d25e14755"><num>(c)</num><content>for any other case, 45% of the potential lost revenue.</content></level></subparagraph><subparagraph eId="d25e14761"><num>(4)</num><intro>If the failure is in category 3, the penalty is—</intro><level class="para1" eId="d25e14767"><num>(a)</num><content>for a deliberate and concealed failure, 200% of the potential lost revenue,</content></level><level class="para1" eId="d25e14773"><num>(b)</num><content>for a deliberate but not concealed failure, 140% of the potential lost revenue, and</content></level><level class="para1" eId="d25e14779"><num>(c)</num><content>for any other case, 60% of the potential lost revenue.</content></level></subparagraph><subparagraph eId="d25e14785"><num>(5)</num><content>Paragraph 6A explains the 3 categories of failure.</content></subparagraph></paragraph><paragraph eId="d25e14791" class="schProv1"><num>6A</num><subparagraph eId="d25e14795"><num>(1)</num><intro>A failure is in category 1 if—</intro><level class="para1" eId="d25e14801"><num>(a)</num><content>it involves a domestic matter, or</content></level><level class="para1" eId="d25e14807"><num>(b)</num><intro>it involves an offshore matter and—</intro><level class="para2" eId="d25e14813"><num>(i)</num><content>the territory in question is a category 1 territory, or</content></level><level class="para2" eId="d25e14819"><num>(ii)</num><content>the tax at stake is a tax other than income tax or capital gains tax.</content></level></level></subparagraph><subparagraph eId="d25e14825"><num>(2)</num><intro>A failure is in category 2 if—</intro><level class="para1" eId="d25e14831"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1" eId="d25e14837"><num>(b)</num><content>the territory in question is a category 2 territory, and</content></level><level class="para1" eId="d25e14843"><num>(c)</num><content>the tax at stake is income tax or capital gains tax.</content></level></subparagraph><subparagraph eId="d25e14849"><num>(3)</num><intro>A failure is in category 3 if—</intro><level class="para1" eId="d25e14855"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1" eId="d25e14861"><num>(b)</num><content>the territory in question is a category 3 territory, and</content></level><level class="para1" eId="d25e14867"><num>(c)</num><content>the tax at stake is income tax or capital gains tax.</content></level></subparagraph><subparagraph eId="d25e14873"><num>(4)</num><intro>A failure “involves an offshore matter” if it results in a potential loss of revenue that is charged on or by reference to—</intro><level class="para1" eId="d25e14879"><num>(a)</num><content>income arising from a source in a territory outside the UK,</content></level><level class="para1" eId="d25e14885"><num>(b)</num><content>assets situated or held in a territory outside the UK,</content></level><level class="para1" eId="d25e14891"><num>(c)</num><content>activities carried on wholly or mainly in a territory outside the UK, or</content></level><level class="para1" eId="d25e14897"><num>(d)</num><content>anything having effect as if it were income, assets or activities of a kind described above.</content></level></subparagraph><subparagraph eId="d25e14903"><num>(5)</num><content>A failure “involves a domestic matter” if it results in a potential loss of revenue that is charged on or by reference to anything not mentioned in sub-paragraph (4)(a) to (d).</content></subparagraph><subparagraph eId="d25e14909"><num>(6)</num><intro>If a single failure is in more than one category (each referred to as a “relevant category”)—</intro><level class="para1" eId="d25e14915"><num>(a)</num><content>it is to be treated for the purposes of this Schedule as if it were separate failures, one in each relevant category according to the matters that it involves, and</content></level><level class="para1" eId="d25e14921"><num>(b)</num><content>the potential lost revenue in respect of each separate failure is taken to be such share of the potential lost revenue in respect of the single failure (see paragraphs 7 and 11) as is just and reasonable.</content></level></subparagraph><subparagraph eId="d25e14927"><num>(7)</num><intro>For the purposes of this Schedule—</intro><level class="para1" eId="d25e14933"><num>(a)</num><content>paragraph 21A of Schedule 24 to FA 2007 (classification of territories) has effect, but</content></level><level class="para1" eId="d25e14939"><num>(b)</num><content>an order under that paragraph does not apply to relevant obligations that are to be complied with by a date before the date on which the order comes into force.</content></level></subparagraph><subparagraph eId="d25e14945"><num>(8)</num><content>Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets etc) apply for the purposes of paragraph 6A of this Schedule as they apply for the purposes of paragraph 4A of that Schedule.</content></subparagraph><subparagraph eId="d25e14951"><num>(9)</num><intro>In this paragraph—</intro><hcontainer name="definition"><content>“assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling;</content></hcontainer><hcontainer name="definition"><content>“UK” means the United Kingdom, including the territorial sea of the United Kingdom.</content></hcontainer></subparagraph></paragraph><paragraph eId="d25e14966" class="schProv1"><num>6B</num><intro>The penalty payable under any of paragraphs 2, 3(1) and 4 is—</intro><level class="para1" eId="d25e14972"><num>(a)</num><content>for a deliberate and concealed act or failure, 100% of the potential lost revenue,</content></level><level class="para1" eId="d25e14978"><num>(b)</num><content>for a deliberate but not concealed act or failure, 70% of the potential lost revenue, and</content></level><level class="para1" eId="d25e14984"><num>(c)</num><content>for any other case, 30% of the potential lost revenue.</content></level></paragraph><paragraph eId="d25e14990" class="schProv1"><num>6C</num><content>The penalty payable under paragraph 3(2) is 100% of the potential lost revenue.</content></paragraph><paragraph eId="d25e14996" class="schProv1"><num>6D</num><content>Paragraphs 7 to 11 define “potential lost revenue”.</content></paragraph></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-20-paragraph-6" class="schProv1"><num>6</num><intro>In this Schedule—</intro><hcontainer name="definition"><content>“the 2011 Champions League final” means the final of the UEFA Champions League 2010/2011 competition held in England in 2011;</content></hcontainer><hcontainer name="definition"><intro>“contractor”, in relation to an overseas team, means an individual who is not an employee of the team but who performs services for the team—</intro><level class="para1"><num>(a)</num><content>under the terms of a contract with the team, or</content></level><level class="para1"><num>(b)</num><content>under the terms of a contract, or that individual’s employment, with a company which is a member of the same group of companies as the team (within the meaning given by section 152 of CTA 2010);</content></level></hcontainer><hcontainer name="definition"><content>“employee” and “employment” are to be read in accordance with section 4 of ITEPA 2003;</content></hcontainer><hcontainer name="definition"><content>“overseas team” means a football club which is not a member of the Football Association, the Scottish Football Association, the Football Association of Wales or the Irish Football Association.</content></hcontainer></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="crossheading" class="schGroup7"><heading>Registration condition</heading><paragraph eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-6-paragraph-3-1"><num>(1)</num><intro>A body of persons or trust meets the registration condition if—</intro><level class="para1" eId="schedule-6-paragraph-3-1-a"><num>(a)</num><content>in the case of a body of persons or trust that is a charity within the meaning of the Charities Act 1993, condition A is met, and</content></level><level class="para1" eId="schedule-6-paragraph-3-1-b"><num>(b)</num><content>in the case of any other body of persons or trust, condition B is met.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-3-2"><num>(2)</num><content>Condition A is that the body of persons or trust has complied with any requirement to be registered in the register of charities kept under section 3 of the Charities Act 1993.</content></subparagraph><subparagraph eId="schedule-6-paragraph-3-3"><num>(3)</num><content>Condition B is that the body of persons or trust has complied with any requirement under the law of a territory outside England and Wales to be registered in a register corresponding to that mentioned in sub-paragraph (2).</content></subparagraph></paragraph></hcontainer>

<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-part-2"><num>Part 2</num><heading>Repeals of superseded definitions and other consequential amendments</heading><hcontainer name="crossheading" class="schGroup7"><heading>FA 1982</heading><paragraph eId="schedule-6-paragraph-8" class="schProv1"><num>8</num><content>In section 129(1) of FA 1982 (stamp duty: exemption from duty on grants, transfers to charities etc), for “a body of persons established for charitable purposes only or to the trustees of a trust so established” substitute “a charitable company or to the trustees of a charitable trust”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 1983</heading><paragraph eId="schedule-6-paragraph-9" class="schProv1"><num>9</num><content>In section 46(3) of FA 1983 (Historic Buildings and Monuments Commission for England) for “a body of persons established for charitable purposes only” substitute “a charitable company”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>IHTA 1984</heading><paragraph eId="schedule-6-paragraph-10" class="schProv1"><num>10</num><content>In section 272 of IHTA 1984 (general interpretation), omit the definitions of “charity” and “charitable”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 1986</heading><paragraph eId="schedule-6-paragraph-11" class="schProv1"><num>11</num><intro>In section 90(7) of FA 1986 (stamp duty reserve tax: exceptions from principal charge)—</intro><level class="para1" eId="schedule-6-paragraph-11-a"><num>(a)</num><content>in paragraph (a), for “a body of persons established for charitable purposes only” substitute “a charitable company”, and</content></level><level class="para1" eId="schedule-6-paragraph-11-b"><num>(b)</num><content>in paragraph (b), for “a trust so established” substitute “a charitable trust”.</content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 1989</heading><paragraph eId="schedule-6-paragraph-12" class="schProv1"><num>12</num><content>In paragraph 4 of Schedule 5 to FA 1989 (employee share ownership trusts), omit sub-paragraph (10).</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>TCGA 1992</heading><paragraph eId="schedule-6-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-6-paragraph-13-1"><num>(1)</num><content>TCGA 1992 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-2"><num>(2)</num><content>In section 222(8B)(b)(iii) (relief on disposal of private residence), for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-3"><num>(3)</num><content>In section 256 (charities), omit subsections (6) and (8).</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-4"><num>(4)</num><content>In section 256C (attributing gains to the non-exempt amount: charitable companies), omit subsection (6).</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-5"><num>(5)</num><content>In section 256D (how gains are attributed to the non-exempt amount: charitable companies), omit subsection (7).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>F(No.2)A 1997</heading><paragraph eId="schedule-6-paragraph-14" class="schProv1"><num>14</num><content>In section 35(3)(a) of F(No.2)A 1997 (transitional relief for charities) omit “(as defined in section 506(1) of the Taxes Act 1988)”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 1999</heading><paragraph eId="schedule-6-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-6-paragraph-15-1"><num>(1)</num><content>Schedule 19 to FA 1999 (stamp duty and stamp duty reserve tax: unit trusts) is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-15-2"><num>(2)</num><intro>In paragraph 6(3)—</intro><level class="para1" eId="schedule-6-paragraph-15-2-a"><num>(a)</num><content>in paragraph (a), for “a body of persons established for charitable purposes only” substitute “a charitable company”, and</content></level><level class="para1" eId="schedule-6-paragraph-15-2-b"><num>(b)</num><content>in paragraph (b), for “a trust established for those purposes only” substitute “a charitable trust”.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-15-3"><num>(3)</num><content>In paragraph 15(c), for “bodies of persons established for charitable purposes only or trustees of trusts so established” substitute “charitable companies or trustees of charitable trusts”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>CAA 2001</heading><paragraph eId="schedule-6-paragraph-16" class="schProv1"><num>16</num><intro>In section 63(2) of CAA 2001 (cases in which disposal value is nil)—</intro><level class="para1" eId="schedule-6-paragraph-16-a"><num>(a)</num><content>in paragraph (a), omit “within the meaning of Part 10 of ITA 2007 (see section 519 of that Act)”, and</content></level><level class="para1" eId="schedule-6-paragraph-16-b"><num>(b)</num><content>in paragraph (aa), omit “within the meaning of Part 11 of CTA 2010 (see section 467 of that Act)”.</content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>ITEPA 2003</heading><paragraph eId="schedule-6-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-6-paragraph-17-1"><num>(1)</num><content>ITEPA 2003 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-2"><num>(2)</num><content>In section 99(3)(b)(ii) (accommodation provided for performance of duties), for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-3"><num>(3)</num><content>In section 216(3)(b) (provisions not applicable to lower-paid employments) for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-4"><num>(4)</num><content>In section 223(7)(b)(ii) (payments on account of director’s tax other than by the director), for “established for charitable purposes only” substitute “a charitable company”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-5"><num>(5)</num><content>In section 290(5) (accommodation benefits of ministers of religion), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-6"><num>(6)</num><content>In section 351 (expenses of ministers of religion), omit subsection (5).</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-7"><num>(7)</num><content>In section 714(2) (payroll giving: meaning of “donation”), in the definition of “charity”, omit “means any body of persons or trust established for charitable purposes only and”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 2003</heading><paragraph eId="schedule-6-paragraph-18" class="schProv1"><num>18</num><content>Schedule 8 to FA 2003 (SDLT: charities relief) is amended as follows.</content></paragraph><paragraph eId="schedule-6-paragraph-19" class="schProv1"><num>19</num><content>In paragraph 1 (charities relief), omit sub-paragraph (4).</content></paragraph><paragraph eId="schedule-6-paragraph-20" class="schProv1"><num>20</num><content>In paragraph 4 (charitable trusts), in sub-paragraph (2), omit “and “charity” has the same meaning as in paragraph 1”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>ITTOIA 2005</heading><paragraph eId="schedule-6-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-6-paragraph-21-1"><num>(1)</num><content>ITTOIA 2005 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-2"><num>(2)</num><content>In section 410(3)(b) (when stock dividend income arises), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-3"><num>(3)</num><content>In section 545(1) (definitions for Chapter 9 of Part 4), omit the definition of “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-4"><num>(4)</num><content>In section 568(3) (special rule for certain income of trustees), for “trust established for charitable purposes” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-5"><num>(5)</num><intro>In Part 2 of Schedule 4 (index of defined expressions)—</intro><level class="para1" eId="schedule-6-paragraph-21-5-a"><num>(a)</num><intro>in the entry for “charitable trust (in Chapter 9 of Part 4)”—</intro><level class="para2" eId="schedule-6-paragraph-21-5-a-i"><num>(i)</num><content>omit “(in Chapter 9 of Part 4)”, and</content></level><level class="para2" eId="schedule-6-paragraph-21-5-a-ii"><num>(ii)</num><content>for “section 545(1)” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”, and</content></level></level><level class="para1" eId="schedule-6-paragraph-21-5-b"><num>(b)</num><content>in the entry for “charity”, for “section 989 of ITA 2007” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>F(No.2)A 2005</heading><paragraph eId="schedule-6-paragraph-22" class="schProv1"><num>22</num><content>In section 18(3)(b)(i) of F(No.2)A 2005 (authorised unit trusts and OEICS: specific powers) omit “(within the meaning of section 989 of ITA 2007)”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>ITA 2007</heading><paragraph eId="schedule-6-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-6-paragraph-23-1"><num>(1)</num><content>ITA 2007 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-2"><num>(2)</num><content>In section 479(1)(b) (special rates for trustees’ income), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-3"><num>(3)</num><content>In section 481(1)(c) (other special rates for trustees), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-4"><num>(4)</num><content>Omit section 519 (meaning of “charitable trust”).</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-5"><num>(5)</num><content>In section 873(2) (discretionary or accumulation settlements), in paragraphs (a) and (b), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-6"><num>(6)</num><content>In section 989 (definitions), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-7"><num>(7)</num><intro>In Schedule 4 (index of defined expressions)—</intro><level class="para1" eId="schedule-6-paragraph-23-7-a"><num>(a)</num><intro>in the entry for “charitable trust (in Part 10)”—</intro><level class="para2" eId="schedule-6-paragraph-23-7-a-i"><num>(i)</num><content>omit “(in Part 10)”, and</content></level><level class="para2" eId="schedule-6-paragraph-23-7-a-ii"><num>(ii)</num><content>for “section 519” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”, and</content></level></level><level class="para1" eId="schedule-6-paragraph-23-7-b"><num>(b)</num><content>in the entries for “charity”, “charity (in Chapter 2 of Part 8)” and “charity (in Chapter 3 of Part 8)”, for “section 989” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 2008</heading><paragraph eId="schedule-6-paragraph-24" class="schProv1"><num>24</num><content>In paragraph 60(2) of Schedule 36 to FA 2008 (references to carrying on a business), omit the definition of “charity”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>CTA 2009</heading><paragraph eId="schedule-6-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-6-paragraph-25-1"><num>(1)</num><content>CTA 2009 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-25-2"><num>(2)</num><content>In section 1319 (other definitions), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-25-3"><num>(3)</num><content>In Schedule 4 (index of defined expressions), in the entry for “charity”, for “section 1319” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>FA 2009</heading><paragraph eId="schedule-6-paragraph-26" class="schProv1"><num>26</num><content>In paragraph 8 of Schedule 49 to FA 2009 (general interpretation), omit the definition of “charity”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>CTA 2010</heading><paragraph eId="schedule-6-paragraph-27" class="schProv1"><num>27</num><subparagraph eId="schedule-6-paragraph-27-1"><num>(1)</num><content>CTA 2010 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-2"><num>(2)</num><intro>In section 202 (meaning of “charity” in Chapter 2 of Part 6)—</intro><level class="para1" eId="schedule-6-paragraph-27-2-a"><num>(a)</num><content>for “means” substitute “includes”, and</content></level><level class="para1" eId="schedule-6-paragraph-27-2-b"><num>(b)</num><content>omit paragraph (a).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-27-3"><num>(3)</num><intro>In section 217 (meaning of “charity” in Chapter 3 of Part 6)—</intro><level class="para1" eId="schedule-6-paragraph-27-3-a"><num>(a)</num><content>for “means” substitute “includes”, and</content></level><level class="para1" eId="schedule-6-paragraph-27-3-b"><num>(b)</num><content>omit paragraph (a).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-27-4"><num>(4)</num><content>Omit section 467 (meaning of “charitable company” in Part 11).</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-5"><num>(5)</num><content>In section 610(2)(a) (discretionary payments by trustees to companies), omit “as defined in section 467”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-6"><num>(6)</num><content>In section 1119 (definitions), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-7"><num>(7)</num><intro>In Schedule 4 (index of defined expressions)—</intro><level class="para1" eId="schedule-6-paragraph-27-7-a"><num>(a)</num><intro>in the entry for “charitable company (in Part 11)”—</intro><level class="para2" eId="schedule-6-paragraph-27-7-a-i"><num>(i)</num><content>omit “(in Part 11)”, and</content></level><level class="para2" eId="schedule-6-paragraph-27-7-a-ii"><num>(ii)</num><content>for “section 467” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”,</content></level></level><level class="para1" eId="schedule-6-paragraph-27-7-b"><num>(b)</num><content>in the entry for “charity (except in Chapters 2 and 3 of Part 6)” for “section 1119” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”,</content></level><level class="para1" eId="schedule-6-paragraph-27-7-c"><num>(c)</num><content>in the entry for “charity (in Chapter 2 of Part 6)”, for “section 202” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010 (and see section 202 of this Act)”, and</content></level><level class="para1" eId="schedule-6-paragraph-27-7-d"><num>(d)</num><content>in the entry for “charity (in Chapter 3 of Part 6)”, for “section 217” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010 (and see section 217 of this Act)”.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>TIOPA 2010</heading><paragraph eId="schedule-6-paragraph-28" class="schProv1"><num>28</num><content>In section 326(3) of TIOPA 2010 (charities), omit the definition of “charity” and the “and” immediately after it.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Power to make further consequential provision</heading><paragraph eId="schedule-6-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-6-paragraph-29-1"><num>(1)</num><content>The Commissioners for Her Majesty’s Revenue and Customs may by order make such further consequential, incidental, supplemental, transitional or transitory provision or saving as appears appropriate in consequence of, or otherwise in connection with, Part <ref href="#schedule-6-part-1">1</ref>.</content></subparagraph><subparagraph eId="schedule-6-paragraph-29-2"><num>(2)</num><intro>An order under this paragraph may—</intro><level class="para1" eId="schedule-6-paragraph-29-2-a"><num>(a)</num><content>make different provision for different purposes, and</content></level><level class="para1" eId="schedule-6-paragraph-29-2-b"><num>(b)</num><content>make provision repealing, revoking or otherwise amending any enactment or instrument (whenever passed or made).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-29-3"><num>(3)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph><subparagraph eId="schedule-6-paragraph-29-4"><num>(4)</num><content>A statutory instrument containing an order under this paragraph is subject to annulment in pursuance of an order of the House of Commons.</content></subparagraph></paragraph></hcontainer></part>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="definition"><content>“<term refersTo="#term-ittoia-2005" eId="term-ittoia-2005"><abbr class="acronym" title="Income Tax (Trading and Other Income) Act">ITTOIA</abbr> 2005</term>” means the Income Tax (Trading and Other Income) Act 2005;</content></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-6-paragraph-21-1"><num>(1)</num><content>ITTOIA 2005 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-2"><num>(2)</num><content>In section 410(3)(b) (when stock dividend income arises), for “trust established for charitable purposes only” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-3"><num>(3)</num><content>In section 545(1) (definitions for Chapter 9 of Part 4), omit the definition of “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-4"><num>(4)</num><content>In section 568(3) (special rule for certain income of trustees), for “trust established for charitable purposes” substitute “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-5"><num>(5)</num><intro>In Part 2 of Schedule 4 (index of defined expressions)—</intro><level class="para1" eId="schedule-6-paragraph-21-5-a"><num>(a)</num><intro>in the entry for “charitable trust (in Chapter 9 of Part 4)”—</intro><level class="para2" eId="schedule-6-paragraph-21-5-a-i"><num>(i)</num><content>omit “(in Chapter 9 of Part 4)”, and</content></level><level class="para2" eId="schedule-6-paragraph-21-5-a-ii"><num>(ii)</num><content>for “section 545(1)” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”, and</content></level></level><level class="para1" eId="schedule-6-paragraph-21-5-b"><num>(b)</num><content>in the entry for “charity”, for “section 989 of ITA 2007” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”.</content></level></subparagraph></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-24" class="schProv1"><num>24</num><content>In paragraph 60(2) of Schedule 36 to FA 2008 (references to carrying on a business), omit the definition of “charity”.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-27" class="schProv1"><num>27</num><subparagraph eId="schedule-6-paragraph-27-1"><num>(1)</num><content>CTA 2010 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-2"><num>(2)</num><intro>In section 202 (meaning of “charity” in Chapter 2 of Part 6)—</intro><level class="para1" eId="schedule-6-paragraph-27-2-a"><num>(a)</num><content>for “means” substitute “includes”, and</content></level><level class="para1" eId="schedule-6-paragraph-27-2-b"><num>(b)</num><content>omit paragraph (a).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-27-3"><num>(3)</num><intro>In section 217 (meaning of “charity” in Chapter 3 of Part 6)—</intro><level class="para1" eId="schedule-6-paragraph-27-3-a"><num>(a)</num><content>for “means” substitute “includes”, and</content></level><level class="para1" eId="schedule-6-paragraph-27-3-b"><num>(b)</num><content>omit paragraph (a).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-27-4"><num>(4)</num><content>Omit section 467 (meaning of “charitable company” in Part 11).</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-5"><num>(5)</num><content>In section 610(2)(a) (discretionary payments by trustees to companies), omit “as defined in section 467”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-6"><num>(6)</num><content>In section 1119 (definitions), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-7"><num>(7)</num><intro>In Schedule 4 (index of defined expressions)—</intro><level class="para1" eId="schedule-6-paragraph-27-7-a"><num>(a)</num><intro>in the entry for “charitable company (in Part 11)”—</intro><level class="para2" eId="schedule-6-paragraph-27-7-a-i"><num>(i)</num><content>omit “(in Part 11)”, and</content></level><level class="para2" eId="schedule-6-paragraph-27-7-a-ii"><num>(ii)</num><content>for “section 467” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”,</content></level></level><level class="para1" eId="schedule-6-paragraph-27-7-b"><num>(b)</num><content>in the entry for “charity (except in Chapters 2 and 3 of Part 6)” for “section 1119” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010”,</content></level><level class="para1" eId="schedule-6-paragraph-27-7-c"><num>(c)</num><content>in the entry for “charity (in Chapter 2 of Part 6)”, for “section 202” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010 (and see section 202 of this Act)”, and</content></level><level class="para1" eId="schedule-6-paragraph-27-7-d"><num>(d)</num><content>in the entry for “charity (in Chapter 3 of Part 6)”, for “section 217” substitute “paragraph <ref href="#schedule-6-paragraph-1">1</ref> of Schedule 6 to FA 2010 (and see section 217 of this Act)”.</content></level></subparagraph></paragraph>

<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-part-3"><num>Part 3</num><heading>Meaning of “community amateur sports club”</heading><paragraph eId="schedule-6-paragraph-30" class="schProv1"><num>30</num><content>Chapter 9 of Part 13 of CTA 2010 (community amateur sports clubs) is amended as follows.</content></paragraph><paragraph eId="schedule-6-paragraph-31" class="schProv1"><num>31</num><content><mod>In section 658(1) (meaning) omit the “and” at the end of paragraph (b) and after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e12749"><num>(d)</num><content>meets the location condition (see section <ref href="#d25e12777">661A</ref>), and</content></level><level class="para1" eId="d25e12758"><num>(e)</num><content>meets the management condition (see section <ref href="#d25e12811">661B</ref>).</content></level></quotedStructure></mod></content></paragraph><paragraph eId="schedule-6-paragraph-32" class="schProv1"><num>32</num><content><mod>After section 661 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e12777"><num>661A</num><heading>The location condition</heading><subsection eId="d25e12781"><num>(1)</num><intro>A club meets the location condition for the purposes of section 658 if—</intro><level class="para1" eId="d25e12787"><num>(a)</num><content>it is established in a member State or a relevant territory, and</content></level><level class="para1" eId="d25e12793"><num>(b)</num><content>the facilities that it provides for eligible sports are all located in a single member State or relevant territory.</content></level></subsection><subsection eId="d25e12799"><num>(2)</num><content>In this section “relevant territory” means a territory specified in regulations under paragraph <ref href="#schedule-6-paragraph-2-3-b">2(3)(b)</ref> of Schedule 6 to FA 2010 (definition of “charity” etc).</content></subsection></section><section eId="d25e12811"><num>661B</num><heading>The management condition</heading><subsection eId="d25e12815"><num>(1)</num><content>A club meets the management condition for the purposes of section 658 if its managers are fit and proper persons to be managers of the club.</content></subsection><subsection eId="d25e12821"><num>(2)</num><content>In this paragraph “managers”, in relation to a club, means the persons having the general control and management of the administration of the club.</content></subsection></section><section eId="d25e12830"><num>661C</num><heading>Periods over which management condition treated as met</heading><subsection eId="d25e12834"><num>(1)</num><content>This paragraph applies in relation to any period throughout which the management condition is not met.</content></subsection><subsection eId="d25e12840"><num>(2)</num><intro>The management condition is treated as met throughout the period if the Commissioners for Her Majesty’s Revenue and Customs consider that—</intro><level class="para1" eId="d25e12846"><num>(a)</num><content>the failure to meet the management condition has not prejudiced the purposes of the club, or</content></level><level class="para1" eId="d25e12852"><num>(b)</num><content>it is just and reasonable in all the circumstances for the condition to be treated as met throughout the period.</content></level></subsection></section></quotedStructure></mod></content></paragraph></part>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-paragraph-30" class="schProv1"><num>30</num><content>Chapter 9 of Part 13 of CTA 2010 (community amateur sports clubs) is amended as follows.</content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-31" class="schProv1"><num>31</num><content><mod>In section 658(1) (meaning) omit the “and” at the end of paragraph (b) and after paragraph (c) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e12749"><num>(d)</num><content>meets the location condition (see section <ref href="#d25e12777">661A</ref>), and</content></level><level class="para1" eId="d25e12758"><num>(e)</num><content>meets the management condition (see section <ref href="#d25e12811">661B</ref>).</content></level></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-6-paragraph-32" class="schProv1"><num>32</num><content><mod>After section 661 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e12777"><num>661A</num><heading>The location condition</heading><subsection eId="d25e12781"><num>(1)</num><intro>A club meets the location condition for the purposes of section 658 if—</intro><level class="para1" eId="d25e12787"><num>(a)</num><content>it is established in a member State or a relevant territory, and</content></level><level class="para1" eId="d25e12793"><num>(b)</num><content>the facilities that it provides for eligible sports are all located in a single member State or relevant territory.</content></level></subsection><subsection eId="d25e12799"><num>(2)</num><content>In this section “relevant territory” means a territory specified in regulations under paragraph <ref href="#schedule-6-paragraph-2-3-b">2(3)(b)</ref> of Schedule 6 to FA 2010 (definition of “charity” etc).</content></subsection></section><section eId="d25e12811"><num>661B</num><heading>The management condition</heading><subsection eId="d25e12815"><num>(1)</num><content>A club meets the management condition for the purposes of section 658 if its managers are fit and proper persons to be managers of the club.</content></subsection><subsection eId="d25e12821"><num>(2)</num><content>In this paragraph “managers”, in relation to a club, means the persons having the general control and management of the administration of the club.</content></subsection></section><section eId="d25e12830"><num>661C</num><heading>Periods over which management condition treated as met</heading><subsection eId="d25e12834"><num>(1)</num><content>This paragraph applies in relation to any period throughout which the management condition is not met.</content></subsection><subsection eId="d25e12840"><num>(2)</num><intro>The management condition is treated as met throughout the period if the Commissioners for Her Majesty’s Revenue and Customs consider that—</intro><level class="para1" eId="d25e12846"><num>(a)</num><content>the failure to meet the management condition has not prejudiced the purposes of the club, or</content></level><level class="para1" eId="d25e12852"><num>(b)</num><content>it is just and reasonable in all the circumstances for the condition to be treated as met throughout the period.</content></level></subsection></section></quotedStructure></mod></content></paragraph>

<part xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-6-part-4"><num>Part 4</num><heading>Commencement</heading><hcontainer name="crossheading" class="schGroup7"><heading>Commencement of Part 1</heading><paragraph eId="schedule-6-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-6-paragraph-33-1"><num>(1)</num><content>Part <ref href="#schedule-6-part-1">1</ref> is treated as having come into force on 6 April 2010.</content></subparagraph><subparagraph eId="schedule-6-paragraph-33-2"><num>(2)</num><content>But the definitions of “charity”, “charitable company” and “charitable trust” in that Part do not apply for the purposes of an enactment in relation to which, on that date, another definition applies until such time as that other definition ceases to have effect on the coming into force of provision made by or under Part <ref href="#schedule-6-part-2">2</ref>.</content></subparagraph><subparagraph eId="schedule-6-paragraph-33-3"><num>(3)</num><content>For provision about the coming into force of provision made by that Part, see paragraph <ref href="#schedule-6-paragraph-34">34</ref>.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement of Part 2</heading><paragraph eId="schedule-6-paragraph-34" class="schProv1"><num>34</num><subparagraph eId="schedule-6-paragraph-34-1"><num>(1)</num><intro>The repeal of the definition of “charity” in section 989 of ITA 2007 made by paragraph <ref href="#schedule-6-paragraph-23-6">23(6)</ref> above has effect—</intro><level class="para1" eId="schedule-6-paragraph-34-1-a"><num>(a)</num><content>so far as it applies for the purposes of Chapter 2 of Part 8 of that Act (gift aid), in relation to gifts made on or after 6 April 2010, and</content></level><level class="para1" eId="schedule-6-paragraph-34-1-b"><num>(b)</num><content>so far as it applies for other purposes, in accordance with such provision as the Treasury may make by order.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-34-2"><num>(2)</num><content>The other amendments made by Part <ref href="#schedule-6-part-2">2</ref> come into force in accordance with such provision as the Treasury may make by order.</content></subparagraph><subparagraph eId="schedule-6-paragraph-34-3"><num>(3)</num><intro>An order under this paragraph may—</intro><level class="para1" eId="schedule-6-paragraph-34-3-a"><num>(a)</num><content>make different provision for different purposes, and</content></level><level class="para1" eId="schedule-6-paragraph-34-3-b"><num>(b)</num><content>include transitional provision and savings.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-34-4"><num>(4)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement of Part 3</heading><paragraph eId="schedule-6-paragraph-35" class="schProv1"><num>35</num><content>The amendments made by Part <ref href="#schedule-6-part-3">3</ref> are treated as having come into force on 6 April 2010.</content></paragraph></hcontainer></part>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-8"><num>SCHEDULE 8<authorialNote class="referenceNote">Section 32</authorialNote></num><heading>Charities: miscellaneous amendments</heading><hcontainer name="crossheading" class="schGroup7"><heading>Payroll giving</heading><paragraph eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-8-paragraph-1-1"><num>(1)</num><content><mod>In ITA 2007, after section 521 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13347"><num>521A</num><heading>Gifts under payroll deduction schemes: income tax liability and exemption</heading><subsection eId="d25e13351"><num>(1)</num><content>This section applies if gifts are made to charitable trusts by individuals and the gifts are donations for the purposes of Part 12 of ITEPA 2003 (payroll giving).</content></subsection><subsection eId="d25e13357"><num>(2)</num><content>Income tax is charged on the gifts under this section.</content></subsection><subsection eId="d25e13363"><num>(3)</num><content>It is charged on the full amount of the gifts arising in the tax year.</content></subsection><subsection eId="d25e13369"><num>(4)</num><content>But a gift is not taken into account in calculating total income so far as it is applied to charitable purposes only.</content></subsection><subsection eId="d25e13375"><num>(5)</num><content>The trustees of the charitable trust are liable for any tax charged under this section.</content></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-2"><num>(2)</num><content><mod>In CTA 2010, after section 472 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13391"><num>472A</num><heading>Gifts under payroll deduction schemes: corporation tax liability and exemption</heading><subsection eId="d25e13395"><num>(1)</num><content>If a charitable company receives a gift from an individual and the gift is a donation for the purposes of Part 12 of ITEPA 2003 (payroll giving), the gift is treated as an amount in respect of which the charitable company is chargeable to corporation tax, under the charge to corporation tax on income.</content></subsection><subsection eId="d25e13401"><num>(2)</num><content>But the gift is not taken into account in calculating total profits so far as it is applied to charitable purposes only.</content></subsection><subsection eId="d25e13407"><num>(3)</num><content>The exemption under subsection (2) requires a claim.</content></subsection></section></quotedStructure></mod></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Payments to bodies outside the UK: non-charitable expenditure</heading><paragraph eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-8-paragraph-2-1"><num>(1)</num><content>In section 547(b) of ITA 2007 (payments by charitable trusts to bodies outside the UK), after “such steps as” insert “the Commissioners for Her Majesty’s Revenue and Customs consider”.</content></subparagraph><subparagraph eId="schedule-8-paragraph-2-2"><num>(2)</num><content>In section 500(b) of CTA 2010 (payments by charitable companies to bodies outside the UK), after “such steps as” insert “the Commissioners for Her Majesty’s Revenue and Customs consider”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Gift aid: disqualified overseas gifts</heading><paragraph eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-8-paragraph-3-1"><num>(1)</num><content>Chapter 2 of Part 8 of ITA 2007 (gift aid) is amended as follows.</content></subparagraph><subparagraph eId="schedule-8-paragraph-3-2"><num>(2)</num><intro>In section 416 (meaning of “qualifying donation”)—</intro><level class="para1" eId="schedule-8-paragraph-3-2-a"><num>(a)</num><content>in subsection (1)(a) for “G” substitute “F”, and</content></level><level class="para1" eId="schedule-8-paragraph-3-2-b"><num>(b)</num><content>omit subsection (8).</content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-3"><num>(3)</num><content>Omit section 422 (disqualified overseas gifts).</content></subparagraph><subparagraph eId="schedule-8-paragraph-3-4"><num>(4)</num><content>In section 429(3) (giving through self-assessment return), for “G” substitute “F”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Gift aid administration: charitable trusts</heading><paragraph eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-8-paragraph-4-1"><num>(1)</num><content>Section 42 of TMA 1970 (procedure for making claims etc) is amended as follows.</content></subparagraph><subparagraph eId="schedule-8-paragraph-4-2"><num>(2)</num><content>In subsection (2), for “(3A)” substitute “(3ZA)”.</content></subparagraph><subparagraph eId="schedule-8-paragraph-4-3"><num>(3)</num><content><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e13501"><num>(3ZA)</num><content>Subsection (2) above shall not apply in relation to any claim by the trustees of a charitable trust for an amount to be exempt from tax by virtue of section 521(4) of ITA 2007 (gifts entitling donor to gift aid relief: charitable trusts).</content></subsection></quotedStructure></mod></content></subparagraph></paragraph><paragraph eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-8-paragraph-5-1"><num>(1)</num><content>ITA 2007 is amended as follows.</content></subparagraph><subparagraph eId="schedule-8-paragraph-5-2"><num>(2)</num><content>In section 518(4) (overview of Part 10), for “section 538” substitute “sections 538 and 538A”.</content></subparagraph><subparagraph eId="schedule-8-paragraph-5-3"><num>(3)</num><content><mod>After section 538 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13533"><num>538A</num><heading>Claims in relation to gift aid relief</heading><subsection eId="d25e13537"><num>(1)</num><content>This section applies to claims for amounts to be exempt from tax by virtue of section 521(4) (gifts entitling donor to gift aid relief: charitable trusts).</content></subsection><subsection eId="d25e13543"><num>(2)</num><intro>A claim to which this section applies may be made—</intro><level class="para1" eId="d25e13549"><num>(a)</num><content>to an officer of Revenue and Customs, or</content></level><level class="para1" eId="d25e13555"><num>(b)</num><content>by being included in a return under section 8A of TMA 1970 (trustee’s self-assessment return).</content></level></subsection><subsection eId="d25e13561"><num>(3)</num><intro>In this section—</intro><hcontainer name="definition"><content>“free-standing claim” means a claim made as mentioned in subsection (2)(a), and</content></hcontainer><hcontainer name="definition"><content>“tax return claim” means a claim made as mentioned in subsection (2)(b).</content></hcontainer></subsection><subsection eId="d25e13576"><num>(4)</num><intro>The Commissioners for Her Majesty’s Revenue and Customs may by regulations make provision—</intro><level class="para1" eId="d25e13582"><num>(a)</num><content>limiting the number of free-standing claims that may be made by a person in a tax year, or</content></level><level class="para1" eId="d25e13588"><num>(b)</num><content>requiring a claim for an amount below an amount specified in the regulations to be made as a tax return claim.</content></level></subsection><subsection eId="d25e13594"><num>(5)</num><content>The regulations may make different provision for different cases or purposes.</content></subsection></section></quotedStructure></mod></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Gift aid administration: charitable companies</heading><paragraph eId="schedule-8-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-8-paragraph-6-1"><num>(1)</num><content>Schedule 18 to FA 1998 (company tax returns, assessments and related matters) is amended as follows.</content></subparagraph><subparagraph eId="schedule-8-paragraph-6-2"><num>(2)</num><content><mod>In paragraph 9 (claims that cannot be made without a return), after sub-paragraph (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e13620"><num>(2A)</num><intro>But this paragraph does not apply to a claim by a company for an amount to be exempt from tax by virtue of—</intro><level class="para1" eId="d25e13626"><num>(a)</num><content>section 472 of CTA 2010 (gifts qualifying for gift aid relief: charitable companies), or</content></level><level class="para1" eId="d25e13632"><num>(b)</num><content>section 475 of that Act (gifts qualifying for gift aid relief: eligible bodies).</content></level></subparagraph></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-8-paragraph-6-3"><num>(3)</num><content><mod>In paragraph 57 (claims or elections affecting a single accounting period), after sub-paragraph (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><subparagraph eId="d25e13645"><num>(1A)</num><intro>But this paragraph does not apply to a claim by a company for an amount to be exempt from tax by virtue of—</intro><level class="para1" eId="d25e13651"><num>(a)</num><content>section 472 of CTA 2010 (gifts qualifying for gift aid relief: charitable companies), or</content></level><level class="para1" eId="d25e13657"><num>(b)</num><content>section 475 of that Act (gifts qualifying for gift aid relief: eligible bodies).</content></level></subparagraph></quotedStructure></mod></content></subparagraph></paragraph><paragraph eId="schedule-8-paragraph-7" class="schProv1"><num>7</num><content><mod>In CTA 2010, after section 477 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e13670"><heading>Claims</heading><section eId="d25e13676"><num>477A</num><heading>Claims in relation to gift aid relief</heading><subsection eId="d25e13680"><num>(1)</num><intro>This section applies to claims for amounts to be exempt from tax by virtue of—</intro><level class="para1" eId="d25e13686"><num>(a)</num><content>section 472 (gifts qualifying for gift aid relief: charitable companies), or</content></level><level class="para1" eId="d25e13692"><num>(b)</num><content>section 475 (gifts qualifying for gift aid relief: eligible bodies).</content></level></subsection><subsection eId="d25e13698"><num>(2)</num><intro>A claim to which this section applies may be made—</intro><level class="para1" eId="d25e13704"><num>(a)</num><content>to an officer of Revenue and Customs, or</content></level><level class="para1" eId="d25e13710"><num>(b)</num><content>where the claimant is a company, by being included in the claimant’s company tax return.</content></level></subsection><subsection eId="d25e13716"><num>(3)</num><intro>In this section—</intro><hcontainer name="definition"><content>“free-standing claim” means a claim made as mentioned in subsection (2)(a), and</content></hcontainer><hcontainer name="definition"><content>“tax return claim” means a claim made as mentioned in subsection (2)(b).</content></hcontainer></subsection><subsection eId="d25e13731"><num>(4)</num><intro>The Commissioners for Her Majesty’s Revenue and Customs may by regulations make provision—</intro><level class="para1" eId="d25e13737"><num>(a)</num><content>limiting the number of free-standing claims that may be made by a person in a tax year, or</content></level><level class="para1" eId="d25e13743"><num>(b)</num><content>requiring a claim for an amount below an amount specified in the regulations to be made as a tax return claim.</content></level></subsection><subsection eId="d25e13749"><num>(5)</num><content>The regulations may make different provision for different cases or purposes.</content></subsection></section></hcontainer></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-8-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-8-paragraph-8-1"><num>(1)</num><content>The amendments made by paragraph <ref href="#schedule-8-paragraph-1">1</ref> have effect in relation to gifts made on or after 24 March 2010.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-2"><num>(2)</num><content>An amendment corresponding to that made by paragraph <ref href="#schedule-8-paragraph-1-2">1(2)</ref>, having effect in relation to gifts made on or after that date, is to be treated as having been made in ICTA.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-3"><num>(3)</num><content>The amendments made by paragraph <ref href="#schedule-8-paragraph-2">2</ref> have effect in relation to payments representing expenditure incurred on or after 24 March.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-4"><num>(4)</num><content>An amendment corresponding to that made by paragraph <ref href="#schedule-8-paragraph-2-2">2(2)</ref>, having effect in relation to payments representing expenditure incurred on or after that date, is to be treated as having been made in ICTA.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-5"><num>(5)</num><content>The amendments made by paragraph <ref href="#schedule-8-paragraph-3">3</ref> have effect in relation to gifts made on or after 6 April 2010.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-6"><num>(6)</num><content>The amendments made by paragraphs <ref href="#schedule-8-paragraph-4">4</ref> and <ref href="#schedule-8-paragraph-6">6</ref> have effect in relation to claims whenever made.</content></subparagraph></paragraph></hcontainer></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-9"><num>SCHEDULE 9<authorialNote class="referenceNote">Section 34</authorialNote></num><heading>Foreign currency bank accounts</heading><paragraph eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><content><mod>In TCGA 1992, after section 252 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13838"><num>252A</num><heading>Foreign currency bank accounts and the remittance basis</heading><content>Schedule 8A contains provision about the calculation of chargeable gains on disposals of debts to which section 252(1) applies which are not situated in the United Kingdom.</content></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><content><mod>In that Act, after Schedule 8 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule" eId="d25e13851"><num>Schedule 8A</num><heading>Foreign currency bank accounts</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e13858"><heading>Introductory</heading><paragraph eId="d25e13861" class="schProv1"><num>1</num><subparagraph eId="d25e13865"><num>(1)</num><intro>This Schedule applies where—</intro><level class="para1" eId="d25e13871"><num>(a)</num><content>an individual makes a disposal of a debt to which section 252(1) applies (“the relevant disposal”),</content></level><level class="para1" eId="d25e13877"><num>(b)</num><content>the debt (“the section 252 debt”) is not situated in the United Kingdom, and</content></level><level class="para1" eId="d25e13883"><num>(c)</num><content>money or money’s worth which is remitted foreign income (“the section 37 amount”) is excluded under section 37 from the consideration for the relevant disposal.</content></level></subparagraph><subparagraph eId="d25e13889"><num>(2)</num><content>For this purpose “remitted foreign income” means income of the individual which is chargeable to income tax on the alternative basis of charge set out in Chapter A1 of Part 14 of ITA 2007 (remittance basis).</content></subparagraph><subparagraph eId="d25e13895"><num>(3)</num><content>In determining whether the condition in sub-paragraph (1)(c) is met, the following provisions of this Schedule are to be ignored.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e13901"><heading>Section 37 operates to exclude the whole consideration</heading><paragraph eId="d25e13904" class="schProv1"><num>2</num><subparagraph eId="d25e13908"><num>(1)</num><content>This paragraph applies where the section 37 amount constitutes the whole of the unreduced consideration.</content></subparagraph><subparagraph eId="d25e13914"><num>(2)</num><content>If the relevant disposal is a part disposal of the section 252 debt, section 42 applies as if the reference in subsection (2)(a) of that section to the consideration for the disposal were a reference to the unreduced consideration for the disposal.</content></subparagraph><subparagraph eId="d25e13920"><num>(3)</num><content>Any loss accruing to the individual on the relevant disposal is not an allowable loss.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e13926"><heading>Section 37 operates to exclude part of the consideration</heading><paragraph eId="d25e13929" class="schProv1"><num>3</num><subparagraph eId="d25e13933"><num>(1)</num><content>This paragraph applies where the section 37 amount constitutes part of the unreduced consideration.</content></subparagraph><subparagraph eId="d25e13939"><num>(2)</num><intro>For the purposes of this Act the relevant disposal is to be treated as if it were—</intro><level class="para1" eId="d25e13945"><num>(a)</num><content>a disposal of so much of the section 252 debt as is represented by the section 37 proportion of the sum mentioned in sub-paragraph (3) (“debt A”), and</content></level><level class="para1" eId="d25e13951"><num>(b)</num><content>a separate disposal of so much of the section 252 debt as is represented by the remainder of that sum (“debt B”).</content></level></subparagraph><subparagraph eId="d25e13957"><num>(3)</num><intro>That sum is—</intro><level class="para1" eId="d25e13963"><num>(a)</num><content>if the relevant disposal is a disposal of the whole of the section 252 debt, the sum referred to in section 252(1), and</content></level><level class="para1" eId="d25e13969"><num>(b)</num><content>if the relevant disposal is a part disposal of that debt, the proportion of the sum referred to in section 252(1) to which that part disposal relates.</content></level></subparagraph><subparagraph eId="d25e13975"><num>(4)</num><intro>Sub-paragraphs (5) to (9) apply for the purposes of—</intro><level class="para1" eId="d25e13981"><num>(a)</num><content>the computation of the gain accruing on the disposals under sub-paragraph (2), and</content></level><level class="para1" eId="d25e13987"><num>(b)</num><content>the application of Chapter 3 of Part 2 of this Act in relation to the part of the debt (if any) which remains undisposed of.</content></level></subparagraph><subparagraph eId="d25e13993"><num>(5)</num><intro>The consideration for the disposal (before any exclusion under section 37) is—</intro><level class="para1" eId="d25e13999"><num>(a)</num><content>in the case of debt A, the section 37 amount, and</content></level><level class="para1" eId="d25e14005"><num>(b)</num><content>in the case of debt B, the remainder of the unreduced consideration.</content></level></subparagraph><subparagraph eId="d25e14011"><num>(6)</num><intro>If the relevant disposal is not a part disposal of the section 252 debt—</intro><level class="para1" eId="d25e14017"><num>(a)</num><content>the section 37 proportion of the debt costs and the disposal costs is to be attributed to debt A, and</content></level><level class="para1" eId="d25e14023"><num>(b)</num><content>the remaining debt costs and disposal costs are to be attributed to debt B.</content></level></subparagraph><subparagraph eId="d25e14029"><num>(7)</num><content>Sub-paragraphs (8) and (9) apply if the relevant disposal is a part disposal of the section 252 debt.</content></subparagraph><subparagraph eId="d25e14035"><num>(8)</num><content>Section 42(2) applies as if it provided for the debt costs to be apportioned between debt A, debt B and the remainder of the section 252 debt in the proportions which those parts of the section 252 debt bear to one another.</content></subparagraph><subparagraph eId="d25e14041"><num>(9)</num><content>The section 37 proportion of the disposal costs is to be attributed to debt A and the remaining disposal costs are to be attributed to debt B.</content></subparagraph><subparagraph eId="d25e14047"><num>(10)</num><content>Any loss accruing to the individual on the disposal of debt A is not an allowable loss.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e14053"><heading>Interpretation</heading><paragraph eId="d25e14056" class="schProv1"><num>4</num><intro>In this Schedule—</intro><hcontainer name="definition"><content>“debt costs” means the sums which under section 38(1)(a) and (b) are attributable to the section 252 debt;</content></hcontainer><hcontainer name="definition"><content>“disposal costs” means the costs within section 38(1)(c) in relation to the relevant disposal;</content></hcontainer><hcontainer name="definition"><content>“the section 252 debt”, “the relevant disposal” and “the section 37 amount” are to be construed in accordance with paragraph 1;</content></hcontainer><hcontainer name="definition"><content>“the section 37 proportion” means the proportion of the unreduced consideration which constitutes the section 37 amount;</content></hcontainer><hcontainer name="definition"><content>“the unreduced consideration” means the consideration for the relevant disposal ignoring the exclusion of the section 37 amount.</content></hcontainer></paragraph></hcontainer></hcontainer></quotedStructure></mod></content></paragraph><paragraph eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><content>The amendments made by this Schedule have effect in relation to disposals on or after 16 December 2009.</content></paragraph></hcontainer>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><content><mod>In TCGA 1992, after section 252 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e13838"><num>252A</num><heading>Foreign currency bank accounts and the remittance basis</heading><content>Schedule 8A contains provision about the calculation of chargeable gains on disposals of debts to which section 252(1) applies which are not situated in the United Kingdom.</content></section></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><content><mod>In that Act, after Schedule 8 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="double"><hcontainer name="schedule" eId="d25e13851"><num>Schedule 8A</num><heading>Foreign currency bank accounts</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e13858"><heading>Introductory</heading><paragraph eId="d25e13861" class="schProv1"><num>1</num><subparagraph eId="d25e13865"><num>(1)</num><intro>This Schedule applies where—</intro><level class="para1" eId="d25e13871"><num>(a)</num><content>an individual makes a disposal of a debt to which section 252(1) applies (“the relevant disposal”),</content></level><level class="para1" eId="d25e13877"><num>(b)</num><content>the debt (“the section 252 debt”) is not situated in the United Kingdom, and</content></level><level class="para1" eId="d25e13883"><num>(c)</num><content>money or money’s worth which is remitted foreign income (“the section 37 amount”) is excluded under section 37 from the consideration for the relevant disposal.</content></level></subparagraph><subparagraph eId="d25e13889"><num>(2)</num><content>For this purpose “remitted foreign income” means income of the individual which is chargeable to income tax on the alternative basis of charge set out in Chapter A1 of Part 14 of ITA 2007 (remittance basis).</content></subparagraph><subparagraph eId="d25e13895"><num>(3)</num><content>In determining whether the condition in sub-paragraph (1)(c) is met, the following provisions of this Schedule are to be ignored.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e13901"><heading>Section 37 operates to exclude the whole consideration</heading><paragraph eId="d25e13904" class="schProv1"><num>2</num><subparagraph eId="d25e13908"><num>(1)</num><content>This paragraph applies where the section 37 amount constitutes the whole of the unreduced consideration.</content></subparagraph><subparagraph eId="d25e13914"><num>(2)</num><content>If the relevant disposal is a part disposal of the section 252 debt, section 42 applies as if the reference in subsection (2)(a) of that section to the consideration for the disposal were a reference to the unreduced consideration for the disposal.</content></subparagraph><subparagraph eId="d25e13920"><num>(3)</num><content>Any loss accruing to the individual on the relevant disposal is not an allowable loss.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e13926"><heading>Section 37 operates to exclude part of the consideration</heading><paragraph eId="d25e13929" class="schProv1"><num>3</num><subparagraph eId="d25e13933"><num>(1)</num><content>This paragraph applies where the section 37 amount constitutes part of the unreduced consideration.</content></subparagraph><subparagraph eId="d25e13939"><num>(2)</num><intro>For the purposes of this Act the relevant disposal is to be treated as if it were—</intro><level class="para1" eId="d25e13945"><num>(a)</num><content>a disposal of so much of the section 252 debt as is represented by the section 37 proportion of the sum mentioned in sub-paragraph (3) (“debt A”), and</content></level><level class="para1" eId="d25e13951"><num>(b)</num><content>a separate disposal of so much of the section 252 debt as is represented by the remainder of that sum (“debt B”).</content></level></subparagraph><subparagraph eId="d25e13957"><num>(3)</num><intro>That sum is—</intro><level class="para1" eId="d25e13963"><num>(a)</num><content>if the relevant disposal is a disposal of the whole of the section 252 debt, the sum referred to in section 252(1), and</content></level><level class="para1" eId="d25e13969"><num>(b)</num><content>if the relevant disposal is a part disposal of that debt, the proportion of the sum referred to in section 252(1) to which that part disposal relates.</content></level></subparagraph><subparagraph eId="d25e13975"><num>(4)</num><intro>Sub-paragraphs (5) to (9) apply for the purposes of—</intro><level class="para1" eId="d25e13981"><num>(a)</num><content>the computation of the gain accruing on the disposals under sub-paragraph (2), and</content></level><level class="para1" eId="d25e13987"><num>(b)</num><content>the application of Chapter 3 of Part 2 of this Act in relation to the part of the debt (if any) which remains undisposed of.</content></level></subparagraph><subparagraph eId="d25e13993"><num>(5)</num><intro>The consideration for the disposal (before any exclusion under section 37) is—</intro><level class="para1" eId="d25e13999"><num>(a)</num><content>in the case of debt A, the section 37 amount, and</content></level><level class="para1" eId="d25e14005"><num>(b)</num><content>in the case of debt B, the remainder of the unreduced consideration.</content></level></subparagraph><subparagraph eId="d25e14011"><num>(6)</num><intro>If the relevant disposal is not a part disposal of the section 252 debt—</intro><level class="para1" eId="d25e14017"><num>(a)</num><content>the section 37 proportion of the debt costs and the disposal costs is to be attributed to debt A, and</content></level><level class="para1" eId="d25e14023"><num>(b)</num><content>the remaining debt costs and disposal costs are to be attributed to debt B.</content></level></subparagraph><subparagraph eId="d25e14029"><num>(7)</num><content>Sub-paragraphs (8) and (9) apply if the relevant disposal is a part disposal of the section 252 debt.</content></subparagraph><subparagraph eId="d25e14035"><num>(8)</num><content>Section 42(2) applies as if it provided for the debt costs to be apportioned between debt A, debt B and the remainder of the section 252 debt in the proportions which those parts of the section 252 debt bear to one another.</content></subparagraph><subparagraph eId="d25e14041"><num>(9)</num><content>The section 37 proportion of the disposal costs is to be attributed to debt A and the remaining disposal costs are to be attributed to debt B.</content></subparagraph><subparagraph eId="d25e14047"><num>(10)</num><content>Any loss accruing to the individual on the disposal of debt A is not an allowable loss.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e14053"><heading>Interpretation</heading><paragraph eId="d25e14056" class="schProv1"><num>4</num><intro>In this Schedule—</intro><hcontainer name="definition"><content>“debt costs” means the sums which under section 38(1)(a) and (b) are attributable to the section 252 debt;</content></hcontainer><hcontainer name="definition"><content>“disposal costs” means the costs within section 38(1)(c) in relation to the relevant disposal;</content></hcontainer><hcontainer name="definition"><content>“the section 252 debt”, “the relevant disposal” and “the section 37 amount” are to be construed in accordance with paragraph 1;</content></hcontainer><hcontainer name="definition"><content>“the section 37 proportion” means the proportion of the unreduced consideration which constitutes the section 37 amount;</content></hcontainer><hcontainer name="definition"><content>“the unreduced consideration” means the consideration for the relevant disposal ignoring the exclusion of the section 37 amount.</content></hcontainer></paragraph></hcontainer></hcontainer></quotedStructure></mod></content></paragraph>

<paragraph xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><content>The amendments made by this Schedule have effect in relation to disposals on or after 16 December 2009.</content></paragraph>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-11"><num>SCHEDULE 11<authorialNote class="referenceNote">Section 36</authorialNote></num><heading>Reliefs and reductions for foreign tax</heading><hcontainer name="crossheading" class="schGroup7"><heading>Effect of foreign tax becoming payable</heading><paragraph eId="schedule-11-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-11-paragraph-1-1"><num>(1)</num><content>Paragraph 3 of Schedule 28AB to ICTA (schemes about effect of paying foreign tax) is amended as follows.</content></subparagraph><subparagraph eId="schedule-11-paragraph-1-2"><num>(2)</num><intro>In sub-paragraph (2)—</intro><level class="para1" eId="schedule-11-paragraph-1-2-a"><num>(a)</num><content>in paragraph (a), after “paid” insert “or payable”, and</content></level><level class="para1" eId="schedule-11-paragraph-1-2-b"><num>(b)</num><content>in paragraph (b), for “of the payment of that amount of foreign tax on the foreign tax total” substitute “on the foreign tax total of that amount being so paid or payable”.</content></level></subparagraph><subparagraph eId="schedule-11-paragraph-1-3"><num>(3)</num><content>In sub-paragraph (3)(b), for “the payment by the claimant of that amount of foreign tax” substitute “that amount of foreign tax being paid or payable by the claimant”.</content></subparagraph></paragraph><paragraph eId="schedule-11-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-11-paragraph-2-1"><num>(1)</num><content>Section 85 of TIOPA 2010 (schemes about effect of paying foreign tax) is amended as follows.</content></subparagraph><subparagraph eId="schedule-11-paragraph-2-2"><num>(2)</num><intro>In subsection (2)—</intro><level class="para1" eId="schedule-11-paragraph-2-2-a"><num>(a)</num><content><mod>for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e15652"><num>(a)</num><content>an amount of foreign tax (“the FT amount”) is paid or payable by C, and</content></level></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-11-paragraph-2-2-b"><num>(b)</num><content>in paragraph (b), for “of the payment of the FT amount on the foreign-tax total” substitute “on the foreign-tax total of the FT amount being so paid or payable”.</content></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-3"><num>(3)</num><content>In subsection (3), in paragraph (b) of the definition of “the foreign-tax total”, for “the payment by C of the FT amount” substitute “the FT amount being paid or payable by C”.</content></subparagraph></paragraph><paragraph eId="schedule-11-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-11-paragraph-3-1"><num>(1)</num><content>The amendments made by paragraphs 1 and 2 have effect in relation to amounts of foreign tax payable on or after 21 October 2009.</content></subparagraph><subparagraph eId="schedule-11-paragraph-3-2"><num>(2)</num><content>But see paragraph 5 for amounts of foreign tax payable on or after 1 April 2010 (as regards corporation tax) or 6 April 2010 (as regards income tax or capital gains tax).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Schemes about deemed foreign tax</heading><paragraph eId="schedule-11-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-11-paragraph-4-1"><num>(1)</num><content><mod>In TIOPA 2010, after section 85 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e15705"><num>85A</num><heading>Section 83(2) and (4): schemes involving deemed foreign tax</heading><subsection eId="d25e15709"><num>(1)</num><intro>This section applies to a scheme or arrangement if in relation to a claimant—</intro><level class="para1" eId="d25e15715"><num>(a)</num><content>an amount (“amount X”) is treated by virtue of a provision of the Tax Acts as if it were an amount of foreign tax paid or payable by the claimant in respect of a source of income, and</content></level><level class="para1" eId="d25e15721"><num>(b)</num><content>condition A or B is met.</content></level></subsection><subsection eId="d25e15727"><num>(2)</num><content>Condition A is met if, when the claimant entered into the scheme or arrangement, it could reasonably be expected that, under the scheme or arrangement, no real foreign tax would be paid or payable by a participant.</content></subsection><subsection eId="d25e15733"><num>(3)</num><intro>Condition B is met if, when the claimant entered into the scheme or arrangement, it could reasonably be expected that, under the scheme or arrangement—</intro><level class="para1" eId="d25e15739"><num>(a)</num><content>an amount of real foreign tax (“the RFT amount”) would be paid or payable by a participant, but</content></level><level class="para1" eId="d25e15745"><num>(b)</num><content>the effect on the foreign-tax total of the RFT amount being so paid or payable would be to increase the foreign-tax total by less than the amount allowable to the claimant as a credit in respect of amount X.</content></level></subsection><subsection eId="d25e15751"><num>(4)</num><intro>In this section—</intro><hcontainer name="definition"><content>“claimant” means a person who for a chargeable period has claimed, or is in a position to claim, for any credit that under the arrangements is to be allowed for foreign tax;</content></hcontainer><hcontainer name="definition"><content>“the foreign-tax total” has the meaning given by section 85(3), except that the reference to “the FT amount being paid or payable by C” must be read as a reference to “the RFT amount being paid or payable by any of them”;</content></hcontainer><hcontainer name="definition"><content>“income” includes a chargeable gain;</content></hcontainer><hcontainer name="definition"><content>“participant” means a person who is party to, or concerned in, the scheme or arrangement;</content></hcontainer><hcontainer name="definition"><intro>“real foreign tax” means—</intro><level class="para1"><num>(a)</num><content>in a case involving section 10 (accrued income profits), the foreign tax chargeable in respect of the interest on the securities, as mentioned in subsection (1)(c) of that section,</content></level><level class="para1"><num>(b)</num><content>in a case involving section 792 or 794 of CTA 2010 (manufactured overseas dividends), the foreign tax chargeable in respect of the overseas dividend of which the manufactured overseas dividend is representative, as mentioned in section 790 of that Act, and</content></level><level class="para1"><num>(c)</num><content>in any other case, the foreign tax chargeable in respect of the source of income of which the source mentioned in subsection (1)(a) is representative.</content></level></hcontainer></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-11-paragraph-4-2"><num>(2)</num><content>The amendment made by this paragraph has effect in relation to amounts treated as if they were amounts of foreign tax paid or payable on or after 21 October 2009.</content></subparagraph><subparagraph eId="schedule-11-paragraph-4-3"><num>(3)</num><content>A corresponding amendment, having effect in relation to such amounts, is to be treated as having been made in Schedule 28AB to ICTA.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Foreign tax payable by other participants</heading><paragraph eId="schedule-11-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-11-paragraph-5-1"><num>(1)</num><intro>In section 85 of TIOPA 2010 (schemes about effect of paying foreign tax) as amended by paragraph 2—</intro><level class="para1" eId="schedule-11-paragraph-5-1-a"><num>(a)</num><content>in subsection (1), for “for foreign tax” substitute “in respect of the payment of an amount of foreign tax (“the FT amount”)”,</content></level><level class="para1" eId="schedule-11-paragraph-5-1-b"><num>(b)</num><content><mod>for subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e15829"><num>(2)</num><content>The condition is that, when C entered into the scheme or arrangement, it could reasonably be expected that the effect on the foreign-tax total of the FT amount being paid or payable would be to increase that total by less than amount X.</content></subsection></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-11-paragraph-5-1-c"><num>(c)</num><intro>in subsection (3)—</intro><level class="para2" eId="schedule-11-paragraph-5-1-c-i"><num>(i)</num><content>for “subsection (2)(b)” substitute “subsection (2)”, and</content></level><level class="para2" eId="schedule-11-paragraph-5-1-c-ii"><num>(ii)</num><content>in paragraph (b) of the definition of “the foreign-tax total”, omit “by C”.</content></level></level></subparagraph><subparagraph eId="schedule-11-paragraph-5-2"><num>(2)</num><intro>In section 85A of TIOPA 2010 (schemes involving deemed foreign tax) as inserted by paragraph 4—</intro><level class="para1" eId="schedule-11-paragraph-5-2-a"><num>(a)</num><content>in subsection (1)(a), omit “by the claimant”, and</content></level><level class="para1" eId="schedule-11-paragraph-5-2-b"><num>(b)</num><content>in subsection (4), in the definition of “the foreign-tax total”, omit “by C”.</content></level></subparagraph><subparagraph eId="schedule-11-paragraph-5-3"><num>(3)</num><intro>The amendments made by this paragraph have effect in relation to amounts of foreign tax, or amounts treated as if they were amounts of foreign tax, payable—</intro><level class="para1" eId="schedule-11-paragraph-5-3-a"><num>(a)</num><content>as regards corporation tax, on or after 1 April 2010, and</content></level><level class="para1" eId="schedule-11-paragraph-5-3-b"><num>(b)</num><content>as regards income tax or capital gains tax, on or after 6 April 2010.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Claims etc made before scheme or arrangement made</heading><paragraph eId="schedule-11-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-11-paragraph-6-1"><num>(1)</num><intro>In section 86 of TIOPA 2010 (schemes about claims or elections etc)—</intro><level class="para1" eId="schedule-11-paragraph-6-1-a"><num>(a)</num><content>in subsection (1), omit “under the scheme or arrangement”, and</content></level><level class="para1" eId="schedule-11-paragraph-6-1-b"><num>(b)</num><content><mod>after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e15917"><num>(3A)</num><content>Reference in subsection (1) to a step that is taken or not taken by a participant includes one that was taken or not taken by a participant before the scheme or arrangement was made.</content></subsection><subsection eId="d25e15923"><num>(3B)</num><content>The reason for taking or not taking a step does not matter so long as it has the effect mentioned in subsection (1).</content></subsection></quotedStructure></mod></content></level></subparagraph><subparagraph eId="schedule-11-paragraph-6-2"><num>(2)</num><intro>The amendments made by this paragraph have effect in relation to amounts of foreign tax payable—</intro><level class="para1" eId="schedule-11-paragraph-6-2-a"><num>(a)</num><content>as regards corporation tax, on or after 1 April 2010, and</content></level><level class="para1" eId="schedule-11-paragraph-6-2-b"><num>(b)</num><content>as regards income tax or capital gains tax, on or after 6 April 2010.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Limit on reduction for foreign tax</heading><paragraph eId="schedule-11-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-11-paragraph-7-1"><num>(1)</num><content><mod>In section 112 of TIOPA 2010 (deduction from income for foreign tax), after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e15961"><num>(2A)</num><content>But if X is less than Y, an amount equal to the difference between X and Y must be subtracted from the amount by which any income of a person (“the relevant income”) is reduced under subsection (1)(a).</content></subsection><subsection eId="d25e15967"><num>(2B)</num><intro>In subsection (2A)—</intro><hcontainer name="definition"><content>X is the amount of the relevant income that the person would (disregarding this section) be required to bring into account for income tax or corporation tax purposes, less any deduction that the person would be allowed to make for the amount paid in respect of non-UK tax, and</content></hcontainer><hcontainer name="definition"><content>Y is the amount of the relevant income (that is to say, the amount on which the amount in respect of non-UK tax is paid).</content></hcontainer></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-11-paragraph-7-2"><num>(2)</num><intro>The amendment made by this paragraph has effect in relation to amounts in respect of non-UK tax that are paid—</intro><level class="para1" eId="schedule-11-paragraph-7-2-a"><num>(a)</num><content>as regards corporation tax, on or after 1 April 2010, and</content></level><level class="para1" eId="schedule-11-paragraph-7-2-b"><num>(b)</num><content>as regards income tax, on or after 6 April 2010.</content></level></subparagraph></paragraph></hcontainer></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-14"><num>SCHEDULE 14<authorialNote class="referenceNote">Section 41</authorialNote></num><heading>Index-linked gilt-edged securities</heading><hcontainer name="crossheading" class="schGroup7"><heading>Amendments of Chapter 12 of Part 5 of CTA 2009</heading><paragraph eId="schedule-14-paragraph-1" class="schProv1"><num>1</num><content>Chapter 12 of Part 5 of CTA 2009 (loan relationships: special rules for particular kinds of securities) is amended as follows.</content></paragraph><paragraph eId="schedule-14-paragraph-2" class="schProv1"><num>2</num><content><mod>In section 398(2) (overview of Chapter), for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e17230"><num>(a)</num><content>sections 399 to <ref href="#d25e17542">400C</ref> (index-linked gilt-edged securities),</content></level><level class="para1" eId="d25e17239"><num>(aa)</num><content>sections 401 to 405 (other gilt-edged securities),</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph><paragraph eId="schedule-14-paragraph-3" class="schProv1"><num>3</num><content><mod>For the heading before section 399 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><heading ukl:Context="Pblock">Index-linked gilt-edged securities</heading></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph><paragraph eId="schedule-14-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-14-paragraph-4-1"><num>(1)</num><content>Section 399 (index-linked gilt-edged securities: basic rules) is amended as follows.</content></subparagraph><subparagraph eId="schedule-14-paragraph-4-2"><num>(2)</num><content>For the heading substitute “Basic rules”.</content></subparagraph><subparagraph eId="schedule-14-paragraph-4-3"><num>(3)</num><content><mod>For subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17285"><num>(3)</num><content>For provision requiring adjustments to be made to amounts determined under subsection (2), see sections 400 to <ref href="#d25e17542">400C</ref> (adjustments for changes in index).</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-14-paragraph-4-4"><num>(4)</num><content>In subsection (4), for “section 400” substitute “sections 400 to <ref href="#d25e17542">400C</ref>”.</content></subparagraph></paragraph><paragraph eId="schedule-14-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-14-paragraph-5-1"><num>(1)</num><content>Section 400 (index-linked gilt-edged securities: adjustments for changes in index) is amended as follows.</content></subparagraph><subparagraph eId="schedule-14-paragraph-5-2"><num>(2)</num><content>For the heading substitute “Adjustments for changes in index”.</content></subparagraph><subparagraph eId="schedule-14-paragraph-5-3"><num>(3)</num><intro>In subsection (1)(a)—</intro><level class="para1" eId="schedule-14-paragraph-5-3-a"><num>(a)</num><content>for “the amounts” substitute “an amount”, and</content></level><level class="para1" eId="schedule-14-paragraph-5-3-b"><num>(b)</num><content>for “fall” substitute “falls”.</content></level></subparagraph><subparagraph eId="schedule-14-paragraph-5-4"><num>(4)</num><content><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17347"><num>(2A)</num><content>Subsection (2) is subject to sections <ref href="#d25e17369">400A</ref> to <ref href="#d25e17542">400C</ref> (relevant hedging schemes).</content></subsection></quotedStructure></mod></content></subparagraph></paragraph><paragraph eId="schedule-14-paragraph-6" class="schProv1"><num>6</num><content><mod>After section 400 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e17369"><num>400A</num><heading>Adjustments for changes in index: relevant hedging schemes</heading><subsection eId="d25e17373"><num>(1)</num><intro>This section applies where—</intro><level class="para1" eId="d25e17379"><num>(a)</num><content>section 400 applies in relation to an amount to be brought into account for an accounting period of a company (“company A”) in respect of a security, and</content></level><level class="para1" eId="d25e17385"><num>(b)</num><content>conditions 1 to 3 are met.</content></level></subsection><subsection eId="d25e17391"><num>(2)</num><content>Condition 1 is that company A is a party to a relevant hedging scheme at any time in the accounting period.</content></subsection><subsection eId="d25e17397"><num>(3)</num><content>Condition 2 is that there is an increase in the retail prices index between the times mentioned in subsection (1) of section 400.</content></subsection><subsection eId="d25e17403"><num>(4)</num><content>Condition 3 is that the index-linked capital return on the security in the accounting period, or a proportion of it, is hedged.</content></subsection><subsection eId="d25e17409"><num>(5)</num><intro>Where this section applies, any increase in the carrying value of the security at the earlier of the times mentioned in subsection (1) of section 400 that would, apart from this section, be made under subsection (2) of that section is reduced—</intro><level class="para1" eId="d25e17415"><num>(a)</num><content>in a case in which the index-linked capital return on the security in the accounting period is wholly hedged, to nil, and</content></level><level class="para1" eId="d25e17421"><num>(b)</num><content>in a case in which only a proportion of that return is hedged, by the same proportion.</content></level></subsection><subsection eId="d25e17427"><num>(6)</num><content>For the purposes of this section “a relevant hedging scheme” means a scheme the purpose, or one of the main purposes, of any party to which, on entering into the scheme, is to secure that the index-linked capital return on the security, or a proportion of it, is hedged.</content></subsection><subsection eId="d25e17433"><num>(7)</num><intro>For the purposes of this section the “index-linked capital return” of the security is so much of the return on the security as—</intro><level class="para1" eId="d25e17439"><num>(a)</num><content>would, disregarding section 400, result in an increase in the carrying value of the security between the times mentioned in subsection (1) of that section, and</content></level><level class="para1" eId="d25e17445"><num>(b)</num><content>is attributable to an increase in the retail prices index.</content></level></subsection><subsection eId="d25e17451"><num>(8)</num><content>For the purposes of this section the index-linked capital return on the security, or any proportion of that return, is “hedged” if (whether because of the operation of a swap or otherwise) the pre-tax economic profit or loss made by the relevant group or company in the accounting period is unaffected by it.</content></subsection><subsection eId="d25e17457"><num>(9)</num><intro>In subsection (8) “the relevant group or company” means—</intro><level class="para1" eId="d25e17463"><num>(a)</num><intro>company A and every other company that is at any time in the accounting period—</intro><level class="para2" eId="d25e17469"><num>(i)</num><content>associated with company A, and</content></level><level class="para2" eId="d25e17475"><num>(ii)</num><content>a party to the relevant hedging scheme, or</content></level></level><level class="para1" eId="d25e17481"><num>(b)</num><content>if there is no such other company, company A.</content></level></subsection><subsection eId="d25e17487"><num>(10)</num><content>In this section “scheme” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></section><section eId="d25e17499"><num>400B</num><heading>Interpretation of section <ref href="#d25e17369">400A</ref>: economic profits and losses</heading><subsection eId="d25e17503"><num>(1)</num><content>A reference in section <ref href="#d25e17369">400A</ref> to an “economic” profit or loss made by any person in a period is to a profit or loss made by that person in that period, computed taking into account unrealised (as well as realised) profits and losses.</content></subsection><subsection eId="d25e17512"><num>(2)</num><content>For the purposes of section <ref href="#d25e17369">400A</ref> an economic profit or loss is made by a group of companies if it is made by the members of the group considered together.</content></subsection><subsection eId="d25e17521"><num>(3)</num><content>In determining for the purposes of section <ref href="#d25e17369">400A</ref> the amount of an economic profit or loss made by a group of companies in any period, the economic profits and losses of each member of the group are to be computed over that period (whether or not that period is an accounting period of the member).</content></subsection><subsection eId="d25e17530"><num>(4)</num><content>A reference in section <ref href="#d25e17369">400A</ref> to a “pre-tax” economic profit or loss is a reference to an economic profit or loss determined disregarding any gain or loss made as a result of the operation of any provision of the Corporation Tax Acts.</content></subsection></section><section eId="d25e17542"><num>400C</num><heading>Meaning of “associated with”</heading><subsection eId="d25e17546"><num>(1)</num><content>For the purposes of section <ref href="#d25e17369">400A</ref>, a company (“company B”) is associated with company A at a time (“the relevant time”) during an accounting period of company A (“the accounting period”) if any of the following five conditions is met.</content></subsection><subsection eId="d25e17555"><num>(2)</num><content>The first condition is that the financial results of company A and company B, for a period that includes the relevant time, meet the consolidation condition.</content></subsection><subsection eId="d25e17561"><num>(3)</num><content>The second condition is that there is a connection between company A and company B for the accounting period.</content></subsection><subsection eId="d25e17567"><num>(4)</num><content>The third condition is that, at the relevant time, company A has a major interest in company B or company B has a major interest in company A.</content></subsection><subsection eId="d25e17573"><num>(5)</num><intro>The fourth condition is that—</intro><level class="para1" eId="d25e17579"><num>(a)</num><content>the financial results of company A and a third company, for a period that includes the relevant time, meet the consolidation condition, and</content></level><level class="para1" eId="d25e17585"><num>(b)</num><content>at the relevant time the third company has a major interest in company B.</content></level></subsection><subsection eId="d25e17591"><num>(6)</num><intro>The fifth condition is that—</intro><level class="para1" eId="d25e17597"><num>(a)</num><content>there is a connection between company A and a third company for the accounting period, and</content></level><level class="para1" eId="d25e17603"><num>(b)</num><content>at the relevant time the third company has a major interest in company B.</content></level></subsection><subsection eId="d25e17609"><num>(7)</num><intro>In this paragraph the financial results of any two companies for any period meet “the consolidation condition” if—</intro><level class="para1" eId="d25e17615"><num>(a)</num><content>they are required to be comprised in group accounts prepared under section 399 of the Companies Act 2006 (duty of certain parent companies to prepare group accounts), or</content></level><level class="para1" eId="d25e17621"><num>(b)</num><content>they would be required to be comprised in such accounts but for the application of an exemption mentioned in subsection (3) of that section.</content></level></subsection><subsection eId="d25e17627"><num>(8)</num><content>Section 466 (companies connected for an accounting period) applies for the purposes of this section.</content></subsection><subsection eId="d25e17633"><num>(9)</num><content>In this section “scheme” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></section><heading ukl:Context="Pblock">Other gilt-edged securities</heading></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Consequential amendment</heading><paragraph eId="schedule-14-paragraph-7" class="schProv1"><num>7</num><content>In section 317(5)(g) of CTA 2009 (carrying value), for “and 400” substitute “to <ref href="#d25e17542">400C</ref>”.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-14-paragraph-8" class="schProv1"><num>8</num><content>The amendments made by this Schedule have effect in relation to adjustments made under section 400(2) of CTA 2009 in respect of increases in the retail prices index over periods beginning on or after 9 December 2009.</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Transitional provision</heading><paragraph eId="schedule-14-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-14-paragraph-9-1"><num>(1)</num><intro>This paragraph applies in relation to an accounting period of a company beginning before 9 December 2009 if, apart from this paragraph—</intro><level class="para1" eId="schedule-14-paragraph-9-1-a"><num>(a)</num><content>an amount to be brought into account for the purposes of Part 5 of CTA 2009 in respect of an index-linked gilt-edged security falls to be determined by reference to its value at two different times, and</content></level><level class="para1" eId="schedule-14-paragraph-9-1-b"><num>(b)</num><content>the earlier time is before 9 December 2009 and the later time is on or after that date.</content></level></subparagraph><subparagraph eId="schedule-14-paragraph-9-2"><num>(2)</num><intro>Instead of bringing into account the amount determined as mentioned in sub-paragraph <ref href="#schedule-14-paragraph-9-1-a">(1)(a)</ref>, the company is to bring into account the amounts that it would have brought into account for—</intro><level class="para1" eId="schedule-14-paragraph-9-2-a"><num>(a)</num><content>that part of the accounting period that falls before 9 December 2009, and</content></level><level class="para1" eId="schedule-14-paragraph-9-2-b"><num>(b)</num><content>that part of the accounting period that falls on or after that date,</content></level><wrapUp>had those parts been separate periods of account (and so separate accounting periods).</wrapUp></subparagraph></paragraph></hcontainer></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-15"><num>SCHEDULE 15<authorialNote class="referenceNote">Section 44</authorialNote></num><heading>Connected companies: releases of debts</heading><hcontainer name="crossheading" class="schGroup7"><heading>Amendments of section 322 of CTA 2009</heading><paragraph eId="schedule-15-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-15-paragraph-1-1"><num>(1)</num><content>Section 322 of CTA 2009 (release of debts: cases where credits not required to be brought into account) is amended as follows.</content></subparagraph><subparagraph eId="schedule-15-paragraph-1-2"><num>(2)</num><content>In subsection (4), after “release is” insert “not a release of relevant rights and is”.</content></subparagraph><subparagraph eId="schedule-15-paragraph-1-3"><num>(3)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17748"><num>(4A)</num><content>Relevant rights” has the same meaning for the purposes of this section as it has for the purposes of section 358.</content></subsection></quotedStructure></mod></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Amendments of Chapter 6 of Part 5 of CTA 2009</heading><paragraph eId="schedule-15-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-15-paragraph-2-1"><num>(1)</num><content>Chapter 6 of Part 5 of CTA 2009 (connected companies relationships: release of debts etc) is amended as follows.</content></subparagraph><subparagraph eId="schedule-15-paragraph-2-2"><num>(2)</num><content>In section 353(2)(b) (introduction to Chapter), for “except where the release is a deemed release under section 361 or 362” substitute “subject to some exceptions”.</content></subparagraph><subparagraph eId="schedule-15-paragraph-2-3"><num>(3)</num><intro>In section 358 (exclusion of credits on release of connected companies debts: general)—</intro><level class="para1" eId="schedule-15-paragraph-2-3-a"><num>(a)</num><content>in subsection (1)(a), for “a company’s debtor relationship is released,” substitute “a debtor relationship of a company (“D”) is released, and”,</content></level><level class="para1" eId="schedule-15-paragraph-2-3-b"><num>(b)</num><content><mod>in subsection (2), for “The company” substitute “D” and for “it is a deemed release” substitute <quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double">—<level class="para1" eId="d25e17795"><num>(a)</num><content>it is a deemed release, or</content></level><level class="para1" eId="d25e17801"><num>(b)</num><content>it is a release of relevant rights.</content></level></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-15-paragraph-2-3-c"><num>(c)</num><content><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17816"><num>(4)</num><intro>For the purposes of this section “relevant rights” means rights of a company (“C”) that—</intro><level class="para1" eId="d25e17822"><num>(a)</num><content>were acquired by C in circumstances that, but for the application of the corporate rescue exception or the debt-for-debt exception, would have resulted in a deemed release under section 361(3), or</content></level><level class="para1" eId="d25e17828"><num>(b)</num><content>were acquired by another company in such circumstances and transferred to C by way of an assignment or assignments.</content></level></subsection><subsection eId="d25e17834"><num>(5)</num><intro>The amount of the credit that D is required to bring into account in respect of a release of relevant rights is—</intro><level class="para1" eId="d25e17840"><num>(a)</num><content>the amount of the discount received on the acquisition, less</content></level><level class="para1" eId="d25e17846"><num>(b)</num><content>the sum of any credits brought into account in respect of that amount (whether in the accounting period in which the release takes place or in a previous accounting period) by C or, in a case within subsection (4)(b), by the company that acquired the rights or any company to which the rights were subsequently assigned.</content></level></subsection><subsection eId="d25e17852"><num>(6)</num><content>A reference in subsection <ref href="#d25e17834">(5)</ref> to the amount of the discount received on the acquisition is to the amount that would have been treated as released under section 361(4) on the acquisition, but for the application of the corporate rescue exception or the debt-for-debt exception.</content></subsection></quotedStructure></mod></content></level></subparagraph><subparagraph eId="schedule-15-paragraph-2-4"><num>(4)</num><intro>In section 361 (acquisition of creditor rights by connected company at undervalue)—</intro><level class="para1" eId="schedule-15-paragraph-2-4-a"><num>(a)</num><content><mod>in subsection (1), for paragraph (f) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e17874"><num>(f)</num><content>no relevant exception applies.</content></level></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-15-paragraph-2-4-b"><num>(b)</num><content><mod>for subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><subsection eId="d25e17889"><num>(2)</num><intro>In subsection (1) “relevant exception” means—</intro><level class="para1" eId="d25e17895"><num>(a)</num><content>the corporate rescue exception (see section <ref href="#d25e17932">361A</ref>),</content></level><level class="para1" eId="d25e17904"><num>(b)</num><content>the debt-for-debt exception (see section <ref href="#d25e18008">361B</ref>), or</content></level><level class="para1" eId="d25e17913"><num>(c)</num><content>the equity-for-debt exception (see section <ref href="#d25e18105">361C</ref>).</content></level></subsection></quotedStructure></mod></content></level></subparagraph><subparagraph eId="schedule-15-paragraph-2-5"><num>(5)</num><content><mod>After section 361 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><section eId="d25e17932"><num>361A</num><heading>The corporate rescue exception</heading><subsection eId="d25e17936"><num>(1)</num><intro>For the purposes of section 361, the “corporate rescue exception” applies if—</intro><level class="para1" eId="d25e17942"><num>(a)</num><content>the acquisition is an arm’s length transaction,</content></level><level class="para1" eId="d25e17948"><num>(b)</num><content>there has been a change in the ownership of D at any time in the period beginning one year before, and ending 60 days after, the date of the acquisition,</content></level><level class="para1" eId="d25e17954"><num>(c)</num><content>it is reasonable to assume that, but for the change in ownership, D would, within one year of the date of the change of ownership, have met one of the insolvency conditions, and</content></level><level class="para1" eId="d25e17960"><num>(d)</num><content>it is reasonable to assume that, but for the change in ownership, the acquisition would not have been made.</content></level></subsection><subsection eId="d25e17966"><num>(2)</num><content>Subject to subsection <ref href="#d25e17975">(3)</ref>, section 769 of ICTA (rules for ascertaining change in ownership of company) applies for the purpose of construing a reference in this section to a change in the ownership of a company.</content></subsection><subsection eId="d25e17975"><num>(3)</num><intro>A reference in this section to a change in the ownership of a company, in the case of a company that is a building society, is a reference to—</intro><level class="para1" eId="d25e17981"><num>(a)</num><content>an amalgamation of two or more building societies under section 93 of the Building Societies Act 1986,</content></level><level class="para1" eId="d25e17987"><num>(b)</num><content>a transfer of all the engagements of one building society to another under section 94 of that Act, or</content></level><level class="para1" eId="d25e17993"><num>(c)</num><content>a transfer of the whole of the business of a building society to a company under section 97 of that Act.</content></level></subsection><subsection eId="d25e17999"><num>(4)</num><content>Sections 322(6) and 323 (insolvency conditions) apply for the purposes of this section.</content></subsection></section><section eId="d25e18008"><num>361B</num><heading>The debt-for-debt exception</heading><subsection eId="d25e18012"><num>(1)</num><content>For the purposes of section 361, the “debt-for-debt exception” applies if condition 1 or 2 is met.</content></subsection><subsection eId="d25e18018"><num>(2)</num><intro>Condition 1 is that—</intro><level class="para1" eId="d25e18024"><num>(a)</num><content>the acquisition is an arm’s length transaction,</content></level><level class="para1" eId="d25e18030"><num>(b)</num><content>the rights that are acquired are rights under a loan relationship that is represented by a security (“the old security”),</content></level><level class="para1" eId="d25e18036"><num>(c)</num><content>the consideration given by C for the acquisition consists only of a security (“the new security”) representing a loan relationship to which C is a party as debtor, and</content></level><level class="para1" eId="d25e18042"><num>(d)</num><intro>the new security—</intro><level class="para2" eId="d25e18048"><num>(i)</num><content>has the same nominal value as the old security, and</content></level><level class="para2" eId="d25e18054"><num>(ii)</num><content>at the time of the acquisition, has substantially the same market value as the old security.</content></level></level></subsection><subsection eId="d25e18060"><num>(3)</num><intro>Condition 2 is that—</intro><level class="para1" eId="d25e18066"><num>(a)</num><content>the acquisition is an arm’s length transaction,</content></level><level class="para1" eId="d25e18072"><num>(b)</num><content>the rights that are acquired are rights under a loan relationship that is represented by an asset other than a security (“the old unsecured loan”),</content></level><level class="para1" eId="d25e18078"><num>(c)</num><content>the consideration given by C for the acquisition consists only of an asset other than a security (“the new unsecured loan”) representing a loan relationship to which C is a party as debtor, and</content></level><level class="para1" eId="d25e18084"><num>(d)</num><content>the amount of the new unsecured loan, and its terms, are substantially the same as those of the old unsecured loan.</content></level></subsection><subsection eId="d25e18090"><num>(4)</num><content>In this section “market value” has the same meaning as in TCGA 1992 (see sections 272 and 273 of that Act).</content></subsection><subsection eId="d25e18096"><num>(5)</num><content>In determining for the purposes of this section the market value of a security in a case in which the security represents a loan relationship to which section 415 (loan relationships with embedded derivatives) applies, rights or liabilities within subsection (1)(b) of that section are to be treated as comprised in the loan relationship.</content></subsection></section><section eId="d25e18105"><num>361C</num><heading>The equity-for-debt exception</heading><subsection eId="d25e18109"><num>(1)</num><content>For the purposes of section 361 the “equity-for-debt exception” applies if the following two conditions are met.</content></subsection><subsection eId="d25e18115"><num>(2)</num><content>The first condition is that the acquisition is an arm’s length transaction.</content></subsection><subsection eId="d25e18121"><num>(3)</num><intro>The second condition is that the consideration given by C for the acquisition consists only of—</intro><level class="para1" eId="d25e18127"><num>(a)</num><content>shares forming part of the ordinary share capital of C,</content></level><level class="para1" eId="d25e18133"><num>(b)</num><content>shares forming part of the ordinary share capital of a company connected with C, or</content></level><level class="para1" eId="d25e18139"><num>(c)</num><content>an entitlement to shares within paragraph (a) or (b).</content></level></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-15-paragraph-2-6"><num>(6)</num><intro>In section 363—</intro><level class="para1" eId="schedule-15-paragraph-2-6-a"><num>(a)</num><content>in the heading, for “and” substitute “to”, and</content></level><level class="para1" eId="schedule-15-paragraph-2-6-b"><num>(b)</num><content>in subsections (1) and (4), for “and” substitute “to”.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Commencement</heading><paragraph eId="schedule-15-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-15-paragraph-3-1"><num>(1)</num><content>The amendments made by paragraph <ref href="#schedule-15-paragraph-1">1</ref> have effect in relation to a release of rights that takes place on or after 9 November 2009.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-2"><num>(2)</num><content>The amendments made by paragraph <ref href="#schedule-15-paragraph-2-2">2(2)</ref> and <ref href="#schedule-15-paragraph-2-4">(4)</ref> to <ref href="#schedule-15-paragraph-2-6">(6)</ref> have effect in relation to a relevant acquisition that is made on or after 14 October 2009.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-3"><num>(3)</num><content>The amendments made by paragraph <ref href="#schedule-15-paragraph-2-3">2(3)</ref> have effect in relation to a release of rights that takes place on or after 14 October 2009.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-4"><num>(4)</num><content>Sub-paragraphs <ref href="#schedule-15-paragraph-3-1">(1)</ref> to <ref href="#schedule-15-paragraph-3-3">(3)</ref> are subject to paragraph <ref href="#schedule-15-paragraph-4">4</ref>.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-5"><num>(5)</num><content>In this paragraph and paragraph <ref href="#schedule-15-paragraph-4">4</ref> “relevant acquisition” means an acquisition of rights within subsection (1)(a) to (e) of section 361 of CTA 2009 (acquisition of creditor rights by connected company at an undervalue).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Transitional provision</heading><paragraph eId="schedule-15-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-15-paragraph-4-1"><num>(1)</num><intro>The amendments made by this Schedule do not have effect in relation to a relevant acquisition that is made on or after 14 October 2009, or to a release of rights acquired by way of such an acquisition, if—</intro><level class="para1" eId="schedule-15-paragraph-4-1-a"><num>(a)</num><content>the acquisition is made pursuant to an agreement entered into before 14 October 2009, or</content></level><level class="para1" eId="schedule-15-paragraph-4-1-b"><num>(b)</num><content>the acquisition is made during the transitional period and condition A, B or C is met.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-2"><num>(2)</num><intro>Condition A is that, before 14 October 2009—</intro><level class="para1" eId="schedule-15-paragraph-4-2-a"><num>(a)</num><content>the original creditor received a proposal from the new creditor that the acquisition should be made, or</content></level><level class="para1" eId="schedule-15-paragraph-4-2-b"><num>(b)</num><content>the new creditor received a proposal from the original creditor that the acquisition should be made.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-3"><num>(3)</num><intro>Condition B is that—</intro><level class="para1" eId="schedule-15-paragraph-4-3-a"><num>(a)</num><content>the acquisition is of rights under a loan relationship that is represented by a security,</content></level><level class="para1" eId="schedule-15-paragraph-4-3-b"><num>(b)</num><content>during the transitional period the new creditor acquires rights under other loan relationships represented by securities, and</content></level><level class="para1" eId="schedule-15-paragraph-4-3-c"><num>(c)</num><intro>before 14 October 2009, either—</intro><level class="para2" eId="schedule-15-paragraph-4-3-c-i"><num>(i)</num><content>persons together holding more than 50% by value of the securities referred to in paragraphs (a) and (b) (“the bought-back securities”) received proposals from the new creditor that the acquisitions should be made, or</content></level><level class="para2" eId="schedule-15-paragraph-4-3-c-ii"><num>(ii)</num><content>the new creditor received proposals from persons together holding more than 50% by value of the bought-back securities that the acquisitions should be made.</content></level></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-4"><num>(4)</num><intro>In sub-paragraphs <ref href="#schedule-15-paragraph-4-2">(2)</ref> and <ref href="#schedule-15-paragraph-4-3">(3)</ref>—</intro><level class="para1" eId="schedule-15-paragraph-4-4-a"><num>(a)</num><content>a reference to the original creditor includes any person acting on behalf of, or who controls, the original creditor,</content></level><level class="para1" eId="schedule-15-paragraph-4-4-b"><num>(b)</num><content>a reference to the new creditor includes any person acting on behalf of, or who controls, the new creditor, and</content></level><level class="para1" eId="schedule-15-paragraph-4-4-c"><num>(c)</num><content>a reference to a person holding a security includes any person acting on behalf of, or who controls, the person holding the security.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-5"><num>(5)</num><intro>Condition C is that—</intro><level class="para1" eId="schedule-15-paragraph-4-5-a"><num>(a)</num><content>before 14 October 2009, the Financial Services Authority gave its agreement (“the FSA agreement”) to the acquisition being made (and had not withdrawn that agreement),</content></level><level class="para1" eId="schedule-15-paragraph-4-5-b"><num>(b)</num><content>if the FSA agreement was given subject to the agreement of any other person, the agreement of that other person was also given (and not withdrawn) before that date, and</content></level><level class="para1" eId="schedule-15-paragraph-4-5-c"><num>(c)</num><content>condition A or B would have been met but for the compliance by the original creditor or the new creditor with any other term on which the FSA agreement was given.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-6"><num>(6)</num><intro>In this paragraph—</intro><level class="para1" eId="schedule-15-paragraph-4-6-a"><num>(a)</num><content>“the original creditor”, in relation to a relevant acquisition, means the person from whom the rights are acquired, and</content></level><level class="para1" eId="schedule-15-paragraph-4-6-b"><num>(b)</num><content>“the new creditor”, in relation to a relevant acquisition, means the person who acquires the rights.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-7"><num>(7)</num><intro>In this paragraph “the transitional period” means the period—</intro><level class="para1" eId="schedule-15-paragraph-4-7-a"><num>(a)</num><content>beginning with 14 October 2009, and</content></level><level class="para1" eId="schedule-15-paragraph-4-7-b"><num>(b)</num><content>ending with 31 January 2010.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-8"><num>(8)</num><content>Section 472 of CTA 2009 (meaning of “control”) applies for the purposes of this paragraph.</content></subparagraph></paragraph></hcontainer></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="schedule" eId="schedule-19"><num>SCHEDULE 19<authorialNote class="referenceNote">Section 62</authorialNote></num><heading>Accounting standards: loan relationships and derivative contracts</heading><hcontainer name="crossheading" class="schGroup7"><heading>Loan relationships</heading><paragraph eId="schedule-19-paragraph-1" class="schProv1"><num>1</num><content><mod>In Chapter 18 of Part 5 of CTA 2009 (loan relationships: general and supplementary provision), before section 466 (and the heading before it) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e20864"><heading>Changes in accounting standards</heading><section eId="d25e20870"><num>465A</num><heading>Power to make regulations where accounting standards change</heading><subsection eId="d25e20874"><num>(1)</num><content>The Treasury may by regulations make provision for cases where, in consequence of a change in accounting standards, there is a relevant accounting change.</content></subsection><subsection eId="d25e20880"><num>(2)</num><content>“Change in accounting standards” means the issue, revocation, amendment or recognition of, or withdrawal of recognition from, an accounting standard by an accounting body.</content></subsection><subsection eId="d25e20886"><num>(3)</num><intro>“Relevant accounting change” means a change in the way in which a company is permitted or required, for accounting purposes, to recognise amounts which—</intro><level class="para1" eId="d25e20892"><num>(a)</num><content>are brought into account by the company as credits or debits for any period for the purposes of this Part, or</content></level><level class="para1" eId="d25e20898"><num>(b)</num><content>would be so brought into account but for any provision made by or under this Part.</content></level></subsection><subsection eId="d25e20904"><num>(4)</num><content>Regulations under subsection (1) may amend this Part (apart from this section).</content></subsection><subsection eId="d25e20910"><num>(5)</num><intro>Regulations under subsection (1) may—</intro><level class="para1" eId="d25e20916"><num>(a)</num><content>make different provision for different cases,</content></level><level class="para1" eId="d25e20922"><num>(b)</num><content>make incidental, supplemental, consequential and transitional provision and savings, and</content></level><level class="para1" eId="d25e20928"><num>(c)</num><content>make provision subject to an election or other specified circumstances.</content></level></subsection><subsection eId="d25e20934"><num>(6)</num><content>Regulations making consequential provision by virtue of subsection (5)(b) may, in particular, include provision amending a provision of the Corporation Tax Acts.</content></subsection><subsection eId="d25e20940"><num>(7)</num><content>Regulations under subsection (1) may apply to a pre-commencement period if they make provision in relation to a relevant accounting change which may or must be adopted, for accounting purposes, for a period of account, or part of a period of account, which coincides with that pre-commencement period.</content></subsection><subsection eId="d25e20946"><num>(8)</num><intro>In this section—</intro><hcontainer name="definition"><content>“accounting body” means the International Accounting Standards Board or the Accounting Standards Board, or a successor body to either of those Boards;</content></hcontainer><hcontainer name="definition"><content>“accounting standard” includes any statement of practice, guidance or other similar document;</content></hcontainer><hcontainer name="definition"><content>“pre-commencement period”, in relation to regulations, means an accounting period, or part of an accounting period, which begins before the regulations are made.</content></hcontainer></subsection></section></hcontainer></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Derivative contracts</heading><paragraph eId="schedule-19-paragraph-2" class="schProv1"><num>2</num><content><mod>In Chapter 13 of Part 7 of CTA 2009 (derivative contracts: general and supplementary provision), after section 701 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><hcontainer name="crossheading" ukl:Name="Pblock" eId="d25e20975"><heading>Changes to accounting standards</heading><section eId="d25e20981"><num>701A</num><heading>Power to make regulations where accounting standards change</heading><subsection eId="d25e20985"><num>(1)</num><content>The Treasury may by regulations make provision for cases where, in consequence of a change in accounting standards, there is a relevant accounting change.</content></subsection><subsection eId="d25e20991"><num>(2)</num><content>“Change in accounting standards” means the issue, revocation, amendment or recognition of, or withdrawal of recognition from, an accounting standard by an accounting body.</content></subsection><subsection eId="d25e20997"><num>(3)</num><intro>“Relevant accounting change” means a change in the way in which a company is permitted or required, for accounting purposes, to recognise amounts which—</intro><level class="para1" eId="d25e21003"><num>(a)</num><content>are brought into account by the company as credits or debits for any period for the purposes of this Part, or</content></level><level class="para1" eId="d25e21009"><num>(b)</num><content>would be so brought into account but for any provision made by or under this Part.</content></level></subsection><subsection eId="d25e21015"><num>(4)</num><content>Regulations under subsection (1) may amend this Part (apart from this section).</content></subsection><subsection eId="d25e21021"><num>(5)</num><intro>Regulations under subsection (1) may—</intro><level class="para1" eId="d25e21027"><num>(a)</num><content>make different provision for different cases,</content></level><level class="para1" eId="d25e21033"><num>(b)</num><content>make incidental, supplemental, consequential and transitional provision and savings, and</content></level><level class="para1" eId="d25e21039"><num>(c)</num><content>make provision subject to an election or other specified circumstances.</content></level></subsection><subsection eId="d25e21045"><num>(6)</num><content>Regulations making consequential provision by virtue of subsection (5)(b) may, in particular, include provision amending a provision of the Corporation Tax Acts.</content></subsection><subsection eId="d25e21051"><num>(7)</num><content>Regulations under subsection (1) may apply to a pre-commencement period if they make provision in relation to a relevant accounting change which may or must be adopted, for accounting purposes, for a period of account (or part of a period of account) which coincides with that pre-commencement period.</content></subsection><subsection eId="d25e21057"><num>(8)</num><intro>In this section—</intro><hcontainer name="definition"><content>“accounting body” means the International Accounting Standards Board or the Accounting Standards Board, or a successor body to either of those Boards;</content></hcontainer><hcontainer name="definition"><content>“accounting standard” includes any statement of practice, guidance or other similar document;</content></hcontainer><hcontainer name="definition"><content>“pre-commencement period”, in relation to regulations, means an accounting period (or part of an accounting period) which begins before the regulations are made.</content></hcontainer></subsection></section></hcontainer></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Affirmative resolution procedure</heading><paragraph eId="schedule-19-paragraph-3" class="schProv1"><num>3</num><content><mod>In section 1310(4) of CTA 2009 (orders and regulations subject to affirmative resolution of House of Commons), before paragraph (za) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="double"><level class="para1" eId="d25e21086"><num>(zza)</num><content>section 465A or 701A (powers to make regulations where accounting standards change),</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph></hcontainer></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="schedule" eId="schedule-20"><num>SCHEDULE 20<authorialNote class="referenceNote">Section 63</authorialNote></num><heading>Champions League final</heading><hcontainer name="crossheading" class="schGroup7"><heading>Exemption from income tax</heading><paragraph eId="schedule-20-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-20-paragraph-1-1"><num>(1)</num><content>This paragraph applies if an employee or contractor of an overseas team which competes in the 2011 Champions League final (“the final”) is neither UK resident nor ordinarily UK resident at the time of the final.</content></subparagraph><subparagraph eId="schedule-20-paragraph-1-2"><num>(2)</num><content>That person is not liable to income tax in respect of any income arising to the person which is related to duties or services performed by the person in the United Kingdom in connection with the final.</content></subparagraph><subparagraph eId="schedule-20-paragraph-1-3"><num>(3)</num><content>This paragraph is subject to paragraphs 2 and 3.</content></subparagraph><subparagraph eId="schedule-20-paragraph-1-4"><num>(4)</num><content>For the meaning of some expressions used in this paragraph, see paragraphs 5 and 6.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Exclusion of certain income</heading><paragraph eId="schedule-20-paragraph-2" class="schProv1"><num>2</num><intro>Paragraph 1(2) does not apply to income which arises as a result of—</intro><level class="para1" eId="schedule-20-paragraph-2-a"><num>(a)</num><content>a contract entered into after the final, or</content></level><level class="para1" eId="schedule-20-paragraph-2-b"><num>(b)</num><content>any amendment, after the final, of a contract entered into before the end of the final.</content></level></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Tax avoidance</heading><paragraph eId="schedule-20-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-20-paragraph-3-1"><num>(1)</num><content>This paragraph applies if conditions A and B are met.</content></subparagraph><subparagraph eId="schedule-20-paragraph-3-2"><num>(2)</num><content>Condition A is that arrangements have been made which, but for this paragraph, would result in a person obtaining exemption under paragraph 1 in respect of particular income.</content></subparagraph><subparagraph eId="schedule-20-paragraph-3-3"><num>(3)</num><content>Condition B is that those arrangements have, or form part of arrangements which have, as their main purpose, or one of their main purposes, the obtaining of that exemption.</content></subparagraph><subparagraph eId="schedule-20-paragraph-3-4"><num>(4)</num><content>Paragraph 1(2) does not apply to that income.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Disapplication of section 966 of ITA 2007</heading><paragraph eId="schedule-20-paragraph-4" class="schProv1"><num>4</num><content>Section 966 of ITA 2007 (duty to deduct and account for sums representing income tax) does not apply to any payment or transfer which gives rise to income within paragraph 1(2).</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7"><heading>Interpretation</heading><paragraph eId="schedule-20-paragraph-5" class="schProv1"><num>5</num><intro>References in this Schedule to income are to be read as references to—</intro><level class="para1" eId="schedule-20-paragraph-5-a"><num>(a)</num><content>income that would be employment income but for the provisions of paragraph 1, and</content></level><level class="para1" eId="schedule-20-paragraph-5-b"><num>(b)</num><content>profits of a trade, profession or vocation (including profits treated as arising as a result of provision made by or under sections 13 and 14 of ITTOIA 2005).</content></level></paragraph><paragraph eId="schedule-20-paragraph-6" class="schProv1"><num>6</num><intro>In this Schedule—</intro><hcontainer name="definition"><content>“the 2011 Champions League final” means the final of the UEFA Champions League 2010/2011 competition held in England in 2011;</content></hcontainer><hcontainer name="definition"><intro>“contractor”, in relation to an overseas team, means an individual who is not an employee of the team but who performs services for the team—</intro><level class="para1"><num>(a)</num><content>under the terms of a contract with the team, or</content></level><level class="para1"><num>(b)</num><content>under the terms of a contract, or that individual’s employment, with a company which is a member of the same group of companies as the team (within the meaning given by section 152 of CTA 2010);</content></level></hcontainer><hcontainer name="definition"><content>“employee” and “employment” are to be read in accordance with section 4 of ITEPA 2003;</content></hcontainer><hcontainer name="definition"><content>“overseas team” means a football club which is not a member of the Football Association, the Scottish Football Association, the Football Association of Wales or the Irish Football Association.</content></hcontainer></paragraph></hcontainer></hcontainer>

<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" xmlns:uk="https://www.legislation.gov.uk/namespaces/UK-AKN" xmlns:default="http://www.w3.org/1998/Math/MathML" xmlns:default1="http://www.w3.org/1999/xhtml" name="schedules" eId="schedules"><heading>SCHEDULES</heading><hcontainer name="schedule" eId="schedule-1"><num>SCHEDULE 1<authorialNote class="referenceNote">Section 22</authorialNote></num><heading>Bank payroll tax</heading><part eId="schedule-1-part-1"><num>Part 1</num><heading>The tax</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-the-tax"><heading>The tax</heading><paragraph eId="schedule-1-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-1-paragraph-1-1"><num>(1)</num><content>This Schedule makes provision for taxable companies to be charged to a tax to be known as “<term refersTo="#term-bank-payroll-tax" eId="term-bank-payroll-tax">bank payroll tax</term>”.</content></subparagraph><subparagraph eId="schedule-1-paragraph-1-2"><num>(2)</num><content>Bank payroll tax is chargeable on the aggregate of the amounts of chargeable relevant remuneration awarded during the chargeable period to or in respect of relevant banking employees of a taxable company by reason of their employment as relevant banking employees.</content></subparagraph><subparagraph eId="schedule-1-paragraph-1-3"><num>(3)</num><content>Relevant remuneration awarded during the chargeable period to or in respect of a relevant banking employee of a taxable company by reason of the employee's employment as a relevant banking employee is “chargeable” relevant remuneration only if and to the extent that its amount exceeds £25,000.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-rate"><heading>Rate</heading><paragraph eId="schedule-1-paragraph-2" class="schProv1"><num>2</num><content>Bank payroll tax is charged at the rate of 50%.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-taxable-company"><heading> “Taxable company” </heading><paragraph eId="schedule-1-paragraph-3" class="schProv1"><num>3</num><intro>“<term refersTo="#term-taxable-company" eId="term-taxable-company">Taxable company</term>” means a company which—</intro><level class="para1" eId="schedule-1-paragraph-3-a"><num>(a)</num><content>is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank or a relevant foreign bank,</content></level><level class="para1" eId="schedule-1-paragraph-3-b"><num>(b)</num><intro>is a company not within paragraph (a) which is a member of a banking group and—</intro><level class="para2" eId="schedule-1-paragraph-3-b-i"><num>(i)</num><content>is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident investment company or a <abbr class="acronym" title="United Kingdom">UK</abbr> resident financial trading company, or</content></level><level class="para2" eId="schedule-1-paragraph-3-b-ii"><num>(ii)</num><content>is a relevant foreign financial trading company, or</content></level></level><level class="para1" eId="schedule-1-paragraph-3-c"><num>(c)</num><content>is a building society or is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident investment company, or a <abbr class="acronym" title="United Kingdom">UK</abbr> resident financial trading company, which is a member of the same group as a building society.</content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-relevant-remuneration"><heading> “Relevant remuneration” </heading><paragraph eId="schedule-1-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-1-paragraph-4-1"><num>(1)</num><intro>“<term refersTo="#term-relevant-remuneration" eId="term-relevant-remuneration">Relevant remuneration</term>”, in relation to a relevant banking employee of a taxable company, means anything that—</intro><level class="para1" eId="schedule-1-paragraph-4-1-a"><num>(a)</num><content>constitutes earnings (within the meaning of section 62 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003) in relation to the employee's employment by the taxable company as a relevant banking employee, or</content></level><level class="para1" eId="schedule-1-paragraph-4-1-b"><num>(b)</num><content>while not constituting earnings, constitutes a benefit provided by reason of that employment.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-4-2"><num>(2)</num><content>Whether or not the relevant banking employee is chargeable to income tax in respect of anything is irrelevant in determining whether or not it is relevant remuneration.</content></subparagraph><subparagraph eId="schedule-1-paragraph-4-3"><num>(3)</num><content>Excluded remuneration is not relevant remuneration.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-excluded-remuneration"><heading> “Excluded remuneration” </heading><paragraph eId="schedule-1-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-1-paragraph-5-1"><num>(1)</num><intro>“<term refersTo="#term-excluded-remuneration" eId="term-excluded-remuneration">Excluded remuneration</term>” means—</intro><level class="para1" eId="schedule-1-paragraph-5-1-a"><num>(a)</num><content>anything which is regular salary or wages or a regular benefit,</content></level><level class="para1" eId="schedule-1-paragraph-5-1-b"><num>(b)</num><content>anything in the case of which a contractual obligation to pay or provide it to or in respect of the employee concerned arose before the beginning of the chargeable period,</content></level><level class="para1" eId="schedule-1-paragraph-5-1-c"><num>(c)</num><content>any shares awarded under an approved share incentive plan (within the meaning of section 488 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003), or</content></level><level class="para1" eId="schedule-1-paragraph-5-1-d"><num>(d)</num><content>any share option granted under an approved <abbr class="acronym" title="Save As You Earn">SAYE</abbr> option scheme (within the meaning of section 516 of that Act).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-2"><num>(2)</num><intro>In sub-paragraph (1)(a) “<term refersTo="#term-regular" eId="term-regular">regular</term>”, in relation to salary or wages or a benefit, means so much of the amount of the salary or wages or benefit as cannot vary according to—</intro><level class="para1" eId="schedule-1-paragraph-5-2-a"><num>(a)</num><intro>the performance of, or of any part of—</intro><level class="para2" eId="schedule-1-paragraph-5-2-a-i"><num>(i)</num><content>any business of the taxable company concerned, or</content></level><level class="para2" eId="schedule-1-paragraph-5-2-a-ii"><num>(ii)</num><content>any business of a person connected with the taxable company,</content></level></level><level class="para1" eId="schedule-1-paragraph-5-2-b"><num>(b)</num><content>the contribution made by the employee concerned to the performance of, or of any part of, any business within paragraph (a)(i) or (ii),</content></level><level class="para1" eId="schedule-1-paragraph-5-2-c"><num>(c)</num><content>the performance by the employee of any of the duties of the employment, or</content></level><level class="para1" eId="schedule-1-paragraph-5-2-d"><num>(d)</num><content>any similar considerations.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-3"><num>(3)</num><intro>For the purposes of sub-paragraph (1)(b) a contractual obligation to pay or provide something to or in respect of the employee does not arise until—</intro><level class="para1" eId="schedule-1-paragraph-5-3-a"><num>(a)</num><content>the amount to be paid or provided is fixed or is capable of becoming fixed without the exercise of discretion by any person, or</content></level><level class="para1" eId="schedule-1-paragraph-5-3-b"><num>(b)</num><content>the total amount of things to be paid or provided to or in respect of a number of employees including the employee is fixed or is capable of becoming fixed without the exercise of discretion by any person.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-5-4"><num>(4)</num><content>A contractual obligation to pay or provide something is taken to arise for those purposes even if payment or provision of it is dependent on compliance by the employee with any conditions.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-awarded"><heading> “Awarded” </heading><paragraph eId="schedule-1-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-1-paragraph-6-1"><num>(1)</num><intro>Relevant remuneration is “awarded” during the chargeable period if—</intro><level class="para1" eId="schedule-1-paragraph-6-1-a"><num>(a)</num><content>a contractual obligation to pay or provide it arises during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-6-1-b"><num>(b)</num><content>the relevant remuneration is paid or provided during the chargeable period without any such obligation having arisen during the chargeable period,</content></level><wrapUp>but subject to sub-paragraph (3).</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-6-2"><num>(2)</num><content>Sub-paragraph (3)(a) of paragraph 5 applies for the purposes of sub-paragraph (1) as for the purposes of sub-paragraph (1)(b) of that paragraph.</content></subparagraph><subparagraph eId="schedule-1-paragraph-6-3"><num>(3)</num><intro>Relevant remuneration is not to be taken to be awarded during the chargeable period by virtue of sub-paragraph (1)(a) if—</intro><level class="para1" eId="schedule-1-paragraph-6-3-a"><num>(a)</num><content>it is required to be paid or provided at intervals,</content></level><level class="para1" eId="schedule-1-paragraph-6-3-b"><num>(b)</num><content>it is to be paid or provided in respect of contribution, performance or similar considerations only for times after the end of the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-6-3-c"><num>(c)</num><content>the reduction or elimination of a liability to bank payroll tax is not the main purpose or one of the main purposes of any person in assuming the obligation to pay or provide it.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-6-4"><num>(4)</num><content>Sub-paragraph (4) of paragraph 5 applies for the purposes of this paragraph as for the purposes of sub-paragraph (1)(b) of that paragraph.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-amount-of-remuneration"><heading> “Amount” of remuneration</heading><paragraph eId="schedule-1-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-1-paragraph-7-1"><num>(1)</num><intro>Subject to sub-paragraphs (2) to (4), the amount of any relevant remuneration is—</intro><level class="para1" eId="schedule-1-paragraph-7-1-a"><num>(a)</num><content>if it is money, its amount when awarded,</content></level><level class="para1" eId="schedule-1-paragraph-7-1-b"><num>(b)</num><content>if it is money's worth, the amount of the money's worth when awarded, or</content></level><level class="para1" eId="schedule-1-paragraph-7-1-c"><num>(c)</num><content>if it is a benefit not constituting earnings, the cost of providing it.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-7-2"><num>(2)</num><content>Where relevant remuneration is awarded to or in respect of an employee by virtue of paragraph 6(1)(a) and its amount is not fixed when it is awarded, its amount is such as it is reasonable at that time to assume would be its amount (in accordance with sub-paragraph (1)) if and when paid or provided.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-3"><num>(3)</num><content>Where the market value of any relevant remuneration at the time it is awarded exceeds, or would exceed, what would otherwise be its amount, its amount is that market value.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-4"><num>(4)</num><content>Where anything constituting relevant remuneration is or would be, when awarded, subject to any restriction or restrictions, the restriction is, or restrictions are, to be ignored in arriving at its amount.</content></subparagraph><subparagraph eId="schedule-1-paragraph-7-5"><num>(5)</num><content>For this purpose “<term refersTo="#term-restriction" eId="term-restriction">restriction</term>” means any condition, restriction or other similar provision which causes the value of the relevant remuneration to be less than it otherwise would be.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-the-chargeable-period"><heading> “The chargeable period” </heading><paragraph eId="schedule-1-paragraph-8" class="schProv1"><num>8</num><intro>“The chargeable period” is the period—</intro><level class="para1" eId="schedule-1-paragraph-8-a"><num>(a)</num><content>beginning at 12.30 pm on 9 December 2009, and</content></level><level class="para1" eId="schedule-1-paragraph-8-b"><num>(b)</num><content>ending with 5 April 2010.</content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-relevant-banking-employee"><heading> “Relevant banking employee” </heading><paragraph eId="schedule-1-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-1-paragraph-9-1"><num>(1)</num><intro>An employee of a taxable company is a relevant banking employee of the taxable company if—</intro><level class="para1" eId="schedule-1-paragraph-9-1-a"><num>(a)</num><content>the employment in which the employee is employed by the taxable company is a banking employment, and</content></level><level class="para1" eId="schedule-1-paragraph-9-1-b"><num>(b)</num><intro>either—</intro><level class="para2" eId="schedule-1-paragraph-9-1-b-i"><num>(i)</num><content>the employee is resident in the United Kingdom in the tax year 2009-10, or</content></level><level class="para2" eId="schedule-1-paragraph-9-1-b-ii"><num>(ii)</num><content>the duties of the banking employment are at any time in that tax year performed wholly or partly in the United Kingdom.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-2"><num>(2)</num><content>“<term refersTo="#term-banking-employment" eId="term-banking-employment">Banking employment</term>” means an employment the duties of which are wholly or mainly concerned (whether directly or indirectly) with activities to which sub-paragraph (3) applies.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-3"><num>(3)</num><intro>This sub-paragraph applies to activities which are—</intro><level class="para1" eId="schedule-1-paragraph-9-3-a"><num>(a)</num><content>listed regulated activities, or</content></level><level class="para1" eId="schedule-1-paragraph-9-3-b"><num>(b)</num><content>activities which are not listed regulated activities but consist of the lending of money or of dealing in currency or commodities as principal.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-4"><num>(4)</num><intro>“<term refersTo="#term-listed-regulated-activity" eId="term-listed-regulated-activity">Listed regulated activity</term>” means an activity which is a regulated activity for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 by virtue of any of the following provisions of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2001/544)—</intro><level class="para1" eId="schedule-1-paragraph-9-4-a"><num>(a)</num><content>article 5 (accepting deposits),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-b"><num>(b)</num><content>article 14 (dealing in investments as principal),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-c"><num>(c)</num><content>article 21 (dealing in investments as agent),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-d"><num>(d)</num><content>article 25 (arranging deals in investments),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-e"><num>(e)</num><content>article 40 (safeguarding and administering investments),</content></level><level class="para1" eId="schedule-1-paragraph-9-4-f"><num>(f)</num><content>article 53 (advising on investments), and</content></level><level class="para1" eId="schedule-1-paragraph-9-4-g"><num>(g)</num><content>article 61 (entering into regulated mortgage contracts).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-5"><num>(5)</num><intro>But an activity is not a listed regulated activity in relation to an employee of a taxable company if—</intro><level class="para1" eId="schedule-1-paragraph-9-5-a"><num>(a)</num><content>the taxable company is an insurance company, or a member of the same group as an insurance company, and the activity is carried on wholly on behalf of the insurance company, or</content></level><level class="para1" eId="schedule-1-paragraph-9-5-b"><num>(b)</num><intro>it—</intro><level class="para2" eId="schedule-1-paragraph-9-5-b-i"><num>(i)</num><content>is either of the activities described in the provisions mentioned in sub-paragraph (4)(c) and (d), and</content></level><level class="para2" eId="schedule-1-paragraph-9-5-b-ii"><num>(ii)</num><content>is carried on as part of, or wholly in support of, activities of the taxable company, or of a company which is a member of the same group as the taxable company, and the activities consist of acting as discretionary investment manager for clients none of which is a linked entity.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-9-6"><num>(6)</num><content>An employee of a taxable company who spends no more than 60 days in the United Kingdom in the tax year 2009-10 is to be treated as not being a relevant banking employee of the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-7"><num>(7)</num><content>In determining for the purposes of sub-paragraph (6) whether an individual spends no more than 60 days in the United Kingdom treat a day as a day spent by the individual in the United Kingdom if (and only if) the individual is present in the United Kingdom at the end of the day.</content></subparagraph><subparagraph eId="schedule-1-paragraph-9-8"><num>(8)</num><intro>But in determining that issue for those purposes do not treat as a day spent by the individual in the United Kingdom any day on which the individual arrives in the United Kingdom as a passenger if—</intro><level class="para1" eId="schedule-1-paragraph-9-8-a"><num>(a)</num><content>the individual departs from the United Kingdom on the next day, and</content></level><level class="para1" eId="schedule-1-paragraph-9-8-b"><num>(b)</num><content>during the time between arrival and departure the individual does not engage in activities which are to a substantial extent unrelated to the individual's passage through the United Kingdom.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-multiple-employments"><heading>Multiple employments</heading><paragraph eId="schedule-1-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-1-paragraph-10-1"><num>(1)</num><content>The threshold of £25,000 in paragraph 1(3) applies whether or not an employee has more than one employment as a relevant banking employee with a taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-10-2"><num>(2)</num><content>If relevant remuneration is awarded during the chargeable period to or in respect of a relevant banking employee by reason of the employee's employment as such by a number of associated taxable companies, the threshold in paragraph 1(3) in relation to each of the taxable companies is £25,000 divided by the number of the taxable companies.</content></subparagraph><subparagraph eId="schedule-1-paragraph-10-3"><num>(3)</num><intro>For this purpose taxable companies are associated if—</intro><level class="para1" eId="schedule-1-paragraph-10-3-a"><num>(a)</num><content>one of them is under the control of the other, or</content></level><level class="para1" eId="schedule-1-paragraph-10-3-b"><num>(b)</num><content>one of them is under the control of a third person who controls or is under the control of the other.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-payments-etc-to-intermediaries"><heading>Payments <abbr title="Et cetera" xml:lang="la">etc</abbr> to intermediaries</heading><paragraph eId="schedule-1-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-1-paragraph-11-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-11-1-a"><num>(a)</num><content>an individual personally performs banking services for a taxable company,</content></level><level class="para1" eId="schedule-1-paragraph-11-1-b"><num>(b)</num><content>the banking services are provided not under a contract directly between the individual and the taxable company but under arrangements involving any other person (“the intermediary”), and</content></level><level class="para1" eId="schedule-1-paragraph-11-1-c"><num>(c)</num><content>the circumstances are such that, if the banking services were provided under a contract directly between the taxable company and the individual, the individual would be a relevant banking employee of the taxable company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-11-2"><num>(2)</num><content>The individual is to be regarded as a relevant banking employee of the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-11-3"><num>(3)</num><content>Anything done by the intermediary in relation to the individual which, if the banking services were provided under a contract directly between the taxable company and the individual, would be regarded as the award of relevant remuneration during the chargeable period to or in respect of the individual (as a relevant banking employee) by reason of the employee's employment as a relevant banking employee is to be so regarded.</content></subparagraph><subparagraph eId="schedule-1-paragraph-11-4"><num>(4)</num><content>“<term refersTo="#term-banking-services" eId="term-banking-services">Banking services</term>” means services which are wholly or mainly concerned (whether directly or indirectly) with activities which are activities to which paragraph 9(3) applies.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-arrangements-for-future-payments-etc"><heading>Arrangements for future payments <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-1-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-1-paragraph-12-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-12-1-a"><num>(a)</num><content>arrangements are made during the chargeable period by reason of an employee's employment as a relevant banking employee of a taxable company,</content></level><level class="para1" eId="schedule-1-paragraph-12-1-b"><num>(b)</num><content>the arrangements make provision under which money may be paid, or any money's worth or other benefit provided, to or in respect of the employee in accordance with the arrangements, and</content></level><level class="para1" eId="schedule-1-paragraph-12-1-c"><num>(c)</num><content>were the money so paid, or the money's worth or other benefit so provided, during the chargeable period, it would be relevant remuneration awarded to or in respect of the employee during the chargeable period.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-12-2"><num>(2)</num><content>The making of the arrangements is to be regarded as the awarding of relevant remuneration to or in respect of the relevant banking employee by reason of the employment; and the amount of the relevant remuneration is to regarded as the amount of any money which it is reasonable to assume will be paid, and any money's worth or other benefit which it is reasonable to assume will be provided, as mentioned in sub-paragraph (1).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-loans"><heading>Loans</heading><paragraph eId="schedule-1-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-1-paragraph-13-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-13-1-a"><num>(a)</num><content>at any time during the chargeable period a relevant loan is provided to or in respect of a relevant banking employee of a taxable company by reason of the employee's employment as a relevant banking employee otherwise than pursuant to a contractual obligation arising before the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-13-1-b"><num>(b)</num><content>at any time during the chargeable period there arises a contractual obligation to provide a relevant loan to or in respect of the employee by reason of the employee's employment as a relevant banking employee of the taxable company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-13-2"><num>(2)</num><content>A loan is a “relevant” loan if the main purpose, or one of the main purposes, of providing it, or undertaking to provide it, is the reduction or elimination of a liability to bank payroll tax or any other tax or national insurance contributions.</content></subparagraph><subparagraph eId="schedule-1-paragraph-13-3"><num>(3)</num><content>The loan is to be regarded as relevant remuneration awarded during the chargeable period to or in respect of the relevant banking employee by reason of the employee's employment as a relevant banking employee; and the amount of the relevant remuneration is to be regarded as the amount which is loaned or (where the amount of the loan is not fixed) the amount which it is reasonable to assume will be loaned.</content></subparagraph><subparagraph eId="schedule-1-paragraph-13-4"><num>(4)</num><content>A contractual obligation to provide a relevant loan is taken to arise for the purposes of this paragraph even if provision of it is dependent on compliance by the relevant banking employee with any conditions.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-antiavoidance"><heading>Anti-avoidance</heading><paragraph eId="schedule-1-paragraph-14" class="schProv1"><num>14</num><subparagraph eId="schedule-1-paragraph-14-1"><num>(1)</num><intro>This paragraph applies where—</intro><level class="para1" eId="schedule-1-paragraph-14-1-a"><num>(a)</num><content>relevant arrangements are entered into by one or more persons during the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-14-1-b"><num>(b)</num><content>the main purpose, or one of the main purposes, of the person, or any of the persons, in entering into the relevant arrangements is a relevant tax avoidance purpose.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-2"><num>(2)</num><intro>“<term refersTo="#term-relevant-arrangements" eId="term-relevant-arrangements">Relevant arrangements</term>” means arrangements involving either or both of the following—</intro><level class="para1" eId="schedule-1-paragraph-14-2-a"><num>(a)</num><content>the making of a payment of money, or the provision of any money's worth or other benefit, otherwise than during the chargeable period, and</content></level><level class="para1" eId="schedule-1-paragraph-14-2-b"><num>(b)</num><content>the giving otherwise than in the form of relevant remuneration of any reward which equates in substance to relevant remuneration.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-3"><num>(3)</num><intro>A “relevant tax avoidance purpose” is the reduction or elimination of a liability to bank payroll tax which would exist if—</intro><level class="para1" eId="schedule-1-paragraph-14-3-a"><num>(a)</num><content>in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money's worth or other benefit provided, during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-14-3-b"><num>(b)</num><content>in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-14-4"><num>(4)</num><intro>Liability to bank payroll tax is to be determined as it would have been if—</intro><level class="para1" eId="schedule-1-paragraph-14-4-a"><num>(a)</num><content>in a case within paragraph (a) of sub-paragraph (2), the money were paid, or the money's worth or other benefit provided, during the chargeable period, or</content></level><level class="para1" eId="schedule-1-paragraph-14-4-b"><num>(b)</num><content>in a case within paragraph (b) of that sub-paragraph, the reward were given in the form of relevant remuneration.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-1-crossheading-no-deduction-in-computing-profits"><heading>No deduction in computing profits</heading><paragraph eId="schedule-1-paragraph-15" class="schProv1"><num>15</num><content>No amount of bank payroll tax is to be taken into account in calculating profits or losses for the purposes of income tax or corporation tax.</content></paragraph></hcontainer></part><part eId="schedule-1-part-2"><num>Part 2</num><heading>Collection and management of tax</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-responsibility-for-collection-and-management"><heading>Responsibility for collection and management</heading><paragraph eId="schedule-1-paragraph-16" class="schProv1"><num>16</num><content>The Commissioners are responsible for the collection and management of bank payroll tax.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-due-date-for-payment"><heading>Due date for payment</heading><paragraph eId="schedule-1-paragraph-17" class="schProv1"><num>17</num><content>Bank payroll tax is payable by taxable companies on or before 31 August 2010.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-obligation-to-deliver-return"><heading>Obligation to deliver return</heading><paragraph eId="schedule-1-paragraph-18" class="schProv1"><num>18</num><subparagraph eId="schedule-1-paragraph-18-1"><num>(1)</num><content>In order to establish the amount of bank payroll tax payable by it, every taxable company must deliver a return to HMRC.</content></subparagraph><subparagraph eId="schedule-1-paragraph-18-2"><num>(2)</num><content>The return must be delivered on or before 31 August 2010.</content></subparagraph><subparagraph eId="schedule-1-paragraph-18-3"><num>(3)</num><content>A return under this paragraph is referred to as a bank payroll tax return.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-content-etc-of-return"><heading>Content <abbr title="Et cetera" xml:lang="la">etc</abbr> of return</heading><paragraph eId="schedule-1-paragraph-19" class="schProv1"><num>19</num><subparagraph eId="schedule-1-paragraph-19-1"><num>(1)</num><intro><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may publish requirements as to—</intro><level class="para1" eId="schedule-1-paragraph-19-1-a"><num>(a)</num><content>the information to be contained in bank payroll tax returns,</content></level><level class="para1" eId="schedule-1-paragraph-19-1-b"><num>(b)</num><content>the form in which they must be made,</content></level><level class="para1" eId="schedule-1-paragraph-19-1-c"><num>(c)</num><content>the manner in which they must be delivered, and</content></level><level class="para1" eId="schedule-1-paragraph-19-1-d"><num>(d)</num><content>the documents to be delivered with them.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-19-2"><num>(2)</num><intro>A bank payroll tax return must include—</intro><level class="para1" eId="schedule-1-paragraph-19-2-a"><num>(a)</num><content>an assessment (a “self-assessment”) of the amount of bank payroll tax payable by the taxable company on the basis of the information contained in it, and</content></level><level class="para1" eId="schedule-1-paragraph-19-2-b"><num>(b)</num><content>a declaration by the person making it that, to the best of that person's knowledge, it is correct and complete.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-failure-to-include-selfassessment"><heading>Failure to include self-assessment</heading><paragraph eId="schedule-1-paragraph-20" class="schProv1"><num>20</num><subparagraph eId="schedule-1-paragraph-20-1"><num>(1)</num><content>If a taxable company delivers a bank payroll tax return but fails to include a self-assessment, <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may make the assessment on the company's behalf on the basis of the information contained in it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-20-2"><num>(2)</num><content>The assessment is treated for the purposes of this Schedule as a self-assessment and as included in the return.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-amendment-of-return-by-company"><heading>Amendment of return by company</heading><paragraph eId="schedule-1-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-1-paragraph-21-1"><num>(1)</num><content>A taxable company may amend its bank payroll tax return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-2"><num>(2)</num><content>An amendment under this paragraph is made by notice to <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> in such form, and accompanied by such information, as <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may reasonably require.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-3"><num>(3)</num><content>No such amendment may be made after 31 August 2011.</content></subparagraph><subparagraph eId="schedule-1-paragraph-21-4"><num>(4)</num><content>Nothing in sub-paragraph (1) permits a taxable company to amend its return to revise an amount determined under paragraph 7(2), 12(2) or 13(3) merely because the amount determined under that provision differs from the amount which is actually paid or provided (or loaned).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-correction-of-return-by-hmrc"><heading>Correction of return by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr></heading><paragraph eId="schedule-1-paragraph-22" class="schProv1"><num>22</num><subparagraph eId="schedule-1-paragraph-22-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may amend a bank payroll tax return so as to correct obvious errors or omissions in it (whether errors of principle, arithmetical mistakes or otherwise).</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-2"><num>(2)</num><content>A correction under this paragraph is made by notice to the taxable company concerned.</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-3"><num>(3)</num><intro>No such correction may be made more than 9 months after—</intro><level class="para1" eId="schedule-1-paragraph-22-3-a"><num>(a)</num><content>the day on which the return was delivered, or</content></level><level class="para1" eId="schedule-1-paragraph-22-3-b"><num>(b)</num><content>if the correction is required in consequence of an amendment made under paragraph 21, the day on which that amendment was made.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-22-4"><num>(4)</num><content>A correction under this paragraph is of no effect if the taxable company gives notice rejecting it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-22-5"><num>(5)</num><intro>Notice of rejection must be given—</intro><level class="para1" eId="schedule-1-paragraph-22-5-a"><num>(a)</num><content>to the officer of Revenue and Customs by whom the correction notice was given, and</content></level><level class="para1" eId="schedule-1-paragraph-22-5-b"><num>(b)</num><content>before the end of the period of 30 days beginning with the date on which the correction notice was given.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-enquiry-into-return"><heading>Enquiry into return</heading><paragraph eId="schedule-1-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-1-paragraph-23-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may enquire into a bank payroll tax return if they give notice to the taxable company of their intention to do so within the time allowed.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-2"><num>(2)</num><content>If the return was delivered on or before 31 August 2010, notice of enquiry may be given at any time on or before 31 August 2011.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-3"><num>(3)</num><content>If the return was delivered after 31 August 2010, notice of enquiry may be given at any time up to and including whichever of 31 January, 30 April, 31 July or 31 October next follows the first anniversary of the day on which the return was delivered.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-4"><num>(4)</num><content>An enquiry extends to anything contained in the return or required to be contained in the return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-23-5"><num>(5)</num><intro>The following provisions of Schedule 18 to FA 1998 apply to an enquiry into a bank payroll tax return under this Schedule as they apply to an enquiry into a company tax return under that Schedule—</intro><level class="para1" eId="schedule-1-paragraph-23-5-a"><num>(a)</num><content>paragraph 24(4) to (5) (notice of enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-b"><num>(b)</num><content>paragraph 25(2) (enquiry following amendment by company) (but as if the reference there to paragraph 24(2) or (3) were to sub-paragraph (2) or (3) of this paragraph),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-c"><num>(c)</num><content>paragraph 31 (amendment of return by company during enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-d"><num>(d)</num><content>paragraphs 31A to 31D (referral of questions to the tribunal during enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-e"><num>(e)</num><content>paragraph 32(1) (completion of enquiry),</content></level><level class="para1" eId="schedule-1-paragraph-23-5-f"><num>(f)</num><content>paragraph 33 (direction to complete enquiry), and</content></level><level class="para1" eId="schedule-1-paragraph-23-5-g"><num>(g)</num><content>paragraph 34 (amendment of return after enquiry).</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-determination-by-hmrc"><heading>Determination by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr></heading><paragraph eId="schedule-1-paragraph-24" class="schProv1"><num>24</num><subparagraph eId="schedule-1-paragraph-24-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may determine to the best of their knowledge and belief the amount of bank payroll tax payable by a taxable company if the company has not delivered a bank payroll tax return on or before 31 August 2010.</content></subparagraph><subparagraph eId="schedule-1-paragraph-24-2"><num>(2)</num><intro>Notice of the determination—</intro><level class="para1" eId="schedule-1-paragraph-24-2-a"><num>(a)</num><content>must be served on the company, and</content></level><level class="para1" eId="schedule-1-paragraph-24-2-b"><num>(b)</num><content>must state the date on which it is given.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-24-3"><num>(3)</num><content>The amount determined by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> is taken to be the amount payable by the company (in the same way as if it were an assessment) unless and until the determination is superseded by a relevant assessment.</content></subparagraph><subparagraph eId="schedule-1-paragraph-24-4"><num>(4)</num><intro>A relevant assessment is an assessment—</intro><level class="para1" eId="schedule-1-paragraph-24-4-a"><num>(a)</num><content>included in a bank payroll tax return delivered by the company within the period of 12 months beginning with the date on which notice of the determination was given, or</content></level><level class="para1" eId="schedule-1-paragraph-24-4-b"><num>(b)</num><content>made by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> under paragraph 20 following delivery of such a return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-24-5"><num>(5)</num><intro>If—</intro><level class="para1" eId="schedule-1-paragraph-24-5-a"><num>(a)</num><content>proceedings have been commenced for the recovery of an amount determined by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> under this paragraph, and</content></level><level class="para1" eId="schedule-1-paragraph-24-5-b"><num>(b)</num><content>before the proceedings are concluded, the determination is superseded by a relevant assessment,</content></level><wrapUp>the proceedings may be continued as if they were proceedings for the recovery of so much of the tax shown in the assessment as has not been paid.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-24-6"><num>(6)</num><content>No determination may be made under this paragraph after 31 August 2013.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-discovery-assessment-by-hmrc"><heading>Discovery assessment by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr></heading><paragraph eId="schedule-1-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-1-paragraph-25-1"><num>(1)</num><intro>This paragraph applies if <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> discover, with respect to a taxable company, any of the following situations—</intro><level class="para1" eId="schedule-1-paragraph-25-1-a"><num>(a)</num><content>an amount which ought to have been assessed to bank payroll tax has not been assessed,</content></level><level class="para1" eId="schedule-1-paragraph-25-1-b"><num>(b)</num><content>an assessment to bank payroll tax is insufficient, or</content></level><level class="para1" eId="schedule-1-paragraph-25-1-c"><num>(c)</num><content>an amount of bank payroll tax has been repaid which ought not to have been repaid.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-25-2"><num>(2)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may make an assessment (a “discovery assessment”) in the amount or further amount which ought in their opinion to be charged or recovered in order to make good to the Crown the loss of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-3"><num>(3)</num><content>If the company has delivered a bank payroll tax return, <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may only make a discovery assessment if condition A or condition B is met.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-4"><num>(4)</num><content>Condition A is that the situation discovered by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> was brought about carelessly or deliberately by the company or a person acting on its behalf.</content></subparagraph><subparagraph eId="schedule-1-paragraph-25-5"><num>(5)</num><intro>Condition B is that <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> could not reasonably have been expected to be aware of the situation at the time when they—</intro><level class="para1" eId="schedule-1-paragraph-25-5-a"><num>(a)</num><content>ceased to be entitled to give notice of enquiry into the return, or</content></level><level class="para1" eId="schedule-1-paragraph-25-5-b"><num>(b)</num><content>completed their enquiries into the return.</content></level></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-26" class="schProv1"><num>26</num><intro>Notice of a discovery assessment—</intro><level class="para1" eId="schedule-1-paragraph-26-a"><num>(a)</num><content>must be served on the taxable company, and</content></level><level class="para1" eId="schedule-1-paragraph-26-b"><num>(b)</num><content>must state the date on which it is given and the time by which an appeal may be brought against it.</content></level></paragraph><paragraph eId="schedule-1-paragraph-27" class="schProv1"><num>27</num><subparagraph eId="schedule-1-paragraph-27-1"><num>(1)</num><content>No discovery assessment may be made after the relevant deadline.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-2"><num>(2)</num><intro>The relevant deadline is 5 April 2030 if the situation—</intro><level class="para1" eId="schedule-1-paragraph-27-2-a"><num>(a)</num><content>was brought about deliberately by the taxable company, or</content></level><level class="para1" eId="schedule-1-paragraph-27-2-b"><num>(b)</num><content>was attributable to the taxable company's careless failure to deliver a bank payroll tax return on or before 31 August 2010.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-27-3"><num>(3)</num><content>Subject to sub-paragraph (2)(b), the relevant deadline is 5 April 2016 if the situation was brought about carelessly by the taxable company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-4"><num>(4)</num><content>In all other cases, the relevant deadline is 5 April 2014.</content></subparagraph><subparagraph eId="schedule-1-paragraph-27-5"><num>(5)</num><intro>In this paragraph—</intro><level class="para1" eId="schedule-1-paragraph-27-5-a"><num>(a)</num><content>references to the situation are to the one discovered by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr>, and</content></level><level class="para1" eId="schedule-1-paragraph-27-5-b"><num>(b)</num><content>references to the taxable company include a person acting on the company's behalf.</content></level></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-28" class="schProv1"><num>28</num><subparagraph eId="schedule-1-paragraph-28-1"><num>(1)</num><content>If a discovery assessment is made with respect to a taxable company, the company may appeal against it.</content></subparagraph><subparagraph eId="schedule-1-paragraph-28-2"><num>(2)</num><intro>Notice of appeal must be given—</intro><level class="para1" eId="schedule-1-paragraph-28-2-a"><num>(a)</num><content>in writing,</content></level><level class="para1" eId="schedule-1-paragraph-28-2-b"><num>(b)</num><content>within the period of 30 days beginning with the date on which notice of the assessment was given, and</content></level><level class="para1" eId="schedule-1-paragraph-28-2-c"><num>(c)</num><content>to the officer of Revenue and Customs by whom notice of the assessment was given.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-28-3"><num>(3)</num><content>Any objection to a discovery assessment on the ground that paragraph 25, 26 or 27 was not complied with can only be made on an appeal against the assessment under this paragraph.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-collection-and-recovery"><heading>Collection and recovery</heading><paragraph eId="schedule-1-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-1-paragraph-29-1"><num>(1)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may publish requirements as to the method or methods of payment to be used by taxable companies for paying bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-29-2"><num>(2)</num><content>Part 6 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (collection and recovery) applies in relation to a charge to bank payroll tax as it applies in relation to a charge to corporation tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-29-3"><num>(3)</num><content>See also Chapter 5 of Part 7 of FA 2008 (which makes general provision about payment and enforcement).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-interest-on-late-payments-and-repayments"><heading>Interest on late payments and repayments</heading><paragraph eId="schedule-1-paragraph-30" class="schProv1"><num>30</num><subparagraph eId="schedule-1-paragraph-30-1"><num>(1)</num><content>This paragraph applies if an order is made under section 104(3) of FA 2009 appointing a day on which sections 101 to 103 of that Act are to come into force for the purposes of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-30-2"><num>(2)</num><intro>Part 2 of Schedule 53 to that Act (which makes special provision about the late payment interest start date) has effect for those purposes as if—</intro><level class="para1" eId="schedule-1-paragraph-30-2-a"><num>(a)</num><content>the reference in paragraph 4(1) to income tax or capital gains tax included a reference to bank payroll tax, and</content></level><level class="para1" eId="schedule-1-paragraph-30-2-b"><num>(b)</num><content>the Part included a provision that the late payment interest start date in respect of an amount of bank payroll tax assessed and recoverable under paragraph 25(1)(c) of this Schedule is 31 August 2010.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-30-3"><num>(3)</num><content>Interest charged under section 101 of FA 2009 on an amount of bank payroll tax may be enforced as if it were an amount of bank payroll tax payable by the taxable company.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-overpaid-tax-etc"><heading>Overpaid tax <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-1-paragraph-31" class="schProv1"><num>31</num><subparagraph eId="schedule-1-paragraph-31-1"><num>(1)</num><content>Paragraphs 50 to 51G of Schedule 18 to FA 1998 (overpaid tax <abbr title="Et cetera" xml:lang="la">etc</abbr>) apply (so far as relevant) to bank payroll tax assessable for the chargeable period as they apply to corporation tax assessable for an accounting period, subject to the following modifications.</content></subparagraph><subparagraph eId="schedule-1-paragraph-31-2"><num>(2)</num><content>With respect to bank payroll tax, a claim under paragraph 51 may not be made after 31 August 2014.</content></subparagraph><subparagraph eId="schedule-1-paragraph-31-3"><num>(3)</num><intro>For the purposes of paragraph 51E, the relevant restrictions for making a discovery assessment under this Schedule are—</intro><level class="para1" eId="schedule-1-paragraph-31-3-a"><num>(a)</num><content>the conditions mentioned in paragraph 25(3), and</content></level><level class="para1" eId="schedule-1-paragraph-31-3-b"><num>(b)</num><content>expiry of the relevant deadline as defined in paragraph 27.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-31-4"><num>(4)</num><content>Nothing in sub-paragraph (1) permits a taxable company to make a claim under paragraph 51 of Schedule 18 to FA 1998 with respect to bank payroll tax merely because an amount determined under paragraph 7(2), 12(2) or 13(3) differs from the amount which is actually paid or provided (or loaned).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-appeals-and-other-proceedings"><heading>Appeals and other proceedings</heading><paragraph eId="schedule-1-paragraph-32" class="schProv1"><num>32</num><subparagraph eId="schedule-1-paragraph-32-1"><num>(1)</num><content>Part 5 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (appeals and other proceedings) applies in relation to an appeal against a discovery assessment to bank payroll tax as it applies in relation to an appeal against an assessment to corporation tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-32-2"><num>(2)</num><content>References in that Part to tax are to be read accordingly.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-1-paragraph-33-1"><num>(1)</num><content>Where a provision of FA 1998 is applied by this Part of this Schedule, a reference in section 46D of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (questions to be determined by the relevant tribunal) to that provision includes a reference to that provision as so applied.</content></subparagraph><subparagraph eId="schedule-1-paragraph-33-2"><num>(2)</num><content>A reference in section 48 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (application to appeals and other proceedings) to the Taxes Acts includes a reference to those Acts as applied by this Part of this Schedule.</content></subparagraph><subparagraph eId="schedule-1-paragraph-33-3"><num>(3)</num><intro>Where a provision of FA 1998 is applied by this Part of this Schedule—</intro><level class="para1" eId="schedule-1-paragraph-33-3-a"><num>(a)</num><content>a reference in section 55 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (recovery of tax not postponed) to that provision includes a reference to that provision as so applied, and</content></level><level class="para1" eId="schedule-1-paragraph-33-3-b"><num>(b)</num><content>references in that section to tax are to be read accordingly.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-obligation-to-preserve-records"><heading>Obligation to preserve records</heading><paragraph eId="schedule-1-paragraph-34" class="schProv1"><num>34</num><subparagraph eId="schedule-1-paragraph-34-1"><num>(1)</num><intro>Each taxable company must—</intro><level class="para1" eId="schedule-1-paragraph-34-1-a"><num>(a)</num><content>keep such records as may be needed to enable it to establish and verify the amount of bank payroll tax payable by it and to deliver a correct and complete bank payroll tax return, and</content></level><level class="para1" eId="schedule-1-paragraph-34-1-b"><num>(b)</num><content>preserve those records, and any other relevant records, until the end of 31 August 2016.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-2"><num>(2)</num><intro>Other relevant records are records that—</intro><level class="para1" eId="schedule-1-paragraph-34-2-a"><num>(a)</num><content>may be needed for a purpose mentioned in sub-paragraph (1)(a), and</content></level><level class="para1" eId="schedule-1-paragraph-34-2-b"><num>(b)</num><content>are in the company's possession or power immediately before the commencement of this Schedule.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-3"><num>(3)</num><intro>The obligation under sub-paragraph (1)(b) may be discharged by—</intro><level class="para1" eId="schedule-1-paragraph-34-3-a"><num>(a)</num><content>preserving the records in any form and by any means, or</content></level><level class="para1" eId="schedule-1-paragraph-34-3-b"><num>(b)</num><content>preserving the information contained in them in any form and by any means.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-34-4"><num>(4)</num><content>The obligation under sub-paragraph (1)(b) includes an obligation to preserve supporting documents (such as contracts, accounts and correspondence).</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-35" class="schProv1"><num>35</num><subparagraph eId="schedule-1-paragraph-35-1"><num>(1)</num><content>A taxable company which fails to comply with paragraph 34 is liable to a penalty of an amount not exceeding £3,000.</content></subparagraph><subparagraph eId="schedule-1-paragraph-35-2"><num>(2)</num><content>Sections 100 to 102 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 apply to a penalty under this paragraph as they apply to a penalty under section 12B(5) of that Act.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-information-powers"><heading>Information powers</heading><paragraph eId="schedule-1-paragraph-36" class="schProv1"><num>36</num><subparagraph eId="schedule-1-paragraph-36-1"><num>(1)</num><content>Schedule 36 to FA 2008 (information and inspection powers) has effect as if the definition of tax in paragraph 63(1) included bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-36-2"><num>(2)</num><intro>Paragraph 21 of that Schedule (taxpayer notices) applies where a taxable company has made a bank payroll tax return as it applies where a person has made a company tax return and, in relation to bank payroll tax—</intro><level class="para1" eId="schedule-1-paragraph-36-2-a"><num>(a)</num><content>a reference in that paragraph to a chargeable period is to the chargeable period within the meaning of this Schedule, and</content></level><level class="para1" eId="schedule-1-paragraph-36-2-b"><num>(b)</num><content>a reference in that paragraph to a notice of enquiry is to a notice of enquiry under paragraph 23 of this Schedule.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-penalties"><heading>Penalties</heading><paragraph eId="schedule-1-paragraph-37" class="schProv1"><num>37</num><subparagraph eId="schedule-1-paragraph-37-1"><num>(1)</num><intro>Schedule 24 to FA 2007 (penalties for errors) has effect as if in the Table in paragraph 1—</intro><level class="para1" eId="schedule-1-paragraph-37-1-a"><num>(a)</num><content>the list of taxes included bank payroll tax, and</content></level><level class="para1" eId="schedule-1-paragraph-37-1-b"><num>(b)</num><content>the list of documents included a bank payroll tax return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-37-2"><num>(2)</num><content>In relation to bank payroll tax, any reference in that Schedule to a tax period is to the chargeable period within the meaning of this Schedule.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-38" class="schProv1"><num>38</num><subparagraph eId="schedule-1-paragraph-38-1"><num>(1)</num><intro>Schedule 55 to FA 2009 (penalties for failure to make returns <abbr title="Et cetera" xml:lang="la">etc</abbr>) has effect as if—</intro><level class="para1" eId="schedule-1-paragraph-38-1-a"><num>(a)</num><content>a bank payroll tax return were specified in the Table in paragraph 1 (and bank payroll tax were specified in relation to it), and</content></level><level class="para1" eId="schedule-1-paragraph-38-1-b"><num>(b)</num><content>the reference in paragraph 2 to a return falling within certain items in the Table included a reference to a bank payroll tax return.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-38-2"><num>(2)</num><content>Schedule 55 to FA 2009 has effect for the purposes of bank payroll tax in accordance with this paragraph whether or not it has come into force for other purposes.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-39" class="schProv1"><num>39</num><subparagraph eId="schedule-1-paragraph-39-1"><num>(1)</num><content>Schedule 56 to FA 2009 (penalties for failure to make payments on time <abbr title="Et cetera" xml:lang="la">etc</abbr>) has effect for the purposes of bank payroll tax as follows.</content></subparagraph><subparagraph eId="schedule-1-paragraph-39-2"><num>(2)</num><intro>The part of the Table in paragraph 1 headed “Principal amounts” has effect as if bank payroll tax were specified in column 2 and, in relation to that tax—</intro><level class="para1" eId="schedule-1-paragraph-39-2-a"><num>(a)</num><content>an amount shown (or treated as shown) in a bank payroll tax return were specified in column 3, and</content></level><level class="para1" eId="schedule-1-paragraph-39-2-b"><num>(b)</num><content>31 August 2010 were specified in column 4.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-39-3"><num>(3)</num><intro>The part of that Table headed “Amounts payable in default of a return being made” has effect as if bank payroll tax were specified in column 2 and, in relation to that tax—</intro><level class="para1" eId="schedule-1-paragraph-39-3-a"><num>(a)</num><content>an amount shown in a determination under paragraph 24 of this Schedule were specified in column 3, and</content></level><level class="para1" eId="schedule-1-paragraph-39-3-b"><num>(b)</num><content>31 August 2010 were specified in column 4.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-39-4"><num>(4)</num><intro>The part of that Table headed “Amount shown to be due in other assessments, determinations, <abbr title="Et cetera" xml:lang="la">etc</abbr>” has effect as if—</intro><level class="para1" eId="schedule-1-paragraph-39-4-a"><num>(a)</num><content>bank payroll tax were a tax falling within any of items 1 to 6, 9 or 10, and</content></level><level class="para1" eId="schedule-1-paragraph-39-4-b"><num>(b)</num><content>an amount shown (or treated as shown) in a bank payroll tax return were an amount falling within any of those items.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-39-5"><num>(5)</num><content>Paragraph 2 (assessments and determinations in default of return) has effect as if the reference in paragraph (a) to a return falling within any item in the Table in Schedule 55 included a reference to a bank payroll tax return.</content></subparagraph><subparagraph eId="schedule-1-paragraph-39-6"><num>(6)</num><content>Paragraph 3 (amount of penalty) has effect as if sub-paragraph (1)(a) included a reference to a payment of bank payroll tax.</content></subparagraph><subparagraph eId="schedule-1-paragraph-39-7"><num>(7)</num><content>Schedule 56 to FA 2009 has effect for the purposes of bank payroll tax in accordance with this paragraph whether or not it has come into force for other purposes.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-2-crossheading-miscellaneous"><heading>Miscellaneous</heading><paragraph eId="schedule-1-paragraph-40" class="schProv1"><num>40</num><subparagraph eId="schedule-1-paragraph-40-1"><num>(1)</num><intro>The following provisions of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 apply for the purposes of bank payroll tax and this Schedule as they apply for the purposes of corporation tax and the Taxes Acts—</intro><level class="para1" eId="schedule-1-paragraph-40-1-a"><num>(a)</num><content>section 108 (responsibility of company officers),</content></level><level class="para1" eId="schedule-1-paragraph-40-1-b"><num>(b)</num><content>section 112 (loss, destruction or damage to assessments, returns <abbr title="Et cetera" xml:lang="la">etc</abbr>),</content></level><level class="para1" eId="schedule-1-paragraph-40-1-c"><num>(c)</num><content>section 114 (want of form), and</content></level><level class="para1" eId="schedule-1-paragraph-40-1-d"><num>(d)</num><content>section 115 (delivery and service of documents).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-40-2"><num>(2)</num><content>The application of section 115 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 in relation to the delivery of bank payroll tax returns is subject to any requirements published under paragraph 19(1) of this Schedule.</content></subparagraph></paragraph><paragraph eId="schedule-1-paragraph-41" class="schProv1"><num>41</num><content>Chapter 6 of Part 22 of CTA 2010 (collection <abbr title="Et cetera" xml:lang="la">etc</abbr> of tax from <abbr class="acronym" title="United Kingdom">UK</abbr> representatives of non-UK resident companies) applies to this Part of this Schedule as it applies to enactments relating to corporation tax.</content></paragraph><paragraph eId="schedule-1-paragraph-42" class="schProv1"><num>42</num><content>Section 118(5) to (7) of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (meaning of carelessly <abbr title="Et cetera" xml:lang="la">etc</abbr>) applies for the interpretation of this Part of this Schedule, with references to tax being read as references to bank payroll tax.</content></paragraph></hcontainer></part><part eId="schedule-1-part-3"><num>Part 3</num><heading>Definitions</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-3-crossheading-uk-resident-bank-and-relevant-foreign-bank"><heading> “<abbr class="acronym" title="United Kingdom">UK</abbr> resident bank” and “relevant foreign bank”</heading><paragraph eId="schedule-1-paragraph-43" class="schProv1"><num>43</num><subparagraph eId="schedule-1-paragraph-43-1"><num>(1)</num><content>“<term refersTo="#term-uk-resident-bank" eId="term-uk-resident-bank"><abbr class="acronym" title="United Kingdom">UK</abbr> resident bank</term>” means a company which—</content></subparagraph><level class="para1" eId="schedule-1-paragraph-43-a"><num>(a)</num><content>is resident in the United Kingdom,</content></level><level class="para1" eId="schedule-1-paragraph-43-b"><num>(b)</num><content>is an authorised person for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 (see section 31 of that Act),</content></level><level class="para1" eId="schedule-1-paragraph-43-c"><num>(c)</num><intro>is a person—</intro><level class="para2" eId="schedule-1-paragraph-43-c-i"><num>(i)</num><content>whose activities include the relevant regulated activity described in the provision mentioned in paragraph 44(1)(a), or</content></level><level class="para2" eId="schedule-1-paragraph-43-c-ii"><num>(ii)</num><content>which is both a BIPRU 730k firm and a full scope BIPRU investment firm, whose activities consist wholly or mainly of any of the relevant regulated activities described in the provisions mentioned in paragraph 44(1)(b) to (f) and which meets the capital resources condition,</content></level></level><level class="para1" eId="schedule-1-paragraph-43-d"><num>(d)</num><content>carries on that relevant regulated activity, or those relevant regulated activities, wholly or mainly in the course of trade, and</content></level><level class="para1" eId="schedule-1-paragraph-43-e"><num>(e)</num><content>is not an excluded company.</content></level><subparagraph eId="schedule-1-paragraph-43-2"><num>(2)</num><intro>“<abbr class="acronym" title="United Kingdom">UK</abbr> resident bank” also includes a company which—</intro><level class="para1" eId="schedule-1-paragraph-43-2-a"><num>(a)</num><content>meets the conditions in sub-paragraph (1)(a) and (e), and</content></level><level class="para1" eId="schedule-1-paragraph-43-2-b"><num>(b)</num><content>is a member of a partnership which meets the conditions in sub-paragraph (1)(b) to (d).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-43-3"><num>(3)</num><intro>“<term refersTo="#term-relevant-foreign-bank" eId="term-relevant-foreign-bank">Relevant foreign bank</term>” means a company which—</intro><level class="para1" eId="schedule-1-paragraph-43-3-a"><num>(a)</num><content>is not resident in the United Kingdom,</content></level><level class="para1" eId="schedule-1-paragraph-43-3-b"><num>(b)</num><content>is an authorised person for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 (see section 31 of that Act),</content></level><level class="para1" eId="schedule-1-paragraph-43-3-c"><num>(c)</num><intro>is a person which carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom and—</intro><level class="para2" eId="schedule-1-paragraph-43-3-c-i"><num>(i)</num><content>whose activities include the relevant regulated activity described in the provision mentioned in paragraph 44(1)(a), or</content></level><level class="para2" eId="schedule-1-paragraph-43-3-c-ii"><num>(ii)</num><content>which is both a BIPRU 730k firm and a full scope BIPRU investment firm, whose activities consist wholly or mainly of any of the relevant regulated activities described in the provisions mentioned in paragraph 44(1)(b) to (f) and which meets the capital resources condition,</content></level></level><level class="para1" eId="schedule-1-paragraph-43-3-d"><num>(d)</num><content>carries on that relevant regulated activity, or those relevant regulated activities, wholly or mainly in the course of that trade, and</content></level><level class="para1" eId="schedule-1-paragraph-43-3-e"><num>(e)</num><content>is not an excluded company.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-43-4"><num>(4)</num><intro>“Relevant foreign bank” also includes a company which—</intro><level class="para1" eId="schedule-1-paragraph-43-4-a"><num>(a)</num><content>meets the conditions in sub-paragraph (3)(a) and (e), and</content></level><level class="para1" eId="schedule-1-paragraph-43-4-b"><num>(b)</num><content>is a member of a partnership which meets the conditions in sub-paragraph (1)(b) to (d).</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-3-crossheading-relevant-regulated-activity-capital-resources-condition-excluded-company-asset-management-activities-linked-entity-etc"><heading> “Relevant regulated activity”, “capital resources condition”, “excluded company”, “asset management activities”, “linked entity” <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-1-paragraph-44" class="schProv1"><num>44</num><subparagraph eId="schedule-1-paragraph-44-1"><num>(1)</num><intro>“<term refersTo="#term-relevant-regulated-activity" eId="term-relevant-regulated-activity">Relevant regulated activity</term>” means an activity which is a regulated activity for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 by virtue of any of the following provisions of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 2001/544)—</intro><level class="para1" eId="schedule-1-paragraph-44-1-a"><num>(a)</num><content>article 5 (accepting deposits),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-b"><num>(b)</num><content>article 14 (dealing in investments as principal),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-c"><num>(c)</num><content>article 21 (dealing in investments as agent),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-d"><num>(d)</num><content>article 25 (arranging deals in investments),</content></level><level class="para1" eId="schedule-1-paragraph-44-1-e"><num>(e)</num><content>article 40 (safeguarding and administering investments), and</content></level><level class="para1" eId="schedule-1-paragraph-44-1-f"><num>(f)</num><content>article 61 (entering into regulated mortgage contracts).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-2"><num>(2)</num><content>“The capital resources condition” is that the company has a capital resources requirement of at least £100 million.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-3"><num>(3)</num><intro>But if the company is a member of a group, “the capital resources condition” is that the company and—</intro><level class="para1" eId="schedule-1-paragraph-44-3-a"><num>(a)</num><intro>any other companies which—</intro><level class="para2" eId="schedule-1-paragraph-44-3-a-i"><num>(i)</num><content>are members of the group,</content></level><level class="para2" eId="schedule-1-paragraph-44-3-a-ii"><num>(ii)</num><content>meet either of the conditions in sub-paragraph (4),</content></level><level class="para2" eId="schedule-1-paragraph-44-3-a-iii"><num>(iii)</num><content>are not excluded companies, and</content></level><level class="para2" eId="schedule-1-paragraph-44-3-a-iv"><num>(iv)</num><content>are not members of any partnership within paragraph (b), and</content></level></level><level class="para1" eId="schedule-1-paragraph-44-3-b"><num>(b)</num><intro>any partnership—</intro><level class="para2" eId="schedule-1-paragraph-44-3-b-i"><num>(i)</num><content>the members of which are or include one or more companies that are members of the group and not excluded companies, and</content></level><level class="para2" eId="schedule-1-paragraph-44-3-b-ii"><num>(ii)</num><content>which meets either of those conditions,</content></level></level><wrapUp>have (in aggregate) capital resources requirements of at least that amount.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-44-4"><num>(4)</num><intro>The conditions referred to in sub-paragraph (3) are that the company or partnership—</intro><level class="para1" eId="schedule-1-paragraph-44-4-a"><num>(a)</num><content>is both a BIPRU 730k firm and a full scope BIPRU investment firm, or</content></level><level class="para1" eId="schedule-1-paragraph-44-4-b"><num>(b)</num><content>is a company or partnership which carries on in the United Kingdom activities including the relevant regulated activity described in the provision mentioned in sub-paragraph (1)(a).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-5"><num>(5)</num><content>For the purposes of sub-paragraphs (2) and (3) the capital resources requirement of a company or a partnership is that as at the end of the last period of account of the company or partnership ending no later than the end of the chargeable period.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-6"><num>(6)</num><content>In determining whether the company is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank or a relevant foreign bank by virtue of paragraph 43(2) or (4), the references in sub-paragraph (2) to the company are to the partnership.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-7"><num>(7)</num><content>If any company or partnership whose capital resources may be material for the purposes of sub-paragraph (2) or (3) prepares its accounts in a currency other than sterling, the amount of its capital resources at the end of the period of account mentioned in that sub-paragraph is to be translated into its sterling equivalent by reference to the average spot rate of exchange on the day on which that period ends.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-8"><num>(8)</num><content>If any company whose capital resources may be material for the purposes of sub-paragraph (2) or (3) carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom, its capital resources are to be determined as they would be for the purposes of corporation tax (see Chapter 4 of Part 2 of CTA 2009).</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-9"><num>(9)</num><intro>“<term refersTo="#term-excluded-company" eId="term-excluded-company">Excluded company</term>” means a company which is—</intro><level class="para1" eId="schedule-1-paragraph-44-9-a"><num>(a)</num><content>an insurance company or an insurance special purpose vehicle,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-b"><num>(b)</num><content>a company which is a member of a group and does not carry on any relevant regulated activities otherwise than on behalf of an insurance company or insurance special purpose vehicle which is a member of the same group,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-c"><num>(c)</num><content>a company which does not carry on any relevant regulated activities otherwise than as the manager of a pension scheme,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-d"><num>(d)</num><content>an investment trust (within the meaning given by section 1158 of CTA 2010),</content></level><level class="para1" eId="schedule-1-paragraph-44-9-e"><num>(e)</num><content>a company which does not carry on any relevant regulated activities other than asset management activities,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-f"><num>(f)</num><content>an exempt BIPRU commodities firm,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-g"><num>(g)</num><content>a company which does not carry on any relevant regulated activities otherwise than for the purpose of trading in commodities or commodity derivatives,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-h"><num>(h)</num><content>a company which does not carry on any relevant regulated activities otherwise than for the purpose of dealing in contracts for differences as principal with persons all or all but an insignificant proportion of whom are retail clients or of dealing in contracts for differences with another person to enable the company or other person to deal in contracts for differences as principal with such persons,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-i"><num>(i)</num><content>a society incorporated under the Friendly Societies Act 1992,</content></level><level class="para1" eId="schedule-1-paragraph-44-9-j"><num>(j)</num><content>a society registered as a credit union under <ins class="substitution first last" ukl:ChangeId="key-5b1148b97a35630336898e190caff4be-1502975701152" ukl:CommentaryRef="key-5b1148b97a35630336898e190caff4be"><noteRef uk:name="commentary" href="#key-5b1148b97a35630336898e190caff4be" class="commentary"/>the Co-operative and Community Benefit Societies Act 2014</ins> or the Credit Unions (Northern Ireland) Order 1985 (<abbr class="acronym" title="Statutory Instrument">S.I.</abbr> 1985/1205 (<abbr class="acronym" title="Northern Ireland">NI</abbr> 12)), or</content></level><level class="para1" eId="schedule-1-paragraph-44-9-k"><num>(k)</num><content>a building society.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-10"><num>(10)</num><intro>“<term refersTo="#term-asset-management-activities" eId="term-asset-management-activities">Asset management activities</term>” means activities which consist (or, if they were carried on in the United Kingdom, would consist) of any or all of the following—</intro><level class="para1" eId="schedule-1-paragraph-44-10-a"><num>(a)</num><content>acting as the operator of a collective investment scheme (within the meaning of Part 17 of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000: see sections 235 and 237 of that Act),</content></level><level class="para1" eId="schedule-1-paragraph-44-10-b"><num>(b)</num><content>acting as a discretionary investment manager for clients none of which is a linked entity, and</content></level><level class="para1" eId="schedule-1-paragraph-44-10-c"><num>(c)</num><content>acting as an authorised corporate director.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-11"><num>(11)</num><intro>“<term refersTo="#term-linked-entity" eId="term-linked-entity">Linked entity</term>”, in relation to a company (“C”), means—</intro><level class="para1" eId="schedule-1-paragraph-44-11-a"><num>(a)</num><content>a member of the same group as C,</content></level><level class="para1" eId="schedule-1-paragraph-44-11-b"><num>(b)</num><content>a company in which a company which is a member of the same group as C has a major interest (within the meaning of Part 5 of CTA 2009: see section 473 of that Act), or</content></level><level class="para1" eId="schedule-1-paragraph-44-11-c"><num>(c)</num><intro>a partnership the members of which include a company—</intro><level class="para2" eId="schedule-1-paragraph-44-11-c-i"><num>(i)</num><content>which is a member of the same group as C, and</content></level><level class="para2" eId="schedule-1-paragraph-44-11-c-ii"><num>(ii)</num><content>whose share of the profits or losses of a trade carried on by the partnership for an accounting period of the partnership any part of which falls within the chargeable period is at least a 40% share (see Part 17 of CTA 2009 for provisions about shares of partnership profits and losses).</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-44-12"><num>(12)</num><content>The following have the meanings given in the <ins class="substitution first last" ukl:ChangeId="key-63d92d7c3429b57f55c6951079ab3092-1502969150646" ukl:CommentaryRef="key-63d92d7c3429b57f55c6951079ab3092"><noteRef uk:name="commentary" href="#key-63d92d7c3429b57f55c6951079ab3092" class="commentary"/>PRA Handbook made by the Prudential Regulation Authority</ins> (as that Handbook has effect from time to time)—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>“authorised corporate director”,</item><item>“BIPRU 730k firm”,</item><item>“capital resources requirement”,</item><item>“contracts for differences”,</item><item>“discretionary investment manager”,</item><item>“exempt BIPRU commodities firm”,</item><item>“full scope BIPRU investment firm”,</item><item>“pension scheme”,</item><item>“principal”, and</item><item>“retail clients”.</item></blockList></content></subparagraph><subparagraph eId="schedule-1-paragraph-44-13"><num>(13)</num><content>A company which would be a BIPRU 730k firm and a full scope BIPRU investment firm by virtue of activities carried on in the United Kingdom but for the fact that its registered office (or, if it does not have a registered office, its head office) is not in the United Kingdom is to be treated as being one.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-14"><num>(14)</num><content>The Treasury may by order amend this paragraph.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-15"><num>(15)</num><content>An order under this paragraph may be made so as to have effect in relation to any time after the beginning of the chargeable period.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-16"><num>(16)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph><subparagraph eId="schedule-1-paragraph-44-17"><num>(17)</num><content>An order under this paragraph may not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, the House of Commons.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-3-crossheading-member-of-a-banking-group"><heading> “Member of a banking group” </heading><paragraph eId="schedule-1-paragraph-45" class="schProv1"><num>45</num><subparagraph eId="schedule-1-paragraph-45-1"><num>(1)</num><intro>A company is a “member of a banking group” at any time if—</intro><level class="para1" eId="schedule-1-paragraph-45-1-a"><num>(a)</num><content>it is within sub-paragraph (2) at that time, or</content></level><level class="para1" eId="schedule-1-paragraph-45-1-b"><num>(b)</num><content>it was within that sub-paragraph immediately before the chargeable period.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-2"><num>(2)</num><intro>A company is within this sub-paragraph if—</intro><level class="para1" eId="schedule-1-paragraph-45-2-a"><num>(a)</num><content>it is a member of a group,</content></level><level class="para1" eId="schedule-1-paragraph-45-2-b"><num>(b)</num><content>any of conditions A to C is met, and</content></level><level class="para1" eId="schedule-1-paragraph-45-2-c"><num>(c)</num><content>the group does not meet the exempt activities test.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-3"><num>(3)</num><content>Condition A is that the principal company of the group is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank or a relevant foreign bank.</content></subparagraph><subparagraph eId="schedule-1-paragraph-45-4"><num>(4)</num><intro>Condition B is that—</intro><level class="para1" eId="schedule-1-paragraph-45-4-a"><num>(a)</num><content>the principal company of the group is a company which is not resident in the United Kingdom but which (if it were so resident) would be a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank, or</content></level><level class="para1" eId="schedule-1-paragraph-45-4-b"><num>(b)</num><content>the principal company of the group is a company which is not resident in the United Kingdom, and is a member of a partnership which is not so resident, but which (if both the company and the partnership were so resident) would be a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank,</content></level><wrapUp>and (in either case) any member of the group is a <abbr class="acronym" title="United Kingdom">UK</abbr> resident bank or a relevant foreign bank.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-45-5"><num>(5)</num><intro>Condition C is that—</intro><level class="para1" eId="schedule-1-paragraph-45-5-a"><num>(a)</num><content>the principal company is the holding company of another company, and</content></level><level class="para1" eId="schedule-1-paragraph-45-5-b"><num>(b)</num><content>if that other company were the principal company of the group, condition A or B would be met.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-6"><num>(6)</num><intro>For the purposes of condition C a company (“H”) is a “holding company” of another company (“S”) if—</intro><level class="para1" eId="schedule-1-paragraph-45-6-a"><num>(a)</num><content>H is an investment company, and</content></level><level class="para1" eId="schedule-1-paragraph-45-6-b"><num>(b)</num><intro>S is—</intro><level class="para2" eId="schedule-1-paragraph-45-6-b-i"><num>(i)</num><content>an effective 51% subsidiary of H, and</content></level><level class="para2" eId="schedule-1-paragraph-45-6-b-ii"><num>(ii)</num><content>not an effective 51% subsidiary of any company which is not an investment company.</content></level></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-7"><num>(7)</num><content>A group meets the exempt activities test if at least 90% of the trading income of the group for the relevant period is derived from exempt activities.</content></subparagraph><subparagraph eId="schedule-1-paragraph-45-8"><num>(8)</num><intro>For this purpose—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-exempt-activities" eId="term-exempt-activities">exempt activities</term>” means—</intro><level class="para1"><num>(a)</num><content>insurance activities, asset management activities and related activities, and</content></level><level class="para1"><num>(b)</num><content>activities carried on by a company which is not a financial trading company (or a company which would be a financial trading company if it were resident in the United Kingdom) other than lending activities or dealing on own account,</content></level></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-relevant-period" eId="term-the-relevant-period">the relevant period</term>”, in relation to a group, means the last period of account of the group ending no later than the end of the chargeable period, and</content></hcontainer><hcontainer name="definition"><content>“the trading income of the group” for the relevant period is to be calculated in accordance with paragraph 46.</content></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-45-9"><num>(9)</num><intro>In sub-paragraph (8)—</intro><hcontainer name="definition"><intro>“<term refersTo="#term-insurance-activities" eId="term-insurance-activities">insurance activities</term>” means—</intro><level class="para1"><num>(a)</num><content>the effecting or carrying out of contracts of insurance by a regulated insurer, and</content></level><level class="para1"><num>(b)</num><content>investment business that arises directly from activities falling within paragraph (a);</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-lending-activities" eId="term-lending-activities">lending activities</term>” means—</intro><level class="para1"><num>(a)</num><content>acceptance of deposits or other repayable funds,</content></level><level class="para1"><num>(b)</num><content>lending of money, including consumer credit, mortgage credit, factoring (with or without recourse) and financing of commercial transactions (including forfeiting),</content></level><level class="para1"><num>(c)</num><content>finance leasing (as lessor),</content></level><level class="para1"><num>(d)</num><content>issuing and administering means of payment,</content></level><level class="para1"><num>(e)</num><content>provision of guarantees or commitments to provide money,</content></level><level class="para1"><num>(f)</num><content>money transmission services,</content></level><level class="para1"><num>(g)</num><content>provision of alternative finance arrangements, and</content></level><level class="para1"><num>(h)</num><content>other activities carried on in connection with activities falling within any of paragraphs (a) to (g);</content></level></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-related-activities" eId="term-related-activities">related activities</term>” means—</intro><level class="para1"><num>(a)</num><content>activities which are ancillary to insurance activities or asset management activities of any company which is a member of the group (whether or not the company carrying on the insurance activities or asset management activities), and</content></level><level class="para1"><num>(b)</num><content>activities which would not be carried on but for such insurance activities or asset management activities being carried on,</content></level><wrapUp>but does not include dealing on own account.</wrapUp></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-45-10"><num>(10)</num><intro>In sub-paragraph (9)—</intro><hcontainer name="definition"><content>“<term refersTo="#term-activities" eId="term-activities">activities</term>” includes buying, holding, managing and selling assets;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-regulated-insurer" eId="term-regulated-insurer">regulated insurer</term>”, in relation to a group, means a member of the group that—</intro><level class="para1"><num>(a)</num><content>is authorised under the law of any territory to carry on insurance business, or</content></level><level class="para1"><num>(b)</num><content>is a member of a body or organisation which is so authorised.</content></level></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-45-11"><num>(11)</num><intro>A company which is a member of a banking group ceases to be a member of a banking group when it ceases to be within sub-paragraph (2), but only if it ceases to be within that provision as a result of—</intro><level class="para1" eId="schedule-1-paragraph-45-11-a"><num>(a)</num><content>an arm's length transaction undertaken for wholly commercial purposes, or</content></level><level class="para1" eId="schedule-1-paragraph-45-11-b"><num>(b)</num><content>following a recommendation of a relevant regulatory body.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-12"><num>(12)</num><content>For the purposes of sub-paragraph (11) obtaining a tax advantage is not a commercial purpose.</content></subparagraph><subparagraph eId="schedule-1-paragraph-45-13"><num>(13)</num><intro>“<term refersTo="#term-tax-advantage" eId="term-tax-advantage">Tax advantage</term>” means—</intro><level class="para1" eId="schedule-1-paragraph-45-13-a"><num>(a)</num><content>a relief from tax or increased relief from tax (relief here including a tax credit),</content></level><level class="para1" eId="schedule-1-paragraph-45-13-b"><num>(b)</num><content>a repayment of tax or increased repayment of tax,</content></level><level class="para1" eId="schedule-1-paragraph-45-13-c"><num>(c)</num><content>the avoidance or reduction of a charge to tax or an assessment to tax (obtained in any way), or</content></level><level class="para1" eId="schedule-1-paragraph-45-13-d"><num>(d)</num><content>the avoidance of a possible assessment to tax (so obtained),</content></level><wrapUp>and, for this purpose, “<term refersTo="#term-tax" eId="term-tax">tax</term>” includes bank payroll tax and any other tax.</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-45-14"><num>(14)</num><intro>In sub-paragraph (11) “<term refersTo="#term-relevant-regulatory-body" eId="term-relevant-regulatory-body">relevant regulatory body</term>” means—</intro><level class="para1" eId="schedule-1-paragraph-45-14-a"><num><ins class="substitution first" ukl:ChangeId="key-5a774582ac70712a134266db2ac9f549-1502969797129" ukl:CommentaryRef="key-5a774582ac70712a134266db2ac9f549"><noteRef uk:name="commentary" href="#key-5a774582ac70712a134266db2ac9f549" class="commentary"/>(a)</ins></num><content><ins class="substitution" ukl:ChangeId="key-5a774582ac70712a134266db2ac9f549-1502969797129" ukl:CommentaryRef="key-5a774582ac70712a134266db2ac9f549">the Financial Conduct Authority,</ins></content></level><level class="para1" eId="schedule-1-paragraph-45-14-aa"><num><ins class="substitution" ukl:ChangeId="key-5a774582ac70712a134266db2ac9f549-1502969797129" ukl:CommentaryRef="key-5a774582ac70712a134266db2ac9f549">(aa)</ins></num><content><ins class="substitution last" ukl:ChangeId="key-5a774582ac70712a134266db2ac9f549-1502969797129" ukl:CommentaryRef="key-5a774582ac70712a134266db2ac9f549">the Prudential Regulation Authority, or</ins></content></level><level class="para1" eId="schedule-1-paragraph-45-14-b"><num>(b)</num><content>a body discharging functions under the law of a country or territory outside the United Kingdom corresponding to functions discharged by the <ins class="substitution first last" ukl:ChangeId="key-5274a9ac6b65ddbc5a35efd73132bebc-1502969919286" ukl:CommentaryRef="key-5274a9ac6b65ddbc5a35efd73132bebc"><noteRef uk:name="commentary" href="#key-5274a9ac6b65ddbc5a35efd73132bebc" class="commentary"/>Financial Conduct Authority or the Prudential Regulation Authority</ins>.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-45-15"><num>(15)</num><content>In this paragraph “<term refersTo="#term-dealing-on-own-account" eId="term-dealing-on-own-account">dealing on own account</term>” has the same meaning as in <ref eId="c00044" href="http://www.legislation.gov.uk/european/directive/2014/0065"><ins class="first" ukl:ChangeId="M_F_72919bd0-5b84-4091-bb6e-7cbcd858a894-1507040978627" ukl:CommentaryRef="M_F_72919bd0-5b84-4091-bb6e-7cbcd858a894"><noteRef uk:name="commentary" href="#M_F_72919bd0-5b84-4091-bb6e-7cbcd858a894" class="commentary"/>Directive 2014/65/EU</ins></ref><ins class="last" ukl:ChangeId="M_F_72919bd0-5b84-4091-bb6e-7cbcd858a894-1507040978627" ukl:CommentaryRef="M_F_72919bd0-5b84-4091-bb6e-7cbcd858a894"> of the European Parliament and of the Council of 15 May 2014</ins> on markets in financial instruments (see Article 4(1)(6)).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-3-crossheading-the-trading-income-of-the-group-for-the-relevant-period"><heading> “The trading income of the group” for the relevant period</heading><paragraph eId="schedule-1-paragraph-46" class="schProv1"><num>46</num><subparagraph eId="schedule-1-paragraph-46-1"><num>(1)</num><content>This paragraph applies for calculating the “trading income of the group” for the relevant period for the purposes of paragraph 45.</content></subparagraph><subparagraph eId="schedule-1-paragraph-46-2"><num>(2)</num><intro>The trading income for the group for the relevant period is the aggregate of—</intro><level class="para1" eId="schedule-1-paragraph-46-2-a"><num>(a)</num><content>the gross income calculated in accordance with sub-paragraph (3), and</content></level><level class="para1" eId="schedule-1-paragraph-46-2-b"><num>(b)</num><content>the net income calculated in accordance with sub-paragraph (4).</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-46-3"><num>(3)</num><intro>The income referred to in sub-paragraph (2)(a) is the gross income—</intro><level class="para1" eId="schedule-1-paragraph-46-3-a"><num>(a)</num><content>arising from the activities of the group (other than net-basis activities), and</content></level><level class="para1" eId="schedule-1-paragraph-46-3-b"><num>(b)</num><content>disclosed as such in the financial statements of the group,</content></level><wrapUp>without taking account of any deductions (whether for expenses or otherwise).</wrapUp></subparagraph><subparagraph eId="schedule-1-paragraph-46-4"><num>(4)</num><intro>The income referred to in sub-paragraph (2)(b) is the net income arising from the net-basis activities of the group that—</intro><level class="para1" eId="schedule-1-paragraph-46-4-a"><num>(a)</num><content>is accounted for as such under international accounting standards or in accordance with practice which is generally accepted accounting practice in the territory in which the principal company of the group is resident, or</content></level><level class="para1" eId="schedule-1-paragraph-46-4-b"><num>(b)</num><content>would be accounted for as such if income arising from such activities were accounted for under such standards or in accordance with such practice.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-46-5"><num>(5)</num><content>In this paragraph “<term refersTo="#term-net-basis-activities" eId="term-net-basis-activities">net-basis activities</term>” means activities normally reported on a net basis in financial statements prepared in accordance with such standards or practice.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-3-crossheading-investment-company-etc"><heading> “Investment company” <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-1-paragraph-47" class="schProv1"><num>47</num><subparagraph eId="schedule-1-paragraph-47-1"><num>(1)</num><intro>“Investment company”—</intro><level class="para1" eId="schedule-1-paragraph-47-1-a"><num>(a)</num><content>means a company whose business consists wholly or mainly of, and the principal part of whose income is derived from, the making of investments, and</content></level><level class="para1" eId="schedule-1-paragraph-47-1-b"><num>(b)</num><content>also includes any savings bank or other bank for savings.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-47-2"><num>(2)</num><content>“<term refersTo="#term-uk-resident-investment-company" eId="term-uk-resident-investment-company"><abbr class="acronym" title="United Kingdom">UK</abbr> resident investment company</term>” means an investment company which is resident in the United Kingdom.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-3-crossheading-financial-trading-company-etc"><heading> “Financial trading company” <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-1-paragraph-48" class="schProv1"><num>48</num><subparagraph eId="schedule-1-paragraph-48-1"><num>(1)</num><intro>“<term refersTo="#term-financial-trading-company" eId="term-financial-trading-company">Financial trading company</term>” means a company which—</intro><level class="para1" eId="schedule-1-paragraph-48-1-a"><num>(a)</num><content>is an authorised person for the purposes of <abbr class="acronym" title="Financial Services and Markets Act">FISMA</abbr> 2000 (see section 31 of that Act), or</content></level><level class="para1" eId="schedule-1-paragraph-48-1-b"><num>(b)</num><content>is not within paragraph (a) but carries on a trade consisting wholly or partly in dealing in securities.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-48-2"><num>(2)</num><content>“<term refersTo="#term-uk-resident-financial-trading-company" eId="term-uk-resident-financial-trading-company"><abbr class="acronym" title="United Kingdom">UK</abbr> resident financial trading company</term>” means a financial trading company which is resident in the United Kingdom.</content></subparagraph><subparagraph eId="schedule-1-paragraph-48-3"><num>(3)</num><content>“<term refersTo="#term-relevant-foreign-financial-trading-company" eId="term-relevant-foreign-financial-trading-company">Relevant foreign financial trading company</term>” means a company which meets conditions A and B.</content></subparagraph><subparagraph eId="schedule-1-paragraph-48-4"><num>(4)</num><intro>Condition A is that the company—</intro><level class="para1" eId="schedule-1-paragraph-48-4-a"><num>(a)</num><content>is not resident in the United Kingdom, and</content></level><level class="para1" eId="schedule-1-paragraph-48-4-b"><num>(b)</num><content>carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom.</content></level></subparagraph><subparagraph eId="schedule-1-paragraph-48-5"><num>(5)</num><content>Condition B is that, disregarding any activities of the company other than those carried on through that permanent establishment, the company is a financial trading company.</content></subparagraph><subparagraph eId="schedule-1-paragraph-48-6"><num>(6)</num><intro>In this paragraph “<term refersTo="#term-securities" eId="term-securities">securities</term>” includes—</intro><level class="para1" eId="schedule-1-paragraph-48-6-a"><num>(a)</num><content>shares,</content></level><level class="para1" eId="schedule-1-paragraph-48-6-b"><num>(b)</num><content>rights of unit holders in unit trust schemes to which <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 applies as a result of section 99 of that Act, and</content></level><level class="para1" eId="schedule-1-paragraph-48-6-c"><num>(c)</num><content>in the case of a company with no share capital, interests in the company possessed by members of the company.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-1-part-3-crossheading-other-interpretative-provisions"><heading>Other interpretative provisions</heading><paragraph eId="schedule-1-paragraph-49" class="schProv1"><num>49</num><subparagraph eId="schedule-1-paragraph-49-1"><num>(1)</num><intro>In this Schedule—</intro><hcontainer name="definition"><content>“<term refersTo="#term-arrangements" eId="term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-benefit" eId="term-benefit">benefit</term>” includes a facility of any kind;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-building-society" eId="term-building-society">building society</term>” means a building society within the meaning of the Building Societies Act 1986;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-commissioners" eId="term-the-commissioners">the Commissioners</term>” means the Commissioners of Her Majesty's Revenue and Customs;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-contract-of-insurance" eId="term-contract-of-insurance">contract of insurance</term>” has the meaning given by section 431(2) of <abbr class="acronym" title="Income and Corporation Taxes Act">ICTA</abbr>;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-control" eId="term-control">control</term>” has the meaning given by section 995 of ITA 2007;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-employment" eId="term-employment">employment</term>”, “<term refersTo="#term-employee" eId="term-employee">employee</term>” and “<term refersTo="#term-employer" eId="term-employer">employer</term>” have the same meaning as in the employment income Parts of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (see sections 4 and 5 of that Act);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-enactment" eId="term-enactment">enactment</term>” includes an enactment or instrument (whenever passed or made);</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-hmrc" eId="term-hmrc"><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr></term>” means Her Majesty's Revenue and Customs;</content></hcontainer><hcontainer name="definition"><content>“insurance company” and “insurance special purpose vehicle” have the meaning given by section 431(2) of <abbr class="acronym" title="Income and Corporation Taxes Act">ICTA</abbr>;</content></hcontainer><hcontainer name="definition"><content>“market value” has the same meaning it has for the purposes of <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 by virtue of Part 8 of that Act;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-moneys-worth" eId="term-moneys-worth">money's worth</term>” has the meaning given by section 62(3) of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-partnership" eId="term-partnership">partnership</term>” includes—</intro><level class="para1"><num>(a)</num><content>a limited liability partnership, and</content></level><level class="para1"><num>(b)</num><content>an entity established under the law of a territory outside the United Kingdom of a similar character to a partnership (and “<term refersTo="#term-member" eId="term-member">member</term>”, in relation to a partnership, is to be read accordingly);</content></level></hcontainer><hcontainer name="definition"><content>“period of account” and “permanent establishment” have the meaning given by section 1119 of CTA 2010;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-tax-year-2009-10" eId="term-the-tax-year-2009-10">the tax year 2009-10</term>” has the same meaning as in the Income Tax Acts (see section 989 of ITA 2007).</content></hcontainer></subparagraph><subparagraph eId="schedule-1-paragraph-49-2"><num>(2)</num><content>Section 170(2) to (11) of <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 (“group”, “principal company”, “effective 51% subsidiary”, “company” <abbr title="Et cetera" xml:lang="la">etc</abbr>) has effect for the interpretation of this Schedule as for the interpretation of sections 171 to 181 of that Act.</content></subparagraph><subparagraph eId="schedule-1-paragraph-49-3"><num>(3)</num><content>Section 993 of ITA 2007 (meaning of “connected” persons) applies for the purposes of this Schedule.</content></subparagraph><subparagraph eId="schedule-1-paragraph-49-4"><num>(4)</num><content>For the purposes of this Schedule the territory in which a company is resident is to be determined as for the purposes of the Corporation Tax Acts.</content></subparagraph></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-2"><num><noteRef href="#c2125360" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>SCHEDULE 2</num><hcontainer name="crossheading" class="schGroup7" eId="d25e8660"><heading/><paragraph eId="schedule-2-paragraph-1" class="schProv1"><num><noteRef href="#c2125360" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>1</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e8669"><heading/><paragraph eId="schedule-2-paragraph-2" class="schProv1"><num><noteRef href="#c2125360" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>2</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e8678"><heading><noteRef href="#c2125360" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/></heading><paragraph eId="schedule-2-paragraph-3" class="schProv1"><num>3</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e8687"><heading/><paragraph eId="schedule-2-paragraph-4" class="schProv1"><num><noteRef href="#c2125360" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>4</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e8696"><heading/><paragraph eId="schedule-2-paragraph-5" class="schProv1"><num><noteRef href="#c2125360" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>5</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-3"><num>SCHEDULE 3<authorialNote class="referenceNote">Section 24</authorialNote></num><heading>Sideways relief <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-amendments-of-chapter-2-of-part-4-of-ita-2007"><heading>Amendments of Chapter 2 of Part 4 of ITA 2007</heading><paragraph eId="schedule-3-paragraph-1" class="schProv1"><num>1</num><content>Chapter 2 of Part 4 of ITA 2007 (trade losses) is amended as follows.</content></paragraph><paragraph eId="schedule-3-paragraph-2" class="schProv1"><num>2</num><content><mod>In section 60(1)(c) (overview of Chapter), for “(see sections 75” substitute <quotedText>“ and capital gains relief (see sections 74ZA ”</quotedText>.</mod></content></paragraph><paragraph eId="schedule-3-paragraph-3" class="schProv1"><num>3</num><intro>In section 64(8) (deduction of losses from general income)—</intro><level class="para1" eId="schedule-3-paragraph-3-a"><num>(a)</num><content><mod>in paragraph (ba), for “74A” substitute <quotedText>“ 74ZA ”</quotedText>,</mod></content></level><level class="para1" eId="schedule-3-paragraph-3-b"><num>(b)</num><content><mod>at the end of paragraph (c), insert <quotedText>“ and ”</quotedText>, and</mod></content></level><level class="para1" eId="schedule-3-paragraph-3-c"><num>(c)</num><content>omit paragraph (e).</content></level></paragraph><paragraph eId="schedule-3-paragraph-4" class="schProv1"><num>4</num><intro>In section 72(5) (relief for individuals for losses in first 4 years of trade)—</intro><level class="para1" eId="schedule-3-paragraph-4-a"><num>(a)</num><content><mod>in paragraph (ba), for “74A” substitute <quotedText>“ 74ZA ”</quotedText>,</mod></content></level><level class="para1" eId="schedule-3-paragraph-4-b"><num>(b)</num><content><mod>at the end of paragraph (c), insert <quotedText>“ and ”</quotedText>, and</mod></content></level><level class="para1" eId="schedule-3-paragraph-4-c"><num>(c)</num><content>omit paragraph (e).</content></level></paragraph><paragraph eId="schedule-3-paragraph-5" class="schProv1"><num>5</num><content><mod>Before section 74A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><section><num>74ZA</num><heading>No relief for tax-generated losses</heading><subsection><num>(1)</num><intro>This section applies if—</intro><level class="para1"><num>(a)</num><content>during a tax year a person carries on (alone or in partnership) a trade, profession or vocation (“the relevant activity”),</content></level><level class="para1"><num>(b)</num><content>the person makes a loss in the relevant activity in that tax year, and</content></level><level class="para1"><num>(c)</num><content>the loss arises directly or indirectly in consequence of, or otherwise in connection with, relevant tax avoidance arrangements.</content></level></subsection><subsection><num>(2)</num><content>No sideways relief or capital gains relief may be given to the person for the loss (but subject to subsection (5)).</content></subsection><subsection><num>(3)</num><intro>In subsection (1) “<term refersTo="#term-relevant-tax-avoidance-arrangements">relevant tax avoidance arrangements</term>” means arrangements—</intro><level class="para1"><num>(a)</num><content>to which the person is a party, and</content></level><level class="para1"><num>(b)</num><content>the main purpose, or one of the main purposes, of which is the obtaining of a reduction in tax liability by means of sideways relief or capital gains relief.</content></level></subsection><subsection><num>(4)</num><content>In subsection (3) “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</content></subsection><subsection><num>(5)</num><content>This section has no effect in relation to any loss that derives wholly from qualifying film expenditure (see section 74D).</content></subsection><subsection><num>(6)</num><intro>For the purposes of this section—</intro><level class="para1"><num>(a)</num><content>capital gains relief is, in relation to a loss, the treatment of a loss as an allowable loss by virtue of section 261B of <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 (use of trading loss as a <abbr class="acronym" title="Captial Gains Tax">CGT</abbr> loss), and</content></level><level class="para1"><num>(b)</num><content>capital gains relief is given for a loss when it is so treated.</content></level></subsection></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-3-paragraph-6" class="schProv1"><num>6</num><content>Omit section 74B (no relief for tax-generated losses in case of non-active individuals carrying on trade).</content></paragraph><paragraph eId="schedule-3-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-3-paragraph-7-1"><num>(1)</num><content>Section 74C (meaning of “non-active capacity” for purposes of sections 74A and 74B <abbr title="Et cetera" xml:lang="la">etc</abbr>) is amended as follows.</content></subparagraph><subparagraph eId="schedule-3-paragraph-7-2"><num>(2)</num><content><mod>In subsection (1), for “sections 74A and 74B” substitute <quotedText>“ section 74A ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-3-paragraph-7-3"><num>(3)</num><content><mod>In the heading, for “sections 74A and 74B” substitute <quotedText>“ section 74A ”</quotedText>.</mod></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-3-paragraph-8-1"><num>(1)</num><content>Section 74D (meaning of “qualifying film expenditure” for purposes of sections 74A and 74B) is amended as follows.</content></subparagraph><subparagraph eId="schedule-3-paragraph-8-2"><num>(2)</num><content><mod>In subsections (1) and (4), for “74A and 74B” substitute <quotedText>“ 74ZA and 74A ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-3-paragraph-8-3"><num>(3)</num><content><mod>In the heading, for “74A and 74B” substitute <quotedText>“ 74ZA and 74A ”</quotedText>.</mod></content></subparagraph></paragraph><paragraph eId="schedule-3-paragraph-9" class="schProv1"><num>9</num><content>Omit section 81 (dealings in commodity futures).</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-other-amendments"><heading>Other amendments</heading><paragraph eId="schedule-3-paragraph-10" class="schProv1"><num>10</num><intro>In FA 2009, in Schedule 6, in paragraph 1(11)—</intro><level class="para1" eId="schedule-3-paragraph-10-a"><num>(a)</num><content><mod>in paragraph (b), for “74B” substitute <quotedText>“ 74ZA ”</quotedText>,</mod></content></level><level class="para1" eId="schedule-3-paragraph-10-b"><num>(b)</num><content><mod>at the end of paragraph (c), insert <quotedText>“ and ”</quotedText>, and</mod></content></level><level class="para1" eId="schedule-3-paragraph-10-c"><num>(c)</num><content>omit paragraph (e) (and the “and” before it).</content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-3-crossheading-commencement"><heading>Commencement</heading><paragraph eId="schedule-3-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-3-paragraph-11-1"><num>(1)</num><intro>The amendments made by this Schedule have effect in relation to a loss if it arises directly or indirectly in consequence of, or otherwise in connection with—</intro><level class="para1" eId="schedule-3-paragraph-11-1-a"><num>(a)</num><content>arrangements which are entered into on or after 21 October 2009, or</content></level><level class="para1" eId="schedule-3-paragraph-11-1-b"><num>(b)</num><content>any transaction forming part of arrangements which is entered into on or after that date.</content></level></subparagraph><subparagraph eId="schedule-3-paragraph-11-2"><num>(2)</num><content>But those amendments do not have effect where the arrangements are, or any such transaction is, entered into pursuant to an unconditional obligation in a contract made before that date.</content></subparagraph><subparagraph eId="schedule-3-paragraph-11-3"><num>(3)</num><content>“<term refersTo="#term-an-unconditional-obligation" eId="term-an-unconditional-obligation">An unconditional obligation</term>” means an obligation which may not be varied or extinguished by the exercise of a right (whether or not under the contract).</content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-4"><num>SCHEDULE 4<authorialNote class="referenceNote">Section 26</authorialNote></num><heading>Capital allowance buying</heading><paragraph eId="schedule-4-paragraph-1" class="schProv1"><num>1</num><content>Part 2 of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (plant and machinery allowances) is amended as follows.</content></paragraph><paragraph eId="schedule-4-paragraph-2" class="schProv1"><num>2</num><content><mod>After Chapter 16 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><chapter><num>Chapter 16A</num><heading>Avoidance involving allowance buying</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Introduction</heading><section><num>212A</num><heading>Scope of Chapter</heading><content>This Chapter provides for restrictions on the ways in which effect may be given to an allowance in certain circumstances where there has been a qualifying change in relation to a company (“C”).</content></section><section><num>212B</num><heading>Where Chapter applies</heading><subsection><num>(1)</num><intro>This Chapter applies where—</intro><level class="para1"><num>(a)</num><content>C carries on a trade (“the relevant trade”) (whether or not in partnership with another person or other persons),</content></level><level class="para1"><num>(b)</num><content>there is a qualifying change in relation to C on any day (“<term refersTo="#term-the-relevant-day">the relevant day</term>”),</content></level><level class="para1"><num>(c)</num><content>C, or (where the relevant trade is carried on in partnership) the partnership (“P”), has a relevant excess of allowances in relation to the relevant trade, and</content></level><level class="para1"><num>(d)</num><content>the qualifying change has an unallowable purpose.</content></level></subsection><subsection><num>(2)</num><content>Sections 212C to 212I specify when there is a qualifying change in relation to C on the relevant day.</content></subsection><subsection><num>(3)</num><content>Sections 212J to 212L specify when C or P has a relevant excess of allowances in relation to the relevant trade.</content></subsection><subsection><num>(4)</num><content>Section 212M specifies when the qualifying change has an unallowable purpose.</content></subsection><subsection><num>(5)</num><content>Sections 212N to 212S make provision about what happens when this Chapter applies.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Qualifying change</heading><section><num>212C</num><heading>When there is qualifying change in relation to C</heading><subsection><num>(1)</num><content>There is a qualifying change in relation to C on the relevant day if one or more of conditions A to D is met.</content></subsection><subsection><num>(2)</num><intro>Condition A is that—</intro><level class="para1"><num>(a)</num><content>the principal company or companies of C at the beginning of the relevant day is not, or are not, the same as at the end of that day, or</content></level><level class="para1"><num>(b)</num><content>there is no principal company of C at the beginning of the relevant day but there is one, or are more than one, at the end of the relevant day.</content></level></subsection><subsection><num>(3)</num><intro>Condition B is that—</intro><level class="para1"><num>(a)</num><content>any principal company of C is a consortium principal company (“CPC”), and</content></level><level class="para1"><num>(b)</num><content>CPC's ownership proportion at the end of the relevant day is more than at the beginning of the relevant day.</content></level></subsection><subsection><num>(4)</num><intro>Condition C is that on the relevant day—</intro><level class="para1"><num>(a)</num><content>C ceases to carry on the whole or part of the relevant trade, and</content></level><level class="para1"><num>(b)</num><content>it begins to be carried on in partnership by two or more companies,</content></level><wrapUp>in circumstances in which Chapter 1 of Part 22 of CTA 2010 (transfers of trade without change of ownership) applies in relation to the transfer of the relevant trade.</wrapUp></subsection><subsection><num>(5)</num><intro>Condition D is that—</intro><level class="para1"><num>(a)</num><content>the relevant trade is, at the beginning of the relevant day, carried on by C in partnership, and</content></level><level class="para1"><num>(b)</num><content>C's relevant percentage share in the relevant trade at the end of the relevant day is less than at the beginning of the relevant day (or is nil).</content></level></subsection></section><section><num>212D</num><heading>Guide to sections explaining section 212C</heading><subsection><num>(1)</num><intro>Section 212E explains—</intro><level class="para1"><num>(a)</num><content>what are principal companies of C, and</content></level><level class="para1"><num>(b)</num><content>which are consortium principal companies of C,</content></level><wrapUp>for the purposes of section 212C(2) and (3).</wrapUp></subsection><subsection><num>(2)</num><intro>Section 212F explains—</intro><level class="para1"><num>(a)</num><content>when a company is owned by a consortium, and</content></level><level class="para1"><num>(b)</num><content>who are the members of the consortium,</content></level><wrapUp>for the purposes of section 212E.</wrapUp></subsection><subsection><num>(3)</num><content>Section 212G explains the meaning of “<term refersTo="#term-qualifying-75-subsidiary">qualifying 75% subsidiary</term>” for the purposes of sections 212E and 212F.</content></subsection><subsection><num>(4)</num><content>Section 212H explains the meaning of “ownership proportion” in section 212C(3).</content></subsection><subsection><num>(5)</num><content>Section 212I explains the meaning of “relevant percentage share” in section 212C(5).</content></subsection></section><section><num>212E</num><heading>Principal companies</heading><subsection><num>(1)</num><intro>A company (“U”) is a principal company of C if—</intro><level class="para1"><num>(a)</num><content>C is a qualifying 75% subsidiary of U, and</content></level><level class="para1"><num>(b)</num><content>U is not a qualifying 75% subsidiary of another company.</content></level></subsection><subsection><num>(2)</num><intro>A company (“V”) is a principal company of C if—</intro><level class="para1"><num>(a)</num><content>C is a qualifying 75% subsidiary of U,</content></level><level class="para1"><num>(b)</num><content>U is a qualifying 75% subsidiary of V, and</content></level><level class="para1"><num>(c)</num><content>V is not a qualifying 75% subsidiary of another company.</content></level></subsection><subsection><num>(3)</num><content>If V is a qualifying 75% subsidiary of another company (“W”), W is a principal company of C unless W is a qualifying 75% subsidiary of another company, and so on.</content></subsection><subsection><num>(4)</num><intro>A company (“X”) is a principal company of C if—</intro><level class="para1"><num>(a)</num><content>C is owned by a consortium of which X is a member, or</content></level><level class="para1"><num>(b)</num><content>C is a qualifying 75% subsidiary of a company owned by a consortium of which X is a member,</content></level><wrapUp>and X is not a qualifying 75% subsidiary of another company.</wrapUp></subsection><subsection><num>(5)</num><intro>A company (“Y”) is a principal company of C if—</intro><level class="para1"><num>(a)</num><content>C is owned by a consortium of which X is a member, or</content></level><level class="para1"><num>(b)</num><content>C is a qualifying 75% subsidiary of a company owned by a consortium of which X is a member,</content></level><wrapUp>and X is a qualifying 75% subsidiary of Y but Y is not a qualifying 75% subsidiary of another company.</wrapUp></subsection><subsection><num>(6)</num><content>If Y is a qualifying 75% subsidiary of another company (“Z”), Z is a principal company of C unless Z is a qualifying 75% subsidiary of another company, and so on.</content></subsection><subsection><num>(7)</num><content>A company that is a principal company of C by virtue of any of subsections (4) to (6) is a consortium principal company of C.</content></subsection></section><section><num>212F</num><heading>When company is owned by consortium and consortium members</heading><subsection><num>(1)</num><content>This section defines what a company being owned by, or a member of, a consortium means for the purposes of section 212E.</content></subsection><subsection><num>(2)</num><intro>A company is owned by a consortium if—</intro><level class="para1"><num>(a)</num><content>it is not a qualifying 75% subsidiary of another company,</content></level><level class="para1"><num>(b)</num><content>at least 75% of its ordinary share capital is beneficially owned between them by other companies, and</content></level><level class="para1"><num>(c)</num><content>none of those other companies owns less than 5% of that capital.</content></level></subsection><subsection><num>(3)</num><content>Those other companies are the members of the consortium.</content></subsection></section><section><num>212G</num><heading>Qualifying 75% subsidiaries</heading><subsection><num>(1)</num><content>For the purposes of sections 212E and 212F a company (“the subsidiary company”) is a qualifying 75% subsidiary of another company (“the parent company”) if condition 1 or 2 is met and condition 3 is met.</content></subsection><subsection><num>(2)</num><intro>Condition 1 is that—</intro><level class="para1"><num>(a)</num><content>the subsidiary company has ordinary share capital, and</content></level><level class="para1"><num>(b)</num><content>the subsidiary company is a 75% subsidiary of the parent company (see section 1154(3) of CTA 2010).</content></level></subsection><subsection><num>(3)</num><intro>Condition 2 is that—</intro><level class="para1"><num>(a)</num><content>the subsidiary company does not have ordinary share capital, and</content></level><level class="para1"><num>(b)</num><content>the parent company has control of the subsidiary company.</content></level></subsection><subsection><num>(4)</num><intro>Condition 3 is that the parent company—</intro><level class="para1"><num>(a)</num><content>is beneficially entitled to at least 75% of any profits available for distribution to equity holders of the subsidiary company, and</content></level><level class="para1"><num>(b)</num><content>would be beneficially entitled to at least 75% of any assets of the subsidiary company available for distribution to its equity holders on a winding-up.</content></level></subsection><subsection><num>(5)</num><content>Chapter 6 of Part 5 of CTA 2010 (equity holders and profits or assets available for distribution) applies for the purposes of subsection (4) as that Chapter applies for the purposes of section 151(4)(a) and (b) of that Act (meaning of “75% subsidiary”).</content></subsection><subsection><num>(6)</num><content>But in a case where the subsidiary company does not have ordinary share capital, Chapter 6 of Part 5 of that Act applies for those purposes as if the members of that company were equity holders of that company for the purposes of that Chapter.</content></subsection></section><section><num>212H</num><heading>Ownership proportion</heading><subsection><num>(1)</num><intro>For the purposes of section 212C(3) CPC's “ownership proportion” is the lowest of—</intro><level class="para1"><num>(a)</num><content>the percentage of the ordinary share capital of C that is beneficially owned by CPC,</content></level><level class="para1"><num>(b)</num><content>the percentage to which CPC is beneficially entitled of any profits available for distribution to equity holders of C, and</content></level><level class="para1"><num>(c)</num><content>the percentage to which CPC would be beneficially entitled of any assets of C available for distribution to its equity holders on a winding-up.</content></level></subsection><subsection><num>(2)</num><content>Chapter 6 of Part 5 of CTA 2010 applies for the purposes of subsection (1) as that Chapter applies for the purposes of section 143(3)(b) and (c) (condition 1: surrendering company owned by consortium) and section 144(3)(b) and (c) (condition 1: claimant company owned by consortium) of that Act.</content></subsection><subsection><num>(3)</num><content>But in a case where the subsidiary company does not have ordinary share capital, Chapter 6 of Part 5 of that Act applies for those purposes as if the members of that company were equity holders of that company for the purposes of that Chapter.</content></subsection></section><section><num>212I</num><heading>Relevant percentage share</heading><subsection><num>(1)</num><content>For the purposes of section 212C(5) C's “relevant percentage share” is C's percentage share in the profits or losses of the trade.</content></subsection><subsection><num>(2)</num><content>For this purpose C's percentage share in the profits or losses of a trade at any time is determined on a just and reasonable basis.</content></subsection><subsection><num>(3)</num><content>In making that determination regard must be had, in particular, to any matter that would be taken into account in determining under section 1262 of CTA 2009 (but without regard to sections 1263 and 1264 of that Act) the company's share at that time in the profits or losses of the trade.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Relevant excess of allowances</heading><section><num>212J</num><heading>Relevant excess of allowances</heading><subsection><num>(1)</num><content>C or P has a relevant excess of allowances in relation to the relevant trade if—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_sld_001"><default:mi>R</default:mi><default:mi>T</default:mi><default:mi>W</default:mi><default:mi>D</default:mi><default:mi>V</default:mi><default:mo>></default:mo><default:mrow><default:mi>B</default:mi><default:mi>S</default:mi><default:mi>V</default:mi></default:mrow></default:math></foreign></tblock></content></subsection><subsection><num>(2)</num><content>Section 212K defines RTWDV and section 212L defines <abbr class="acronym" title="British Standard">BS</abbr><abbr class="acronym" title="5">V.</abbr></content></subsection><subsection><num>(3)</num><content>References in this Chapter to plant and machinery do not include excluded plant and machinery.</content></subsection><subsection><num>(4)</num><intro>Plant and machinery is “excluded plant and machinery” if—</intro><level class="para1"><num>(a)</num><content>expenditure incurred on the provision of it is not, as a result of section 34A, qualifying expenditure for the purposes of this Part, or</content></level><level class="para1"><num>(b)</num><content>it is, as a result of section 67, treated for the purposes of this Part as owned otherwise than by C or P.</content></level></subsection></section><section><num>212K</num><heading>Relevant tax written-down value</heading><subsection><num>(1)</num><content>RTWDV is the relevant tax written-down value and is to be found by adding together amounts 1 and 2.</content></subsection><subsection><num>(2)</num><intro>Amount 1 is the total amount of any unrelieved qualifying expenditure in respect of plant and machinery contained in—</intro><level class="para1"><num>(a)</num><content>single asset pools,</content></level><level class="para1"><num>(b)</num><content>class pools, or</content></level><level class="para1"><num>(c)</num><content>the main pool,</content></level><wrapUp>which is available to be carried forward (in accordance with section 59) from the old period and used in calculating the profits of the relevant trade.</wrapUp></subsection><subsection><num>(3)</num><content>Amount 2 is the total of any qualifying expenditure incurred on the provision of a ship for the purposes of the relevant trade which, at the end of the old period, is unrelieved by virtue of notice having been given under section 130.</content></subsection><subsection><num>(4)</num><intro>For the purposes of this Part the amount of unrelieved qualifying expenditure contained in any pool which is available to be carried forward (in accordance with section 59) from the old period and used in calculating the profits of the relevant trade is to be calculated on the assumptions—</intro><level class="para1"><num>(a)</num><content>that any qualifying expenditure that could have been (but was not) allocated to the pool before the end of the old period had been so allocated at the end of the old period,</content></level><level class="para1"><num>(b)</num><content>that any qualifying expenditure prevented from being allocated to the pool by section 58(5) had been so allocated at the end of the old period, and</content></level><level class="para1"><num>(c)</num><content>that any transaction taking place on the relevant day that has the effect of reducing the amount of unrelieved qualifying expenditure in the pool had not taken place.</content></level></subsection><subsection><num>(5)</num><intro>Where condition C in section 212C is met—</intro><level class="para1"><num>(a)</num><content>references in subsection (2) to any unrelieved qualifying expenditure in respect of plant and machinery contained in a pool which is available to be carried forward (in accordance with section 59) from the old period and used in calculating the profits of the relevant trade, and</content></level><level class="para1"><num>(b)</num><content>the reference in subsection (3) to any qualifying expenditure incurred on the provision of a ship for the purposes of the relevant trade which, at the end of the old period, is unrelieved by virtue of notice having been given under section 130,</content></level><wrapUp>are to what it would have been but for the qualifying change.</wrapUp></subsection><subsection><num>(6)</num><content>In this section “<term refersTo="#term-the-old-period">the old period</term>” means the period which is the old period for the purposes of section 212O (or would be if this Chapter applied): see section 212N(3).</content></subsection><subsection><num>(7)</num><content>The plant and machinery in respect of which there is unrelieved qualifying expenditure such as is mentioned in subsection (2), or qualifying expenditure such as is mentioned in subsection (3), is referred to in the following provisions as “the relevant plant and machinery”.</content></subsection></section><section><num>212L</num><heading>Balance sheet value</heading><subsection><num>(1)</num><content>BSV is the balance sheet value of the relevant plant and machinery and is to be found by adding together the amounts (if any) which would be shown in respect of it in the appropriate balance sheet of C or P.</content></subsection><subsection><num>(2)</num><intro>For this purpose the amounts shown in the appropriate balance sheet in respect of the relevant plant or machinery are—</intro><level class="para1"><num>(a)</num><content>the amounts shown in that balance sheet as the net book value (or carrying amount) in respect of it, and</content></level><level class="para1"><num>(b)</num><content>the amounts shown in that balance sheet as the net investment in respect of finance leases of it.</content></level></subsection><subsection><num>(3)</num><intro>If—</intro><level class="para1"><num>(a)</num><content>any of the relevant plant or machinery is a fixture in any land, and</content></level><level class="para1"><num>(b)</num><content>the amount which falls (or would fall) to be shown in the appropriate balance sheet as the net book value (or carrying amount) of the land would include an amount in respect of the fixture,</content></level><wrapUp>the amount of the net book value (or carrying amount) in respect of the fixture is determined on a just and reasonable basis.</wrapUp></subsection><subsection><num>(4)</num><intro>If—</intro><level class="para1"><num>(a)</num><content>any of the relevant plant or machinery is subject to a finance lease, and</content></level><level class="para1"><num>(b)</num><content>any land or asset which is not plant or machinery is subject to that lease,</content></level><wrapUp>the amount of the net investment in respect of the finance lease of that plant or machinery is determined on a just and reasonable basis.</wrapUp></subsection><subsection><num>(5)</num><content>In this section any reference to any amount shown in the appropriate balance sheet of C or P is the amount which, assuming that a balance sheet of C or P were drawn up in accordance with subsection (6), would fall to be shown in that balance sheet.</content></subsection><subsection><num>(6)</num><content>A balance sheet is drawn up in accordance with this subsection if it is drawn up in accordance with generally accepted accounting practice so as to reflect the position as at the beginning of the relevant day but adjusted to reflect the disposal of any of the relevant plant or machinery which is disposed of on the relevant day.</content></subsection><subsection><num>(7)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-finance-lease">finance lease</term>” means a lease which, in accordance with generally accepted accounting practice, falls (or would fall) to be treated as a finance lease or loan in accounts of C or P;</content></hcontainer><hcontainer name="definition"><intro>“fixture”—</intro><level class="para1"><num>(a)</num><content>means any plant or machinery that is so installed or otherwise fixed in or to a building or other description of land as to become, in law, part of that building or other land, and</content></level><level class="para1"><num>(b)</num><content>includes any boiler or water-filled radiator installed in a building as part of a space or water heating system.</content></level></hcontainer></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Unallowable purpose</heading><section><num>212M</num><heading>Unallowable purpose</heading><subsection><num>(1)</num><content>The qualifying change has an unallowable purpose if the main purpose, or one of the main purposes, of change arrangements is to obtain a relevant tax advantage (for any person).</content></subsection><subsection><num>(2)</num><content>“<term refersTo="#term-change-arrangements">Change arrangements</term>” means any arrangements made to bring about, or otherwise connected with, the qualifying change; and “<term refersTo="#term-arrangements">arrangements</term>” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).</content></subsection><subsection><num>(3)</num><content>“<term refersTo="#term-obtain-a-relevant-tax-advantage">Obtain a relevant tax advantage</term>” means become entitled to a reduction in profits, or an increase in losses, for the purposes of corporation tax in consequence of a claim to allowances in respect of qualifying expenditure in respect of the relevant plant and machinery or qualifying expenditure within section 212K(3).</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>What happens when Chapter applies</heading><section><num>212N</num><heading>Old and new accounting periods</heading><subsection><num>(1)</num><content>The accounting period of C which is current on the relevant day ends with that day and a new accounting period of C begins with the following day (but subject to subsection (2)).</content></subsection><subsection><num>(2)</num><intro>In a case in which condition A, B or D in section 212C is met and the relevant trade was, at the beginning of the relevant day, carried on by C in partnership with another company or other companies subsection (1) does not apply but—</intro><level class="para1"><num>(a)</num><content>the period which, for the purposes of Part 17 of CTA 2009, is the accounting period of the partnership current on the relevant day ends with that day, and</content></level><level class="para1"><num>(b)</num><intro>there begins with the following day a new accounting period—</intro><level class="para2"><num>(i)</num><content>of the partnership, or</content></level><level class="para2"><num>(ii)</num><content>where condition D is met and C's relevant percentage share in the relevant trade is nil after the qualifying change, of the company or partnership by which the relevant trade is carried on after the relevant change.</content></level></level></subsection><subsection><num>(3)</num><content>For the purposes of section 212O “<term refersTo="#term-the-old-period">the old period</term>” means the accounting period of C or the partnership in which C carries on the relevant trade which ends with the relevant day.</content></subsection><subsection><num>(4)</num><intro>For the purposes of section 212P “<term refersTo="#term-the-new-period">the new period</term>” means the accounting period—</intro><level class="para1"><num>(a)</num><content>of C or that partnership, or</content></level><level class="para1"><num>(b)</num><content>where condition D is met and C's relevant percentage share in the relevant trade is nil after the qualifying change, of the company or partnership by which the relevant trade is carried on after the relevant change,</content></level><wrapUp>which begins with the following day.</wrapUp></subsection></section><section><num>212O</num><heading>When there is excess of allowances in pool: amount of excess</heading><subsection><num>(1)</num><content>Section 212P has effect where C or P has an excess of allowances in any single asset pool, any class pool or the main pool at the end of the old period; and a pool in the case of which there is an excess of allowances is referred to in this section and section 212P as a “relevant pool”.</content></subsection><subsection><num>(2)</num><content>For the purposes of this section C or P has an excess of allowances in a pool if—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_sld_002"><default:mi>P</default:mi><default:mi>A</default:mi><default:mo>></default:mo><default:mrow><default:mi>B</default:mi><default:mi>S</default:mi><default:mi>V</default:mi><default:mi>P</default:mi></default:mrow></default:math></foreign></tblock></content></subsection><subsection><num>(3)</num><content>In this section and section 212Q—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>PA, in relation to a pool, is the amount specified in section 212K(2) in relation to the pool, and</item><item>BSVP, in relation to a pool, is so much of BSV as, on a just and reasonable apportionment, it is appropriate to attribute to the pool.</item></blockList></content></subsection><subsection><num>(4)</num><content>For the purposes of section 212P the amount of the excess of allowances in relation to any relevant pool (“the relevant pool in question”) is the difference between PA and BSVP.</content></subsection><subsection><num>(5)</num><content>But if, in relation to any other pool—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_sld_003"><default:mi>B</default:mi><default:mi>S</default:mi><default:mi>V</default:mi><default:mi>P</default:mi><default:mo>></default:mo><default:mrow><default:mi>P</default:mi><default:mi>A</default:mi></default:mrow></default:math></foreign></tblock>what would otherwise be the amount of the excess of allowances in relation to the relevant pool in question for the purposes of section 212P is reduced by so much of the difference between BSVP and PA as is not taken into account under this subsection in relation to another relevant pool or under section 212Q(8).</content></subsection></section><section><num>212P</num><heading>Effect of excess of allowances on pools</heading><subsection><num>(1)</num><content>The unrelieved qualifying expenditure in each relevant pool is to be taken to be reduced at the beginning of the new period by the amount of the excess of allowances in relation to the pool.</content></subsection><subsection><num>(2)</num><content>The amount of the excess of allowances is to be treated from the beginning of the new period as if it were qualifying expenditure in a new pool of the same description as the relevant pool (and so subject to the same provisions of this Part, other than this Chapter).</content></subsection><subsection><num>(3)</num><content>Where, following the qualifying change, a person ceases to carry on a trade (or part of a trade) and C begins to carry on (whether or not in partnership) the activities of that trade (or part of a trade) as part of its trade, for the purposes of claiming any allowance in respect of qualifying expenditure in the new pool the carrying on of those activities by C is to be regarded as the carrying on of a separate trade.</content></subsection><subsection><num>(4)</num><content>A loss attributable to an allowance claimed in respect of qualifying expenditure in the new pool may not be set off under section 37 of CTA 2010 (trade loss relief against total profits of same or earlier accounting period) otherwise than against the profits of a qualifying activity carried on by C, or any company that is a member of P, at the beginning of the relevant day.</content></subsection><subsection><num>(5)</num><content>And the amount of such a loss which may be so set off by any person is not to exceed the amount of the loss which would have been available for such set off by the person but for the qualifying change.</content></subsection><subsection><num>(6)</num><content>A loss attributable to an allowance claimed in respect of qualifying expenditure in the new pool may not be set off by way of group relief in accordance with Part 5 of CTA 2010 (surrender of losses by way of group relief) by a company (“the claimant company”) unless it would have been available for such set off but for the qualifying change.</content></subsection><subsection><num>(7)</num><content>And the amount of such a loss which is available for such set off by the claimant company is not to exceed the amount of the loss which would have been available for such set off by the claimant company but for the qualifying change.</content></subsection><subsection><num>(8)</num><content>Where any activity not carried on by C, or a company that is a member of P, at the beginning of the relevant day would otherwise be regarded for the purposes of corporation tax as forming part of a qualifying activity carried on by C or the member of P at that time it is not to be so regarded for the purposes of subsection (4).</content></subsection><subsection><num>(9)</num><content>In a case in which condition C in section 212C is met, the references in subsections (1) and (2) to the beginning of the new period are to the time of the qualifying change (and section 948 of CTA 2010 has effect subject to this section).</content></subsection></section><section><num>212Q</num><heading>When there are postponed capital allowances</heading><subsection><num>(1)</num><content>This section has effect where C or P has relevant postponed capital allowances.</content></subsection><subsection><num>(2)</num><content>C or P has relevant postponed capital allowances if amount 2 in section 212K(3) is an amount other than nil.</content></subsection><subsection><num>(3)</num><content>Where, following the qualifying change, a person ceases to carry on a trade (or part of a trade) and C begins to carry on (whether or not in partnership) the activities of that trade (or part of a trade) as part of its trade, for the purposes of claiming any allowance in respect of qualifying expenditure such as is mentioned in section 212K(3) the carrying on of those activities by C is to be regarded as the carrying on of a separate trade.</content></subsection><subsection><num>(4)</num><content>A loss attributable to an allowance claimed in respect of qualifying expenditure such as is mentioned in section 212K(3) may not be set off under section 37 of CTA 2010 otherwise than against the profits of a qualifying activity carried on by C, or any company that is a member of P, at the beginning of the relevant day.</content></subsection><subsection><num>(5)</num><content>And the amount of such a loss which may be so set off by any person is not to exceed the amount of the loss which would have been available for such set off by the person but for the qualifying change.</content></subsection><subsection><num>(6)</num><content>A loss attributable to an allowance claimed in respect of qualifying expenditure such as is mentioned in section 212K(3) may not be set off by way of group relief in accordance with Part 5 of CTA 2010 by a company (“the claimant company”) unless it would have been available for such set off but for the qualifying change.</content></subsection><subsection><num>(7)</num><content>And the amount of such a loss which is available for such set off by the claimant company is not to exceed the amount of the loss which would have been available for such set off by the claimant company but for the qualifying change.</content></subsection><subsection><num>(8)</num><content>If, in relation to any pool—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_sld_004"><default:mi>B</default:mi><default:mi>S</default:mi><default:mi>V</default:mi><default:mi>P</default:mi><default:mo>></default:mo><default:mrow><default:mi>P</default:mi><default:mi>A</default:mi></default:mrow></default:math></foreign></tblock>what would otherwise be the amount of qualifying expenditure such as is mentioned in section 212K(3) is to be treated for the purposes of this section as reduced by so much of the difference between BSVP and PA in relation to the pool as is not taken into account under section 212O(5) in relation to a relevant pool.</content></subsection><subsection><num>(9)</num><content>Where any activity not carried on by C, or a company that is a member of P, at the beginning of the relevant day would otherwise be regarded for the purposes of corporation tax as forming part of a qualifying activity carried on by C or the member of P at that time it is not to be so regarded for the purposes of subsection (4).</content></subsection></section><section><num>212R</num><heading>Apportionment of proceeds of disposal of relevant plant and machinery</heading><content>Any amount required to be brought into account in connection with a disposal event in respect of any relevant plant and machinery is to be apportioned between the new pool and the relevant pool concerned on a just and reasonable basis.</content></section><section><num>212S</num><heading>Transactions on relevant day</heading><subsection><num>(1)</num><content>This section applies if any plant and machinery is transferred on the relevant day and (apart from subsection (4)(c) of section 212K) the transfer would have the effect of reducing RTWDV (as determined in accordance with that section).</content></subsection><subsection><num>(2)</num><content>No person other than C or P is entitled to claim an allowance in respect of the plant or machinery after the transfer.</content></subsection></section></hcontainer></chapter></quotedStructure></mod></content></paragraph><paragraph eId="schedule-4-paragraph-3" class="schProv1"><num>3</num><content><mod>For the heading of Chapter 17 substitute <quotedText>“ O<inline name="smallCaps">ther anti-avoidance</inline> ”</quotedText>.</mod></content></paragraph><paragraph eId="schedule-4-paragraph-4" class="schProv1"><num>4</num><content><mod>Section 247 (giving effect to allowances and charges: trades) is renumbered as subsection (1) of that section; and after that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content>See Chapter 16A for provision restricting in certain circumstances the ways in which effect may be given to an allowance by virtue of subsection (1)(a).</content></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-4-paragraph-5" class="schProv1"><num>5</num><content>The amendments made by this Schedule have effect where the relevant day is on or after 21 July 2009.</content></paragraph><paragraph eId="schedule-4-paragraph-6" class="schProv1"><num>6</num><intro>But in relation to cases where the relevant day is before 9 December 2009 the amendment made by paragraph 2 has effect—</intro><level class="para1" eId="schedule-4-paragraph-6-a"><num>(a)</num><content>with the omission of section 212C(2)(b),</content></level><level class="para1" eId="schedule-4-paragraph-6-b"><num>(b)</num><content><mod>as if in section 212K(1) “which is amount 1” were substituted for <quotedText>“ and is to be found by adding together amounts 1 and 2 ”</quotedText>,</mod></content></level><level class="para1" eId="schedule-4-paragraph-6-c"><num>(c)</num><content>with the omission of section 212K(3) and (4)(c),</content></level><level class="para1" eId="schedule-4-paragraph-6-d"><num>(d)</num><content>with the omission from section 212O(5) of the words “or under section 212Q(8)”,</content></level><level class="para1" eId="schedule-4-paragraph-6-e"><num>(e)</num><content>with the omission of section 212Q, and</content></level><level class="para1" eId="schedule-4-paragraph-6-f"><num>(f)</num><content>with the omission of section 212S.</content></level></paragraph></hcontainer><hcontainer name="schedule" eId="schedule-5"><num>SCHEDULE 5</num><heading>Leased assets</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-restriction-of-qualifying-expenditure"><heading>Restriction of qualifying expenditure</heading><paragraph eId="schedule-5-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-5-paragraph-1-1"><num>(1)</num><content><mod>In Chapter 17 of Part 2 of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (plant and machinery: anti-avoidance), after section 228M insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>228MA</num><heading>Restriction of qualifying expenditure</heading><subsection><num>(1)</num><intro>This section applies where capital expenditure is incurred on the provision of plant or machinery (“<term refersTo="#term-the-asset">the asset</term>”) and at the time the expenditure is incurred—</intro><level class="para1"><num>(a)</num><content>the asset is leased or arrangements exist under which it is to be leased, and</content></level><level class="para1"><num>(b)</num><content>arrangements have been entered into in relation to payments under the lease that have the effect of reducing the value of the asset to the lessor (“V”).</content></level></subsection><subsection><num>(2)</num><content>For the purposes of capital allowances the lessor's qualifying expenditure on the asset is restricted to <abbr class="acronym" title="5">V.</abbr></content></subsection><subsection><num>(3)</num><content>The value of the asset to the lessor is given by—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_sld_005"><default:mrow><default:mi>V</default:mi><default:mo>=</default:mo><default:mi>VI</default:mi><default:mo>+</default:mo><default:mi>VR</default:mi></default:mrow></default:math></foreign><blockContainer class="where">where—<blockContainer ukl:Name="BlockText"><abbr class="acronym" title="6">VI</abbr> is the present value of the lessor's income from the asset, and</blockContainer><blockContainer ukl:Name="BlockText">VR is the present value of the residual value of the asset reduced by the amount of any rental rebate.</blockContainer></blockContainer></tblock></content></subsection><subsection><num>(4)</num><intro>For this purpose—</intro><level class="para1"><num>(a)</num><intro>the lessor's income from the asset is the total of all the amounts that—</intro><level class="para2"><num>(i)</num><content>have been received by the lessor, or it is reasonable to expect the lessor will receive, in connection with the lease, and</content></level><level class="para2"><num>(ii)</num><content>have been brought into account by the lessor, or it is reasonable to expect the lessor will bring into account, as income in computing profits chargeable to tax, and</content></level></level><level class="para1"><num>(b)</num><content>the residual value of the asset is what it is reasonable to expect will be the market value of the lessor's interest in the asset immediately after the termination of the lease.</content></level></subsection><subsection><num>(5)</num><intro>In determining the lessor's income from the asset, exclude—</intro><level class="para1"><num>(a)</num><content>disposal receipts brought, or to be brought, into account under Part 2, and</content></level><level class="para1"><num>(b)</num><content>so much of any amount as represents charges for services or qualifying <abbr class="acronym" title="United Kingdom">UK</abbr> or foreign tax (within the meaning of section 70YE) to be paid by the lessor.</content></level></subsection><subsection><num>(6)</num><content>Where capital expenditure has previously been incurred by the lessor on the provision of the asset, the reference in subsection (2) to the lessor's qualifying expenditure on the asset is to be read as a reference to the total amount of the lessor's qualifying expenditure on the asset.</content></subsection><subsection><num>(7)</num><intro>The following provisions supplement this section—</intro><level class="para1"><num>(a)</num><content>section 228MB provides for the calculation of “present value”, and</content></level><level class="para1"><num>(b)</num><content>section 228MC defines what is meant by a rental rebate.</content></level></subsection><subsection><num>(8)</num><content>In this section and sections 228MB and 228MC “<term refersTo="#term-lease">lease</term>” includes any arrangements which provide for plant or machinery to be leased or otherwise made available by a person (“the lessor”) to another person (“<term refersTo="#term-the-lessee">the lessee</term>”).</content></subsection></section><section><num>228MB</num><heading>Calculation of present value</heading><subsection><num>(1)</num><content>For the purposes of section 228MA the “present value” of an amount is to be calculated by using the interest rate implicit in the lease.</content></subsection><subsection><num>(2)</num><content>The general rule is that the interest rate implicit in the lease is the interest rate that would apply in accordance with normal commercial criteria, including, in particular, generally accepted accounting practice (where applicable).</content></subsection><subsection><num>(3)</num><content>If the interest rate implicit in the lease cannot be determined in accordance with subsection (2), it is taken to be 1% above LIBOR.</content></subsection><subsection><num>(4)</num><intro>For this purpose—</intro><level class="para1"><num>(a)</num><content>LIBOR means the London interbank offered rate on the relevant day for deposits for a term of 12 months in the relevant currency,</content></level><level class="para1"><num>(b)</num><content>the relevant day is the day on which the lease was entered into (or if that was not a business day, the first business day after that day), and</content></level><level class="para1"><num>(c)</num><content>the relevant currency is the currency in which rentals under the lease are payable.</content></level></subsection></section><section><num>228MC</num><heading>Rental rebate</heading><subsection><num>(1)</num><content>For the purposes of section 228MA “<term refersTo="#term-rental-rebate">rental rebate</term>” means any sum payable to the lessee that is calculated by reference to the termination value of the asset.</content></subsection><subsection><num>(2)</num><content>The general rule is that the termination value of an asset is the value of the asset at or about the time when the lease terminates.</content></subsection><subsection><num>(3)</num><intro>Calculation by reference to the termination value includes calculation by reference to any one or more of—</intro><level class="para1"><num>(a)</num><content>the proceeds of sale, if the asset is sold,</content></level><level class="para1"><num>(b)</num><content>any insurance proceeds, compensation or similar sums in respect of the asset, and</content></level><level class="para1"><num>(c)</num><content>an estimate of the market value of the asset.</content></level></subsection><subsection><num>(4)</num><intro>Calculation by reference to the termination value also includes—</intro><level class="para1"><num>(a)</num><content>determination in a way which, or by reference to factors or criteria which, might reasonably be expected to produce a broadly similar result to calculation by reference to the termination value, or</content></level><level class="para1"><num>(b)</num><content>any other form of calculation indirectly by reference to the termination value.</content></level></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-5-paragraph-1-2"><num>(2)</num><content>The amendment made by sub-paragraph (1) has effect in relation to capital expenditure incurred on or after 9 December 2009.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-restriction-of-deduction-for-rental-rebate"><heading>Restriction of deduction for rental rebate</heading><paragraph eId="schedule-5-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-5-paragraph-2-1"><num>(1)</num><content><mod>In Chapter 4 of Part 2 of <abbr class="acronym" title="Income Tax (Trading and Other Income) Act">ITTOIA</abbr> 2005 (trading income: rules restricting deductions), after section 55A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Rental rebates</heading><section><num>55B</num><heading>Rental rebates</heading><subsection><num>(1)</num><intro>Where plant or machinery (“<term refersTo="#term-the-asset">the asset</term>”) is leased and a rental rebate is payable by the lessor, the amount of the deduction allowable in respect of the rebate is limited to—</intro><level class="para1"><num>(a)</num><content>the amount of the lessor's income from the lease, or</content></level><level class="para1"><num>(b)</num><content>in the case of a finance lease, that amount excluding the finance charge.</content></level></subsection><subsection><num>(2)</num><content>“<term refersTo="#term-rental-rebate">Rental rebate</term>” means any sum payable to the lessee that is calculated by reference to the termination value of the asset.</content></subsection><subsection><num>(3)</num><intro>For this purpose—</intro><level class="para1"><num>(a)</num><content>the termination value of an asset is the value of the asset at or about the time when the lease terminates,</content></level><level class="para1"><num>(b)</num><intro>calculation by reference to the termination value includes calculation by reference to any one or more of—</intro><level class="para2"><num>(i)</num><content>the proceeds of sale, if the asset is sold,</content></level><level class="para2"><num>(ii)</num><content>any insurance proceeds, compensation or similar sums in respect of the asset,</content></level><level class="para2"><num>(iii)</num><content>an estimate of the market value of the asset, and</content></level></level><level class="para1"><num>(c)</num><intro>calculation by reference to the termination value also includes—</intro><level class="para2"><num>(i)</num><content>determination in a way which, or by reference to factors or criteria which, might reasonably be expected to produce a broadly similar result to calculation by reference to the termination value, or</content></level><level class="para2"><num>(ii)</num><content>any other form of calculation indirectly by reference to the termination value.</content></level></level></subsection><subsection><num>(4)</num><intro>For the purposes of this section—</intro><level class="para1"><num>(a)</num><intro>the income of the lessor from the lease is the total of all the amounts receivable in connection with the lease that have been brought into account in calculating the lessor's income for income tax purposes, excluding—</intro><level class="para2"><num>(i)</num><content>disposal receipts brought into account under Part 2 of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (see section 60(1) of that Act), and</content></level><level class="para2"><num>(ii)</num><content>so much of any amount as represents charges for services or qualifying <abbr class="acronym" title="United Kingdom">UK</abbr> or foreign tax (within the meaning of section 70YE of that Act) to be paid by the lessor, and</content></level></level><level class="para1"><num>(b)</num><intro>the finance charge, in relation to a finance lease, is—</intro><level class="para2"><num>(i)</num><content>if the lease is one that, under generally accepted accounting practice, falls (or would fall) to be treated as a loan, so much of the rentals under the lease as fall (or would fall) to be treated as interest, or</content></level><level class="para2"><num>(ii)</num><content>in any other case, the amount that, in accordance with generally accepted accounting practice, falls (or would fall) to be treated as the gross return on investment.</content></level></level></subsection><subsection><num>(5)</num><content>Where the asset is acquired by the lessor in a transaction in relation to which an election is made under section 266 of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (election where predecessor and successor are connected persons), this section applies as if the successor had been the lessor at all material times and everything done to or by the predecessor had been done to or by the successor.</content></subsection><subsection><num>(6)</num><intro>Where the whole or part of a rental rebate is disallowed under this section as a deduction in computing profits—</intro><level class="para1"><num>(a)</num><content>the amount disallowed, or</content></level><level class="para1"><num>(b)</num><content>if less, the amount by which the rental rebate exceeds the amount of capital expenditure incurred by the lessor,</content></level><wrapUp>may be treated for the purposes of capital gains tax as an allowable loss accruing to the lessor on the termination of the lease.That allowable loss is deductible only from chargeable gains accruing to the lessor on the disposal of the asset.</wrapUp></subsection><subsection><num>(7)</num><content>This section does not apply to a long funding finance lease (see section 148C).</content></subsection></section></hcontainer></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-2"><num>(2)</num><content><mod>In Chapter 4 of Part 3 of CTA 2009 (trading income: rules restricting deductions), after section 60 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>60A</num><heading>Rental rebates</heading><subsection><num>(1)</num><intro>Where plant or machinery (“<term refersTo="#term-the-asset">the asset</term>”) is leased and a rental rebate is payable by the lessor, the amount of the deduction allowable in respect of the rebate is limited to—</intro><level class="para1"><num>(a)</num><content>the amount of the lessor's income from the lease, or</content></level><level class="para1"><num>(b)</num><content>in the case of a finance lease, that amount excluding the finance charge.</content></level></subsection><subsection><num>(2)</num><content>“<term refersTo="#term-rental-rebate">Rental rebate</term>” means any sum payable to the lessee that is calculated by reference to the termination value of the asset.</content></subsection><subsection><num>(3)</num><intro>For this purpose—</intro><level class="para1"><num>(a)</num><content>the termination value of an asset is the value of the asset at or about the time when the lease terminates,</content></level><level class="para1"><num>(b)</num><intro>calculation by reference to the termination value includes calculation by reference to any one or more of—</intro><level class="para2"><num>(i)</num><content>the proceeds of sale, if the asset is sold,</content></level><level class="para2"><num>(ii)</num><content>any insurance proceeds, compensation or similar sums in respect of the asset, and</content></level><level class="para2"><num>(iii)</num><content>an estimate of the market value of the asset, and</content></level></level><level class="para1"><num>(c)</num><intro>calculation by reference to the termination value also includes—</intro><level class="para2"><num>(i)</num><content>determination in a way which, or by reference to factors or criteria which, might reasonably be expected to produce a broadly similar result to calculation by reference to the termination value, or</content></level><level class="para2"><num>(ii)</num><content>any other form of calculation indirectly by reference to the termination value.</content></level></level></subsection><subsection><num>(4)</num><intro>For the purposes of this section—</intro><level class="para1"><num>(a)</num><intro>the income of the lessor from the lease is the total of all the amounts receivable in connection with the lease that have been brought into account in calculating the lessor's income for corporation tax purposes, excluding—</intro><level class="para2"><num>(i)</num><content>disposal receipts brought into account under Part 2 of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (see section 60(1) of that Act), and</content></level><level class="para2"><num>(ii)</num><content>so much of any amount as represents charges for services or qualifying <abbr class="acronym" title="United Kingdom">UK</abbr> or foreign tax (within the meaning of section 70YE of that Act) to be paid by the lessor, and</content></level></level><level class="para1"><num>(b)</num><intro>the finance charge, in relation to a finance lease, is—</intro><level class="para2"><num>(i)</num><content>if the lease is one that, under generally accepted accounting practice, falls (or would fall) to be treated as a loan, so much of the rentals under the lease as fall (or would fall) to be treated as interest, or</content></level><level class="para2"><num>(ii)</num><content>in any other case, the amount that, in accordance with generally accepted accounting practice, falls (or would fall) to be treated as the gross return on investment.</content></level></level></subsection><subsection><num>(5)</num><intro>Where the asset is acquired by the lessor in a transaction—</intro><level class="para1"><num>(a)</num><content>to which section 948 of CTA 2010 applies (modified application of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 in case of transfer of trade without change of ownership), or</content></level><level class="para1"><num>(b)</num><content>in relation to which an election is made under section 266 of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (election where predecessor and successor are connected persons),</content></level><wrapUp>this section applies as if the successor had been the lessor at all material times and everything done to or by the predecessor had been done to or by the successor.</wrapUp></subsection><subsection><num>(6)</num><intro>Where the whole or part of a rental rebate is disallowed under this section as a deduction in computing profits—</intro><level class="para1"><num>(a)</num><content>the amount disallowed, or</content></level><level class="para1"><num>(b)</num><content>if less, the amount by which the rental rebate exceeds the amount of capital expenditure incurred by the lessor,</content></level><wrapUp>may be treated for the purposes of corporation tax in respect of chargeable gains as an allowable loss accruing to the lessor on the termination of the lease.That allowable loss is deductible only from chargeable gains accruing to the lessor on the disposal of the asset.</wrapUp></subsection><subsection><num>(7)</num><content>This section does not apply to a long funding finance lease (see section 362 of CTA 2010).</content></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-5-paragraph-2-3"><num>(3)</num><content>The amendments made by this paragraph have effect in relation to rental rebates payable on or after 9 December 2009.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-5-crossheading-arrangements-reducing-disposal-value-of-asset"><heading>Arrangements reducing disposal value of asset</heading><paragraph eId="schedule-5-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-5-paragraph-3-1"><num>(1)</num><content><mod>In Chapter 5 of Part 2 of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (plant and machinery: general provisions about charges and allowances), after section 64 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>64A</num><heading>Leased assets: arrangements reducing disposal value of asset</heading><subsection><num>(1)</num><intro>Where—</intro><level class="para1"><num>(a)</num><content>plant or machinery (“<term refersTo="#term-the-asset">the asset</term>”) is subject to a lease,</content></level><level class="para1"><num>(b)</num><content>a disposal event occurs with the result that a disposal value in respect of the asset is to be brought into account under Item 1, 2 or 7 of the Table in section 61(2), and</content></level><level class="para1"><num>(c)</num><content>arrangements have been entered into that have the effect of reducing the disposal value of the asset in so far as it is attributable to rentals payable under the lease,</content></level><wrapUp>the disposal value is to be determined as if the arrangements had not been entered into.</wrapUp></subsection><subsection><num>(2)</num><intro>Subsection (1) does not apply if—</intro><level class="para1"><num>(a)</num><content>the arrangements take the form of a transfer of relevant receipts within section 809AZA of ITA 2007 and the relevant amount has been treated as income under section 809AZB of that Act, or</content></level><level class="para1"><num>(b)</num><content>the arrangements take the form of a transfer of relevant receipts within section 752 of CTA 2010 and the relevant amount has been treated as income under section 753 of that Act.</content></level></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-5-paragraph-3-2"><num>(2)</num><content>The amendment made by sub-paragraph (1) has effect in relation to disposal events taking place on or after 9 December 2009.</content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-6"><num>SCHEDULE 6<authorialNote class="referenceNote">Section 30</authorialNote></num><heading>Charities and community amateur sports clubs: definitions</heading><part eId="schedule-6-part-1"><num>Part 1</num><heading>Definition of “charity”, “charitable company” and “charitable trust”</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-1-crossheading-definition-of-charity-etc"><heading>Definition of “charity” <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-6-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-6-paragraph-1-1"><num>(1)</num><intro>For the purposes of the enactments to which this Part applies “<term refersTo="#term-charity" eId="term-charity">charity</term>” means a body of persons or trust that—</intro><level class="para1" eId="schedule-6-paragraph-1-1-a"><num>(a)</num><content>is established for charitable purposes only,</content></level><level class="para1" eId="schedule-6-paragraph-1-1-b"><num>(b)</num><content>meets the jurisdiction condition (see paragraph 2),</content></level><level class="para1" eId="schedule-6-paragraph-1-1-c"><num>(c)</num><content>meets the registration condition (see paragraph 3), and</content></level><level class="para1" eId="schedule-6-paragraph-1-1-d"><num>(d)</num><content>meets the management condition (see paragraph 4).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-1-2"><num>(2)</num><intro>For the purposes of the enactments to which this Part applies—</intro><hcontainer name="definition"><content>“<term refersTo="#term-charitable-company" eId="term-charitable-company">charitable company</term>” means a charity that is a body of persons;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-charitable-trust" eId="term-charitable-trust">charitable trust</term>” means a charity that is a trust.</content></hcontainer></subparagraph><subparagraph eId="schedule-6-paragraph-1-3"><num>(3)</num><content>Sub-paragraphs (1) and (2) are subject to any express provision to the contrary.</content></subparagraph><subparagraph eId="schedule-6-paragraph-1-4"><num>(4)</num><intro>For the meaning of “charitable purpose”, <ins class="substitution first last" ukl:ChangeId="key-6d8414d51bc2a6c2d6baee85ec1187b1-1445287244898" ukl:CommentaryRef="key-6d8414d51bc2a6c2d6baee85ec1187b1"><noteRef uk:name="commentary" href="#key-6d8414d51bc2a6c2d6baee85ec1187b1" class="commentary"/>see section 2 of the Charities Act 2011 </ins>(which—</intro><level class="para1" eId="schedule-6-paragraph-1-4-a"><num>(a)</num><content>applies regardless of where the body of persons or trust in question is established, and</content></level><level class="para1" eId="schedule-6-paragraph-1-4-b"><num>(b)</num><content>for this purpose forms part of the law of each part of the United Kingdom <ins class="substitution first last" ukl:ChangeId="key-deba6a0a6441ed66e693bdaf0c6e1bb9-1445287321135" ukl:CommentaryRef="key-deba6a0a6441ed66e693bdaf0c6e1bb9"><noteRef uk:name="commentary" href="#key-deba6a0a6441ed66e693bdaf0c6e1bb9" class="commentary"/> (see sections 7 and 8 of that Act) </ins>).</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-1-crossheading-jurisdiction-condition"><heading>Jurisdiction condition</heading><paragraph eId="schedule-6-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-6-paragraph-2-1"><num>(1)</num><intro>A body of persons or trust meets the jurisdiction condition if it falls to be subject to the control of—</intro><level class="para1" eId="schedule-6-paragraph-2-1-a"><num>(a)</num><content>a relevant <abbr class="acronym" title="United Kingdom">UK</abbr> court in the exercise of its jurisdiction with respect to charities, <noteRef href="#key-4dc4c0c288e1f5a10d4e0e21345c6962" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</content></level><level class="para1" eId="schedule-6-paragraph-2-1-b"><num><noteRef href="#key-4dc4c0c288e1f5a10d4e0e21345c6962" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(b)</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-2-2"><num>(2)</num><intro>In sub-paragraph (1)(a) “<term refersTo="#term-a-relevant-uk-court" eId="term-a-relevant-uk-court">a relevant <abbr class="acronym" title="United Kingdom">UK</abbr> court</term>” means—</intro><level class="para1" eId="schedule-6-paragraph-2-2-a"><num>(a)</num><content>the High Court,</content></level><level class="para1" eId="schedule-6-paragraph-2-2-b"><num>(b)</num><content>the Court of Session, or</content></level><level class="para1" eId="schedule-6-paragraph-2-2-c"><num>(c)</num><content>the High Court in Northern Ireland</content></level><wrapUp> <ins class="first last" ukl:ChangeId="key-2609ce1fdce8bb12d68b475d4b4ef60b-1503588391432" ukl:CommentaryRef="key-2609ce1fdce8bb12d68b475d4b4ef60b"><noteRef uk:name="commentary" href="#key-2609ce1fdce8bb12d68b475d4b4ef60b" class="commentary"/>(and, for enactments relating to value added tax, includes the High Court of the Isle of Man). </ins> </wrapUp></subparagraph><subparagraph eId="schedule-6-paragraph-2-3"><num><noteRef href="#key-38cb9e6e287125712e067540d37d4fea" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(3)</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subparagraph><subparagraph eId="schedule-6-paragraph-2-4"><num><noteRef href="#key-38cb9e6e287125712e067540d37d4fea" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(4)</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subparagraph><subparagraph eId="schedule-6-paragraph-2-5"><num><noteRef href="#key-38cb9e6e287125712e067540d37d4fea" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(5)</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-1-crossheading-registration-condition"><heading>Registration condition</heading><paragraph eId="schedule-6-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-6-paragraph-3-1"><num>(1)</num><intro>A body of persons or trust meets the registration condition if—</intro><level class="para1" eId="schedule-6-paragraph-3-1-a"><num>(a)</num><content>in the case of a body of persons or trust that is a charity <ins class="substitution first last" ukl:ChangeId="key-d8cb75edd5b8da9ee5e62a9d22dbbfea-1445287512818" ukl:CommentaryRef="key-d8cb75edd5b8da9ee5e62a9d22dbbfea"><noteRef uk:name="commentary" href="#key-d8cb75edd5b8da9ee5e62a9d22dbbfea" class="commentary"/>within the meaning of section 10 of the Charities Act 2011 </ins>, condition A is met, and</content></level><level class="para1" eId="schedule-6-paragraph-3-1-b"><num>(b)</num><content>in the case of any other body of persons or trust, condition B is met.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-3-2"><num>(2)</num><content>Condition A is that the body of persons or trust has complied with any requirement to be registered in the register of charities kept under <ins class="substitution first last" ukl:ChangeId="key-135a6bd5f0eb219a12c49ed34bd6abe8-1445287584375" ukl:CommentaryRef="key-135a6bd5f0eb219a12c49ed34bd6abe8"><noteRef uk:name="commentary" href="#key-135a6bd5f0eb219a12c49ed34bd6abe8" class="commentary"/>section 29 of the Charities Act 2011</ins>.</content></subparagraph><subparagraph eId="schedule-6-paragraph-3-3"><num>(3)</num><content>Condition B is that the body of persons or trust has complied with any requirement under the law of a territory outside England and Wales to be registered in a register corresponding to that mentioned in sub-paragraph (2).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-1-crossheading-management-condition"><heading>Management condition</heading><paragraph eId="schedule-6-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-6-paragraph-4-1"><num>(1)</num><content>A body of persons or trust meets the management condition if its managers are fit and proper persons to be managers of the body or trust.</content></subparagraph><subparagraph eId="schedule-6-paragraph-4-2"><num>(2)</num><content>In this paragraph “<term refersTo="#term-managers" eId="term-managers">managers</term>”, in relation to a body of persons or trust, means the persons having the general control and management of the administration of the body or trust.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-1-crossheading-periods-over-which-management-condition-treated-as-met"><heading>Periods over which management condition treated as met</heading><paragraph eId="schedule-6-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-6-paragraph-5-1"><num>(1)</num><content>This paragraph applies in relation to any period throughout which the management condition is not met.</content></subparagraph><subparagraph eId="schedule-6-paragraph-5-2"><num>(2)</num><intro>The management condition is treated as met throughout the period if the Commissioners for Her Majesty's Revenue and Customs consider that—</intro><level class="para1" eId="schedule-6-paragraph-5-2-a"><num>(a)</num><content>the failure to meet the management condition has not prejudiced the charitable purposes of the body or trust, or</content></level><level class="para1" eId="schedule-6-paragraph-5-2-b"><num>(b)</num><content>it is just and reasonable in all the circumstances for the condition to be treated as met throughout the period.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-1-crossheading-publication-of-names-and-addresses-of-bodies-or-trusts-regarded-by-hmrc-as-charities"><heading>Publication of names and addresses of bodies or trusts regarded by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> as charities</heading><paragraph eId="schedule-6-paragraph-6" class="schProv1"><num>6</num><content>Her Majesty's Revenue and Customs may publish the name and address of any body of persons or trust that appears to them to meet, or at any time to have met, the definition of a charity in paragraph 1.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-1-crossheading-enactments-to-which-this-part-applies"><heading>Enactments to which this Part applies</heading><paragraph eId="schedule-6-paragraph-7" class="schProv1"><num>7</num><intro>The enactments to which this Part applies are the enactments relating to—</intro><level class="para1" eId="schedule-6-paragraph-7-a"><num>(a)</num><content>income tax</content></level><level class="para1" eId="schedule-6-paragraph-7-b"><num>(b)</num><content>capital gains tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-c"><num>(c)</num><content>corporation tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-d"><num>(d)</num><content>value added tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-e"><num>(e)</num><content>inheritance tax,</content></level><level class="para1" eId="schedule-6-paragraph-7-f"><num>(f)</num><content>stamp duty,</content></level><level class="para1" eId="schedule-6-paragraph-7-g"><num>(g)</num><content>stamp duty land tax, <noteRef href="#key-ee2d28481e208a5899fe76dd08d774b9" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</content></level><level class="para1" eId="schedule-6-paragraph-7-h"><num>(h)</num><content>stamp duty reserve tax <ins class="first" ukl:ChangeId="key-eb2979471fb9a0ac697d27e31bf4ba1c-1502970606372" ukl:CommentaryRef="key-eb2979471fb9a0ac697d27e31bf4ba1c"><noteRef uk:name="commentary" href="#key-eb2979471fb9a0ac697d27e31bf4ba1c" class="commentary"/>, </ins><ins ukl:ChangeId="key-eb2979471fb9a0ac697d27e31bf4ba1c-1502970606372" ukl:CommentaryRef="key-eb2979471fb9a0ac697d27e31bf4ba1c"><ins class="first last" ukl:ChangeId="key-5ebda16a7cb4fe3da5857d014d3e9f78-1777448688609" ukl:CommentaryRef="key-5ebda16a7cb4fe3da5857d014d3e9f78"><noteRef uk:name="commentary" href="#key-5ebda16a7cb4fe3da5857d014d3e9f78" class="commentary"/>and</ins></ins> </content></level><level class="para1" eId="schedule-6-paragraph-7-i"><num><ins ukl:ChangeId="key-eb2979471fb9a0ac697d27e31bf4ba1c-1502970606372" ukl:CommentaryRef="key-eb2979471fb9a0ac697d27e31bf4ba1c">(i)</ins></num><content><ins class="last" ukl:ChangeId="key-eb2979471fb9a0ac697d27e31bf4ba1c-1502970606372" ukl:CommentaryRef="key-eb2979471fb9a0ac697d27e31bf4ba1c">annual tax on enveloped dwellings.</ins> <noteRef href="#key-b28f555cbd449f47f79860d192ccf192" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>...</content></level><level class="para1" eId="schedule-6-paragraph-7-j"><num><noteRef href="#key-b28f555cbd449f47f79860d192ccf192" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(j)</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></level></paragraph></hcontainer></part><part eId="schedule-6-part-2"><num>Part 2</num><heading>Repeals of superseded definitions and other consequential amendments</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-fa-1982"><heading>FA 1982</heading><paragraph eId="schedule-6-paragraph-8" class="schProv1"><num>8</num><content><mod>In section 129(1) of FA 1982 (stamp duty: exemption from duty on grants, transfers to charities <abbr title="Et cetera" xml:lang="la">etc</abbr>), for “a body of persons established for charitable purposes only or to the trustees of a trust so established” substitute <quotedText>“ a charitable company or to the trustees of a charitable trust ”</quotedText>.</mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-fa-1983"><heading>FA 1983</heading><paragraph eId="schedule-6-paragraph-9" class="schProv1"><num>9</num><content><mod>In section 46(3) of FA 1983 (Historic Buildings and Monuments Commission for England) for “a body of persons established for charitable purposes only” substitute <quotedText>“ a charitable company ”</quotedText>.</mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-ihta-1984"><heading><abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984</heading><paragraph eId="schedule-6-paragraph-10" class="schProv1"><num>10</num><content>In section 272 of <abbr class="acronym" title="Inheritance Tax Act">IHTA</abbr> 1984 (general interpretation), omit the definitions of “charity” and “charitable”.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-fa-1986"><heading>FA 1986</heading><paragraph eId="schedule-6-paragraph-11" class="schProv1"><num>11</num><intro>In section 90(7) of FA 1986 (stamp duty reserve tax: exceptions from principal charge)—</intro><level class="para1" eId="schedule-6-paragraph-11-a"><num>(a)</num><content><mod>in paragraph (a), for “a body of persons established for charitable purposes only” substitute <quotedText>“ a charitable company ”</quotedText>, and</mod></content></level><level class="para1" eId="schedule-6-paragraph-11-b"><num>(b)</num><content><mod>in paragraph (b), for “a trust so established” substitute <quotedText>“ a charitable trust ”</quotedText>.</mod></content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-fa-1989"><heading>FA 1989</heading><paragraph eId="schedule-6-paragraph-12" class="schProv1"><num>12</num><content>In paragraph 4 of Schedule 5 to FA 1989 (employee share ownership trusts), omit sub-paragraph (10).</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-tcga-1992"><heading><abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992</heading><paragraph eId="schedule-6-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-6-paragraph-13-1"><num>(1)</num><content><abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-2"><num>(2)</num><content><mod>In section 222(8B)(b)(iii) (relief on disposal of private residence), for “established for charitable purposes only” substitute <quotedText>“ a charitable company ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-6-paragraph-13-3"><num>(3)</num><content>In section 256 (charities), omit subsections (6) and (8).</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-4"><num>(4)</num><content>In section 256C (attributing gains to the non-exempt amount: charitable companies), omit subsection (6).</content></subparagraph><subparagraph eId="schedule-6-paragraph-13-5"><num>(5)</num><content>In section 256D (how gains are attributed to the non-exempt amount: charitable companies), omit subsection (7).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-fno2a-1997"><heading>F(No.2)A 1997</heading><paragraph eId="schedule-6-paragraph-14" class="schProv1"><num>14</num><content><noteRef href="#c2125277" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-fa-1999"><heading>FA 1999</heading><paragraph eId="schedule-6-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-6-paragraph-15-1"><num>(1)</num><content>Schedule 19 to FA 1999 (stamp duty and stamp duty reserve tax: unit trusts) is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-15-2"><num><noteRef href="#key-a7efc8bdb52491e02c56e88eefcc40c0" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(2)</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subparagraph><subparagraph eId="schedule-6-paragraph-15-3"><num>(3)</num><content><mod>In paragraph 15(c), for “bodies of persons established for charitable purposes only or trustees of trusts so established” substitute <quotedText>“ charitable companies or trustees of charitable trusts ”</quotedText>.</mod></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-caa-2001"><heading><abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001</heading><paragraph eId="schedule-6-paragraph-16" class="schProv1"><num>16</num><intro>In section 63(2) of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (cases in which disposal value is nil)—</intro><level class="para1" eId="schedule-6-paragraph-16-a"><num>(a)</num><content>in paragraph (a), omit “within the meaning of Part 10 of ITA 2007 (see section 519 of that Act)”, and</content></level><level class="para1" eId="schedule-6-paragraph-16-b"><num>(b)</num><content>in paragraph (aa), omit “within the meaning of Part 11 of CTA 2010 (see section 467 of that Act)”.</content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-itepa-2003"><heading><abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003</heading><paragraph eId="schedule-6-paragraph-17" class="schProv1"><num>17</num><subparagraph eId="schedule-6-paragraph-17-1"><num>(1)</num><content><abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-2"><num>(2)</num><content><mod>In section 99(3)(b)(ii) (accommodation provided for performance of duties), for “established for charitable purposes only” substitute <quotedText>“ a charitable company ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-6-paragraph-17-3"><num>(3)</num><content><mod>In section 216(3)(b) (provisions not applicable to lower-paid employments) for “established for charitable purposes only” substitute <quotedText>“ a charitable company ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-6-paragraph-17-4"><num>(4)</num><content><mod>In section 223(7)(b)(ii) (payments on account of director's tax other than by the director), for “established for charitable purposes only” substitute <quotedText>“ a charitable company ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-6-paragraph-17-5"><num>(5)</num><content>In section 290(5) (accommodation benefits of ministers of religion), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-6"><num>(6)</num><content>In section 351 (expenses of ministers of religion), omit subsection (5).</content></subparagraph><subparagraph eId="schedule-6-paragraph-17-7"><num>(7)</num><content>In section 714(2) (payroll giving: meaning of “donation”), in the definition of “charity”, omit “means any body of persons or trust established for charitable purposes only and”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-fa-2003"><heading>FA 2003</heading><paragraph eId="schedule-6-paragraph-18" class="schProv1"><num>18</num><content>Schedule 8 to FA 2003 (<abbr class="acronym" title="Stamp Duty Land Tax">SDLT</abbr>: charities relief) is amended as follows.</content></paragraph><paragraph eId="schedule-6-paragraph-19" class="schProv1"><num>19</num><content>In paragraph 1 (charities relief), omit sub-paragraph (4).</content></paragraph><paragraph eId="schedule-6-paragraph-20" class="schProv1"><num>20</num><content>In paragraph 4 (charitable trusts), in sub-paragraph (2), omit “and “<term refersTo="#term-charity" eId="term-charity">charity</term>” has the same meaning as in paragraph 1”.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-ittoia-2005"><heading><abbr class="acronym" title="Income Tax (Trading and Other Income) Act">ITTOIA</abbr> 2005</heading><paragraph eId="schedule-6-paragraph-21" class="schProv1"><num>21</num><subparagraph eId="schedule-6-paragraph-21-1"><num>(1)</num><content><abbr class="acronym" title="Income Tax (Trading and Other Income) Act">ITTOIA</abbr> 2005 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-2"><num>(2)</num><content><mod>In section 410(3)(b) (when stock dividend income arises), for “trust established for charitable purposes only” substitute <quotedText>“ charitable trust ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-6-paragraph-21-3"><num>(3)</num><content>In section 545(1) (definitions for Chapter 9 of Part 4), omit the definition of “charitable trust”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-4"><num><noteRef href="#key-275860d6dc660f33847792eccf1260c3" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(4)</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subparagraph><subparagraph eId="schedule-6-paragraph-21-5"><num>(5)</num><intro>In Part 2 of Schedule 4 (index of defined expressions)—</intro><level class="para1" eId="schedule-6-paragraph-21-5-a"><num>(a)</num><intro>in the entry for “charitable trust (in Chapter 9 of Part 4)”—</intro><level class="para2" eId="schedule-6-paragraph-21-5-a-i"><num>(i)</num><content>omit “(in Chapter 9 of Part 4)”, and</content></level><level class="para2" eId="schedule-6-paragraph-21-5-a-ii"><num>(ii)</num><content><mod>for “section 545(1)” substitute <quotedText>“ paragraph 1 of Schedule 6 to FA 2010 ”</quotedText>, and</mod></content></level></level><level class="para1" eId="schedule-6-paragraph-21-5-b"><num>(b)</num><content><mod>in the entry for “charity”, for “section 989 of ITA 2007” substitute <quotedText>“ paragraph 1 of Schedule 6 to FA 2010 ”</quotedText>.</mod></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-fno2a-2005"><heading>F(No.2)A 2005</heading><paragraph eId="schedule-6-paragraph-22" class="schProv1"><num>22</num><content>In section 18(3)(b)(i) of F(No.2)A 2005 (authorised unit trusts and OEICS: specific powers) omit “(within the meaning of section 989 of ITA 2007)”.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-ita-2007"><heading>ITA 2007</heading><paragraph eId="schedule-6-paragraph-23" class="schProv1"><num>23</num><subparagraph eId="schedule-6-paragraph-23-1"><num>(1)</num><content>ITA 2007 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-2"><num>(2)</num><content><mod>In section 479(1)(b) (special rates for trustees' income), for “trust established for charitable purposes only” substitute <quotedText>“ charitable trust ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-6-paragraph-23-3"><num>(3)</num><content><mod>In section 481(1)(c) (other special rates for trustees), for “trust established for charitable purposes only” substitute <quotedText>“ charitable trust ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-6-paragraph-23-4"><num>(4)</num><content>Omit section 519 (meaning of “charitable trust”).</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-5"><num>(5)</num><content><mod>In section 873(2) (discretionary or accumulation settlements), in paragraphs (a) and (b), for “trust established for charitable purposes only” substitute <quotedText>“ charitable trust ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-6-paragraph-23-6"><num>(6)</num><content>In section 989 (definitions), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-23-7"><num>(7)</num><intro>In Schedule 4 (index of defined expressions)—</intro><level class="para1" eId="schedule-6-paragraph-23-7-a"><num>(a)</num><intro>in the entry for “charitable trust (in Part 10)”—</intro><level class="para2" eId="schedule-6-paragraph-23-7-a-i"><num>(i)</num><content>omit “(in Part 10)”, and</content></level><level class="para2" eId="schedule-6-paragraph-23-7-a-ii"><num>(ii)</num><content><mod>for “section 519” substitute <quotedText>“ paragraph 1 of Schedule 6 to FA 2010 ”</quotedText>, and</mod></content></level></level><level class="para1" eId="schedule-6-paragraph-23-7-b"><num>(b)</num><content><mod>in the entries for “charity”, “charity (in Chapter 2 of Part 8)” and “charity (in Chapter 3 of Part 8)”, for “section 989” substitute <quotedText>“ paragraph 1 of Schedule 6 to FA 2010 ”</quotedText>.</mod></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-fa-2008"><heading>FA 2008</heading><paragraph eId="schedule-6-paragraph-24" class="schProv1"><num>24</num><content>In paragraph 60(2) of Schedule 36 to FA 2008 (references to carrying on a business), omit the definition of “charity”.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-cta-2009"><heading>CTA 2009</heading><paragraph eId="schedule-6-paragraph-25" class="schProv1"><num>25</num><subparagraph eId="schedule-6-paragraph-25-1"><num>(1)</num><content>CTA 2009 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-25-2"><num>(2)</num><content>In section 1319 (other definitions), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-25-3"><num>(3)</num><content><mod>In Schedule 4 (index of defined expressions), in the entry for “charity”, for “section 1319” substitute <quotedText>“ paragraph 1 of Schedule 6 to FA 2010 ”</quotedText>.</mod></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-fa-2009"><heading>FA 2009</heading><paragraph eId="schedule-6-paragraph-26" class="schProv1"><num>26</num><content>In paragraph 8 of Schedule 49 to FA 2009 (general interpretation), omit the definition of “charity”.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-cta-2010"><heading>CTA 2010</heading><paragraph eId="schedule-6-paragraph-27" class="schProv1"><num>27</num><subparagraph eId="schedule-6-paragraph-27-1"><num>(1)</num><content>CTA 2010 is amended as follows.</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-2"><num>(2)</num><intro>In section 202 (meaning of “charity” in Chapter 2 of Part 6)—</intro><level class="para1" eId="schedule-6-paragraph-27-2-a"><num>(a)</num><content><mod>for “means” substitute <quotedText>“ includes ”</quotedText>, and</mod></content></level><level class="para1" eId="schedule-6-paragraph-27-2-b"><num>(b)</num><content>omit paragraph (a).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-27-3"><num>(3)</num><intro>In section 217 (meaning of “charity” in Chapter 3 of Part 6)—</intro><level class="para1" eId="schedule-6-paragraph-27-3-a"><num>(a)</num><content><mod>for “means” substitute <quotedText>“ includes ”</quotedText>, and</mod></content></level><level class="para1" eId="schedule-6-paragraph-27-3-b"><num>(b)</num><content>omit paragraph (a).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-27-4"><num>(4)</num><content>Omit section 467 (meaning of “charitable company” in Part 11).</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-5"><num>(5)</num><content>In section 610(2)(a) (discretionary payments by trustees to companies), omit “as defined in section 467”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-6"><num>(6)</num><content>In section 1119 (definitions), omit the definition of “charity”.</content></subparagraph><subparagraph eId="schedule-6-paragraph-27-7"><num>(7)</num><intro>In Schedule 4 (index of defined expressions)—</intro><level class="para1" eId="schedule-6-paragraph-27-7-a"><num>(a)</num><intro>in the entry for “charitable company (in Part 11)”—</intro><level class="para2" eId="schedule-6-paragraph-27-7-a-i"><num>(i)</num><content>omit “(in Part 11)”, and</content></level><level class="para2" eId="schedule-6-paragraph-27-7-a-ii"><num>(ii)</num><content><mod>for “section 467” substitute <quotedText>“ paragraph 1 of Schedule 6 to FA 2010 ”</quotedText>,</mod></content></level></level><level class="para1" eId="schedule-6-paragraph-27-7-b"><num>(b)</num><content><mod>in the entry for “charity (except in Chapters 2 and 3 of Part 6)” for “section 1119” substitute <quotedText>“ paragraph 1 of Schedule 6 to FA 2010 ”</quotedText>,</mod></content></level><level class="para1" eId="schedule-6-paragraph-27-7-c"><num>(c)</num><content><mod>in the entry for “charity (in Chapter 2 of Part 6)”, for “section 202” substitute <quotedText>“ paragraph 1 of Schedule 6 to FA 2010 (and see section 202 of this Act) ”</quotedText>, and</mod></content></level><level class="para1" eId="schedule-6-paragraph-27-7-d"><num>(d)</num><content><mod>in the entry for “charity (in Chapter 3 of Part 6)”, for “section 217” substitute <quotedText>“ paragraph 1 of Schedule 6 to FA 2010 (and see section 217 of this Act) ”</quotedText>.</mod></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-tiopa-2010"><heading>TIOPA 2010</heading><paragraph eId="schedule-6-paragraph-28" class="schProv1"><num>28</num><content>In section 326(3) of TIOPA 2010 (charities), omit the definition of “charity” and the “and” immediately after it.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-2-crossheading-power-to-make-further-consequential-provision"><heading>Power to make further consequential provision</heading><paragraph eId="schedule-6-paragraph-29" class="schProv1"><num>29</num><subparagraph eId="schedule-6-paragraph-29-1"><num>(1)</num><content>The Commissioners for Her Majesty's Revenue and Customs may by order make such further consequential, incidental, supplemental, transitional or transitory provision or saving as appears appropriate in consequence of, or otherwise in connection with, Part 1.</content></subparagraph><subparagraph eId="schedule-6-paragraph-29-2"><num>(2)</num><intro>An order under this paragraph may—</intro><level class="para1" eId="schedule-6-paragraph-29-2-a"><num>(a)</num><content>make different provision for different purposes, and</content></level><level class="para1" eId="schedule-6-paragraph-29-2-b"><num>(b)</num><content>make provision repealing, revoking or otherwise amending any enactment or instrument (whenever passed or made).</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-29-3"><num>(3)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph><subparagraph eId="schedule-6-paragraph-29-4"><num>(4)</num><content>A statutory instrument containing an order under this paragraph is subject to annulment in pursuance of an order of the House of Commons.</content></subparagraph></paragraph></hcontainer></part><part eId="schedule-6-part-3"><num>Part 3</num><heading>Meaning of “community amateur sports club”</heading><paragraph eId="schedule-6-paragraph-30" class="schProv1"><num>30</num><content>Chapter 9 of Part 13 of CTA 2010 (community amateur sports clubs) is amended as follows.</content></paragraph><paragraph eId="schedule-6-paragraph-31" class="schProv1"><num><noteRef href="#key-4955668e67b15d9c6a02e9ec074e3cb6" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>31</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></paragraph><paragraph eId="schedule-6-paragraph-32" class="schProv1"><num>32</num><content><mod>After section 661 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>661A</num><heading>The location condition</heading><subsection><num>(1)</num><intro>A club meets the location condition for the purposes of section 658 if—</intro><level class="para1"><num>(a)</num><content>it is established in a member State or a relevant territory, and</content></level><level class="para1"><num>(b)</num><content>the facilities that it provides for eligible sports are all located in a single member State or relevant territory.</content></level></subsection><subsection><num>(2)</num><content>In this section “<term refersTo="#term-relevant-territory">relevant territory</term>” means a territory specified in regulations under paragraph 2(3)(b) of Schedule 6 to FA 2010 (definition of “charity” <abbr title="Et cetera" xml:lang="la">etc</abbr>).</content></subsection></section><section><num>661B</num><heading>The management condition</heading><subsection><num>(1)</num><content>A club meets the management condition for the purposes of section 658 if its managers are fit and proper persons to be managers of the club.</content></subsection><subsection><num>(2)</num><content>In this paragraph “<term refersTo="#term-managers">managers</term>”, in relation to a club, means the persons having the general control and management of the administration of the club.</content></subsection></section><section><num>661C</num><heading>Periods over which management condition treated as met</heading><subsection><num>(1)</num><content>This paragraph applies in relation to any period throughout which the management condition is not met.</content></subsection><subsection><num>(2)</num><intro>The management condition is treated as met throughout the period if the Commissioners for Her Majesty's Revenue and Customs consider that—</intro><level class="para1"><num>(a)</num><content>the failure to meet the management condition has not prejudiced the purposes of the club, or</content></level><level class="para1"><num>(b)</num><content>it is just and reasonable in all the circumstances for the condition to be treated as met throughout the period.</content></level></subsection></section></quotedStructure></mod></content></paragraph></part><part eId="schedule-6-part-4"><num>Part 4</num><heading>Commencement</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-4-crossheading-commencement-of-part-1"><heading>Commencement of Part 1</heading><paragraph eId="schedule-6-paragraph-33" class="schProv1"><num>33</num><subparagraph eId="schedule-6-paragraph-33-1"><num>(1)</num><content>Part 1 is treated as having come into force on 6 April 2010.</content></subparagraph><subparagraph eId="schedule-6-paragraph-33-2"><num>(2)</num><content>But the definitions of “charity”, “charitable company” and “charitable trust” in that Part do not apply for the purposes of an enactment in relation to which, on that date, another definition applies until such time as that other definition ceases to have effect on the coming into force of provision made by or under Part 2.</content></subparagraph><subparagraph eId="schedule-6-paragraph-33-3"><num>(3)</num><content>For provision about the coming into force of provision made by that Part, see paragraph 34.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-4-crossheading-commencement-of-part-2"><heading>Commencement of Part 2</heading><paragraph eId="schedule-6-paragraph-34" class="schProv1"><num>34</num><subparagraph eId="schedule-6-paragraph-34-1"><num>(1)</num><intro>The repeal of the definition of “charity” in section 989 of ITA 2007 made by paragraph 23(6) above has effect—</intro><level class="para1" eId="schedule-6-paragraph-34-1-a"><num>(a)</num><content>so far as it applies for the purposes of Chapter 2 of Part 8 of that Act (gift aid), in relation to gifts made on or after 6 April 2010, and</content></level><level class="para1" eId="schedule-6-paragraph-34-1-b"><num>(b)</num><content>so far as it applies for other purposes, in accordance with such provision as the Treasury may make by order.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-34-2"><num>(2)</num><content>The other amendments made by Part 2 come into force in accordance with such provision as the Treasury may make by order.</content></subparagraph><subparagraph eId="schedule-6-paragraph-34-3"><num>(3)</num><intro>An order under this paragraph may—</intro><level class="para1" eId="schedule-6-paragraph-34-3-a"><num>(a)</num><content>make different provision for different purposes, and</content></level><level class="para1" eId="schedule-6-paragraph-34-3-b"><num>(b)</num><content>include transitional provision and savings.</content></level></subparagraph><subparagraph eId="schedule-6-paragraph-34-4"><num>(4)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-6-part-4-crossheading-commencement-of-part-3"><heading>Commencement of Part 3</heading><paragraph eId="schedule-6-paragraph-35" class="schProv1"><num>35</num><content>The amendments made by Part 3 are treated as having come into force on 6 April 2010.</content></paragraph></hcontainer></part></hcontainer><hcontainer name="schedule" eId="schedule-7"><num>SCHEDULE 7<authorialNote class="referenceNote">Section 31</authorialNote></num><heading>Gifts of shares <abbr title="Et cetera" xml:lang="la">etc</abbr> to charities</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-gifts-by-individuals"><heading>Gifts by individuals</heading><paragraph eId="schedule-7-paragraph-1" class="schProv1"><num>1</num><content>Chapter 3 of Part 8 of ITA 2007 (relief for gifts by individuals of shares, securities and real property to charities <abbr title="Et cetera" xml:lang="la">etc</abbr>) is amended as follows.</content></paragraph><paragraph eId="schedule-7-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-7-paragraph-2-1"><num>(1)</num><content>Section 437 (value of net benefit to charity) is amended as follows.</content></subparagraph><subparagraph eId="schedule-7-paragraph-2-2"><num>(2)</num><content><mod>In subsection (1), for “market” (in both places) substitute <quotedText>“ relevant ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-3"><num>(3)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro>In subsection (1) “<term refersTo="#term-relevant-value">relevant value</term>” means—</intro><level class="para1"><num>(a)</num><content>where subsection (1B) applies, the lower of the market value and the acquisition value, and</content></level><level class="para1"><num>(b)</num><content>otherwise, the market value.</content></level></subsection><subsection><num>(1B)</num><intro>This subsection applies where—</intro><level class="para1"><num>(a)</num><content>the qualifying investment, or anything from which it derives or which it represents (whether in whole or in part and whether directly or indirectly), was acquired by the individual making the disposal within the period of 4 years ending with the day on which the disposal is made,</content></level><level class="para1"><num>(b)</num><content>the acquisition was made as part of a scheme, and</content></level><level class="para1"><num>(c)</num><content>the main purpose, or one of the main purposes, of the individual in entering into the scheme was to obtain relief, or an increased amount of relief, under this Chapter.</content></level></subsection><subsection><num>(1C)</num><content>In subsection (1B) “<term refersTo="#term-scheme">scheme</term>” includes any scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-7-paragraph-2-4"><num>(4)</num><content><mod>In subsection (2), after the entry relating to section 438 insert— <quotedText>“ section 438A (acquisition value of qualifying investments), ”</quotedText>.</mod></content></subparagraph></paragraph><paragraph eId="schedule-7-paragraph-3" class="schProv1"><num>3</num><content><mod>After section 438 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>438A</num><heading>Acquisition value of qualifying investments</heading><subsection><num>(1)</num><intro>For the purposes of this Chapter the acquisition value of a qualifying investment disposed of by an individual is—</intro><level class="para1"><num>(a)</num><content>where the qualifying investment was acquired by the individual within the period of 4 years ending with the day on which the disposal is made, the cost to the individual of acquiring it, or</content></level><level class="para1"><num>(b)</num><content>where something from which the qualifying investment derives or which it represents was so acquired, such proportion of the cost to the individual of acquiring that thing as is just and reasonable to attribute to the qualifying investment.</content></level></subsection><subsection><num>(2)</num><intro>A reference in subsection (1) to the cost to the individual of an acquisition is to—</intro><level class="para1"><num>(a)</num><content>the consideration given by the individual for the acquisition, less</content></level><level class="para1"><num>(b)</num><content>any amount that is received in connection with the acquisition, by the individual or a person connected with the individual, as part of the scheme in question.</content></level></subsection></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-7-paragraph-4" class="schProv1"><num>4</num><content><mod>In Schedule 4 to ITA 2007 (index of defined expressions), after the entry relating to accumulated or discretionary income insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml"><default1:colgroup span="1"><default1:col span="1" style="width:67%"/><default1:col span="1" style="width:33%"/></default1:colgroup><default1:tbody><default1:tr><default1:td>acquisition value of a qualifying investment (in Chapter 3 of Part 8)</default1:td><default1:td>section 438A</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-gifts-by-companies"><heading>Gifts by companies</heading><paragraph eId="schedule-7-paragraph-5" class="schProv1"><num>5</num><content>Chapter 3 of Part 6 of CTA 2010 (charitable donations relief: amounts treated as qualifying charitable donations) is amended as follows.</content></paragraph><paragraph eId="schedule-7-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-7-paragraph-6-1"><num>(1)</num><content>Section 209 (value of net benefit to charity) is amended as follows.</content></subparagraph><subparagraph eId="schedule-7-paragraph-6-2"><num>(2)</num><content><mod>In subsection (1), for “market” (in both places) substitute <quotedText>“ relevant ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-3"><num>(3)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><intro>In subsection (1) “<term refersTo="#term-relevant-value">relevant value</term>” means—</intro><level class="para1"><num>(a)</num><content>where subsection (1B) applies, the lower of the market value and the acquisition value, and</content></level><level class="para1"><num>(b)</num><content>otherwise, the market value.</content></level></subsection><subsection><num>(1B)</num><intro>This subsection applies where—</intro><level class="para1"><num>(a)</num><content>the qualifying investment, or anything from which it derives or which it represents (whether in whole or in part and whether directly or indirectly), was acquired by the company making the disposal within the period of 4 years ending with the day on which the disposal is made,</content></level><level class="para1"><num>(b)</num><content>the acquisition was made as part of a scheme, and</content></level><level class="para1"><num>(c)</num><content>the main purpose, or one of the main purposes, of the company in entering into the scheme was to obtain relief, or an increased amount of relief, as a result of this Chapter.</content></level></subsection><subsection><num>(1C)</num><content>In subsection (1B) “<term refersTo="#term-scheme">scheme</term>” includes any scheme, arrangement or understanding of any kind, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-7-paragraph-6-4"><num>(4)</num><content><mod>In subsection (2), after paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(aa)</num><content>section 210A (acquisition value of qualifying investments),</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph></paragraph><paragraph eId="schedule-7-paragraph-7" class="schProv1"><num>7</num><content><mod>After section 210 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>210A</num><heading>Acquisition value of qualifying investments</heading><subsection><num>(1)</num><intro>For the purposes of this Chapter the acquisition value of a qualifying investment disposed of by a company is—</intro><level class="para1"><num>(a)</num><content>where the qualifying investment was acquired by the company within the period of 4 years ending with the day on which the disposal is made, the cost to the company of acquiring it, or</content></level><level class="para1"><num>(b)</num><content>where something from which the qualifying investment derives or which it represents was so acquired, such proportion of the cost to the company of acquiring that thing as is just and reasonable to attribute to the qualifying investment.</content></level></subsection><subsection><num>(2)</num><intro>A reference in subsection (1) to the cost to the company of an acquisition is to—</intro><level class="para1"><num>(a)</num><content>the consideration given by the company for the acquisition, less</content></level><level class="para1"><num>(b)</num><content>any amount that is received in connection with the acquisition, by the company or a person connected with it, as part of the scheme in question.</content></level></subsection></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-7-paragraph-8" class="schProv1"><num>8</num><content><mod>In Schedule 4 to CTA 2010 (index of defined expressions), after the entry relating to accounts (in Chapter 2 of Part 16) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml"><default1:colgroup span="1"><default1:col span="1" style="width:67%"/><default1:col span="1" style="width:33%"/></default1:colgroup><default1:tbody><default1:tr><default1:td>acquisition value of a qualifying investment (in Chapter 3 of Part 6)</default1:td><default1:td>section 210A</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-7-crossheading-commencement-and-corresponding-icta-amendments"><heading>Commencement and corresponding <abbr class="acronym" title="Income and Corporation Taxes Act">ICTA</abbr> amendments</heading><paragraph eId="schedule-7-paragraph-9" class="schProv1"><num>9</num><content>The amendments made by this Schedule have effect in relation to any disposal made to a charity on or after 15 December 2009.</content></paragraph><paragraph eId="schedule-7-paragraph-10" class="schProv1"><num>10</num><content>Amendments corresponding to the ones made by paragraphs 6 and 7, having effect in relation to any such disposal, are to be treated as having been made in section 587B of ICTA.</content></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-8"><num>SCHEDULE 8<authorialNote class="referenceNote">Section 32</authorialNote></num><heading>Charities: miscellaneous amendments</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-payroll-giving"><heading>Payroll giving</heading><paragraph eId="schedule-8-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-8-paragraph-1-1"><num>(1)</num><content><mod>In ITA 2007, after section 521 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>521A</num><heading>Gifts under payroll deduction schemes: income tax liability and exemption</heading><subsection><num>(1)</num><content>This section applies if gifts are made to charitable trusts by individuals and the gifts are donations for the purposes of Part 12 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (payroll giving).</content></subsection><subsection><num>(2)</num><content>Income tax is charged on the gifts under this section.</content></subsection><subsection><num>(3)</num><content>It is charged on the full amount of the gifts arising in the tax year.</content></subsection><subsection><num>(4)</num><content>But a gift is not taken into account in calculating total income so far as it is applied to charitable purposes only.</content></subsection><subsection><num>(5)</num><content>The trustees of the charitable trust are liable for any tax charged under this section.</content></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-8-paragraph-1-2"><num>(2)</num><content><mod>In CTA 2010, after section 472 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>472A</num><heading>Gifts under payroll deduction schemes: corporation tax liability and exemption</heading><subsection><num>(1)</num><content>If a charitable company receives a gift from an individual and the gift is a donation for the purposes of Part 12 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003 (payroll giving), the gift is treated as an amount in respect of which the charitable company is chargeable to corporation tax, under the charge to corporation tax on income.</content></subsection><subsection><num>(2)</num><content>But the gift is not taken into account in calculating total profits so far as it is applied to charitable purposes only.</content></subsection><subsection><num>(3)</num><content>The exemption under subsection (2) requires a claim.</content></subsection></section></quotedStructure></mod></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-payments-to-bodies-outside-the-uk-noncharitable-expenditure"><heading>Payments to bodies outside the <abbr class="acronym" title="United Kingdom">UK</abbr>: non-charitable expenditure</heading><paragraph eId="schedule-8-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-8-paragraph-2-1"><num>(1)</num><content><mod>In section 547(b) of ITA 2007 (payments by charitable trusts to bodies outside the <abbr class="acronym" title="United Kingdom">UK</abbr>), after “such steps as” insert <quotedText>“ the Commissioners for Her Majesty's Revenue and Customs consider ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-8-paragraph-2-2"><num>(2)</num><content><mod>In section 500(b) of CTA 2010 (payments by charitable companies to bodies outside the <abbr class="acronym" title="United Kingdom">UK</abbr>), after “such steps as” insert <quotedText>“ the Commissioners for Her Majesty's Revenue and Customs consider ”</quotedText>.</mod></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-gift-aid-disqualified-overseas-gifts"><heading>Gift aid: disqualified overseas gifts</heading><paragraph eId="schedule-8-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-8-paragraph-3-1"><num>(1)</num><content>Chapter 2 of Part 8 of ITA 2007 (gift aid) is amended as follows.</content></subparagraph><subparagraph eId="schedule-8-paragraph-3-2"><num>(2)</num><intro>In section 416 (meaning of “qualifying donation”)—</intro><level class="para1" eId="schedule-8-paragraph-3-2-a"><num>(a)</num><content><mod>in subsection (1)(a) for “G” substitute <quotedText>“ F ”</quotedText>, and</mod></content></level><level class="para1" eId="schedule-8-paragraph-3-2-b"><num>(b)</num><content>omit subsection (8).</content></level></subparagraph><subparagraph eId="schedule-8-paragraph-3-3"><num>(3)</num><content>Omit section 422 (disqualified overseas gifts).</content></subparagraph><subparagraph eId="schedule-8-paragraph-3-4"><num><noteRef href="#key-370daed058dd11e501feb2091ece0b2b" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(4)</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-gift-aid-administration-charitable-trusts"><heading>Gift aid administration: charitable trusts</heading><paragraph eId="schedule-8-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-8-paragraph-4-1"><num>(1)</num><content>Section 42 of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (procedure for making claims <abbr title="Et cetera" xml:lang="la">etc</abbr>) is amended as follows.</content></subparagraph><subparagraph eId="schedule-8-paragraph-4-2"><num><noteRef href="#key-6d4773f094f575aaddd783f4521fa1b1" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>(2)</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subparagraph><subparagraph eId="schedule-8-paragraph-4-3"><num>(3)</num><content><mod>After subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3ZA)</num><content>Subsection (2) above shall not apply in relation to any claim by the trustees of a charitable trust for an amount to be exempt from tax by virtue of section 521(4) of ITA 2007 (gifts entitling donor to gift aid relief: charitable trusts).</content></subsection></quotedStructure></mod></content></subparagraph></paragraph><paragraph eId="schedule-8-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-8-paragraph-5-1"><num>(1)</num><content>ITA 2007 is amended as follows.</content></subparagraph><subparagraph eId="schedule-8-paragraph-5-2"><num>(2)</num><content><mod>In section 518(4) (overview of Part 10), for “section 538” substitute <quotedText>“ sections 538 and 538A ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-8-paragraph-5-3"><num>(3)</num><content><mod>After section 538 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>538A</num><heading>Claims in relation to gift aid relief</heading><subsection><num>(1)</num><content>This section applies to claims for amounts to be exempt from tax by virtue of section 521(4) (gifts entitling donor to gift aid relief: charitable trusts).</content></subsection><subsection><num>(2)</num><intro>A claim to which this section applies may be made—</intro><level class="para1"><num>(a)</num><content>to an officer of Revenue and Customs, or</content></level><level class="para1"><num>(b)</num><content>by being included in a return under section 8A of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (trustee's self-assessment return).</content></level></subsection><subsection><num>(3)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-free-standing-claim">free-standing claim</term>” means a claim made as mentioned in subsection (2)(a), and</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tax-return-claim">tax return claim</term>” means a claim made as mentioned in subsection (2)(b).</content></hcontainer></subsection><subsection><num>(4)</num><intro>The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision—</intro><level class="para1"><num>(a)</num><content>limiting the number of free-standing claims that may be made by a person in a tax year, or</content></level><level class="para1"><num>(b)</num><content>requiring a claim for an amount below an amount specified in the regulations to be made as a tax return claim.</content></level></subsection><subsection><num>(5)</num><content>The regulations may make different provision for different cases or purposes.</content></subsection></section></quotedStructure></mod></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-gift-aid-administration-charitable-companies"><heading>Gift aid administration: charitable companies</heading><paragraph eId="schedule-8-paragraph-6" class="schProv1"><num><noteRef href="#key-3f3af69bc7c96feea1bbb2d762a71c29" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>6</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></paragraph><paragraph eId="schedule-8-paragraph-7" class="schProv1"><num>7</num><content><mod>In CTA 2010, after section 477 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Claims</heading><section><num>477A</num><heading>Claims in relation to gift aid relief</heading><subsection><num>(1)</num><intro>This section applies to claims for amounts to be exempt from tax by virtue of—</intro><level class="para1"><num>(a)</num><content>section 472 (gifts qualifying for gift aid relief: charitable companies), or</content></level><level class="para1"><num>(b)</num><content>section 475 (gifts qualifying for gift aid relief: eligible bodies).</content></level></subsection><subsection><num>(2)</num><intro>A claim to which this section applies may be made—</intro><level class="para1"><num>(a)</num><content>to an officer of Revenue and Customs, or</content></level><level class="para1"><num>(b)</num><content>where the claimant is a company, by being included in the claimant's company tax return.</content></level></subsection><subsection><num>(3)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-free-standing-claim">free-standing claim</term>” means a claim made as mentioned in subsection (2)(a), and</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-tax-return-claim">tax return claim</term>” means a claim made as mentioned in subsection (2)(b).</content></hcontainer></subsection><subsection><num>(4)</num><intro>The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision—</intro><level class="para1"><num>(a)</num><content>limiting the number of free-standing claims that may be made by a person in a tax year, or</content></level><level class="para1"><num>(b)</num><content>requiring a claim for an amount below an amount specified in the regulations to be made as a tax return claim.</content></level></subsection><subsection><num>(5)</num><content>The regulations may make different provision for different cases or purposes.</content></subsection></section></hcontainer></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-8-crossheading-commencement"><heading>Commencement</heading><paragraph eId="schedule-8-paragraph-8" class="schProv1"><num>8</num><subparagraph eId="schedule-8-paragraph-8-1"><num>(1)</num><content>The amendments made by paragraph 1 have effect in relation to gifts made on or after 24 March 2010.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-2"><num>(2)</num><content>An amendment corresponding to that made by paragraph 1(2), having effect in relation to gifts made on or after that date, is to be treated as having been made in ICTA.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-3"><num>(3)</num><content>The amendments made by paragraph 2 have effect in relation to payments representing expenditure incurred on or after 24 March.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-4"><num>(4)</num><content>An amendment corresponding to that made by paragraph 2(2), having effect in relation to payments representing expenditure incurred on or after that date, is to be treated as having been made in ICTA.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-5"><num>(5)</num><content>The amendments made by paragraph 3 have effect in relation to gifts made on or after 6 April 2010.</content></subparagraph><subparagraph eId="schedule-8-paragraph-8-6"><num>(6)</num><content>The amendments made by paragraphs 4 and 6 have effect in relation to claims whenever made.</content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-9"><num>SCHEDULE 9<authorialNote class="referenceNote">Section 34</authorialNote></num><heading>Foreign currency bank accounts</heading><paragraph eId="schedule-9-paragraph-1" class="schProv1"><num>1</num><content><mod>In <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992, after section 252 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>252A</num><heading>Foreign currency bank accounts and the remittance basis</heading><content>Schedule 8A contains provision about the calculation of chargeable gains on disposals of debts to which section 252(1) applies which are not situated in the United Kingdom.</content></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-9-paragraph-2" class="schProv1"><num>2</num><content><mod>In that Act, after Schedule 8 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="schedule"><num>Schedule 8A</num><heading>Foreign currency bank accounts</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Introductory</heading><paragraph class="schProv1"><num>1</num><subparagraph><num>(1)</num><intro>This Schedule applies where—</intro><level class="para1"><num>(a)</num><content>an individual makes a disposal of a debt to which section 252(1) applies (“the relevant disposal”),</content></level><level class="para1"><num>(b)</num><content>the debt (“the section 252 debt”) is not situated in the United Kingdom, and</content></level><level class="para1"><num>(c)</num><content>money or money's worth which is remitted foreign income (“the section 37 amount”) is excluded under section 37 from the consideration for the relevant disposal.</content></level></subparagraph><subparagraph><num>(2)</num><content>For this purpose “<term refersTo="#term-remitted-foreign-income">remitted foreign income</term>” means income of the individual which is chargeable to income tax on the alternative basis of charge set out in Chapter A1 of Part 14 of ITA 2007 (remittance basis).</content></subparagraph><subparagraph><num>(3)</num><content>In determining whether the condition in sub-paragraph (1)(c) is met, the following provisions of this Schedule are to be ignored.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Section 37 operates to exclude the whole consideration</heading><paragraph class="schProv1"><num>2</num><subparagraph><num>(1)</num><content>This paragraph applies where the section 37 amount constitutes the whole of the unreduced consideration.</content></subparagraph><subparagraph><num>(2)</num><content>If the relevant disposal is a part disposal of the section 252 debt, section 42 applies as if the reference in subsection (2)(a) of that section to the consideration for the disposal were a reference to the unreduced consideration for the disposal.</content></subparagraph><subparagraph><num>(3)</num><content>Any loss accruing to the individual on the relevant disposal is not an allowable loss.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Section 37 operates to exclude part of the consideration</heading><paragraph class="schProv1"><num>3</num><subparagraph><num>(1)</num><content>This paragraph applies where the section 37 amount constitutes part of the unreduced consideration.</content></subparagraph><subparagraph><num>(2)</num><intro>For the purposes of this Act the relevant disposal is to be treated as if it were—</intro><level class="para1"><num>(a)</num><content>a disposal of so much of the section 252 debt as is represented by the section 37 proportion of the sum mentioned in sub-paragraph (3) (“debt A”), and</content></level><level class="para1"><num>(b)</num><content>a separate disposal of so much of the section 252 debt as is represented by the remainder of that sum (“debt B”).</content></level></subparagraph><subparagraph><num>(3)</num><intro>That sum is—</intro><level class="para1"><num>(a)</num><content>if the relevant disposal is a disposal of the whole of the section 252 debt, the sum referred to in section 252(1), and</content></level><level class="para1"><num>(b)</num><content>if the relevant disposal is a part disposal of that debt, the proportion of the sum referred to in section 252(1) to which that part disposal relates.</content></level></subparagraph><subparagraph><num>(4)</num><intro>Sub-paragraphs (5) to (9) apply for the purposes of—</intro><level class="para1"><num>(a)</num><content>the computation of the gain accruing on the disposals under sub-paragraph (2), and</content></level><level class="para1"><num>(b)</num><content>the application of Chapter 3 of Part 2 of this Act in relation to the part of the debt (if any) which remains undisposed of.</content></level></subparagraph><subparagraph><num>(5)</num><intro>The consideration for the disposal (before any exclusion under section 37) is—</intro><level class="para1"><num>(a)</num><content>in the case of debt A, the section 37 amount, and</content></level><level class="para1"><num>(b)</num><content>in the case of debt B, the remainder of the unreduced consideration.</content></level></subparagraph><subparagraph><num>(6)</num><intro>If the relevant disposal is not a part disposal of the section 252 debt—</intro><level class="para1"><num>(a)</num><content>the section 37 proportion of the debt costs and the disposal costs is to be attributed to debt A, and</content></level><level class="para1"><num>(b)</num><content>the remaining debt costs and disposal costs are to be attributed to debt B.</content></level></subparagraph><subparagraph><num>(7)</num><content>Sub-paragraphs (8) and (9) apply if the relevant disposal is a part disposal of the section 252 debt.</content></subparagraph><subparagraph><num>(8)</num><content>Section 42(2) applies as if it provided for the debt costs to be apportioned between debt A, debt B and the remainder of the section 252 debt in the proportions which those parts of the section 252 debt bear to one another.</content></subparagraph><subparagraph><num>(9)</num><content>The section 37 proportion of the disposal costs is to be attributed to debt A and the remaining disposal costs are to be attributed to debt B.</content></subparagraph><subparagraph><num>(10)</num><content>Any loss accruing to the individual on the disposal of debt A is not an allowable loss.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Interpretation</heading><paragraph class="schProv1"><num>4</num><intro>In this Schedule—</intro><hcontainer name="definition"><content>“<term refersTo="#term-debt-costs">debt costs</term>” means the sums which under section 38(1)(a) and (b) are attributable to the section 252 debt;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-disposal-costs">disposal costs</term>” means the costs within section 38(1)(c) in relation to the relevant disposal;</content></hcontainer><hcontainer name="definition"><content>“the section 252 debt”, “the relevant disposal” and “the section 37 amount” are to be construed in accordance with paragraph 1;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-section-37-proportion">the section 37 proportion</term>” means the proportion of the unreduced consideration which constitutes the section 37 amount;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-unreduced-consideration">the unreduced consideration</term>” means the consideration for the relevant disposal ignoring the exclusion of the section 37 amount.</content></hcontainer></paragraph></hcontainer></hcontainer></quotedStructure></mod></content></paragraph><paragraph eId="schedule-9-paragraph-3" class="schProv1"><num>3</num><content>The amendments made by this Schedule have effect in relation to disposals on or after 16 December 2009.</content></paragraph></hcontainer><hcontainer name="schedule" eId="schedule-10"><num>SCHEDULE 10<authorialNote class="referenceNote">Section 35</authorialNote></num><heading>Penalties: offshore income <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-schedule-24-to-fa-2007"><heading>Schedule 24 to FA 2007</heading><paragraph eId="schedule-10-paragraph-1" class="schProv1"><num>1</num><content>Schedule 24 to FA 2007 (penalties for errors) is amended as follows.</content></paragraph><paragraph eId="schedule-10-paragraph-2" class="schProv1"><num>2</num><content><mod>For paragraph 4 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><section><num>4</num><subsection><num>(1)</num><content>This paragraph sets out the penalty payable under paragraph 1.</content></subsection><subsection><num>(2)</num><intro>If the inaccuracy is in category 1, the penalty is—</intro><level class="para1"><num>(a)</num><content>for careless action, 30% of the potential lost revenue,</content></level><level class="para1"><num>(b)</num><content>for deliberate but not concealed action, 70% of the potential lost revenue, and</content></level><level class="para1"><num>(c)</num><content>for deliberate and concealed action, 100% of the potential lost revenue.</content></level></subsection><subsection><num>(3)</num><intro>If the inaccuracy is in category 2, the penalty is—</intro><level class="para1"><num>(a)</num><content>for careless action, 45% of the potential lost revenue,</content></level><level class="para1"><num>(b)</num><content>for deliberate but not concealed action, 105% of the potential lost revenue, and</content></level><level class="para1"><num>(c)</num><content>for deliberate and concealed action, 150% of the potential lost revenue.</content></level></subsection><subsection><num>(4)</num><intro>If the inaccuracy is in category 3, the penalty is—</intro><level class="para1"><num>(a)</num><content>for careless action, 60% of the potential lost revenue,</content></level><level class="para1"><num>(b)</num><content>for deliberate but not concealed action, 140% of the potential lost revenue, and</content></level><level class="para1"><num>(c)</num><content>for deliberate and concealed action, 200% of the potential lost revenue.</content></level></subsection><subsection><num>(5)</num><content>Paragraph 4A explains the 3 categories of inaccuracy.</content></subsection></section><section><num>4A</num><subsection><num>(1)</num><intro>An inaccuracy is in category 1 if—</intro><level class="para1"><num>(a)</num><content>it involves a domestic matter, or</content></level><level class="para1"><num>(b)</num><intro>it involves an offshore matter and—</intro><level class="para2"><num>(i)</num><content>the territory in question is a category 1 territory, or</content></level><level class="para2"><num>(ii)</num><content>the tax at stake is a tax other than income tax or capital gains tax.</content></level></level></subsection><subsection><num>(2)</num><intro>An inaccuracy is in category 2 if—</intro><level class="para1"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1"><num>(b)</num><content>the territory in question is a category 2 territory, and</content></level><level class="para1"><num>(c)</num><content>the tax at stake is income tax or capital gains tax.</content></level></subsection><subsection><num>(3)</num><intro>An inaccuracy is in category 3 if—</intro><level class="para1"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1"><num>(b)</num><content>the territory in question is a category 3 territory, and</content></level><level class="para1"><num>(c)</num><content>the tax at stake is income tax or capital gains tax.</content></level></subsection><subsection><num>(4)</num><intro>An inaccuracy “involves an offshore matter” if it results in a potential loss of revenue that is charged on or by reference to—</intro><level class="para1"><num>(a)</num><content>income arising from a source in a territory outside the <abbr class="acronym" title="United Kingdom">UK</abbr>,</content></level><level class="para1"><num>(b)</num><content>assets situated or held in a territory outside the <abbr class="acronym" title="United Kingdom">UK</abbr>,</content></level><level class="para1"><num>(c)</num><content>activities carried on wholly or mainly in a territory outside the <abbr class="acronym" title="United Kingdom">UK</abbr>, or</content></level><level class="para1"><num>(d)</num><content>anything having effect as if it were income, assets or activities of a kind described above.</content></level></subsection><subsection><num>(5)</num><content>An inaccuracy “involves a domestic matter” if it results in a potential loss of revenue that is charged on or by reference to anything not mentioned in sub-paragraph (4)(a) to (d).</content></subsection><subsection><num>(6)</num><intro>If a single inaccuracy is in more than one category (each referred to as a “<term refersTo="#term-relevant-category">relevant category</term>”)—</intro><level class="para1"><num>(a)</num><content>it is to be treated for the purposes of this Schedule as if it were separate inaccuracies, one in each relevant category according to the matters that it involves, and</content></level><level class="para1"><num>(b)</num><content>the potential lost revenue is to be calculated separately in respect of each separate inaccuracy.</content></level></subsection><subsection><num>(7)</num><content>“Category 1 territory”, “<term refersTo="#term-category-2-territory">category 2 territory</term>” and “<term refersTo="#term-category-3-territory">category 3 territory</term>” are defined in paragraph 21A.</content></subsection><subsection><num>(8)</num><content>“<term refersTo="#term-assets">Assets</term>” has the meaning given in section 21(1) of <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992, but also includes sterling.</content></subsection></section><section><num>4B</num><content>The penalty payable under paragraph 1A is 100% of the potential lost revenue.</content></section><section><num>4C</num><content>The penalty payable under paragraph 2 is 30% of the potential lost revenue.</content></section><section><num>4D</num><content>Paragraphs 5 to 8 define “potential lost revenue”.</content></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-10-paragraph-3" class="schProv1"><num>3</num><content><mod>For paragraph 10 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><section><num>10</num><subsection><num>(1)</num><content>If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> must reduce the standard percentage to one that reflects the quality of the disclosure.</content></subsection><subsection><num>(2)</num><intro>But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—</intro><level class="para1"><num>(a)</num><content>in the case of a prompted disclosure, in column 2 of the Table, and</content></level><level class="para1"><num>(b)</num><content>in the case of an unprompted disclosure, in column 3 of the Table.</content></level></subsection><wrapUp><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml"><default1:colgroup span="1"><default1:col span="1" style="width:33%"/><default1:col span="1" style="width:33%"/><default1:col span="1" style="width:33%"/></default1:colgroup><default1:tbody><default1:tr><default1:th>Standard % </default1:th><default1:th>Minimum % for prompted disclosure</default1:th><default1:th>Minimum % for unprompted disclosure</default1:th></default1:tr><default1:tr><default1:td>30%</default1:td><default1:td>15%</default1:td><default1:td>0%</default1:td></default1:tr><default1:tr><default1:td>45%</default1:td><default1:td>22.5%</default1:td><default1:td>0%</default1:td></default1:tr><default1:tr><default1:td>60%</default1:td><default1:td>30%</default1:td><default1:td>0%</default1:td></default1:tr><default1:tr><default1:td>70%</default1:td><default1:td>35%</default1:td><default1:td>20%</default1:td></default1:tr><default1:tr><default1:td>105%</default1:td><default1:td>52.5%</default1:td><default1:td>30%</default1:td></default1:tr><default1:tr><default1:td>140%</default1:td><default1:td>70%</default1:td><default1:td>40%</default1:td></default1:tr><default1:tr><default1:td>100%</default1:td><default1:td>50%</default1:td><default1:td>30%</default1:td></default1:tr><default1:tr><default1:td>150%</default1:td><default1:td>75%</default1:td><default1:td>45%</default1:td></default1:tr><default1:tr><default1:td>200%</default1:td><default1:td>100%</default1:td><default1:td>60%</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></wrapUp></section></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph><paragraph eId="schedule-10-paragraph-4" class="schProv1"><num>4</num><content><mod>In paragraph 12 (interaction with other penalties), for sub-paragraph (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(4)</num><content>Where penalties are imposed under paragraphs 1 and 1A in respect of the same inaccuracy, the aggregate of the amounts of the penalties must not exceed the relevant percentage of the potential lost revenue.</content></subsection><subsection><num>(5)</num><intro>The relevant percentage is—</intro><level class="para1"><num>(a)</num><content>if the penalty imposed under paragraph 1 is for an inaccuracy in category 1, 100%,</content></level><level class="para1"><num>(b)</num><content>if the penalty imposed under paragraph 1 is for an inaccuracy in category 2, 150%, and</content></level><level class="para1"><num>(c)</num><content>if the penalty imposed under paragraph 1 is for an inaccuracy in category 3, 200%.</content></level></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-10-paragraph-5" class="schProv1"><num>5</num><content><mod>In Part 5 (general), before the heading “Interpretation” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Classification of territories</heading><section><num>21A</num><subsection><num>(1)</num><content>A category 1 territory is a territory designated as a category 1 territory by order made by the Treasury.</content></subsection><subsection><num>(2)</num><intro>A category 2 territory is a territory that is neither—</intro><level class="para1"><num>(a)</num><content>a category 1 territory, nor</content></level><level class="para1"><num>(b)</num><content>a category 3 territory.</content></level></subsection><subsection><num>(3)</num><content>A category 3 territory is a territory designated as a category 3 territory by order made by the Treasury.</content></subsection><subsection><num>(4)</num><intro>In considering how to classify a territory for the purposes of this paragraph, the Treasury must have regard to—</intro><level class="para1"><num>(a)</num><content>the existence of any arrangements between the <abbr class="acronym" title="United Kingdom">UK</abbr> and that territory for the exchange of information for tax enforcement purposes,</content></level><level class="para1"><num>(b)</num><content>the quality of any such arrangements (in particular, whether they provide for information to be exchanged automatically or on request), and</content></level><level class="para1"><num>(c)</num><content>the benefit that the <abbr class="acronym" title="United Kingdom">UK</abbr> would be likely to obtain from receiving information from that territory, were such arrangements to exist with it.</content></level></subsection><subsection><num>(5)</num><content>An order under this paragraph is to be made by statutory instrument.</content></subsection><subsection><num>(6)</num><content>Subject to sub-paragraph (7), an instrument containing an order under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.</content></subsection><subsection><num>(7)</num><intro>If the order is—</intro><level class="para1"><num>(a)</num><content>the first order to be made under sub-paragraph (1), or</content></level><level class="para1"><num>(b)</num><content>the first order to be made under sub-paragraph (3),</content></level><wrapUp>it may not be made unless a draft of the instrument containing it has been laid before, and approved by a resolution of, the House of Commons.</wrapUp></subsection><subsection><num>(8)</num><content>An order under this paragraph does not apply to inaccuracies in a document given to <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> (or, in a case within paragraph 3(2), inaccuracies discovered by P) before the date on which the order comes into force.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Location of assets <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><section><num>21B</num><subsection><num>(1)</num><intro>The Treasury may by regulations make provision for determining for the purposes of paragraph 4A where—</intro><level class="para1"><num>(a)</num><content>a source of income is located,</content></level><level class="para1"><num>(b)</num><content>an asset is situated or held, or</content></level><level class="para1"><num>(c)</num><content>activities are wholly or mainly carried on.</content></level></subsection><subsection><num>(2)</num><content>Different provision may be made for different cases and for income tax and capital gains tax.</content></subsection><subsection><num>(3)</num><content>Regulations under this paragraph are to be made by statutory instrument.</content></subsection><subsection><num>(4)</num><content>An instrument containing regulations under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.</content></subsection></section></hcontainer></quotedStructure></mod></content></paragraph><paragraph eId="schedule-10-paragraph-6" class="schProv1"><num>6</num><content><mod>After paragraph 23A insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><section><num>23B</num><content><abbr class="acronym" title="United Kingdom">UK</abbr>” means the United Kingdom, including the territorial sea of the United Kingdom.</content></section></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-schedule-41-to-fa-2008"><heading>Schedule 41 to FA 2008</heading><paragraph eId="schedule-10-paragraph-7" class="schProv1"><num>7</num><content>Schedule 41 to FA 2008 (penalties: failure to notify and certain <abbr class="acronym" title="Value Added Tax">VAT</abbr> and excise wrongdoing) is amended as follows.</content></paragraph><paragraph eId="schedule-10-paragraph-8" class="schProv1"><num>8</num><content><mod>For paragraph 6 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><section><num>6</num><subsection><num>(1)</num><content>This paragraph sets out the penalty payable under paragraph 1.</content></subsection><subsection><num>(2)</num><intro>If the failure is in category 1, the penalty is—</intro><level class="para1"><num>(a)</num><content>for a deliberate and concealed failure, 100% of the potential lost revenue,</content></level><level class="para1"><num>(b)</num><content>for a deliberate but not concealed failure, 70% of the potential lost revenue, and</content></level><level class="para1"><num>(c)</num><content>for any other case, 30% of the potential lost revenue.</content></level></subsection><subsection><num>(3)</num><intro>If the failure is in category 2, the penalty is—</intro><level class="para1"><num>(a)</num><content>for a deliberate and concealed failure, 150% of the potential lost revenue,</content></level><level class="para1"><num>(b)</num><content>for a deliberate but not concealed failure, 105% of the potential lost revenue, and</content></level><level class="para1"><num>(c)</num><content>for any other case, 45% of the potential lost revenue.</content></level></subsection><subsection><num>(4)</num><intro>If the failure is in category 3, the penalty is—</intro><level class="para1"><num>(a)</num><content>for a deliberate and concealed failure, 200% of the potential lost revenue,</content></level><level class="para1"><num>(b)</num><content>for a deliberate but not concealed failure, 140% of the potential lost revenue, and</content></level><level class="para1"><num>(c)</num><content>for any other case, 60% of the potential lost revenue.</content></level></subsection><subsection><num>(5)</num><content>Paragraph 6A explains the 3 categories of failure.</content></subsection></section><section><num>6A</num><subsection><num>(1)</num><intro>A failure is in category 1 if—</intro><level class="para1"><num>(a)</num><content>it involves a domestic matter, or</content></level><level class="para1"><num>(b)</num><intro>it involves an offshore matter and—</intro><level class="para2"><num>(i)</num><content>the territory in question is a category 1 territory, or</content></level><level class="para2"><num>(ii)</num><content>the tax at stake is a tax other than income tax or capital gains tax.</content></level></level></subsection><subsection><num>(2)</num><intro>A failure is in category 2 if—</intro><level class="para1"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1"><num>(b)</num><content>the territory in question is a category 2 territory, and</content></level><level class="para1"><num>(c)</num><content>the tax at stake is income tax or capital gains tax.</content></level></subsection><subsection><num>(3)</num><intro>A failure is in category 3 if—</intro><level class="para1"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1"><num>(b)</num><content>the territory in question is a category 3 territory, and</content></level><level class="para1"><num>(c)</num><content>the tax at stake is income tax or capital gains tax.</content></level></subsection><subsection><num>(4)</num><intro>A failure “involves an offshore matter” if it results in a potential loss of revenue that is charged on or by reference to—</intro><level class="para1"><num>(a)</num><content>income arising from a source in a territory outside the <abbr class="acronym" title="United Kingdom">UK</abbr>,</content></level><level class="para1"><num>(b)</num><content>assets situated or held in a territory outside the <abbr class="acronym" title="United Kingdom">UK</abbr>,</content></level><level class="para1"><num>(c)</num><content>activities carried on wholly or mainly in a territory outside the <abbr class="acronym" title="United Kingdom">UK</abbr>, or</content></level><level class="para1"><num>(d)</num><content>anything having effect as if it were income, assets or activities of a kind described above.</content></level></subsection><subsection><num>(5)</num><content>A failure “involves a domestic matter” if it results in a potential loss of revenue that is charged on or by reference to anything not mentioned in sub-paragraph (4)(a) to (d).</content></subsection><subsection><num>(6)</num><intro>If a single failure is in more than one category (each referred to as a “<term refersTo="#term-relevant-category">relevant category</term>”)—</intro><level class="para1"><num>(a)</num><content>it is to be treated for the purposes of this Schedule as if it were separate failures, one in each relevant category according to the matters that it involves, and</content></level><level class="para1"><num>(b)</num><content>the potential lost revenue in respect of each separate failure is taken to be such share of the potential lost revenue in respect of the single failure (see paragraphs 7 and 11) as is just and reasonable.</content></level></subsection><subsection><num>(7)</num><intro>For the purposes of this Schedule—</intro><level class="para1"><num>(a)</num><content>paragraph 21A of Schedule 24 to FA 2007 (classification of territories) has effect, but</content></level><level class="para1"><num>(b)</num><content>an order under that paragraph does not apply to relevant obligations that are to be complied with by a date before the date on which the order comes into force.</content></level></subsection><subsection><num>(8)</num><content>Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets <abbr title="Et cetera" xml:lang="la">etc</abbr>) apply for the purposes of paragraph 6A of this Schedule as they apply for the purposes of paragraph 4A of that Schedule.</content></subsection><subsection><num>(9)</num><intro>In this paragraph—</intro><hcontainer name="definition"><content>“<term refersTo="#term-assets">assets</term>” has the meaning given in section 21(1) of <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992, but also includes sterling;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-uk"><abbr class="acronym" title="United Kingdom">UK</abbr></term>” means the United Kingdom, including the territorial sea of the United Kingdom.</content></hcontainer></subsection></section><section><num>6B</num><intro>The penalty payable under any of paragraphs 2, 3(1) and 4 is—</intro><level class="para1"><num>(a)</num><content>for a deliberate and concealed act or failure, 100% of the potential lost revenue,</content></level><level class="para1"><num>(b)</num><content>for a deliberate but not concealed act or failure, 70% of the potential lost revenue, and</content></level><level class="para1"><num>(c)</num><content>for any other case, 30% of the potential lost revenue.</content></level></section><section><num>6C</num><content>The penalty payable under paragraph 3(2) is 100% of the potential lost revenue.</content></section><section><num>6D</num><content>Paragraphs 7 to 11 define “potential lost revenue”.</content></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-10-paragraph-9" class="schProv1"><num>9</num><content><mod>For paragraph 13 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><section><num>13</num><subsection><num>(1)</num><content>If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> must reduce the standard percentage to one that reflects the quality of the disclosure.</content></subsection><subsection><num>(2)</num><intro>But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—</intro><level class="para1"><num>(a)</num><content>for a prompted disclosure, in column 2 of the Table, and</content></level><level class="para1"><num>(b)</num><content>for an unprompted disclosure, in column 3 of the Table.</content></level></subsection><subsection><num>(3)</num><intro>Where the Table shows a different minimum for case A and case B—</intro><level class="para1"><num>(a)</num><intro>the case A minimum applies if—</intro><level class="para2"><num>(i)</num><content>the penalty is one under paragraph 1, and</content></level><level class="para2"><num>(ii)</num><content><abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> become aware of the failure less than 12 months after the time when the tax first becomes unpaid by reason of the failure, and</content></level></level><level class="para1"><num>(b)</num><content>otherwise, the case B minimum applies.</content></level></subsection><wrapUp><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml"><default1:colgroup span="1"><default1:col span="1" style="width:33%"/><default1:col span="1" style="width:33%"/><default1:col span="1" style="width:33%"/></default1:colgroup><default1:tbody><default1:tr><default1:th>Standard % </default1:th><default1:th>Minimum % for prompted disclosure</default1:th><default1:th>Minimum % for unprompted disclosure</default1:th></default1:tr><default1:tr><default1:td>30%</default1:td><default1:td>case A: 10%case B: 20%</default1:td><default1:td>case A: 0%case B: 10%</default1:td></default1:tr><default1:tr><default1:td>45%</default1:td><default1:td>case A: 15%case B: 30%</default1:td><default1:td>case A: 0%case B: 15%</default1:td></default1:tr><default1:tr><default1:td>60%</default1:td><default1:td>case A: 20%case B: 40%</default1:td><default1:td>case A: 0%case B: 20%</default1:td></default1:tr><default1:tr><default1:td>70%</default1:td><default1:td>35%</default1:td><default1:td>20%</default1:td></default1:tr><default1:tr><default1:td>105%</default1:td><default1:td>52.5%</default1:td><default1:td>30%</default1:td></default1:tr><default1:tr><default1:td>140%</default1:td><default1:td>70%</default1:td><default1:td>40%</default1:td></default1:tr><default1:tr><default1:td>100%</default1:td><default1:td>50%</default1:td><default1:td>30%</default1:td></default1:tr><default1:tr><default1:td>150%</default1:td><default1:td>75%</default1:td><default1:td>45%</default1:td></default1:tr><default1:tr><default1:td>200%</default1:td><default1:td>100%</default1:td><default1:td>60%</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></wrapUp></section></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-10-crossheading-schedule-55-to-fa-2009"><heading>Schedule 55 to FA 2009</heading><paragraph eId="schedule-10-paragraph-10" class="schProv1"><num>10</num><content>Schedule 55 to FA 2009 (penalties for failure to make returns <abbr title="Et cetera" xml:lang="la">etc</abbr>) is amended as follows.</content></paragraph><paragraph eId="schedule-10-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-10-paragraph-11-1"><num>(1)</num><content>Paragraph 6 (amount of penalty if failure continues more than 12 months) is amended as follows.</content></subparagraph><subparagraph eId="schedule-10-paragraph-11-2"><num>(2)</num><content><mod>In sub-paragraph (3)(a), for “100%” substitute <quotedText>“ the relevant percentage ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-3"><num>(3)</num><content><mod>After sub-paragraph (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(3A)</num><intro>For the purposes of sub-paragraph (3)(a), the relevant percentage is—</intro><level class="para1"><num>(a)</num><content>for the withholding of category 1 information, 100%,</content></level><level class="para1"><num>(b)</num><content>for the withholding of category 2 information, 150%, and</content></level><level class="para1"><num>(c)</num><content>for the withholding of category 3 information, 200%.</content></level></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-4"><num>(4)</num><content><mod>In sub-paragraph (4)(a), for “70%” substitute <quotedText>“ the relevant percentage ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-5"><num>(5)</num><content><mod>After sub-paragraph (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(4A)</num><intro>For the purposes of sub-paragraph (4)(a), the relevant percentage is—</intro><level class="para1"><num>(a)</num><content>for the withholding of category 1 information, 70%,</content></level><level class="para1"><num>(b)</num><content>for the withholding of category 2 information, 105%, and</content></level><level class="para1"><num>(c)</num><content>for the withholding of category 3 information, 140%.</content></level></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-10-paragraph-11-6"><num>(6)</num><content><mod>After sub-paragraph (5) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(6)</num><content>Paragraph 6A explains the 3 categories of information.</content></subsection></quotedStructure></mod></content></subparagraph></paragraph><paragraph eId="schedule-10-paragraph-12" class="schProv1"><num>12</num><content><mod>After paragraph 6 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><section><num>6A</num><subsection><num>(1)</num><intro>Information is category 1 information if—</intro><level class="para1"><num>(a)</num><content>it involves a domestic matter, or</content></level><level class="para1"><num>(b)</num><intro>it involves an offshore matter and—</intro><level class="para2"><num>(i)</num><content>the territory in question is a category 1 territory, or</content></level><level class="para2"><num>(ii)</num><content>it is information which would enable or assist <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> to assess P's liability to a tax other than income tax or capital gains tax.</content></level></level></subsection><subsection><num>(2)</num><intro>Information is category 2 information if—</intro><level class="para1"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1"><num>(b)</num><content>the territory in question is a category 2 territory, and</content></level><level class="para1"><num>(c)</num><content>it is information which would enable or assist <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> to assess P's liability to income tax or capital gains tax.</content></level></subsection><subsection><num>(3)</num><intro>Information is category 3 information if—</intro><level class="para1"><num>(a)</num><content>it involves an offshore matter,</content></level><level class="para1"><num>(b)</num><content>the territory in question is a category 3 territory, and</content></level><level class="para1"><num>(c)</num><content>it is information which would enable or assist <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> to assess P's liability to income tax or capital gains tax.</content></level></subsection><subsection><num>(4)</num><intro>Information “involves an offshore matter” if the liability to tax which would have been shown in the return includes a liability to tax charged on or by reference to—</intro><level class="para1"><num>(a)</num><content>income arising from a source in a territory outside the <abbr class="acronym" title="United Kingdom">UK</abbr>,</content></level><level class="para1"><num>(b)</num><content>assets situated or held in a territory outside the <abbr class="acronym" title="United Kingdom">UK</abbr>,</content></level><level class="para1"><num>(c)</num><content>activities carried on wholly or mainly in a territory outside the <abbr class="acronym" title="United Kingdom">UK</abbr>, or</content></level><level class="para1"><num>(d)</num><content>anything having effect as if it were income, assets or activities of a kind described above.</content></level></subsection><subsection><num>(5)</num><content>Information “involves a domestic matter” if the liability to tax which would have been shown in the return includes a liability to tax charged on or by reference to anything not mentioned in sub-paragraph (4)(a) to (d).</content></subsection><subsection><num>(6)</num><intro>If the information which P withholds falls into more than one category—</intro><level class="para1"><num>(a)</num><content>P's failure to make the return is to be treated for the purposes of this Schedule as if it were separate failures, one for each category of information according to the matters which the information involves, and</content></level><level class="para1"><num>(b)</num><content>for each separate failure, the liability to tax which would have been shown in the return in question is taken to be such share of the liability to tax which would have been shown in the return mentioned in paragraph (a) as is just and reasonable.</content></level></subsection><subsection><num>(7)</num><intro>For the purposes of this Schedule—</intro><level class="para1"><num>(a)</num><content>paragraph 21A of Schedule 24 to FA 2007 (classification of territories) has effect, but</content></level><level class="para1"><num>(b)</num><content>an order under that paragraph does not apply to a failure if the filing date is before the date on which the order comes into force.</content></level></subsection><subsection><num>(8)</num><content>Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets <abbr title="Et cetera" xml:lang="la">etc</abbr>) apply for the purposes of paragraph 6A of this Schedule as they apply for the purposes of paragraph 4A of that Schedule.</content></subsection><subsection><num>(9)</num><intro>In this paragraph—</intro><hcontainer name="definition"><content>“<term refersTo="#term-assets">assets</term>” has the meaning given in section 21(1) of <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992, but also includes sterling;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-uk"><abbr class="acronym" title="United Kingdom">UK</abbr></term>” means the United Kingdom, including the territorial sea of the United Kingdom.</content></hcontainer></subsection></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-10-paragraph-13" class="schProv1"><num>13</num><subparagraph eId="schedule-10-paragraph-13-1"><num>(1)</num><content>Paragraph 15 (reductions for disclosure) is amended as follows.</content></subparagraph><subparagraph eId="schedule-10-paragraph-13-2"><num>(2)</num><content><mod>For sub-paragraphs (1) and (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(1)</num><content>If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> must reduce the standard percentage to one that reflects the quality of the disclosure.</content></subsection><subsection><num>(2)</num><intro>But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—</intro><level class="para1"><num>(a)</num><content>in the case of a prompted disclosure, in column 2 of the Table, and</content></level><level class="para1"><num>(b)</num><content>in the case of an unprompted disclosure, in column 3 of the Table.</content></level></subsection><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml"><default1:colgroup span="1"><default1:col span="1" style="width:33%"/><default1:col span="1" style="width:33%"/><default1:col span="1" style="width:33%"/></default1:colgroup><default1:tbody><default1:tr><default1:th>Standard % </default1:th><default1:th>Minimum % for prompted disclosure</default1:th><default1:th>Minimum % for unprompted disclosure</default1:th></default1:tr><default1:tr><default1:td>70%</default1:td><default1:td>35%</default1:td><default1:td>20%</default1:td></default1:tr><default1:tr><default1:td>105%</default1:td><default1:td>52.5%</default1:td><default1:td>30%</default1:td></default1:tr><default1:tr><default1:td>140%</default1:td><default1:td>70%</default1:td><default1:td>40%</default1:td></default1:tr><default1:tr><default1:td>100%</default1:td><default1:td>50%</default1:td><default1:td>30%</default1:td></default1:tr><default1:tr><default1:td>150%</default1:td><default1:td>75%</default1:td><default1:td>45%</default1:td></default1:tr><default1:tr><default1:td>200%</default1:td><default1:td>100%</default1:td><default1:td>60%</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-10-paragraph-13-3"><num>(3)</num><content>Omit sub-paragraphs (3) and (4).</content></subparagraph></paragraph><paragraph eId="schedule-10-paragraph-14" class="schProv1"><num>14</num><intro>In paragraph 17 (interaction with other penalties)—</intro><level class="para1" eId="schedule-10-paragraph-14-a"><num>(a)</num><content><mod>in sub-paragraph (3), for “100%” substitute <quotedText>“ the relevant percentage ”</quotedText>, and</mod></content></level><level class="para1" eId="schedule-10-paragraph-14-b"><num>(b)</num><content><mod>after that sub-paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(4)</num><intro>The relevant percentage is—</intro><level class="para1"><num>(a)</num><content>if one of the penalties is a penalty under paragraph 6(3) or (4) and the information withheld is category 3 information, 200%,</content></level><level class="para1"><num>(b)</num><content>if one of the penalties is a penalty under paragraph 6(3) or (4) and the information withheld is category 2 information, 150%, and</content></level><level class="para1"><num>(c)</num><content>in all other cases, 100%.</content></level></subsection></quotedStructure></mod></content></level></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-11"><num>SCHEDULE 11<authorialNote class="referenceNote">Section 36</authorialNote></num><heading>Reliefs and reductions for foreign tax</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-11-crossheading-effect-of-foreign-tax-becoming-payable"><heading>Effect of foreign tax becoming payable</heading><paragraph eId="schedule-11-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-11-paragraph-1-1"><num>(1)</num><content>Paragraph 3 of Schedule 28AB to <abbr class="acronym" title="Income and Corporation Taxes Act">ICTA</abbr> (schemes about effect of paying foreign tax) is amended as follows.</content></subparagraph><subparagraph eId="schedule-11-paragraph-1-2"><num>(2)</num><intro>In sub-paragraph (2)—</intro><level class="para1" eId="schedule-11-paragraph-1-2-a"><num>(a)</num><content><mod>in paragraph (a), after “paid” insert <quotedText>“ or payable ”</quotedText>, and</mod></content></level><level class="para1" eId="schedule-11-paragraph-1-2-b"><num>(b)</num><content><mod>in paragraph (b), for “of the payment of that amount of foreign tax on the foreign tax total” substitute <quotedText>“ on the foreign tax total of that amount being so paid or payable ”</quotedText>.</mod></content></level></subparagraph><subparagraph eId="schedule-11-paragraph-1-3"><num>(3)</num><content><mod>In sub-paragraph (3)(b), for “the payment by the claimant of that amount of foreign tax” substitute <quotedText>“ that amount of foreign tax being paid or payable by the claimant ”</quotedText>.</mod></content></subparagraph></paragraph><paragraph eId="schedule-11-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-11-paragraph-2-1"><num>(1)</num><content>Section 85 of TIOPA 2010 (schemes about effect of paying foreign tax) is amended as follows.</content></subparagraph><subparagraph eId="schedule-11-paragraph-2-2"><num>(2)</num><intro>In subsection (2)—</intro><level class="para1" eId="schedule-11-paragraph-2-2-a"><num>(a)</num><content><mod>for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(a)</num><content>an amount of foreign tax (“the FT amount”) is paid or payable by C, and</content></level></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-11-paragraph-2-2-b"><num>(b)</num><content><mod>in paragraph (b), for “of the payment of the FT amount on the foreign-tax total” substitute <quotedText>“ on the foreign-tax total of the FT amount being so paid or payable ”</quotedText>.</mod></content></level></subparagraph><subparagraph eId="schedule-11-paragraph-2-3"><num>(3)</num><content><mod>In subsection (3), in paragraph (b) of the definition of “the foreign-tax total”, for “the payment by C of the FT amount” substitute <quotedText>“ the FT amount being paid or payable by C ”</quotedText>.</mod></content></subparagraph></paragraph><paragraph eId="schedule-11-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-11-paragraph-3-1"><num>(1)</num><content>The amendments made by paragraphs 1 and 2 have effect in relation to amounts of foreign tax payable on or after 21 October 2009.</content></subparagraph><subparagraph eId="schedule-11-paragraph-3-2"><num>(2)</num><content>But see paragraph 5 for amounts of foreign tax payable on or after 1 April 2010 (as regards corporation tax) or 6 April 2010 (as regards income tax or capital gains tax).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-11-crossheading-schemes-about-deemed-foreign-tax"><heading>Schemes about deemed foreign tax</heading><paragraph eId="schedule-11-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-11-paragraph-4-1"><num>(1)</num><content><mod>In TIOPA 2010, after section 85 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>85A</num><heading>Section 83(2) and (4): schemes involving deemed foreign tax</heading><subsection><num>(1)</num><intro>This section applies to a scheme or arrangement if in relation to a claimant—</intro><level class="para1"><num>(a)</num><content>an amount (“amount X”) is treated by virtue of a provision of the Tax Acts as if it were an amount of foreign tax paid or payable by the claimant in respect of a source of income, and</content></level><level class="para1"><num>(b)</num><content>condition A or B is met.</content></level></subsection><subsection><num>(2)</num><content>Condition A is met if, when the claimant entered into the scheme or arrangement, it could reasonably be expected that, under the scheme or arrangement, no real foreign tax would be paid or payable by a participant.</content></subsection><subsection><num>(3)</num><intro>Condition B is met if, when the claimant entered into the scheme or arrangement, it could reasonably be expected that, under the scheme or arrangement—</intro><level class="para1"><num>(a)</num><content>an amount of real foreign tax (“the RFT amount”) would be paid or payable by a participant, but</content></level><level class="para1"><num>(b)</num><content>the effect on the foreign-tax total of the RFT amount being so paid or payable would be to increase the foreign-tax total by less than the amount allowable to the claimant as a credit in respect of amount <abbr class="acronym" title="10">X.</abbr></content></level></subsection><subsection><num>(4)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-claimant">claimant</term>” means a person who for a chargeable period has claimed, or is in a position to claim, for any credit that under the arrangements is to be allowed for foreign tax;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-the-foreign-tax-total">the foreign-tax total</term>” has the meaning given by section 85(3), except that the reference to “the FT amount being paid or payable by C” must be read as a reference to “the RFT amount being paid or payable by any of them”;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-income">income</term>” includes a chargeable gain;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-participant">participant</term>” means a person who is party to, or concerned in, the scheme or arrangement;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-real-foreign-tax">real foreign tax</term>” means—</intro><level class="para1"><num>(a)</num><content>in a case involving section 10 (accrued income profits), the foreign tax chargeable in respect of the interest on the securities, as mentioned in subsection (1)(c) of that section,</content></level><level class="para1"><num>(b)</num><content>in a case involving section 792 or 794 of CTA 2010 (manufactured overseas dividends), the foreign tax chargeable in respect of the overseas dividend of which the manufactured overseas dividend is representative, as mentioned in section 790 of that Act, and</content></level><level class="para1"><num>(c)</num><content>in any other case, the foreign tax chargeable in respect of the source of income of which the source mentioned in subsection (1)(a) is representative.</content></level></hcontainer></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-11-paragraph-4-2"><num>(2)</num><content>The amendment made by this paragraph has effect in relation to amounts treated as if they were amounts of foreign tax paid or payable on or after 21 October 2009.</content></subparagraph><subparagraph eId="schedule-11-paragraph-4-3"><num>(3)</num><content>A corresponding amendment, having effect in relation to such amounts, is to be treated as having been made in Schedule 28AB to ICTA.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-11-crossheading-foreign-tax-payable-by-other-participants"><heading>Foreign tax payable by other participants</heading><paragraph eId="schedule-11-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-11-paragraph-5-1"><num>(1)</num><intro>In section 85 of TIOPA 2010 (schemes about effect of paying foreign tax) as amended by paragraph 2—</intro><level class="para1" eId="schedule-11-paragraph-5-1-a"><num>(a)</num><content><mod>in subsection (1), for “for foreign tax” substitute <quotedText>“ in respect of the payment of an amount of foreign tax (“the FT amount”) ”</quotedText>,</mod></content></level><level class="para1" eId="schedule-11-paragraph-5-1-b"><num>(b)</num><content><mod>for subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><content>The condition is that, when C entered into the scheme or arrangement, it could reasonably be expected that the effect on the foreign-tax total of the FT amount being paid or payable would be to increase that total by less than amount <abbr class="acronym" title="10">X.</abbr></content></subsection></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-11-paragraph-5-1-c"><num>(c)</num><intro>in subsection (3)—</intro><level class="para2" eId="schedule-11-paragraph-5-1-c-i"><num>(i)</num><content><mod>for “subsection (2)(b)” substitute <quotedText>“ subsection (2) ”</quotedText>, and</mod></content></level><level class="para2" eId="schedule-11-paragraph-5-1-c-ii"><num>(ii)</num><content>in paragraph (b) of the definition of “the foreign-tax total”, omit “by C”.</content></level></level></subparagraph><subparagraph eId="schedule-11-paragraph-5-2"><num>(2)</num><intro>In section 85A of TIOPA 2010 (schemes involving deemed foreign tax) as inserted by paragraph 4—</intro><level class="para1" eId="schedule-11-paragraph-5-2-a"><num>(a)</num><content>in subsection (1)(a), omit “by the claimant”, and</content></level><level class="para1" eId="schedule-11-paragraph-5-2-b"><num>(b)</num><content>in subsection (4), in the definition of “the foreign-tax total”, omit “by C”.</content></level></subparagraph><subparagraph eId="schedule-11-paragraph-5-3"><num>(3)</num><intro>The amendments made by this paragraph have effect in relation to amounts of foreign tax, or amounts treated as if they were amounts of foreign tax, payable—</intro><level class="para1" eId="schedule-11-paragraph-5-3-a"><num>(a)</num><content>as regards corporation tax, on or after 1 April 2010, and</content></level><level class="para1" eId="schedule-11-paragraph-5-3-b"><num>(b)</num><content>as regards income tax or capital gains tax, on or after 6 April 2010.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-11-crossheading-claims-etc-made-before-scheme-or-arrangement-made"><heading>Claims <abbr title="Et cetera" xml:lang="la">etc</abbr> made before scheme or arrangement made</heading><paragraph eId="schedule-11-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-11-paragraph-6-1"><num>(1)</num><intro>In section 86 of TIOPA 2010 (schemes about claims or elections <abbr title="Et cetera" xml:lang="la">etc</abbr>)—</intro><level class="para1" eId="schedule-11-paragraph-6-1-a"><num>(a)</num><content>in subsection (1), omit “under the scheme or arrangement”, and</content></level><level class="para1" eId="schedule-11-paragraph-6-1-b"><num>(b)</num><content><mod>after subsection (3) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3A)</num><content>Reference in subsection (1) to a step that is taken or not taken by a participant includes one that was taken or not taken by a participant before the scheme or arrangement was made.</content></subsection><subsection><num>(3B)</num><content>The reason for taking or not taking a step does not matter so long as it has the effect mentioned in subsection (1).</content></subsection></quotedStructure></mod></content></level></subparagraph><subparagraph eId="schedule-11-paragraph-6-2"><num>(2)</num><intro>The amendments made by this paragraph have effect in relation to amounts of foreign tax payable—</intro><level class="para1" eId="schedule-11-paragraph-6-2-a"><num>(a)</num><content>as regards corporation tax, on or after 1 April 2010, and</content></level><level class="para1" eId="schedule-11-paragraph-6-2-b"><num>(b)</num><content>as regards income tax or capital gains tax, on or after 6 April 2010.</content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-11-crossheading-limit-on-reduction-for-foreign-tax"><heading>Limit on reduction for foreign tax</heading><paragraph eId="schedule-11-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-11-paragraph-7-1"><num>(1)</num><content><mod>In section 112 of TIOPA 2010 (deduction from income for foreign tax), after subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content>But if X is less than Y, an amount equal to the difference between X and Y must be subtracted from the amount by which any income of a person (“the relevant income”) is reduced under subsection (1)(a).</content></subsection><subsection><num>(2B)</num><content>In subsection (2A)—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>X is the amount of the relevant income that the person would (disregarding this section) be required to bring into account for income tax or corporation tax purposes, less any deduction that the person would be allowed to make for the amount paid in respect of non-UK tax, and</item><item>Y is the amount of the relevant income (that is to say, the amount on which the amount in respect of non-UK tax is paid).</item></blockList></content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-11-paragraph-7-2"><num>(2)</num><intro>The amendment made by this paragraph has effect in relation to amounts in respect of non-UK tax that are paid—</intro><level class="para1" eId="schedule-11-paragraph-7-2-a"><num>(a)</num><content>as regards corporation tax, on or after 1 April 2010, and</content></level><level class="para1" eId="schedule-11-paragraph-7-2-b"><num>(b)</num><content>as regards income tax, on or after 6 April 2010.</content></level></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-12"><num>SCHEDULE 12<authorialNote class="referenceNote">Section 38</authorialNote></num><heading>Transactions in securities</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-12-crossheading-income-tax"><heading>Income tax</heading><paragraph eId="schedule-12-paragraph-1" class="schProv1"><num>1</num><content>Chapter 1 of Part 13 of ITA 2007 (transactions in securities: income tax advantages) is amended as follows.</content></paragraph><paragraph eId="schedule-12-paragraph-2" class="schProv1"><num>2</num><content><mod>For sections 682 to 694 substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Introduction</heading><section><num>682</num><heading>Overview of Chapter</heading><content>This Chapter makes provision for counteracting income tax advantages from transactions in securities.</content></section><section><num>683</num><heading>Provisions of Chapter</heading><subsection><num>(1)</num><content>Sections 684 to 687 specify when a person is liable to counteraction of income tax advantages from transactions in securities.</content></subsection><subsection><num>(2)</num><content>Sections 695 to 700 make provision about the procedure for counteraction of such income tax advantages.</content></subsection><subsection><num>(3)</num><content>Sections 701 and 702 make provision for a clearance procedure.</content></subsection><subsection><num>(4)</num><content>Section 705 makes provision for appeals against counteraction notices.</content></subsection><subsection><num>(5)</num><content>Sections 712 deals with cases in which a person liable to counteraction dies.</content></subsection><subsection><num>(6)</num><content>Section 713 contains interpretative provisions.</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Person liable to counteraction of income tax advantages</heading><section><num>684</num><heading>Person liable to counteraction of income tax advantage</heading><subsection><num>(1)</num><intro>This section applies to a person where—</intro><level class="para1"><num>(a)</num><content>the person is a party to a transaction in securities or two or more transactions in securities (see subsection (2)),</content></level><level class="para1"><num>(b)</num><content>the circumstances are covered by section 685 and not excluded by section 686,</content></level><level class="para1"><num>(c)</num><content>the main purpose, or one of the main purposes, of the person in being a party to the transaction in securities, or any of the transactions in securities, is to obtain an income tax advantage, and</content></level><level class="para1"><num>(d)</num><content>the person obtains an income tax advantage in consequence of the transaction or the combined effect of the transactions.</content></level></subsection><subsection><num>(2)</num><intro>In this Chapter “<term refersTo="#term-transaction-in-securities">transaction in securities</term>” means a transaction, of whatever description, relating to securities, and includes in particular—</intro><level class="para1"><num>(a)</num><content>the purchase, sale or exchange of securities,</content></level><level class="para1"><num>(b)</num><content>issuing or securing the issue of new securities,</content></level><level class="para1"><num>(c)</num><content>applying or subscribing for new securities, and</content></level><level class="para1"><num>(d)</num><content>altering or securing the alteration of the rights attached to securities.</content></level></subsection><subsection><num>(3)</num><content>Section 687 defines “income tax advantage”.</content></subsection><subsection><num>(4)</num><content>This section is subject to—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>section 696(3) (disapplication of this section where person receiving preliminary notification that section 684 may apply makes statutory declaration and relevant officer of Revenue and Customs sees no reason to take further action), and</item><item>section 697(5) (determination by tribunal that there is no prima facie case that section 684 applies).</item></blockList></content></subsection></section><section><num>685</num><heading>Receipt of consideration in connection with distribution by or assets of close company</heading><subsection><num>(1)</num><content>The circumstances covered by this section are circumstances where condition A or condition B is met.</content></subsection><subsection><num>(2)</num><intro>Condition A is that, as a result of the transaction in securities or any one or more of the transactions in securities, the person receives relevant consideration in connection with—</intro><level class="para1"><num>(a)</num><content>the distribution, transfer or realisation of assets of a close company,</content></level><level class="para1"><num>(b)</num><content>the application of assets of a close company in discharge of liabilities, or</content></level><level class="para1"><num>(c)</num><content>the direct or indirect transfer of assets of one close company to another close company,</content></level><wrapUp>and does not pay or bear income tax on the consideration (apart from this Chapter).</wrapUp></subsection><subsection><num>(3)</num><intro>Condition B is that—</intro><level class="para1"><num>(a)</num><content>the person receives relevant consideration in connection with the transaction in securities or any one or more of the transactions in securities,</content></level><level class="para1"><num>(b)</num><content>two or more close companies are concerned in the transaction or transactions in securities concerned, and</content></level><level class="para1"><num>(c)</num><content>the person does not pay or bear income tax on the consideration (apart from this Chapter).</content></level></subsection><subsection><num>(4)</num><intro>In a case within subsection (2)(a) or (b) “<term refersTo="#term-relevant-consideration">relevant consideration</term>” means consideration which—</intro><level class="para1"><num>(a)</num><intro>is or represents the value of—</intro><level class="para2"><num>(i)</num><content>assets which are available for distribution by way of dividend by the company, or</content></level><level class="para2"><num>(ii)</num><content>assets which would have been so available apart from anything done by the company,</content></level></level><level class="para1"><num>(b)</num><content>is received in respect of future receipts of the company, or</content></level><level class="para1"><num>(c)</num><content>is or represents the value of trading stock of the company.</content></level></subsection><subsection><num>(5)</num><intro>In a case within subsection (2)(c) or (3) “<term refersTo="#term-relevant-consideration">relevant consideration</term>” means consideration which consists of any share capital or any security issued by a close company and which is or represents the value of assets which—</intro><level class="para1"><num>(a)</num><content>are available for distribution by way of dividend by the company,</content></level><level class="para1"><num>(b)</num><content>would have been so available apart from anything done by the company, or</content></level><level class="para1"><num>(c)</num><content>are trading stock of the company.</content></level></subsection><subsection><num>(6)</num><content>The references in subsection (2)(a) and (b) to assets do not include assets which are shown to represent a return of sums paid by subscribers on the issue of securities, despite the fact that under the law of the country in which the company is incorporated assets of that description are available for distribution by way of dividend.</content></subsection><subsection><num>(7)</num><content>So far as subsection (2)(c) or (3) relates to share capital other than redeemable share capital, it applies only so far as the share capital is repaid (on a winding up or otherwise); and for this purpose any distribution made in respect of any shares on a winding up or dissolution of the company is to be treated as a repayment of share capital.</content></subsection><subsection><num>(8)</num><content>References in this section to the receipt of consideration include references to the receipt of any money or money's worth.</content></subsection><subsection><num>(9)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-security">security</term>” includes securities not creating or evidencing a charge on assets;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-share">share</term>” includes stock and any other interest of a member in a company.</content></hcontainer></subsection></section><section><num>686</num><heading>Excluded circumstances: fundamental change of ownership</heading><subsection><num>(1)</num><intro>Circumstances are excluded by this section if—</intro><level class="para1"><num>(a)</num><content>immediately before the transaction in securities (or the first of the transactions in securities) the person (referred to in this section as “<term refersTo="#term-the-party">the party</term>”) holds shares or an interest in shares in the close company, and</content></level><level class="para1"><num>(b)</num><content>there is a fundamental change of ownership of the close company.</content></level></subsection><subsection><num>(2)</num><intro>There is a fundamental change of ownership of the close company if—</intro><level class="para1"><num>(a)</num><content>as a result of the transaction or transactions in securities, conditions A, B and C are met, and</content></level><level class="para1"><num>(b)</num><content>those conditions continue to be met for a period of 2 years.</content></level></subsection><subsection><num>(3)</num><intro>Condition A is that at least 75% of the ordinary share capital of the close company is held beneficially by—</intro><level class="para1"><num>(a)</num><content>a person who is not connected with the party and has not been so connected within the period of 2 years ending with the day on which the transaction in securities (or the first of the transactions in securities) takes place, or</content></level><level class="para1"><num>(b)</num><content>persons none of whom is so connected or has been so connected within that period.</content></level></subsection><subsection><num>(4)</num><content>Condition B is that shares in the close company held by that person or those persons carry an entitlement to at least 75% of the distributions which may be made by the company.</content></subsection><subsection><num>(5)</num><content>Condition C is that shares so held carry at least 75% of the total voting rights in the close company.</content></subsection></section><section><num>687</num><heading>Income tax advantage</heading><subsection><num>(1)</num><intro>For the purposes of this Chapter the person obtains an income tax advantage if—</intro><level class="para1"><num>(a)</num><content>the amount of any income tax which would be payable by the person in respect of the relevant consideration if it constituted a qualifying distribution exceeds the amount of any capital gains tax payable in respect of it, or</content></level><level class="para1"><num>(b)</num><content>income tax would be payable by the person in respect of the relevant consideration if it constituted a qualifying distribution and no capital gains tax is payable in respect of it.</content></level></subsection><subsection><num>(2)</num><content>So much of the relevant consideration as exceeds the maximum amount that could in any circumstances have been paid to the person by way of a qualifying distribution at the time when the relevant consideration is received is to be left out of account for the purposes of subsection (1).</content></subsection><subsection><num>(3)</num><content>The amount of the income tax advantage is the amount of the excess or (if no capital gains tax is payable) the amount of the income tax which would be payable.</content></subsection><subsection><num>(4)</num><content>In this section “<term refersTo="#term-relevant-consideration">relevant consideration</term>” has the same meaning as in section 685.</content></subsection></section></hcontainer></quotedStructure></mod></content></paragraph><paragraph eId="schedule-12-paragraph-3" class="schProv1"><num>3</num><intro>In section 698(6) (counteraction notices), omit—</intro><level class="para1" eId="schedule-12-paragraph-3-a"><num>(a)</num><content>the entry relating to section 699, and</content></level><level class="para1" eId="schedule-12-paragraph-3-b"><num>(b)</num><content>in the entry relating to section 700, “in section 690 cases”.</content></level></paragraph><paragraph eId="schedule-12-paragraph-4" class="schProv1"><num>4</num><content>Omit section 699 (limit on amount assessed in section 689 and 690 cases).</content></paragraph><paragraph eId="schedule-12-paragraph-5" class="schProv1"><num>5</num><intro>In section 700 (timing of assessments in section 690 cases)—</intro><level class="para1" eId="schedule-12-paragraph-5-a"><num>(a)</num><content><mod>in subsection (1), for “690 (receipt of relevant company assets (circumstance E))” substitute <quotedText>“ 685(2)(c) or (3) ”</quotedText>, and</mod></content></level><level class="para1" eId="schedule-12-paragraph-5-b"><num>(b)</num><content>in the heading, omit “in section 690 cases”.</content></level></paragraph><paragraph eId="schedule-12-paragraph-6" class="schProv1"><num>6</num><content>In the heading before section 701, omit “and information powers”.</content></paragraph><paragraph eId="schedule-12-paragraph-7" class="schProv1"><num>7</num><subparagraph eId="schedule-12-paragraph-7-1"><num>(1)</num><content>Section 713 (interpretation) is amended as follows.</content></subparagraph><subparagraph eId="schedule-12-paragraph-7-2"><num>(2)</num><content><mod>Before the definition of “company” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default">“<term refersTo="#term-close-company">close company</term>” includes a company that would be a close company if it were resident in the United Kingdom,</quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-12-paragraph-7-3"><num>(3)</num><content>Omit the definition of “transaction in securities”.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-12-crossheading-corporation-tax"><heading>Corporation tax</heading><paragraph eId="schedule-12-paragraph-8" class="schProv1"><num>8</num><content>Part 15 of CTA 2010 (transactions in securities: corporation tax advantages) is amended as follows.</content></paragraph><paragraph eId="schedule-12-paragraph-9" class="schProv1"><num>9</num><content>In section 733(2) (company liable to counteraction of corporation tax advantage), omit the entry relating to section 735.</content></paragraph><paragraph eId="schedule-12-paragraph-10" class="schProv1"><num>10</num><content>Omit section 735 (abnormal dividends used for exemptions or reliefs).</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-12-crossheading-consequential-amendments"><heading>Consequential amendments</heading><paragraph eId="schedule-12-paragraph-11" class="schProv1"><num>11</num><content><mod>In section 809S of ITA 2007 (remittance basis: anti-avoidance provisions relating to transfers of mixed funds), for subsection (4) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4)</num><intro>Income tax advantage” means—</intro><level class="para1"><num>(a)</num><content>a relief from income tax or increased relief from income tax,</content></level><level class="para1"><num>(b)</num><content>a repayment of income tax or increased repayment of income tax,</content></level><level class="para1"><num>(c)</num><content>the avoidance or reduction of a charge to income tax or an assessment to income tax, or</content></level><level class="para1"><num>(d)</num><content>the avoidance of a possible assessment to income tax;</content></level><wrapUp>and for this purpose “<term refersTo="#term-relief-from-income-tax">relief from income tax</term>” includes a tax credit.</wrapUp></subsection><subsection><num>(4A)</num><intro>For the purposes of subsection (4)(c) and (d) it does not matter whether the avoidance or reduction is effected—</intro><level class="para1"><num>(a)</num><content>by receipts accruing in such a way that the recipient does not pay or bear income tax on them, or</content></level><level class="para1"><num>(b)</num><content>by a deduction in calculating profits or gains.</content></level></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-12-paragraph-12" class="schProv1"><num>12</num><subparagraph eId="schedule-12-paragraph-12-1"><num>(1)</num><content>Schedule 4 to that Act (index of defined expressions) is amended as follows.</content></subparagraph><subparagraph eId="schedule-12-paragraph-12-2"><num>(2)</num><content>After the definition of “close company” insert—<tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml"><default1:colgroup span="1"><default1:col span="1" style="width:69%"/><default1:col span="1" style="width:31%"/></default1:colgroup><default1:tbody><default1:tr><default1:td>“close company (in Chapter 1 of Part 13)</default1:td><default1:td>section 713”.</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></content></subparagraph><subparagraph eId="schedule-12-paragraph-12-3"><num>(3)</num><content><mod>In the entry relating to “income tax advantage (in Chapter 1 of Part 13)”, for “683(1)” substitute <quotedText>“ 687 ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-12-paragraph-12-4"><num>(4)</num><content><mod>In the entry relating to “transaction in securities (in Chapter 1 of Part 13)”, for “713” substitute <quotedText>“ 684(2) ”</quotedText>.</mod></content></subparagraph></paragraph><paragraph eId="schedule-12-paragraph-13" class="schProv1"><num>13</num><content>In FA 2007, in Schedule 26, omit paragraph 12(11).</content></paragraph><paragraph eId="schedule-12-paragraph-14" class="schProv1"><num>14</num><content>In CTA 2010, in Schedule 1, omit paragraphs 545 and 546.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-12-crossheading-commencement"><heading>Commencement</heading><paragraph eId="schedule-12-paragraph-15" class="schProv1"><num>15</num><subparagraph eId="schedule-12-paragraph-15-1"><num>(1)</num><content>The amendments made by paragraphs 2 to 5, 7 and 11 to 13 (and paragraph 1 so far as relating to them) have effect in relation to income tax advantages obtained on or after 24 March 2010.</content></subparagraph><subparagraph eId="schedule-12-paragraph-15-2"><num>(2)</num><content>The amendment made by paragraph 6 (and paragraph 1 so far as relating to it) are treated as having come into force on 1 April 2009.</content></subparagraph><subparagraph eId="schedule-12-paragraph-15-3"><num>(3)</num><content>The amendments made by paragraphs 8 to 10 have effect in relation to corporation tax advantages obtained on or after 1 April 2010.</content></subparagraph><subparagraph eId="schedule-12-paragraph-15-4"><num>(4)</num><content>The repeals made by paragraph 14 are treated as having come into force on 1 April 2010.</content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-13"><num><noteRef href="#key-071c59e0c0d4b0534bb7f5fda13fdaa1" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>SCHEDULE 13<authorialNote class="referenceNote">Section 40</authorialNote></num><heading>Unauthorised unit trusts</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-13-crossheading-amendments-of-chapter-13-of-part-15-of-ita-2007"><heading><noteRef href="#key-071c59e0c0d4b0534bb7f5fda13fdaa1" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>Amendments of Chapter 13 of Part 15 of ITA 2007</heading><paragraph eId="schedule-13-paragraph-1" class="schProv1"><num><noteRef href="#key-071c59e0c0d4b0534bb7f5fda13fdaa1" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>1</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-13-crossheading-consequential-amendments"><heading><noteRef href="#key-071c59e0c0d4b0534bb7f5fda13fdaa1" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>Consequential amendments</heading><paragraph eId="schedule-13-paragraph-2" class="schProv1"><num><noteRef href="#key-071c59e0c0d4b0534bb7f5fda13fdaa1" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>2</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-13-crossheading-commencement"><heading><noteRef href="#key-071c59e0c0d4b0534bb7f5fda13fdaa1" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>Commencement</heading><paragraph eId="schedule-13-paragraph-3" class="schProv1"><num><noteRef href="#key-071c59e0c0d4b0534bb7f5fda13fdaa1" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>3</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-13-crossheading-transitional-provision-opening-value-of-trustees-double-tax-relief-pool"><heading><noteRef href="#key-071c59e0c0d4b0534bb7f5fda13fdaa1" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>Transitional provision: opening value of trustees' double tax relief pool</heading><paragraph eId="schedule-13-paragraph-4" class="schProv1"><num><noteRef href="#key-071c59e0c0d4b0534bb7f5fda13fdaa1" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>4</num><content>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-14"><num>SCHEDULE 14<authorialNote class="referenceNote">Section 41</authorialNote></num><heading>Index-linked gilt-edged securities</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-14-crossheading-amendments-of-chapter-12-of-part-5-of-cta-2009"><heading>Amendments of Chapter 12 of Part 5 of CTA 2009</heading><paragraph eId="schedule-14-paragraph-1" class="schProv1"><num>1</num><content>Chapter 12 of Part 5 of CTA 2009 (loan relationships: special rules for particular kinds of securities) is amended as follows.</content></paragraph><paragraph eId="schedule-14-paragraph-2" class="schProv1"><num>2</num><content><mod>In section 398(2) (overview of Chapter), for paragraph (a) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(a)</num><content>sections 399 to 400C (index-linked gilt-edged securities),</content></level><level class="para1"><num>(aa)</num><content>sections 401 to 405 (other gilt-edged securities),</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph><paragraph eId="schedule-14-paragraph-3" class="schProv1"><num>3</num><content><mod>For the heading before section 399 substitute— <quotedText>“ Index-linked gilt-edged securities ”</quotedText>.</mod></content></paragraph><paragraph eId="schedule-14-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-14-paragraph-4-1"><num>(1)</num><content>Section 399 (index-linked gilt-edged securities: basic rules) is amended as follows.</content></subparagraph><subparagraph eId="schedule-14-paragraph-4-2"><num>(2)</num><content><mod>For the heading substitute <quotedText>“ Basic rules ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-14-paragraph-4-3"><num>(3)</num><content><mod>For subsection (3) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(3)</num><content>For provision requiring adjustments to be made to amounts determined under subsection (2), see sections 400 to 400C (adjustments for changes in index).</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-14-paragraph-4-4"><num>(4)</num><content><noteRef href="#c2125287" uk:name="commentary" ukl:Name="CommentaryRef" class="commentary"/>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .</content></subparagraph></paragraph><paragraph eId="schedule-14-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-14-paragraph-5-1"><num>(1)</num><content>Section 400 (index-linked gilt-edged securities: adjustments for changes in index) is amended as follows.</content></subparagraph><subparagraph eId="schedule-14-paragraph-5-2"><num>(2)</num><content><mod>For the heading substitute <quotedText>“ Adjustments for changes in index ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-14-paragraph-5-3"><num>(3)</num><intro>In subsection (1)(a)—</intro><level class="para1" eId="schedule-14-paragraph-5-3-a"><num>(a)</num><content><mod>for “the amounts” substitute <quotedText>“ an amount ”</quotedText>, and</mod></content></level><level class="para1" eId="schedule-14-paragraph-5-3-b"><num>(b)</num><content><mod>for “fall” substitute <quotedText>“ falls ”</quotedText>.</mod></content></level></subparagraph><subparagraph eId="schedule-14-paragraph-5-4"><num>(4)</num><content><mod>After subsection (2) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2A)</num><content>Subsection (2) is subject to sections 400A to 400C (relevant hedging schemes).</content></subsection></quotedStructure></mod></content></subparagraph></paragraph><paragraph eId="schedule-14-paragraph-6" class="schProv1"><num>6</num><content><mod>After section 400 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>400A</num><heading>Adjustments for changes in index: relevant hedging schemes</heading><subsection><num>(1)</num><intro>This section applies where—</intro><level class="para1"><num>(a)</num><content>section 400 applies in relation to an amount to be brought into account for an accounting period of a company (“company A”) in respect of a security, and</content></level><level class="para1"><num>(b)</num><content>conditions 1 to 3 are met.</content></level></subsection><subsection><num>(2)</num><content>Condition 1 is that company A is a party to a relevant hedging scheme at any time in the accounting period.</content></subsection><subsection><num>(3)</num><content>Condition 2 is that there is an increase in the retail prices index between the times mentioned in subsection (1) of section 400.</content></subsection><subsection><num>(4)</num><content>Condition 3 is that the index-linked capital return on the security in the accounting period, or a proportion of it, is hedged.</content></subsection><subsection><num>(5)</num><intro>Where this section applies, any increase in the carrying value of the security at the earlier of the times mentioned in subsection (1) of section 400 that would, apart from this section, be made under subsection (2) of that section is reduced—</intro><level class="para1"><num>(a)</num><content>in a case in which the index-linked capital return on the security in the accounting period is wholly hedged, to nil, and</content></level><level class="para1"><num>(b)</num><content>in a case in which only a proportion of that return is hedged, by the same proportion.</content></level></subsection><subsection><num>(6)</num><content>For the purposes of this section “<term refersTo="#term-a-relevant-hedging-scheme">a relevant hedging scheme</term>” means a scheme the purpose, or one of the main purposes, of any party to which, on entering into the scheme, is to secure that the index-linked capital return on the security, or a proportion of it, is hedged.</content></subsection><subsection><num>(7)</num><intro>For the purposes of this section the “index-linked capital return” of the security is so much of the return on the security as—</intro><level class="para1"><num>(a)</num><content>would, disregarding section 400, result in an increase in the carrying value of the security between the times mentioned in subsection (1) of that section, and</content></level><level class="para1"><num>(b)</num><content>is attributable to an increase in the retail prices index.</content></level></subsection><subsection><num>(8)</num><content>For the purposes of this section the index-linked capital return on the security, or any proportion of that return, is “hedged” if (whether because of the operation of a swap or otherwise) the pre-tax economic profit or loss made by the relevant group or company in the accounting period is unaffected by it.</content></subsection><subsection><num>(9)</num><intro>In subsection (8) “<term refersTo="#term-the-relevant-group-or-company">the relevant group or company</term>” means—</intro><level class="para1"><num>(a)</num><intro>company A and every other company that is at any time in the accounting period—</intro><level class="para2"><num>(i)</num><content>associated with company A, and</content></level><level class="para2"><num>(ii)</num><content>a party to the relevant hedging scheme, or</content></level></level><level class="para1"><num>(b)</num><content>if there is no such other company, company A.</content></level></subsection><subsection><num>(10)</num><content>In this section “<term refersTo="#term-scheme">scheme</term>” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></section><section><num>400B</num><heading>Interpretation of section 400A: economic profits and losses</heading><subsection><num>(1)</num><content>A reference in section 400A to an “economic” profit or loss made by any person in a period is to a profit or loss made by that person in that period, computed taking into account unrealised (as well as realised) profits and losses.</content></subsection><subsection><num>(2)</num><content>For the purposes of section 400A an economic profit or loss is made by a group of companies if it is made by the members of the group considered together.</content></subsection><subsection><num>(3)</num><content>In determining for the purposes of section 400A the amount of an economic profit or loss made by a group of companies in any period, the economic profits and losses of each member of the group are to be computed over that period (whether or not that period is an accounting period of the member).</content></subsection><subsection><num>(4)</num><content>A reference in section 400A to a “pre-tax” economic profit or loss is a reference to an economic profit or loss determined disregarding any gain or loss made as a result of the operation of any provision of the Corporation Tax Acts.</content></subsection></section><section><num>400C</num><heading>Meaning of “associated with”</heading><subsection><num>(1)</num><content>For the purposes of section 400A, a company (“company B”) is associated with company A at a time (“<term refersTo="#term-the-relevant-time">the relevant time</term>”) during an accounting period of company A (“the accounting period”) if any of the following five conditions is met.</content></subsection><subsection><num>(2)</num><content>The first condition is that the financial results of company A and company B, for a period that includes the relevant time, meet the consolidation condition.</content></subsection><subsection><num>(3)</num><content>The second condition is that there is a connection between company A and company B for the accounting period.</content></subsection><subsection><num>(4)</num><content>The third condition is that, at the relevant time, company A has a major interest in company B or company B has a major interest in company A.</content></subsection><subsection><num>(5)</num><intro>The fourth condition is that—</intro><level class="para1"><num>(a)</num><content>the financial results of company A and a third company, for a period that includes the relevant time, meet the consolidation condition, and</content></level><level class="para1"><num>(b)</num><content>at the relevant time the third company has a major interest in company B.</content></level></subsection><subsection><num>(6)</num><intro>The fifth condition is that—</intro><level class="para1"><num>(a)</num><content>there is a connection between company A and a third company for the accounting period, and</content></level><level class="para1"><num>(b)</num><content>at the relevant time the third company has a major interest in company B.</content></level></subsection><subsection><num>(7)</num><intro>In this paragraph the financial results of any two companies for any period meet “the consolidation condition” if—</intro><level class="para1"><num>(a)</num><content>they are required to be comprised in group accounts prepared under section 399 of the Companies Act 2006 (duty of certain parent companies to prepare group accounts), or</content></level><level class="para1"><num>(b)</num><content>they would be required to be comprised in such accounts but for the application of an exemption mentioned in subsection (3) of that section.</content></level></subsection><subsection><num>(8)</num><content>Section 466 (companies connected for an accounting period) applies for the purposes of this section.</content></subsection><subsection><num>(9)</num><content>In this section “<term refersTo="#term-scheme">scheme</term>” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></subsection></section>Other gilt-edged securities </quotedStructure><inline name="appendText">.</inline></mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-14-crossheading-consequential-amendment"><heading>Consequential amendment</heading><paragraph eId="schedule-14-paragraph-7" class="schProv1"><num>7</num><content><mod>In section 317(5)(g) of CTA 2009 (carrying value), for “and 400” substitute <quotedText>“ to 400C ”</quotedText>.</mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-14-crossheading-commencement"><heading>Commencement</heading><paragraph eId="schedule-14-paragraph-8" class="schProv1"><num>8</num><content>The amendments made by this Schedule have effect in relation to adjustments made under section 400(2) of CTA 2009 in respect of increases in the retail prices index over periods beginning on or after 9 December 2009.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-14-crossheading-transitional-provision"><heading>Transitional provision</heading><paragraph eId="schedule-14-paragraph-9" class="schProv1"><num>9</num><subparagraph eId="schedule-14-paragraph-9-1"><num>(1)</num><intro>This paragraph applies in relation to an accounting period of a company beginning before 9 December 2009 if, apart from this paragraph—</intro><level class="para1" eId="schedule-14-paragraph-9-1-a"><num>(a)</num><content>an amount to be brought into account for the purposes of Part 5 of CTA 2009 in respect of an index-linked gilt-edged security falls to be determined by reference to its value at two different times, and</content></level><level class="para1" eId="schedule-14-paragraph-9-1-b"><num>(b)</num><content>the earlier time is before 9 December 2009 and the later time is on or after that date.</content></level></subparagraph><subparagraph eId="schedule-14-paragraph-9-2"><num>(2)</num><intro>Instead of bringing into account the amount determined as mentioned in sub-paragraph (1)(a), the company is to bring into account the amounts that it would have brought into account for—</intro><level class="para1" eId="schedule-14-paragraph-9-2-a"><num>(a)</num><content>that part of the accounting period that falls before 9 December 2009, and</content></level><level class="para1" eId="schedule-14-paragraph-9-2-b"><num>(b)</num><content>that part of the accounting period that falls on or after that date,</content></level><wrapUp>had those parts been separate periods of account (and so separate accounting periods).</wrapUp></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-15"><num>SCHEDULE 15<authorialNote class="referenceNote">Section 44</authorialNote></num><heading>Connected companies: releases of debts</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-15-crossheading-amendments-of-section-322-of-cta-2009"><heading>Amendments of section 322 of CTA 2009</heading><paragraph eId="schedule-15-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-15-paragraph-1-1"><num>(1)</num><content>Section 322 of CTA 2009 (release of debts: cases where credits not required to be brought into account) is amended as follows.</content></subparagraph><subparagraph eId="schedule-15-paragraph-1-2"><num>(2)</num><content><mod>In subsection (4), after “release is” insert <quotedText>“ not a release of relevant rights and is ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-15-paragraph-1-3"><num>(3)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content>Relevant rights” has the same meaning for the purposes of this section as it has for the purposes of section 358.</content></subsection></quotedStructure></mod></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-15-crossheading-amendments-of-chapter-6-of-part-5-of-cta-2009"><heading>Amendments of Chapter 6 of Part 5 of CTA 2009</heading><paragraph eId="schedule-15-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-15-paragraph-2-1"><num>(1)</num><content>Chapter 6 of Part 5 of CTA 2009 (connected companies relationships: release of debts <abbr title="Et cetera" xml:lang="la">etc</abbr>) is amended as follows.</content></subparagraph><subparagraph eId="schedule-15-paragraph-2-2"><num>(2)</num><content><mod>In section 353(2)(b) (introduction to Chapter), for “except where the release is a deemed release under section 361 or 362” substitute <quotedText>“ subject to some exceptions ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-15-paragraph-2-3"><num>(3)</num><intro>In section 358 (exclusion of credits on release of connected companies debts: general)—</intro><level class="para1" eId="schedule-15-paragraph-2-3-a"><num>(a)</num><content><mod>in subsection (1)(a), for “a company's debtor relationship is released,” substitute <quotedText>“ a debtor relationship of a company (“D”) is released, and ”</quotedText>,</mod></content></level><level class="para1" eId="schedule-15-paragraph-2-3-b"><num>(b)</num><content><mod>in subsection (2), for “The company” substitute <quotedText>“ D ”</quotedText> and for “it is a deemed release” substitute<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(a)</num><content>it is a deemed release, or</content></level><level class="para1"><num>(b)</num><content>it is a release of relevant rights.</content></level></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-15-paragraph-2-3-c"><num>(c)</num><content><mod>at the end insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><subsection><num>(4)</num><intro>For the purposes of this section “<term refersTo="#term-relevant-rights">relevant rights</term>” means rights of a company (“C”) that—</intro><level class="para1"><num>(a)</num><content>were acquired by C in circumstances that, but for the application of the corporate rescue exception or the debt-for-debt exception, would have resulted in a deemed release under section 361(3), or</content></level><level class="para1"><num>(b)</num><content>were acquired by another company in such circumstances and transferred to C by way of an assignment or assignments.</content></level></subsection><subsection><num>(5)</num><intro>The amount of the credit that D is required to bring into account in respect of a release of relevant rights is—</intro><level class="para1"><num>(a)</num><content>the amount of the discount received on the acquisition, less</content></level><level class="para1"><num>(b)</num><content>the sum of any credits brought into account in respect of that amount (whether in the accounting period in which the release takes place or in a previous accounting period) by C or, in a case within subsection (4)(b), by the company that acquired the rights or any company to which the rights were subsequently assigned.</content></level></subsection><subsection><num>(6)</num><content>A reference in subsection (5) to the amount of the discount received on the acquisition is to the amount that would have been treated as released under section 361(4) on the acquisition, but for the application of the corporate rescue exception or the debt-for-debt exception.</content></subsection></quotedStructure></mod></content></level></subparagraph><subparagraph eId="schedule-15-paragraph-2-4"><num>(4)</num><intro>In section 361 (acquisition of creditor rights by connected company at undervalue)—</intro><level class="para1" eId="schedule-15-paragraph-2-4-a"><num>(a)</num><content><mod>in subsection (1), for paragraph (f) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(f)</num><content>no relevant exception applies.</content></level></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-15-paragraph-2-4-b"><num>(b)</num><content><mod>for subsection (2) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2)</num><intro>In subsection (1) “<term refersTo="#term-relevant-exception">relevant exception</term>” means—</intro><level class="para1"><num>(a)</num><content>the corporate rescue exception (see section 361A),</content></level><level class="para1"><num>(b)</num><content>the debt-for-debt exception (see section 361B), or</content></level><level class="para1"><num>(c)</num><content>the equity-for-debt exception (see section 361C).</content></level></subsection></quotedStructure></mod></content></level></subparagraph><subparagraph eId="schedule-15-paragraph-2-5"><num>(5)</num><content><mod>After section 361 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>361A</num><heading>The corporate rescue exception</heading><subsection><num>(1)</num><intro>For the purposes of section 361, the “corporate rescue exception” applies if—</intro><level class="para1"><num>(a)</num><content>the acquisition is an arm's length transaction,</content></level><level class="para1"><num>(b)</num><content>there has been a change in the ownership of D at any time in the period beginning one year before, and ending 60 days after, the date of the acquisition,</content></level><level class="para1"><num>(c)</num><content>it is reasonable to assume that, but for the change in ownership, D would, within one year of the date of the change of ownership, have met one of the insolvency conditions, and</content></level><level class="para1"><num>(d)</num><content>it is reasonable to assume that, but for the change in ownership, the acquisition would not have been made.</content></level></subsection><subsection><num>(2)</num><content>Subject to subsection (3), section 769 of <abbr class="acronym" title="Income and Corporation Taxes Act">ICTA</abbr> (rules for ascertaining change in ownership of company) applies for the purpose of construing a reference in this section to a change in the ownership of a company.</content></subsection><subsection><num>(3)</num><intro>A reference in this section to a change in the ownership of a company, in the case of a company that is a building society, is a reference to—</intro><level class="para1"><num>(a)</num><content>an amalgamation of two or more building societies under section 93 of the Building Societies Act 1986,</content></level><level class="para1"><num>(b)</num><content>a transfer of all the engagements of one building society to another under section 94 of that Act, or</content></level><level class="para1"><num>(c)</num><content>a transfer of the whole of the business of a building society to a company under section 97 of that Act.</content></level></subsection><subsection><num>(4)</num><content>Sections 322(6) and 323 (insolvency conditions) apply for the purposes of this section.</content></subsection></section><section><num>361B</num><heading>The debt-for-debt exception</heading><subsection><num>(1)</num><content>For the purposes of section 361, the “debt-for-debt exception” applies if condition 1 or 2 is met.</content></subsection><subsection><num>(2)</num><intro>Condition 1 is that—</intro><level class="para1"><num>(a)</num><content>the acquisition is an arm's length transaction,</content></level><level class="para1"><num>(b)</num><content>the rights that are acquired are rights under a loan relationship that is represented by a security (“the old security”),</content></level><level class="para1"><num>(c)</num><content>the consideration given by C for the acquisition consists only of a security (“the new security”) representing a loan relationship to which C is a party as debtor, and</content></level><level class="para1"><num>(d)</num><intro>the new security—</intro><level class="para2"><num>(i)</num><content>has the same nominal value as the old security, and</content></level><level class="para2"><num>(ii)</num><content>at the time of the acquisition, has substantially the same market value as the old security.</content></level></level></subsection><subsection><num>(3)</num><intro>Condition 2 is that—</intro><level class="para1"><num>(a)</num><content>the acquisition is an arm's length transaction,</content></level><level class="para1"><num>(b)</num><content>the rights that are acquired are rights under a loan relationship that is represented by an asset other than a security (“the old unsecured loan”),</content></level><level class="para1"><num>(c)</num><content>the consideration given by C for the acquisition consists only of an asset other than a security (“the new unsecured loan”) representing a loan relationship to which C is a party as debtor, and</content></level><level class="para1"><num>(d)</num><content>the amount of the new unsecured loan, and its terms, are substantially the same as those of the old unsecured loan.</content></level></subsection><subsection><num>(4)</num><content>In this section “<term refersTo="#term-market-value">market value</term>” has the same meaning as in <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 (see sections 272 and 273 of that Act).</content></subsection><subsection><num>(5)</num><content>In determining for the purposes of this section the market value of a security in a case in which the security represents a loan relationship to which section 415 (loan relationships with embedded derivatives) applies, rights or liabilities within subsection (1)(b) of that section are to be treated as comprised in the loan relationship.</content></subsection></section><section><num>361C</num><heading>The equity-for-debt exception</heading><subsection><num>(1)</num><content>For the purposes of section 361 the “equity-for-debt exception” applies if the following two conditions are met.</content></subsection><subsection><num>(2)</num><content>The first condition is that the acquisition is an arm's length transaction.</content></subsection><subsection><num>(3)</num><intro>The second condition is that the consideration given by C for the acquisition consists only of—</intro><level class="para1"><num>(a)</num><content>shares forming part of the ordinary share capital of C,</content></level><level class="para1"><num>(b)</num><content>shares forming part of the ordinary share capital of a company connected with C, or</content></level><level class="para1"><num>(c)</num><content>an entitlement to shares within paragraph (a) or (b).</content></level></subsection></section></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-15-paragraph-2-6"><num>(6)</num><intro>In section 363—</intro><level class="para1" eId="schedule-15-paragraph-2-6-a"><num>(a)</num><content><mod>in the heading, for “and” substitute <quotedText>“ to ”</quotedText>, and</mod></content></level><level class="para1" eId="schedule-15-paragraph-2-6-b"><num>(b)</num><content><mod>in subsections (1) and (4), for “and” substitute <quotedText>“ to ”</quotedText>.</mod></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-15-crossheading-commencement"><heading>Commencement</heading><paragraph eId="schedule-15-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-15-paragraph-3-1"><num>(1)</num><content>The amendments made by paragraph 1 have effect in relation to a release of rights that takes place on or after 9 November 2009.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-2"><num>(2)</num><content>The amendments made by paragraph 2(2) and (4) to (6) have effect in relation to a relevant acquisition that is made on or after 14 October 2009.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-3"><num>(3)</num><content>The amendments made by paragraph 2(3) have effect in relation to a release of rights that takes place on or after 14 October 2009.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-4"><num>(4)</num><content>Sub-paragraphs (1) to (3) are subject to paragraph 4.</content></subparagraph><subparagraph eId="schedule-15-paragraph-3-5"><num>(5)</num><content>In this paragraph and paragraph 4 “<term refersTo="#term-relevant-acquisition" eId="term-relevant-acquisition">relevant acquisition</term>” means an acquisition of rights within subsection (1)(a) to (e) of section 361 of CTA 2009 (acquisition of creditor rights by connected company at an undervalue).</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-15-crossheading-transitional-provision"><heading>Transitional provision</heading><paragraph eId="schedule-15-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-15-paragraph-4-1"><num>(1)</num><intro>The amendments made by this Schedule do not have effect in relation to a relevant acquisition that is made on or after 14 October 2009, or to a release of rights acquired by way of such an acquisition, if—</intro><level class="para1" eId="schedule-15-paragraph-4-1-a"><num>(a)</num><content>the acquisition is made pursuant to an agreement entered into before 14 October 2009, or</content></level><level class="para1" eId="schedule-15-paragraph-4-1-b"><num>(b)</num><content>the acquisition is made during the transitional period and condition A, B or C is met.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-2"><num>(2)</num><intro>Condition A is that, before 14 October 2009—</intro><level class="para1" eId="schedule-15-paragraph-4-2-a"><num>(a)</num><content>the original creditor received a proposal from the new creditor that the acquisition should be made, or</content></level><level class="para1" eId="schedule-15-paragraph-4-2-b"><num>(b)</num><content>the new creditor received a proposal from the original creditor that the acquisition should be made.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-3"><num>(3)</num><intro>Condition B is that—</intro><level class="para1" eId="schedule-15-paragraph-4-3-a"><num>(a)</num><content>the acquisition is of rights under a loan relationship that is represented by a security,</content></level><level class="para1" eId="schedule-15-paragraph-4-3-b"><num>(b)</num><content>during the transitional period the new creditor acquires rights under other loan relationships represented by securities, and</content></level><level class="para1" eId="schedule-15-paragraph-4-3-c"><num>(c)</num><intro>before 14 October 2009, either—</intro><level class="para2" eId="schedule-15-paragraph-4-3-c-i"><num>(i)</num><content>persons together holding more than 50% by value of the securities referred to in paragraphs (a) and (b) (“the bought-back securities”) received proposals from the new creditor that the acquisitions should be made, or</content></level><level class="para2" eId="schedule-15-paragraph-4-3-c-ii"><num>(ii)</num><content>the new creditor received proposals from persons together holding more than 50% by value of the bought-back securities that the acquisitions should be made.</content></level></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-4"><num>(4)</num><intro>In sub-paragraphs (2) and (3)—</intro><level class="para1" eId="schedule-15-paragraph-4-4-a"><num>(a)</num><content>a reference to the original creditor includes any person acting on behalf of, or who controls, the original creditor,</content></level><level class="para1" eId="schedule-15-paragraph-4-4-b"><num>(b)</num><content>a reference to the new creditor includes any person acting on behalf of, or who controls, the new creditor, and</content></level><level class="para1" eId="schedule-15-paragraph-4-4-c"><num>(c)</num><content>a reference to a person holding a security includes any person acting on behalf of, or who controls, the person holding the security.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-5"><num>(5)</num><intro>Condition C is that—</intro><level class="para1" eId="schedule-15-paragraph-4-5-a"><num>(a)</num><content>before 14 October 2009, the Financial Services Authority gave its agreement (“<term refersTo="#term-the-fsa-agreement" eId="term-the-fsa-agreement">the FSA agreement</term>”) to the acquisition being made (and had not withdrawn that agreement),</content></level><level class="para1" eId="schedule-15-paragraph-4-5-b"><num>(b)</num><content>if the FSA agreement was given subject to the agreement of any other person, the agreement of that other person was also given (and not withdrawn) before that date, and</content></level><level class="para1" eId="schedule-15-paragraph-4-5-c"><num>(c)</num><content>condition A or B would have been met but for the compliance by the original creditor or the new creditor with any other term on which the FSA agreement was given.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-6"><num>(6)</num><intro>In this paragraph—</intro><level class="para1" eId="schedule-15-paragraph-4-6-a"><num>(a)</num><content>“<term refersTo="#term-the-original-creditor" eId="term-the-original-creditor">the original creditor</term>”, in relation to a relevant acquisition, means the person from whom the rights are acquired, and</content></level><level class="para1" eId="schedule-15-paragraph-4-6-b"><num>(b)</num><content>“<term refersTo="#term-the-new-creditor" eId="term-the-new-creditor">the new creditor</term>”, in relation to a relevant acquisition, means the person who acquires the rights.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-7"><num>(7)</num><intro>In this paragraph “<term refersTo="#term-the-transitional-period" eId="term-the-transitional-period">the transitional period</term>” means the period—</intro><level class="para1" eId="schedule-15-paragraph-4-7-a"><num>(a)</num><content>beginning with 14 October 2009, and</content></level><level class="para1" eId="schedule-15-paragraph-4-7-b"><num>(b)</num><content>ending with 31 January 2010.</content></level></subparagraph><subparagraph eId="schedule-15-paragraph-4-8"><num>(8)</num><content>Section 472 of CTA 2009 (meaning of “control”) applies for the purposes of this paragraph.</content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-16"><num>SCHEDULE 16<authorialNote class="referenceNote">Section 46</authorialNote></num><heading>Risk transfer schemes</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-16-crossheading-amendments"><heading>Amendments</heading><paragraph eId="schedule-16-paragraph-1" class="schProv1"><num>1</num><content>CTA 2010 is amended as follows.</content></paragraph><paragraph eId="schedule-16-paragraph-2" class="schProv1"><num>2</num><content><mod>In section 1(4) (overview of Act) omit the “and” at the end of paragraph (g), insert <quotedText>“ , and ”</quotedText> at the end of paragraph (h) and after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(i)</num><content>risk transfer schemes (see Part 21A).</content></level></quotedStructure></mod></content></paragraph><paragraph eId="schedule-16-paragraph-3" class="schProv1"><num>3</num><content><mod>After Part 21 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><part><num>Part 21A</num><heading>Risk transfer schemes</heading><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Introduction</heading><section><num>937A</num><heading>Overview</heading><content>This Part contains rules about the treatment of certain losses made by companies as a result of risk transfer schemes.</content></section><section><num>937B</num><heading>Group schemes and single company schemes</heading><subsection><num>(1)</num><intro>A risk transfer scheme may be—</intro><level class="para1"><num>(a)</num><content>a group scheme, or</content></level><level class="para1"><num>(b)</num><content>a risk transfer scheme other than a group scheme (a “single-company scheme”).</content></level></subsection><subsection><num>(2)</num><intro>A risk transfer scheme to which a company (“company A”) is a party is a “group scheme” if at least one company other than company A is at any time both—</intro><level class="para1"><num>(a)</num><content>associated with company A, and</content></level><level class="para1"><num>(b)</num><content>a party to the scheme.</content></level></subsection><subsection><num>(3)</num><intro>In this Part “<term refersTo="#term-the-relevant-group">the relevant group</term>” means—</intro><level class="para1"><num>(a)</num><content>company A, and</content></level><level class="para1"><num>(b)</num><content>each company other than company A in relation to which the condition in subsection (2) is met.</content></level></subsection><subsection><num>(4)</num><content>In its application in relation to single company schemes, this Part applies subject to the following modifications.</content></subsection><subsection><num>(5)</num><intro>The modifications are that—</intro><level class="para1"><num>(a)</num><content>references to the relevant group, a member of the relevant group, or the members of the relevant group, are treated as references to company A, and</content></level><level class="para1"><num>(b)</num><content>sections 937E(2) and 937L(2) are treated as omitted.</content></level></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Basic definitions</heading><section><num>937C</num><heading>Meaning of “risk transfer scheme”</heading><subsection><num>(1)</num><content>A scheme to which a company (“company A”) is a party is a “risk transfer scheme” if conditions 1 to 3 are met.</content></subsection><subsection><num>(2)</num><content>Condition 1 is that the purpose, or one of the main purposes, of any member of the relevant group on entering into the scheme is to obtain a financial advantage for the relevant group that it is reasonable to assume could not otherwise have been obtained without the relevant group becoming subject to (or incurring the cost of avoiding) a relevant risk.</content></subsection><subsection><num>(3)</num><intro>In subsection (2) “<term refersTo="#term-a-relevant-risk">a relevant risk</term>” means a risk that the relevant group would make economic losses in one or more accounting periods of company A as a result of fluctuations in—</intro><level class="para1"><num>(a)</num><content>the rate of exchange between any two currencies,</content></level><level class="para1"><num>(b)</num><content>the retail prices index (or any similar general index of prices) or any other index, or</content></level><level class="para1"><num>(c)</num><content>any price or other value.</content></level></subsection><subsection><num>(4)</num><intro>Condition 2 is that, as a result of the scheme, and disregarding the effect of this Part, the relevant group—</intro><level class="para1"><num>(a)</num><content>is not subject to the relevant risk, or</content></level><level class="para1"><num>(b)</num><content>is subject only to a negligible proportion of that risk.</content></level></subsection><subsection><num>(5)</num><content>Condition 3 is that, disregarding the effect of the provisions of the Corporation Tax Acts, condition 2 would not be met.</content></subsection><subsection><num>(6)</num><intro>For the purposes of this section the relevant group obtains a “financial advantage” from a scheme if, taking into account the effect of the scheme on each member of the group, the scheme—</intro><level class="para1"><num>(a)</num><content>increases the return on any investment,</content></level><level class="para1"><num>(b)</num><content>reduces the costs of any borrowing, or</content></level><level class="para1"><num>(c)</num><content>has an effect economically equivalent to that mentioned in paragraph (a) or (b).</content></level></subsection></section><section><num>937D</num><heading>Meaning of “the scheme rate, index or value”</heading><content>In this Part “<term refersTo="#term-the-scheme-rate,-index-or-value">the scheme rate, index or value</term>”, in relation to a risk transfer scheme, means the rate, index or value mentioned in section 937C(3)(a), (b) or (c) in relation to the relevant risk for the scheme.</content></section><section><num>937E</num><heading>Scheme losses and scheme profits</heading><subsection><num>(1)</num><intro>A loss or profit made by a company in an accounting period is a “scheme loss” or “<term refersTo="#term-scheme-profit">scheme profit</term>” in relation to a risk transfer scheme to which the company is a party at any time in the period if the loss or profit—</intro><level class="para1"><num>(a)</num><content>is from a loan relationship, or derivative contract, that is part of the scheme,</content></level><level class="para1"><num>(b)</num><content>would, apart from this Part, be brought into account in determining a debit or credit for the purposes of Part 5 of CTA 2009 (loan relationships) or Part 7 of that Act (derivative contracts), and</content></level><level class="para1"><num>(c)</num><content>arises as a result of fluctuations in the scheme rate, index or value.</content></level></subsection><subsection><num>(2)</num><content>References in this Part to a scheme loss or scheme profit made by a company in a period that is not an accounting period of that company are to the scheme loss or scheme profit that the company would have made in the period from the loan relationship or derivative contract in question if the period had been an accounting period of the company.</content></subsection><subsection><num>(3)</num><intro>References in this section to a loss or profit from a loan relationship or a derivative contract include—</intro><level class="para1"><num>(a)</num><content>a loss or profit from a related transaction, and</content></level><level class="para1"><num>(b)</num><content>a loss or profit of a capital nature.</content></level></subsection><subsection><num>(4)</num><intro>In subsection (3)(a) “<term refersTo="#term-related-transaction">related transaction</term>” has the meaning given by—</intro><level class="para1"><num>(a)</num><content>section 304 of CTA 2009 (in relation to a loan relationship), or</content></level><level class="para1"><num>(b)</num><content>section 596 of that Act (in relation to a derivative contract).</content></level></subsection></section><section><num>937F</num><heading>Ring-fenced scheme losses and relevant scheme profits</heading><subsection><num>(1)</num><intro>Subsection (2) applies if—</intro><level class="para1"><num>(a)</num><content>a company makes one or more scheme losses in an accounting period in relation to a risk transfer scheme, and</content></level><level class="para1"><num>(b)</num><content>disregarding any profits or losses made otherwise than as a result of the scheme, the relevant group makes a pre-tax economic loss in the period as a result of fluctuations in the scheme rate, index or value.</content></level></subsection><subsection><num>(2)</num><content>The relevant proportion of each scheme loss made by the company in the accounting period is a “ring-fenced scheme loss”.</content></subsection><subsection><num>(3)</num><content>For this purpose “<term refersTo="#term-the-relevant-proportion">the relevant proportion</term>” means—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_sld_008"><default:mfrac><default:mrow><default:mi>A</default:mi><default:mo>–</default:mo><default:mi>B</default:mi><default:mo>–</default:mo><default:mi>C</default:mi></default:mrow><default:mrow><default:mi>A</default:mi></default:mrow></default:mfrac></default:math></foreign><blockContainer class="where">where—<blockContainer ukl:Name="BlockText">A is the total of the scheme losses made in the period in relation to the scheme by the members of the relevant group,</blockContainer><blockContainer ukl:Name="BlockText">B is the total of the scheme profits made in the period in relation to the scheme by the members of the relevant group, and</blockContainer><blockContainer ukl:Name="BlockText">C is the pre-tax economic loss referred to in subsection (1)(b).</blockContainer></blockContainer></tblock></content></subsection><subsection><num>(4)</num><intro>Subsection (5) applies if—</intro><level class="para1"><num>(a)</num><content>a company makes one or more scheme profits in an accounting period in relation to a risk transfer scheme, and</content></level><level class="para1"><num>(b)</num><content>disregarding any profits or losses made otherwise than as a result of the scheme, the relevant group makes a pre-tax economic profit in the period as a result of fluctuations in the scheme rate, index or value.</content></level></subsection><subsection><num>(5)</num><content>The relevant proportion of each scheme profit made by the company in the accounting period is a “relevant scheme profit”.</content></subsection><subsection><num>(6)</num><content>For this purpose “<term refersTo="#term-the-relevant-proportion">the relevant proportion</term>” means—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_sld_009"><default:mfrac><default:mrow><default:mi>A</default:mi><default:mo>–</default:mo><default:mi>B</default:mi><default:mo>–</default:mo><default:mi>C</default:mi></default:mrow><default:mrow><default:mi>A</default:mi></default:mrow></default:mfrac></default:math></foreign><blockContainer class="where">where—<blockContainer ukl:Name="BlockText">A is the total of the scheme profits made in the period in relation to the scheme by the members of the relevant group,</blockContainer><blockContainer ukl:Name="BlockText">B is the total of the scheme losses made in the period in relation to the scheme by the members of the relevant group, and</blockContainer><blockContainer ukl:Name="BlockText">C is the pre-tax economic profit referred to in subsection (4)(b).</blockContainer></blockContainer></tblock></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Treatment of ring-fenced scheme losses</heading><section><num>937G</num><heading>Ring-fenced scheme loss: treatment in period in which made</heading><subsection><num>(1)</num><content>This section applies for the purpose of determining the amount (if any) of a ring-fenced scheme loss that may be brought into account by a company in the accounting period in which it is made.</content></subsection><subsection><num>(2)</num><content>If the amount of the company's profits pool for the scheme as at the beginning of the period is nil, the ring-fenced scheme loss may not be brought into account.</content></subsection><subsection><num>(3)</num><intro>If the amount of the company's profits pool for the scheme as at the beginning of the period is—</intro><level class="para1"><num>(a)</num><content>greater than nil, and</content></level><level class="para1"><num>(b)</num><content>less than the total of the ring-fenced scheme losses made in the period in relation to the scheme by the company,</content></level><wrapUp>only the relevant proportion of the ring-fenced scheme loss may be brought into account.</wrapUp></subsection><subsection><num>(4)</num><content>For this purpose “<term refersTo="#term-the-relevant-proportion">the relevant proportion</term>” means—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_sld_010"><default:mfrac><default:mrow><default:mi>A</default:mi></default:mrow><default:mrow><default:mi>B</default:mi></default:mrow></default:mfrac></default:math></foreign><blockContainer class="where">where—<blockContainer ukl:Name="BlockText">A is the amount of the company's profits pool as at the beginning of the period, and</blockContainer><blockContainer ukl:Name="BlockText">B is the total of the ring-fenced scheme losses made in the period in relation to the scheme by the company.</blockContainer></blockContainer></tblock></content></subsection><subsection><num>(5)</num><content>If the amount of the company's profits pool for the scheme as at the beginning of the period is equal to or greater than the total of the ring-fenced scheme losses made in the period in relation to the scheme by the company, the ring-fenced scheme loss may be brought into account in full.</content></subsection><subsection><num>(6)</num><content>A reference in this paragraph to bringing a ring-fenced scheme loss into account is to bringing it into account in determining a debit or credit for the purposes of Part 5 of CTA 2009 (loan relationships) or Part 7 of that Act (derivative contracts).</content></subsection></section><section><num>937H</num><heading>Ring-fenced scheme loss: treatment in subsequent periods</heading><subsection><num>(1)</num><intro>This section applies where—</intro><level class="para1"><num>(a)</num><content>a company makes one or more scheme profits in an accounting period in relation to a risk transfer scheme,</content></level><level class="para1"><num>(b)</num><content>disregarding any profits or losses made otherwise than as a result of the scheme, the relevant group makes a pre-tax economic profit in the period as a result of fluctuations in the scheme rate, index or value, and</content></level><level class="para1"><num>(c)</num><content>the amount of the company's losses pool for the scheme as at the beginning of the period is greater than nil.</content></level></subsection><subsection><num>(2)</num><content>The company may bring into account, as if it were a loss made in the period from a loan relationship—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_sld_011"><default:mrow><default:mi>A</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi>B</default:mi></default:mrow></default:math></foreign><blockContainer class="where">where—<blockContainer ukl:Name="BlockText">A is so much of the amount of the company's losses pool as at the beginning of the period as does not exceed the total of the relevant scheme profits made in the period in relation to the scheme by the company, and</blockContainer><blockContainer ukl:Name="BlockText">B is the proportion of the total of the relevant scheme profits made in the period in relation to the scheme by the company that consists of profits made from its loan relationships.</blockContainer></blockContainer></tblock></content></subsection><subsection><num>(3)</num><content>The company may bring into account, as if it were a loss made in the period from a derivative contract—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_sld_012"><default:mrow><default:mi>A</default:mi></default:mrow><default:mo>×</default:mo><default:mrow><default:mi>C</default:mi></default:mrow></default:math></foreign><blockContainer class="where">where—<blockContainer ukl:Name="BlockText">A has the same meaning as in subsection (2), and</blockContainer><blockContainer ukl:Name="BlockText">C is the proportion of the total of the relevant scheme profits made in the period in relation to the scheme by the company that consists of profits made from its derivative contracts.</blockContainer></blockContainer></tblock></content></subsection><subsection><num>(4)</num><content>A reference in this section to bringing an amount into account is to bringing it into account in determining a debit or credit for the purposes of Part 5 of CTA 2009 (loan relationships) or Part 7 of that Act (derivative contracts).</content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>A company's losses pool and profits pool</heading><section><num>937I</num><heading>A company's losses pool and profits pool</heading><subsection><num>(1)</num><content>The amount of a company's losses pool for a risk transfer scheme as at the beginning of an accounting period (“the current accounting period”) is—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_sld_013"><default:mi>A</default:mi><default:mo>+</default:mo><default:mi>B</default:mi><default:mo>–</default:mo><default:mi>C</default:mi></default:math></foreign><blockContainer class="where">where—<blockContainer ukl:Name="BlockText">A is—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>the amount of the pool as at the beginning of the previous accounting period, or</item><item><num>(b)</num>if the risk transfer scheme began in the current accounting period, nil,</item></blockList></blockContainer><blockContainer ukl:Name="BlockText">B is the total amount, if any, of ring-fenced scheme losses made in the previous accounting period in relation to the scheme by the company that, as a result of the application of section 937G(2) or (3), are not brought into account in that period, and</blockContainer><blockContainer ukl:Name="BlockText">C is the total amount (if any) that, as a result of the application of section 937H(2) or (3), is brought into account in the previous accounting period in relation to the scheme by the company.</blockContainer></blockContainer></tblock></content></subsection><subsection><num>(2)</num><content>The amount of a company's profits pool for a risk transfer scheme as at the beginning of an accounting period (“the current accounting period”) is—<tblock class="formula"><foreign><default:math xmlns="http://www.w3.org/1998/Math/MathML" overflow="scroll" altimg="http://www.legislation.gov.uk/ukpga/2010/13/images/ukpga_20100013_en_sld_014"><default:mi>A</default:mi><default:mo>+</default:mo><default:mi>B</default:mi><default:mo>–</default:mo><default:mi>C</default:mi></default:math></foreign><blockContainer class="where">where—<blockContainer ukl:Name="BlockText">A is—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>the amount of the pool as at the beginning of the previous accounting period, or</item><item><num>(b)</num>if the risk transfer scheme began in the current accounting period, nil,</item></blockList></blockContainer><blockContainer ukl:Name="BlockText">B is—<blockList class="ordered alpha parens" ukl:Name="OrderedList" ukl:Type="alpha" ukl:Decoration="parens"><item><num>(a)</num>the total of any relevant scheme profits made in the previous accounting period in relation to the scheme by the company, less</item><item><num>(b)</num>the total amount (if any) that, as a result of the application of section 937H(2) or (3), is brought into account in that accounting period in relation to the scheme by the company, and</item></blockList></blockContainer><blockContainer ukl:Name="BlockText">C is the total amount (if any) of ring-fenced scheme losses made in the previous accounting period in relation to the scheme by the company that, as a result of the application of section 937G(3) or (5), are brought into account in that period.</blockContainer></blockContainer></tblock></content></subsection></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>General</heading><section><num>937J</num><heading>Tax capacity assumption</heading><subsection><num>(1)</num><content>This section applies for the purpose of determining whether condition 2 in section 937C is met.</content></subsection><subsection><num>(2)</num><content>Where a member of the relevant group (“<term refersTo="#term-the-company">the company</term>”) makes a scheme loss in an accounting period, the economic profits and losses made by the relevant group in the period must be calculated on the assumption that the company obtained the full tax benefit of the loss.</content></subsection><subsection><num>(3)</num><intro>The “full tax benefit” of the loss is the reduction in the corporation tax liability of the company that would result if—</intro><level class="para1"><num>(a)</num><content>the loss were brought into account, and</content></level><level class="para1"><num>(b)</num><content>the company's profits chargeable to corporation tax, before doing so, were equal to the debit (or the reduction in any credit) determined by reference to the loss.</content></level></subsection><subsection><num>(4)</num><content>A reference in this section to bringing a loss into account is to bringing it into account in determining a debit or credit for the purposes of Part 5 of CTA 2009 (loan relationships) or Part 7 of that Act (derivative contracts).</content></subsection></section><section><num>937K</num><heading>Meaning of “associated with”</heading><subsection><num>(1)</num><content>For the purposes of this Part a company (“company B”) is associated with another company (“company A”) at a time (“<term refersTo="#term-the-relevant-time">the relevant time</term>”) if any of the following five conditions is met.</content></subsection><subsection><num>(2)</num><content>The first condition is that the financial results of company A and company B, for a period that includes the relevant time, meet the consolidation condition.</content></subsection><subsection><num>(3)</num><content>The second condition is that there is a connection between company A and company B for the accounting period of company A in which the relevant time falls.</content></subsection><subsection><num>(4)</num><content>The third condition is that, at the relevant time, company A has a major interest in company B or company B has a major interest in company A.</content></subsection><subsection><num>(5)</num><intro>The fourth condition is that—</intro><level class="para1"><num>(a)</num><content>the financial results of company A and a third company, for a period that includes the relevant time, meet the consolidation condition, and</content></level><level class="para1"><num>(b)</num><content>at the relevant time the third company has a major interest in company B.</content></level></subsection><subsection><num>(6)</num><intro>The fifth condition is that—</intro><level class="para1"><num>(a)</num><content>there is a connection between company A and a third company for the accounting period of company A in which the relevant time falls, and</content></level><level class="para1"><num>(b)</num><content>at the relevant time the third company has a major interest in company B.</content></level></subsection><subsection><num>(7)</num><intro>In this section the financial results of any two companies for any period meet “the consolidation condition” if—</intro><level class="para1"><num>(a)</num><content>they are required to be comprised in group accounts prepared under section 399 of the Companies Act 2006 (duty of certain parent companies to prepare group accounts), or</content></level><level class="para1"><num>(b)</num><content>they would be required to be comprised in such accounts but for the application of an exemption mentioned in subsection (3) of that section.</content></level></subsection><subsection><num>(8)</num><content>The following provisions apply for the purposes of this section—<blockList class="unordered none" ukl:Name="UnorderedList" ukl:Decoration="none"><item>sections 466 to 471 of CTA 2009 (companies connected for accounting period), and</item><item>sections 473 and 474 of CTA 2009 (meaning of “major interest”).</item></blockList></content></subsection></section><section><num>937L</num><heading>Interpretation of references to economic losses and profits</heading><subsection><num>(1)</num><content>A reference in this Part to an “economic” loss or profit made by any person in a period is to a loss or profit made by that person in that period, computed taking into account unrealised (as well as realised) losses and profits.</content></subsection><subsection><num>(2)</num><content>For the purposes of this Part an economic loss or profit is made “by the relevant group” if it is made by the members of the relevant group considered together.</content></subsection><subsection><num>(3)</num><intro>Where—</intro><level class="para1"><num>(a)</num><content>any member of the relevant group makes a scheme loss or profit in an accounting period, and</content></level><level class="para1"><num>(b)</num><content>that scheme loss or profit is, under generally accepted accounting practice, calculated by reference to fluctuations in the scheme rate, index or value over a longer period,</content></level><wrapUp>the economic loss or profit made by the group in the accounting period as a result of those fluctuations is, so far as it relates to that scheme loss or profit, to be computed over that longer period.</wrapUp></subsection><subsection><num>(4)</num><intro>In determining for the purposes of this Part the amount of an economic loss or profit made by the relevant group in any period, the economic losses and profits of each member of the relevant group—</intro><level class="para1"><num>(a)</num><content>are (subject to subsection (3)) to be computed over that period (whether or not that period is an accounting period of the member), but</content></level><level class="para1"><num>(b)</num><content>are only to be taken into account to the extent that they are attributable to times at which the member is a party to the risk transfer scheme in question.</content></level></subsection><subsection><num>(5)</num><content>A reference in this Part to a “pre-tax” economic loss or profit is a reference to an economic loss or profit determined disregarding any loss or gain made as a result of the operation of any provision of the Corporation Tax Acts.</content></subsection></section><section><num>937M</num><heading>Foreign currency accounting</heading><subsection><num>(1)</num><content>In determining under this Part amounts that a company may or may not bring into account in an accounting period, economic losses and profits are to be computed in the tax calculation currency of that company in that accounting period.</content></subsection><subsection><num>(2)</num><content>Section 17(5) of CTA 2010 (meaning of references to the tax calculation currency of a company) applies for the purposes of this section.</content></subsection></section><section><num>937N</num><heading>Meaning of “scheme”</heading><content>In this Part “<term refersTo="#term-scheme">scheme</term>” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions.</content></section></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Power to amend this Part</heading><section><num>937O</num><heading>Power to amend this Part in its application to dealers in securities</heading><subsection><num>(1)</num><content>The Treasury may by order amend any enactment contained in this Part so as to apply (with or without modifications) the rules in this Part about scheme losses and scheme profits to losses and profits made in a trade.</content></subsection><subsection><num>(2)</num><content>The power conferred by subsection (1) may only be exercised in relation to losses and profits made by a company that carries on a banking business, an insurance business or a business consisting wholly or partly of dealing in securities.</content></subsection><subsection><num>(3)</num><intro>In this section “<term refersTo="#term-securities">securities</term>” includes—</intro><level class="para1"><num>(a)</num><content>shares,</content></level><level class="para1"><num>(b)</num><content>rights of unit holders in unit trust schemes to which <abbr class="acronym" title="Taxation of Chargeable Gains Act">TCGA</abbr> 1992 applies as a result of section 99 of that Act, and</content></level><level class="para1"><num>(c)</num><content>in the case of a company with no share capital, interests in the company possessed by members of the company.</content></level></subsection><subsection><num>(4)</num><intro>An order under this section—</intro><level class="para1"><num>(a)</num><content>may make different provision for different cases or purposes, and</content></level><level class="para1"><num>(b)</num><content>may include incidental, consequential, supplementary or transitional provision.</content></level></subsection></section></hcontainer></part></quotedStructure></mod></content></paragraph><paragraph eId="schedule-16-paragraph-4" class="schProv1"><num>4</num><content><mod>In Schedule 4 (index of defined expressions), insert at the appropriate places—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml"><default1:colgroup span="1"><default1:col span="1" style="width:71%"/><default1:col span="1" style="width:29%"/></default1:colgroup><default1:tbody><default1:tr><default1:td>associated with (in Part 21A)</default1:td><default1:td>section 937K”</default1:td></default1:tr><default1:tr><default1:td>“economic loss (in Part 21A)</default1:td><default1:td>section 937L”</default1:td></default1:tr><default1:tr><default1:td>“economic profit (in Part 21A)</default1:td><default1:td>section 937L”</default1:td></default1:tr><default1:tr><default1:td>“the relevant group (in Part 21A)</default1:td><default1:td>section 937B(3)”</default1:td></default1:tr><default1:tr><default1:td>“relevant scheme profit (in Part 21A)</default1:td><default1:td>section 937F”</default1:td></default1:tr><default1:tr><default1:td>“ring-fenced scheme loss (in Part 21A)</default1:td><default1:td>section 937F”</default1:td></default1:tr><default1:tr><default1:td>“risk transfer scheme (in Part 21A)</default1:td><default1:td>section 937C”</default1:td></default1:tr><default1:tr><default1:td>“scheme (in Part 21A)</default1:td><default1:td>section 937N”</default1:td></default1:tr><default1:tr><default1:td>“scheme loss (in Part 21A)</default1:td><default1:td>section 937E”</default1:td></default1:tr><default1:tr><default1:td>“scheme profit (in Part 21A)</default1:td><default1:td>section 937E”</default1:td></default1:tr><default1:tr><default1:td>“the scheme rate, index or value (in Part 21A)</default1:td><default1:td>section 937D</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-16-crossheading-commencement-and-transitional-provision"><heading>Commencement and transitional provision</heading><paragraph eId="schedule-16-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-16-paragraph-5-1"><num>(1)</num><content>The amendments made by this Schedule have effect in relation to accounting periods that begin on or after 1 April 2010 (“<term refersTo="#term-the-commencement-date" eId="term-the-commencement-date">the commencement date</term>”).</content></subparagraph><subparagraph eId="schedule-16-paragraph-5-2"><num>(2)</num><intro>Where a company has an accounting period (“the straddling accounting period”) that—</intro><level class="para1" eId="schedule-16-paragraph-5-2-a"><num>(a)</num><content>begins before the commencement date, and</content></level><level class="para1" eId="schedule-16-paragraph-5-2-b"><num>(b)</num><content>ends on or after that date,</content></level><wrapUp>the straddling accounting period is to be treated as split.</wrapUp></subparagraph><subparagraph eId="schedule-16-paragraph-5-3"><num>(3)</num><content>Where this paragraph provides that the straddling accounting period is to be treated as split, that part of the straddling accounting period that falls before the commencement date and that part of the straddling accounting period that falls on or after that date are to be treated for the purposes of the amendments made by this Schedule as separate accounting periods.</content></subparagraph><subparagraph eId="schedule-16-paragraph-5-4"><num>(4)</num><intro>In relation to the first accounting period of a company in relation to which the amendments made by this Schedule have effect—</intro><level class="para1" eId="schedule-16-paragraph-5-4-a"><num>(a)</num><content>section 937I of CTA 2010 (as inserted by paragraph 3 above) does not apply, and</content></level><level class="para1" eId="schedule-16-paragraph-5-4-b"><num>(b)</num><content>as at the beginning of the period, the amounts of the company's losses pool and profits pool for any risk transfer scheme to which the company is a party is nil.</content></level></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-17"><num>SCHEDULE 17<authorialNote class="referenceNote">Section 56</authorialNote></num><heading>Disclosure of tax avoidance schemes</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-17-crossheading-introduction"><heading>Introduction</heading><paragraph eId="schedule-17-paragraph-1" class="schProv1"><num>1</num><content>Part 7 of FA 2004 (disclosure of tax avoidance schemes) is amended as follows.</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-17-crossheading-initial-marketing"><heading>Initial marketing</heading><paragraph eId="schedule-17-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-17-paragraph-2-1"><num>(1)</num><content>Section 307 (meaning of “promoter”) is amended as follows.</content></subparagraph><subparagraph eId="schedule-17-paragraph-2-2"><num>(2)</num><content><mod>In paragraph (a) of subsection (1), for the words from “business” to “makes” substitute “business, the person (“P”)—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(i)</num><content>is to any extent responsible for the design of the proposed arrangements,</content></level><level class="para2"><num>(ii)</num><content>makes a firm approach to another person (“C”) in relation to the notifiable proposal with a view to P making the notifiable proposal available for implementation by C or any other person, or</content></level><level class="para2"><num>(iii)</num><content>makes</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-2-3"><num>(3)</num><content><mod>In paragraph (b) of that subsection, after “(a)(ii)” insert <quotedText>“ or (iii) ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-2-4"><num>(4)</num><content><mod>After subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content>For the purposes of this Part a person is an introducer in relation to a notifiable proposal if the person makes a marketing contact with another person in relation to the notifiable proposal.</content></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-2-5"><num>(5)</num><content><mod>After subsection (4) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(4A)</num><content>For the purposes of this Part a person makes a firm approach to another person in relation to a notifiable proposal if the person makes a marketing contact with the other person in relation to the notifiable proposal at a time when the proposed arrangements have been substantially designed.</content></subsection><subsection><num>(4B)</num><intro>For the purposes of this Part a person makes a marketing contact with another person in relation to a notifiable proposal if—</intro><level class="para1"><num>(a)</num><content>the person communicates information about the notifiable proposal to the other person,</content></level><level class="para1"><num>(b)</num><content>the communication is made with a view to that other person, or any other person, entering into transactions forming part of the proposed arrangements, and</content></level><level class="para1"><num>(c)</num><content>the information communicated includes an explanation of the advantage in relation to any tax that might be expected to be obtained from the proposed arrangements.</content></level></subsection><subsection><num>(4C)</num><intro>For the purposes of subsection (4A) proposed arrangements have been substantially designed at any time if by that time the nature of the transactions to form part of them has been sufficiently developed for it to be reasonable to believe that a person who wished to obtain the advantage mentioned in subsection (4B)(c) might enter into—</intro><level class="para1"><num>(a)</num><content>transactions of the nature developed, or</content></level><level class="para1"><num>(b)</num><content>transactions not substantially different from transactions of that nature.</content></level></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-2-6"><num>(6)</num><content><mod>In subsection (5), after “promoter” insert <quotedText>“ or introducer ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-2-7"><num>(7)</num><content><mod>In subsection (6), after “promoter” (in both places) insert <quotedText>“ or introducer ”</quotedText>.</mod></content></subparagraph></paragraph><paragraph eId="schedule-17-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-17-paragraph-3-1"><num>(1)</num><content>Section 308(2) (duties of promoter) is amended as follows.</content></subparagraph><subparagraph eId="schedule-17-paragraph-3-2"><num>(2)</num><content><mod>For “earlier” substitute <quotedText>“ earliest ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-3-3"><num>(3)</num><content><mod>Before paragraph (a) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(za)</num><content>the date on which the promoter first makes a firm approach to another person in relation to a notifiable proposal,</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></subparagraph></paragraph><paragraph eId="schedule-17-paragraph-4" class="schProv1"><num>4</num><content><mod>In section 313A(1) (pre-disclosure enquiry), for “of a proposal or arrangements” substitute <quotedText>“ or introducer of a proposal, or the promoter of arrangements, ”</quotedText>.</mod></content></paragraph><paragraph eId="schedule-17-paragraph-5" class="schProv1"><num>5</num><content><mod>In section 318(1) (interpretation), after the definition of “<abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr>” insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default">“<term refersTo="#term-introducer">introducer</term>”, in relation to a notifiable proposal, has the meaning given by section 307;“<term refersTo="#term-make-a-firm-approach">make a firm approach</term>” has the meaning given by section 307(4A);“<term refersTo="#term-make-a-marketing-contact">make a marketing contact</term>” has the meaning given by section 307(4B);</quotedStructure><inline name="appendText">.</inline></mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-17-crossheading-promoters-to-provide-client-lists"><heading>Promoters to provide client lists</heading><paragraph eId="schedule-17-paragraph-6" class="schProv1"><num>6</num><content><mod>After section 313 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>313ZA</num><heading>Duty to provide details of clients</heading><subsection><num>(1)</num><intro>This section applies where a person who is a promoter in relation to notifiable arrangements is providing (or has provided) services to any person (“<term refersTo="#term-the-client">the client</term>”) in connection with the notifiable arrangements and either—</intro><level class="para1"><num>(a)</num><content>the promoter is subject to the reference number information requirement, or</content></level><level class="para1"><num>(b)</num><content>the promoter has failed to comply with section 308(1) or (3) in relation to the notifiable arrangements (or the notifiable proposal for them) but would be subject to the reference number information requirement if a reference number had been allocated to the notifiable arrangements.</content></level></subsection><subsection><num>(2)</num><content>For the purposes of this section “the reference number information requirement” is the requirement under section 312(2) to provide to the client prescribed information relating to the reference number allocated to the notifiable arrangements.</content></subsection><subsection><num>(3)</num><content>The promoter must, within the prescribed period after the end of the relevant period, provide <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> with prescribed information in relation to the client.</content></subsection><subsection><num>(4)</num><content>In subsection (3) “<term refersTo="#term-the-relevant-period">the relevant period</term>” means such period during which the promoter is or would be subject to the reference number information requirement as is prescribed.</content></subsection><subsection><num>(5)</num><content>The promoter need not comply with subsection (3) in relation to any notifiable arrangements at any time after <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> have given notice under section 312(6) in relation to the notifiable arrangements.</content></subsection></section></quotedStructure></mod></content></paragraph><paragraph eId="schedule-17-paragraph-7" class="schProv1"><num>7</num><content><mod>In section 316 (information to be provided in manner and form specified by <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr>), for “and 313(1) and (3)” substitute <quotedText>“ , 313(1) and (3) and 313ZA(3) ”</quotedText>.</mod></content></paragraph><paragraph eId="schedule-17-paragraph-8" class="schProv1"><num>8</num><content><mod>In section 317(2) (regulations), after “may” insert <quotedText>“ make different provision for different cases and may ”</quotedText>.</mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-17-crossheading-information-provided-to-introducers"><heading>Information provided to introducers</heading><paragraph eId="schedule-17-paragraph-9" class="schProv1"><num>9</num><content><mod>After section 313B insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><section><num>313C</num><heading>Information provided to introducers</heading><subsection><num>(1)</num><intro>Where <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> suspect—</intro><level class="para1"><num>(a)</num><content>that a person (“P”) is an introducer in relation to a proposal, and</content></level><level class="para1"><num>(b)</num><content>that the proposal may be notifiable,</content></level><wrapUp>they may by written notice require P to provide <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> with prescribed information in relation to each person who has provided P with any information relating to the proposal.</wrapUp></subsection><subsection><num>(2)</num><content>A notice must specify the proposal to which it relates.</content></subsection><subsection><num>(3)</num><intro>P must comply with a requirement under or by virtue of subsection (1) within—</intro><level class="para1"><num>(a)</num><content>the prescribed period, or</content></level><level class="para1"><num>(b)</num><content>such longer period as <abbr class="acronym" title="Her Majesty's Revenue and Customs">HMRC</abbr> may direct.</content></level></subsection></section></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-17-crossheading-penalties"><heading>Penalties</heading><paragraph eId="schedule-17-paragraph-10" class="schProv1"><num>10</num><subparagraph eId="schedule-17-paragraph-10-1"><num>(1)</num><content>Section 98C of <abbr class="acronym" title="Taxes Management Act">TMA</abbr> 1970 (penalties for failures to comply with duties relating to disclosure of tax avoidance schemes) is amended as follows.</content></subparagraph><subparagraph eId="schedule-17-paragraph-10-2"><num>(2)</num><content><mod>In subsection (1)(a) (initial penalty for failing to comply with duties), for “£5,000” substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para2"><num>(i)</num><content>in the case of a provision mentioned in paragraph (a), (b) or (c) of that subsection, £600 for each day during the initial period (but see also subsections (2A), (2B) and (2ZC) below), and</content></level><level class="para2"><num>(ii)</num><content>in any other case, £5,000.</content></level></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-10-3"><num>(3)</num><intro>In subsection (2)—</intro><level class="para1" eId="schedule-17-paragraph-10-3-a"><num>(a)</num><content>omit the “and” at the end of paragraph (da),</content></level><level class="para1" eId="schedule-17-paragraph-10-3-b"><num>(b)</num><content><mod>after that paragraph insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(db)</num><content>section 313ZA (duty of promoter to provide details of clients),</content></level></quotedStructure><inline name="appendText">, and</inline></mod></content></level><level class="para1" eId="schedule-17-paragraph-10-3-c"><num>(c)</num><content><mod>insert at the end<quotedText startQuote="“">and </quotedText><quotedStructure endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><level class="para1"><num>(f)</num><content>section 313C (duty of introducer to give details of persons who have provided information).</content></level></quotedStructure></mod></content></level></subparagraph><subparagraph eId="schedule-17-paragraph-10-4"><num>(4)</num><content><mod>After that subsection insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(2ZA)</num><intro>In this section “<term refersTo="#term-the-initial-period">the initial period</term>” means the period—</intro><level class="para1"><num>(a)</num><content>beginning with the relevant day, and</content></level><level class="para1"><num>(b)</num><content>ending with the earlier of the day on which the penalty under subsection (1)(a)(i) is determined and the last day before the failure ceases;</content></level><wrapUp>and for this purpose “the relevant day” is the day specified in relation to the failure in the following table.</wrapUp></subsection><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml"><default1:colgroup span="1"><default1:col span="1" style="width:50%"/><default1:col span="1" style="width:50%"/></default1:colgroup><default1:tbody><default1:tr><default1:th>Failure</default1:th><default1:th>Relevant day</default1:th></default1:tr><default1:tr><default1:td>A failure to comply with subsection (1) or (3) of section 308 in so far as the subsection applies by virtue of an order under section 306A</default1:td><default1:td>The first day after the end of the period prescribed under section 306A(6)</default1:td></default1:tr><default1:tr><default1:td>A failure to comply with subsection (1) or (3) of section 308 in so far as the subsection applies by virtue of an order under section 308A(2)</default1:td><default1:td>The first day after the end of the period prescribed under subsections (5) and (6)(a) of section 308A (as it may have been extended by a direction under subsection (6)(b) of that section)</default1:td></default1:tr><default1:tr><default1:td>Any other failure to comply with subsection (1) of section 308</default1:td><default1:td>The first day after the end of the period prescribed under that subsection</default1:td></default1:tr><default1:tr><default1:td>Any other failure to comply with subsection (3) of section 308</default1:td><default1:td>The first day after the end of the period prescribed under that subsection</default1:td></default1:tr><default1:tr><default1:td>A failure to comply with subsection (1) of section 309</default1:td><default1:td>The first day after the end of the period prescribed under that subsection</default1:td></default1:tr><default1:tr><default1:td>A failure to comply with section 310</default1:td><default1:td>The first day after the latest time by which section 310 must be complied with in the case concerned</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock><subsection><num>(2ZB)</num><intro>The amount of a penalty under subsection (1)(a)(i) is to be arrived at after taking account of all relevant considerations, including the desirability of its being set at a level which appears appropriate for deterring the person, or other persons, from similar failures to comply on future occasions having regard (in particular)—</intro><level class="para1"><num>(a)</num><content>in the case of a penalty for a person's failure to comply with section 308(1) or (3), to the amount of any fees received, or likely to have been received, by the person in connection with the notifiable proposal (or arrangements implementing the notifiable proposal), or with the notifiable arrangements, and</content></level><level class="para1"><num>(b)</num><content>in the case of a penalty for a person's failure to comply with section 309(1) or 310, to the amount of any advantage gained, or sought to be gained, by the person in relation to any tax prescribed under section 306(1)(b) in relation to the notifiable arrangements.</content></level></subsection><subsection><num>(2ZC)</num><content>If the maximum penalty under subsection (1)(a)(i) above appears inappropriately low after taking account of those considerations, the penalty is to be of such amount not exceeding £1 million as appears appropriate having regard to those considerations.</content></subsection><subsection><num>(2ZD)</num><content>Where it appears to an officer of Revenue and Customs that a penalty under subsection (1)(a)(i) above has been determined on the basis that the initial period begins with a day later than that which the officer considers to be the relevant day, an officer of Revenue and Customs may commence proceedings for a re-determination of the penalty.</content></subsection><subsection><num>(2ZE)</num><intro>The Treasury may by regulations vary—</intro><level class="para1"><num>(a)</num><content>any of the sums for the time being specified in subsection (1) above, and</content></level><level class="para1"><num>(b)</num><content>the sum specified in subsection (2ZC) above.</content></level></subsection></quotedStructure></mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-10-5"><num>(5)</num><content><mod>In subsection (2A), for “amount specified in subsection (1)(b) above shall be increased to the prescribed sum” substitute <quotedText>“ amounts specified in subsection (1)(a)(i) and (b) above shall be increased to the prescribed sum in relation to days falling after the prescribed period ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-10-6"><num>(6)</num><content><mod>In subsection (2B), for “amount specified in subsection (1)(b)” substitute <quotedText>“ amounts specified in subsection (1)(a)(i) and (b) ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-10-7"><num>(7)</num><content><mod>In subsection (2C)(b), after “section” insert <quotedText>“ 306A or ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-10-8"><num>(8)</num><content><mod>In subsection (2D), after “under section” insert <quotedText>“ 306A or ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-10-9"><num>(9)</num><content><mod>In subsection (2E), after “under section” insert <quotedText>“ 306A or ”</quotedText>.</mod></content></subparagraph><subparagraph eId="schedule-17-paragraph-10-10"><num>(10)</num><intro>In subsection (2F)—</intro><level class="para1" eId="schedule-17-paragraph-10-10-a"><num>(a)</num><content><mod>in the opening words, for “subsection (2C)” substitute <quotedText>“ this section ”</quotedText>, and</mod></content></level><level class="para1" eId="schedule-17-paragraph-10-10-b"><num>(b)</num><content><mod>in paragraph (c), after “subsection” insert <quotedText>“ (2ZE) or ”</quotedText>.</mod></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-17-crossheading-commencement"><heading>Commencement</heading><paragraph eId="schedule-17-paragraph-11" class="schProv1"><num>11</num><subparagraph eId="schedule-17-paragraph-11-1"><num>(1)</num><content>The amendments made by this Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint.</content></subparagraph><subparagraph eId="schedule-17-paragraph-11-2"><num>(2)</num><content>An order may appoint different days for different provisions or for different purposes.</content></subparagraph></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-18"><num>SCHEDULE 18<authorialNote class="referenceNote">Section 61</authorialNote></num><heading>Sale of lessors: election out of charge</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-18-crossheading-main-changes"><heading>Main changes</heading><paragraph eId="schedule-18-paragraph-1" class="schProv1"><num>1</num><content>Chapter 3 of Part 9 of CTA 2010 (sale of lessors: leasing business carried on by company alone) is amended as follows.</content></paragraph><paragraph eId="schedule-18-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-18-paragraph-2-1"><num>(1)</num><content>Section 382 (introduction to Chapter) is amended as follows.</content></subparagraph><subparagraph eId="schedule-18-paragraph-2-2"><num>(2)</num><intro>In subsection (1)—</intro><level class="para1" eId="schedule-18-paragraph-2-2-a"><num>(a)</num><content><mod>for “qualifying change of ownership in relation to” substitute <quotedText>“ relevant change in the relationship between ”</quotedText>, and</mod></content></level><level class="para1" eId="schedule-18-paragraph-2-2-b"><num>(b)</num><content><mod>insert at the end <quotedText>“ and a principal company of the company. ”</quotedText></mod></content></level></subparagraph><subparagraph eId="schedule-18-paragraph-2-3"><num>(3)</num><content><mod>In subsection (3), for “ “qualifying change of ownership”, see sections 392 to 398.” substitute <quotedText> “relevant change in the relationship between a company and a principal company of the company”, see sections 392 to 394. ”</quotedText></mod></content></subparagraph></paragraph><paragraph eId="schedule-18-paragraph-3" class="schProv1"><num>3</num><content><mod>In section 383 (income and matching expense in different accounting periods), after subsection (1) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(1A)</num><content>For the meaning of “qualifying change of ownership”, see sections 394A to 398A</content></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-18-paragraph-4" class="schProv1"><num>4</num><content><mod>For section 392 (and the italic heading before it) substitute—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading> “Relevant change in relationship” </heading><section><num>392</num><heading>“Relevant change in relationship”</heading><content>For the purposes of the sales of lessors Chapters there is a relevant change in the relationship between a company (“A”) and a principal company of A on any day in any of the circumstances in section 393 or 394 (qualifying 75% subsidiaries and consortium relationships).</content></section></hcontainer></quotedStructure></mod></content></paragraph><paragraph eId="schedule-18-paragraph-5" class="schProv1"><num>5</num><content><mod>After section 394 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading> “Qualifying change of ownership” </heading><section><num>394A</num><heading>“Qualifying change of ownership”</heading><intro>For the purposes of the sales of lessors Chapters there is a qualifying change of ownership in relation to a company (“A”) on any day if there is a relevant change in the relationship on that day between A and a principal company of A unless any of the following apply—</intro><level class="para1"><num>(a)</num><content>section 395(2),</content></level><level class="para1"><num>(b)</num><content>section 396(2), or</content></level><level class="para1"><num>(c)</num><content>section 398A(2) or (5).</content></level></section></hcontainer></quotedStructure></mod></content></paragraph><paragraph eId="schedule-18-paragraph-6" class="schProv1"><num>6</num><content><mod>After section 398 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Election out of qualifying change of ownership</heading><section><num>398A</num><heading>Election out of qualifying change of ownership</heading><subsection><num>(1)</num><intro>This section applies if—</intro><level class="para1"><num>(a)</num><content>on any day (“<term refersTo="#term-the-relevant-day">the relevant day</term>”) a company (“A”) carries on a business of leasing plant or machinery otherwise than in partnership,</content></level><level class="para1"><num>(b)</num><content>there is a relevant change in the relationship between A and a principal company of A (“P”) on the relevant day, and</content></level><level class="para1"><num>(c)</num><content>an election that this section is to apply is made by A.</content></level></subsection><subsection><num>(2)</num><intro>For the purposes of the sales of lessors Chapters, there is no qualifying change of ownership in relation to A on the relevant day as a result of the change in the relationship but—</intro><level class="para1"><num>(a)</num><content>subsections (2)(b) and (4)(b) of section 383 nevertheless apply,</content></level><level class="para1"><num>(b)</num><content>section 398D (and section 398C so far as relating to it) has effect during the relevant period, and</content></level><level class="para1"><num>(c)</num><content>sections 398E to 398G (and section 398C so far as relating to section 398E) have effect on the relevant day and during the relevant period.</content></level></subsection><subsection><num>(3)</num><intro>“The relevant period” is the period—</intro><level class="para1"><num>(a)</num><content>beginning with the day after the relevant day, and</content></level><level class="para1"><num>(b)</num><content>ending with the day on which there is next a relevant change in the relationship between A and a principal company of A falling within subsection (4) (or continuing indefinitely if there is not another such relevant change).</content></level></subsection><subsection><num>(4)</num><content>A relevant change in the relationship between A and a principal company of A falls within this subsection if, as a result of it, the (unadjusted) basic amount (see section 399) is (or, but for a further election, would be) treated as a receipt of the business of leasing plant or machinery carried on by A.</content></subsection><subsection><num>(5)</num><content>Where during the relevant period there is a relevant change in the relationship between A and a principal company of A but the relevant period is not brought to an end by it, for the purposes of the sales of lessors Chapters there is no qualifying change of ownership in relation to A as a result of the change in the relationship.</content></subsection></section><section><num>398B</num><heading>The election</heading><subsection><num>(1)</num><content>The election under section 398A must state the date of the relevant day.</content></subsection><subsection><num>(2)</num><intro>The election must be made—</intro><level class="para1"><num>(a)</num><content>by notice to an officer of Revenue and Customs, and</content></level><level class="para1"><num>(b)</num><content>during the period of two years beginning with the relevant day.</content></level></subsection><subsection><num>(3)</num><content>The election is irrevocable.</content></subsection><subsection><num>(4)</num><content>All such assessments and adjustments of assessments are to be made as are necessary to give effect to the election.</content></subsection></section><section><num>398C</num><heading>Special treatment of A's trade or business that includes leasing</heading><subsection><num>(1)</num><content>Sections 398D and 398E make special provision about the trade or property business consisting of or including A's business of leasing plant or machinery.</content></subsection><subsection><num>(2)</num><intro>In those sections “<term refersTo="#term-the-relevant-activity">the relevant activity</term>” means—</intro><level class="para1"><num>(a)</num><content>if A's business of leasing plant or machinery constitutes or forms part of a trade, that trade, and</content></level><level class="para1"><num>(b)</num><content>if it forms part of a property business, that property business.</content></level></subsection></section><section><num>398D</num><heading>Restrictions on use of losses <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><subsection><num>(1)</num><intro>No loss may be deducted under—</intro><level class="para1"><num>(a)</num><content>Chapter 2 of Part 4,</content></level><level class="para1"><num>(b)</num><content>section 62, or</content></level><level class="para1"><num>(c)</num><content>section 189,</content></level><wrapUp>from so much of the total profits of A as are attributable to the carrying on of the relevant activity except to the extent that the loss or charge is attributable to the carrying on of the relevant activity.</wrapUp></subsection><subsection><num>(2)</num><content>Group relief is not to be given under Part 5 against so much of the total profits of A as are attributable to the carrying on of the relevant activity.</content></subsection><subsection><num>(3)</num><content>No deficit may be set off under section 461 of CTA 2009 (non-trading deficit from loan relationship) against profits attributable to the carrying on of the relevant activity except to the extent that the deficit is attributable to the carrying on of the relevant activity.</content></subsection><subsection><num>(4)</num><content>No loss may be set off under section 753 of CTA 2009 (non-trading loss on intangible fixed assets) against so much of the total profits of A as are attributable to the carrying on of the relevant activity except to the extent that the loss or charge is attributable to the carrying on of the relevant activity.</content></subsection><subsection><num>(5)</num><content>No deduction is to be allowed under section 1219 of CTA 2009 (expenses of management of investment business) from so much of the total profits of A as are attributable to the carrying on of the relevant activity except to the extent that the expenses concerned are attributable to the carrying on of the relevant activity.</content></subsection><subsection><num>(6)</num><content>If A is a controlled foreign company within the meaning of Chapter 4 of Part 17 of <abbr class="acronym" title="Income and Corporation Taxes Act">ICTA</abbr> in relation to which an apportionment falls to be made under section 747(3) of that Act in respect of the accounting period ending with the relevant day, no sum may be set off under paragraph 1 of Schedule 26 to <abbr class="acronym" title="Income and Corporation Taxes Act">ICTA</abbr> by any person in respect of so much of the chargeable profits of A as are apportioned to the person and are attributable to the carrying on of the relevant activity.</content></subsection><subsection><num>(7)</num><content>If A would otherwise be a tonnage tax company under Schedule 22 to FA 2000 (tonnage tax) it is to be treated as not being such a company.</content></subsection></section><section><num>398E</num><heading>Restriction on artificial losses or reductions in profits</heading><subsection><num>(1)</num><content>This section applies if any expenditure incurred by A in carrying on the relevant activity has an unallowable purpose.</content></subsection><subsection><num>(2)</num><content>In calculating the profits or losses of A for any accounting period for the purposes of corporation tax so much of the expenditure as, on a just and reasonable apportionment, is attributable to the unallowable purpose is to be left out of account.</content></subsection><subsection><num>(3)</num><content>Expenditure has an unallowable purpose if the main purpose, or one of the main purposes, of A in incurring it is to obtain a relevant tax advantage (“the unallowable purpose”).</content></subsection><subsection><num>(4)</num><intro>A “relevant tax advantage” is—</intro><level class="para1"><num>(a)</num><content>a reduction in the profits which, for the purposes of corporation tax, are attributable to the carrying on of the relevant activity by A,</content></level><level class="para1"><num>(b)</num><content>the creation of a loss which, for those purposes, is so attributable, or</content></level><level class="para1"><num>(c)</num><content>an increase in losses which, for those purposes, are so attributable.</content></level></subsection></section><section><num>398F</num><heading>Limit on availability of capital allowances to A</heading><subsection><num>(1)</num><content>Expenditure incurred by A in providing plant or machinery is not qualifying expenditure for the purposes of Part 2 of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 if the expenditure is incurred on the acquisition or creation of an independent asset.</content></subsection><subsection><num>(2)</num><intro>An asset is an “independent” asset if, in the normal course of business—</intro><level class="para1"><num>(a)</num><content>it could be used individually (whether or not it could also be used in conjunction with another asset or other assets as a constituent part of a single asset consisting of more than one asset (a “combined asset”)), or</content></level><level class="para1"><num>(b)</num><content>it could be used (at different times) as a constituent part of different combined assets.</content></level></subsection></section><section><num>398G</num><heading>Transfers into and out of A</heading><subsection><num>(1)</num><content>Section 948 does not apply where A is the predecessor or the successor.</content></subsection><subsection><num>(2)</num><content>Where section 948 does not apply as a result of subsection (1), the plant or machinery belonging to the trade is to be treated for the purposes of the Corporation Tax Acts as sold by the predecessor to the successor on the day of cessation for an amount equal to its market value on that day.</content></subsection><subsection><num>(3)</num><intro>Where A is the predecessor, section 265(2)(b) of <abbr class="acronym" title="Civil Aviation Authority">CAA</abbr> 2001 (successions) applies—</intro><level class="para1"><num>(a)</num><content>even if the relevant property has been sold to the successor, and</content></level><level class="para1"><num>(b)</num><content>as if the reference to market value were to market value as determined in accordance with section 437(9).</content></level></subsection></section></hcontainer></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-18-crossheading-interpretation"><heading>Interpretation</heading><paragraph eId="schedule-18-paragraph-7" class="schProv1"><num>7</num><content><mod>In section 437 of CTA 2010 (interpretation of the sales of lessors Chapters), after subsection (8) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><subsection><num>(8A)</num><content>Property business” means a <abbr class="acronym" title="United Kingdom">UK</abbr> property business or an overseas property business.</content></subsection></quotedStructure></mod></content></paragraph><paragraph eId="schedule-18-paragraph-8" class="schProv1"><num>8</num><content><mod>In Schedule 4 to that Act (index of defined expressions), insert at the appropriate places—<quotedStructure startQuote="“" endQuote="”" uk:context="schedule" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="schedule" ukl:Format="default"><tblock class="table" ukl:Orientation="portrait"><foreign><default1:table xmlns="http://www.w3.org/1999/xhtml"><default1:colgroup span="1"><default1:col span="1" style="width:63%"/><default1:col span="1" style="width:37%"/></default1:colgroup><default1:tbody><default1:tr><default1:td>property business (in Chapters 3 to 6 of Part 9)</default1:td><default1:td>section 437(8A)”</default1:td></default1:tr><default1:tr><default1:td>“relevant change in relationship (in Chapters 3 to 6 of Part 9)</default1:td><default1:td>section 392</default1:td></default1:tr></default1:tbody></default1:table></foreign></tblock></quotedStructure><inline name="appendText">and in the entry relating to “qualifying change of ownership in relation to a company (in Chapters 3 to 6 of Part 9)” for “392 to 398” substitute <quotedText>“ 394A to 398A ”</quotedText>).</inline></mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-18-crossheading-commencement-etc"><heading>Commencement <abbr title="Et cetera" xml:lang="la">etc</abbr></heading><paragraph eId="schedule-18-paragraph-9" class="schProv1"><num>9</num><content>The amendments made by this Schedule have effect where the relevant day is on or after 9 December 2009.</content></paragraph><paragraph eId="schedule-18-paragraph-10" class="schProv1"><num>10</num><content>Amendments corresponding to those made by this Schedule, having effect where the relevant day is on or after that date, are to be treated as having been made in Schedule 10 to FA 2006.</content></paragraph><paragraph eId="schedule-18-paragraph-11" class="schProv1"><num>11</num><intro>Neither section 398F of CTA 2010 (inserted by paragraph 6) nor the corresponding provision treated as inserted by paragraph 10 apply in relation to expenditure incurred in pursuance of a written contract which is finalised by A before 9 December 2009; and for this purpose a contract is finalised on the earliest date on which—</intro><level class="para1" eId="schedule-18-paragraph-11-a"><num>(a)</num><content>it is unconditional or (if conditional) the conditions are met, and</content></level><level class="para1" eId="schedule-18-paragraph-11-b"><num>(b)</num><content>no terms remain to be agreed.</content></level></paragraph><paragraph eId="schedule-18-paragraph-12" class="schProv1"><num>12</num><intro>Section 398A of CTA 2010 (as inserted by paragraph 6) has effect in relation to a relevant change in the relationship between A and a principal company of A in the case of which the relevant day is before 24 March 2010 as if—</intro><level class="para1" eId="schedule-18-paragraph-12-a"><num>(a)</num><content>in subsection (3)(b), the words “falling within subsection (4)”, and</content></level><level class="para1" eId="schedule-18-paragraph-12-b"><num>(b)</num><content>subsections (4) and (5),</content></level><wrapUp>were omitted.</wrapUp></paragraph><paragraph eId="schedule-18-paragraph-13" class="schProv1"><num>13</num><intro>Section 398D of CTA 2010 (as inserted by paragraph 6)—</intro><level class="para1" eId="schedule-18-paragraph-13-a"><num>(a)</num><content>has effect with the omission of subsection (6) in relation to accounting periods beginning before 24 March 2010, and</content></level><level class="para1" eId="schedule-18-paragraph-13-b"><num>(b)</num><content>has effect with the omission of subsection (7) until that date.</content></level></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-19"><num>SCHEDULE 19<authorialNote class="referenceNote">Section 62</authorialNote></num><heading>Accounting standards: loan relationships and derivative contracts</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-19-crossheading-loan-relationships"><heading>Loan relationships</heading><paragraph eId="schedule-19-paragraph-1" class="schProv1"><num>1</num><content><mod>In Chapter 18 of Part 5 of CTA 2009 (loan relationships: general and supplementary provision), before section 466 (and the heading before it) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="unknown" uk:docName="unknown" ukl:TargetClass="unknown" ukl:TargetSubClass="unknown" ukl:Context="unknown" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Changes in accounting standards</heading><section><num>465A</num><heading>Power to make regulations where accounting standards change</heading><subsection><num>(1)</num><content>The Treasury may by regulations make provision for cases where, in consequence of a change in accounting standards, there is a relevant accounting change.</content></subsection><subsection><num>(2)</num><content>“<term refersTo="#term-change-in-accounting-standards">Change in accounting standards</term>” means the issue, revocation, amendment or recognition of, or withdrawal of recognition from, an accounting standard by an accounting body.</content></subsection><subsection><num>(3)</num><intro>“<term refersTo="#term-relevant-accounting-change">Relevant accounting change</term>” means a change in the way in which a company is permitted or required, for accounting purposes, to recognise amounts which—</intro><level class="para1"><num>(a)</num><content>are brought into account by the company as credits or debits for any period for the purposes of this Part, or</content></level><level class="para1"><num>(b)</num><content>would be so brought into account but for any provision made by or under this Part.</content></level></subsection><subsection><num>(4)</num><content>Regulations under subsection (1) may amend this Part (apart from this section).</content></subsection><subsection><num>(5)</num><intro>Regulations under subsection (1) may—</intro><level class="para1"><num>(a)</num><content>make different provision for different cases,</content></level><level class="para1"><num>(b)</num><content>make incidental, supplemental, consequential and transitional provision and savings, and</content></level><level class="para1"><num>(c)</num><content>make provision subject to an election or other specified circumstances.</content></level></subsection><subsection><num>(6)</num><content>Regulations making consequential provision by virtue of subsection (5)(b) may, in particular, include provision amending a provision of the Corporation Tax Acts.</content></subsection><subsection><num>(7)</num><content>Regulations under subsection (1) may apply to a pre-commencement period if they make provision in relation to a relevant accounting change which may or must be adopted, for accounting purposes, for a period of account, or part of a period of account, which coincides with that pre-commencement period.</content></subsection><subsection><num>(8)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-accounting-body">accounting body</term>” means the International Accounting Standards Board or the Accounting Standards Board, or a successor body to either of those Boards;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-accounting-standard">accounting standard</term>” includes any statement of practice, guidance or other similar document;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pre-commencement-period">pre-commencement period</term>”, in relation to regulations, means an accounting period, or part of an accounting period, which begins before the regulations are made.</content></hcontainer></subsection></section></hcontainer></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-19-crossheading-derivative-contracts"><heading>Derivative contracts</heading><paragraph eId="schedule-19-paragraph-2" class="schProv1"><num>2</num><content><mod>In Chapter 13 of Part 7 of CTA 2009 (derivative contracts: general and supplementary provision), after section 701 insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><hcontainer name="crossheading" ukl:Name="Pblock"><heading>Changes to accounting standards</heading><section><num>701A</num><heading>Power to make regulations where accounting standards change</heading><subsection><num>(1)</num><content>The Treasury may by regulations make provision for cases where, in consequence of a change in accounting standards, there is a relevant accounting change.</content></subsection><subsection><num>(2)</num><content>“<term refersTo="#term-change-in-accounting-standards">Change in accounting standards</term>” means the issue, revocation, amendment or recognition of, or withdrawal of recognition from, an accounting standard by an accounting body.</content></subsection><subsection><num>(3)</num><intro>“<term refersTo="#term-relevant-accounting-change">Relevant accounting change</term>” means a change in the way in which a company is permitted or required, for accounting purposes, to recognise amounts which—</intro><level class="para1"><num>(a)</num><content>are brought into account by the company as credits or debits for any period for the purposes of this Part, or</content></level><level class="para1"><num>(b)</num><content>would be so brought into account but for any provision made by or under this Part.</content></level></subsection><subsection><num>(4)</num><content>Regulations under subsection (1) may amend this Part (apart from this section).</content></subsection><subsection><num>(5)</num><intro>Regulations under subsection (1) may—</intro><level class="para1"><num>(a)</num><content>make different provision for different cases,</content></level><level class="para1"><num>(b)</num><content>make incidental, supplemental, consequential and transitional provision and savings, and</content></level><level class="para1"><num>(c)</num><content>make provision subject to an election or other specified circumstances.</content></level></subsection><subsection><num>(6)</num><content>Regulations making consequential provision by virtue of subsection (5)(b) may, in particular, include provision amending a provision of the Corporation Tax Acts.</content></subsection><subsection><num>(7)</num><content>Regulations under subsection (1) may apply to a pre-commencement period if they make provision in relation to a relevant accounting change which may or must be adopted, for accounting purposes, for a period of account (or part of a period of account) which coincides with that pre-commencement period.</content></subsection><subsection><num>(8)</num><intro>In this section—</intro><hcontainer name="definition"><content>“<term refersTo="#term-accounting-body">accounting body</term>” means the International Accounting Standards Board or the Accounting Standards Board, or a successor body to either of those Boards;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-accounting-standard">accounting standard</term>” includes any statement of practice, guidance or other similar document;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-pre-commencement-period">pre-commencement period</term>”, in relation to regulations, means an accounting period (or part of an accounting period) which begins before the regulations are made.</content></hcontainer></subsection></section></hcontainer></quotedStructure></mod></content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-19-crossheading-affirmative-resolution-procedure"><heading>Affirmative resolution procedure</heading><paragraph eId="schedule-19-paragraph-3" class="schProv1"><num>3</num><content><mod>In section 1310(4) of CTA 2009 (orders and regulations subject to affirmative resolution of House of Commons), before paragraph (za) insert—<quotedStructure startQuote="“" endQuote="”" uk:context="body" uk:docName="ukpga" ukl:TargetClass="primary" ukl:TargetSubClass="unknown" ukl:Context="main" ukl:Format="default"><level class="para1"><num>(zza)</num><content>section 465A or 701A (powers to make regulations where accounting standards change),</content></level></quotedStructure><inline name="appendText">.</inline></mod></content></paragraph></hcontainer></hcontainer><hcontainer name="schedule" eId="schedule-20"><num>SCHEDULE 20<authorialNote class="referenceNote">Section 63</authorialNote></num><heading>Champions League final</heading><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-20-crossheading-exemption-from-income-tax"><heading>Exemption from income tax</heading><paragraph eId="schedule-20-paragraph-1" class="schProv1"><num>1</num><subparagraph eId="schedule-20-paragraph-1-1"><num>(1)</num><content>This paragraph applies if an employee or contractor of an overseas team which competes in the 2011 Champions League final (“the final”) is neither <abbr class="acronym" title="United Kingdom">UK</abbr> resident nor ordinarily <abbr class="acronym" title="United Kingdom">UK</abbr> resident at the time of the final.</content></subparagraph><subparagraph eId="schedule-20-paragraph-1-2"><num>(2)</num><content>That person is not liable to income tax in respect of any income arising to the person which is related to duties or services performed by the person in the United Kingdom in connection with the final.</content></subparagraph><subparagraph eId="schedule-20-paragraph-1-3"><num>(3)</num><content>This paragraph is subject to paragraphs 2 and 3.</content></subparagraph><subparagraph eId="schedule-20-paragraph-1-4"><num>(4)</num><content>For the meaning of some expressions used in this paragraph, see paragraphs 5 and 6.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-20-crossheading-exclusion-of-certain-income"><heading>Exclusion of certain income</heading><paragraph eId="schedule-20-paragraph-2" class="schProv1"><num>2</num><intro>Paragraph 1(2) does not apply to income which arises as a result of—</intro><level class="para1" eId="schedule-20-paragraph-2-a"><num>(a)</num><content>a contract entered into after the final, or</content></level><level class="para1" eId="schedule-20-paragraph-2-b"><num>(b)</num><content>any amendment, after the final, of a contract entered into before the end of the final.</content></level></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-20-crossheading-tax-avoidance"><heading>Tax avoidance</heading><paragraph eId="schedule-20-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-20-paragraph-3-1"><num>(1)</num><content>This paragraph applies if conditions A and B are met.</content></subparagraph><subparagraph eId="schedule-20-paragraph-3-2"><num>(2)</num><content>Condition A is that arrangements have been made which, but for this paragraph, would result in a person obtaining exemption under paragraph 1 in respect of particular income.</content></subparagraph><subparagraph eId="schedule-20-paragraph-3-3"><num>(3)</num><content>Condition B is that those arrangements have, or form part of arrangements which have, as their main purpose, or one of their main purposes, the obtaining of that exemption.</content></subparagraph><subparagraph eId="schedule-20-paragraph-3-4"><num>(4)</num><content>Paragraph 1(2) does not apply to that income.</content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-20-crossheading-disapplication-of-section-966-of-ita-2007"><heading>Disapplication of section 966 of ITA 2007</heading><paragraph eId="schedule-20-paragraph-4" class="schProv1"><num>4</num><content>Section 966 of ITA 2007 (duty to deduct and account for sums representing income tax) does not apply to any payment or transfer which gives rise to income within paragraph 1(2).</content></paragraph></hcontainer><hcontainer name="crossheading" ukl:Name="Pblock" eId="schedule-20-crossheading-interpretation"><heading>Interpretation</heading><paragraph eId="schedule-20-paragraph-5" class="schProv1"><num>5</num><intro>References in this Schedule to income are to be read as references to—</intro><level class="para1" eId="schedule-20-paragraph-5-a"><num>(a)</num><content>income that would be employment income but for the provisions of paragraph 1, and</content></level><level class="para1" eId="schedule-20-paragraph-5-b"><num>(b)</num><content>profits of a trade, profession or vocation (including profits treated as arising as a result of provision made by or under sections 13 and 14 of <abbr class="acronym" title="Income Tax (Trading and Other Income) Act">ITTOIA</abbr> 2005).</content></level></paragraph><paragraph eId="schedule-20-paragraph-6" class="schProv1"><num>6</num><intro>In this Schedule—</intro><hcontainer name="definition"><content>“<term refersTo="#term-the-2011-champions-league-final" eId="term-the-2011-champions-league-final">the 2011 Champions League final</term>” means the final of the UEFA Champions League 2010/2011 competition held in England in 2011;</content></hcontainer><hcontainer name="definition"><intro>“<term refersTo="#term-contractor" eId="term-contractor">contractor</term>”, in relation to an overseas team, means an individual who is not an employee of the team but who performs services for the team—</intro><level class="para1"><num>(a)</num><content>under the terms of a contract with the team, or</content></level><level class="para1"><num>(b)</num><content>under the terms of a contract, or that individual's employment, with a company which is a member of the same group of companies as the team (within the meaning given by section 152 of CTA 2010);</content></level></hcontainer><hcontainer name="definition"><content>“employee” and “employment” are to be read in accordance with section 4 of <abbr class="acronym" title="The Income Tax (Earnings and Pensions) Act">ITEPA</abbr> 2003;</content></hcontainer><hcontainer name="definition"><content>“<term refersTo="#term-overseas-team" eId="term-overseas-team">overseas team</term>” means a football club which is not a member of the Football Association, the Scottish Football Association, the Football Association of Wales or the Irish Football Association.</content></hcontainer></paragraph></hcontainer></hcontainer></hcontainer>