Finance Act 2011

ALDA 1979 is amended as follows.

Chapter 3 of Part 9 of CTA 2010 (sale of lessors: leasing business carried on by a company alone) is amended as follows.

In section 267A of CAA 2001 (restriction on effect of election), in subsection (2), for “is qualifying leased plant or machinery” substitute “ falls within section 387(7) of CTA 2010 (if the business is carried on otherwise than in partnership) or within section 410(6) of that Act (if the business is carried on in partnership) ”.

ITA 2007 is amended as follows.

For the purposes of section 62A of CAA 2001 (as inserted by this Schedule)—

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The amendments made by paragraphs 43, 44, 73, 80 and 82(2) have effect in relation to benefit crystallisation events occurring on or after 6 April 2011. Any reference in a provision within sub-paragraph (3) to an amount previously crystallised on the designation of sums or assets as available for the payment of drawdown pension includes a reference to an amount crystallised before 6 April 2011 on the designation of sums or assets as available for the payment of unsecured pension. The provisions are—

This paragraph applies to any order or regulations under Part 4 of FA 2004 which— Section 282 of that Act (orders and regulations) has effect in relation to any order or regulations to which this paragraph applies as if in subsection (A1) the words “if that provision does not increase any person’s liability to tax” were omitted.

For the purposes of this Schedule, “assets”, “equity” and “liabilities” have the same meaning as they have for the purposes of international accounting standards. Sub-paragraph (1) is without prejudice to any provision of this Schedule which requires anything to be determined by reference to amounts which are recognised, or amounts which would have been recognised, in consolidated financial statements or financial statements prepared under UK GAAP.

Section 35 of, and Schedule 5 to, F(No.2)A 1997 (transitional relief for charities etc and limitations on entitlement to the relief) are repealed. Accordingly—

Section 691 of ITTOIA 2005 (National Savings Bank ordinary account interest) is repealed.

“general beer duty” has the meaning given by section 36(1ZAA); “high strength beer duty” has the meaning given by section 37(3);

Section 387 (“business of leasing plant or machinery”) is amended as follows. In subsection (3), for “qualifying leased plant or machinery” substitute “ plant or machinery falling within subsection (7) ”. For subsection (5) substitute— For subsections (7) and (8) substitute—

In section 948 of CTA 2010 (modified application of CAA 2001), in subsection (6), before paragraph (a) insert—.

In section 879(1) (interest paid on advances from banks), insert at the end “ or is a bank that would be within the charge to corporation tax as respects the interest apart from section 18A of CTA 2009. ”

Section 36 (beer: charge of excise duty) is amended as follows. After subsection (1) insert— In subsection (1AA), for “the duty” substitute “ general beer duty ”. In subsection (1A), after “No” insert “ general beer ”. In subsection (2)(a), for “the duty” substitute “ general beer duty ”. For the heading substitute “ General beer duty ”.

In section 389 (provision supplementing section 388), in subsection (5)(b), for “market value” substitute “ ascribed value ”.

Section 950 of CTA 2010 (transfers of trades involving business of leasing plant or machinery) is amended as follows. In subsection (5), for the words from “its market value” to the end substitutethe higher of— In subsection (6)—

Section 918 (manufactured dividends on UK shares: REITs) is amended as follows. After subsection (3) insert— In subsection (4), for paragraphs (a) and (b) substitute—. After subsection (5) insert—

In section 36B (interpretation of provisions relating to small brewery beer), in subsection (5), after “rate of” insert “ general beer ”.

In section 390 (relevant plant or machinery value where relevant company lessee under long funding lease etc), in subsection (2), for “market value” substitute “ ascribed value ”.

In Schedule 4 to CTA 2010 (index of defined expressions), omit the entry for “market value (in relation to plant or machinery) (in Chapters 3 to 6 of Part 9)”. ascribed value (in relation to plant or machinery) (in Chapters 3 to 6 of Part 9) section 437A

In section 919 (manufactured interest on UK securities: payments by UK residents etc), after subsection (1) insert—

Section 36D (rate of duty for small brewery beer from singleton breweries) is amended as follows. In subsection (2), after “rate of” insert “ general beer ”. In the heading, after “Rate of” insert “ general beer ”.

In section 391 (relevant company's income for condition B in section 387), in subsection (5), for “qualifying leased plant or machinery” substitute “ plant or machinery falling within section 387(7) ”.

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Section 36F (rate of duty for small brewery beer from co-operated breweries) is amended as follows. In subsection (2), after “rate of” insert “ general beer ”. In the heading, after “Rate of” insert “ general beer ”.

Section 398G (transfers into and out of A) is amended as follows. Omit subsection (2). For subsection (3) substitute—

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Section 36G (assessments where incorrectly low rate of duty applied) is amended as follows. In subsection (1)(a), for “duty is charged by section 36 above” substitute “ general beer duty is charged ”. In subsection (2)(a), for “duty is charged by section 36 above” substitute “ general beer duty is charged ”. In subsection (3)(a), for “duty charged on the beer by section 36 above” (in both places) substitute “ general beer duty charged on the beer ”. In subsection (4)—

In section 401 (provisions supplementing section 400), in subsection (5)(b), for “market value” substitute “ ascribed value ”.

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In section 36H (power to vary reduced rate provisions), in subsection (1) for “excise duty” substitute “ general beer duty ”.

In section 402 (“PM” where relevant company lessee under long funding lease etc), in subsection (2), for “market value” substitute “ ascribed value ”.

In section 41 (exemption from duty of beer produced for private consumption), for “The duty on beer produced in the United Kingdom shall not be” substitute “ Neither general beer duty on beer produced in the United Kingdom, nor high strength beer duty on beer so produced, is ”.

Section 403 (“TWDV” in section 399) is amended as follows. In subsection (2), for paragraph (b) substitute— After that subsection insert—

In section 49 (beer regulations), in subsection (1)—

In section 49A (drawback allowable to registered brewer), in subsection (2) for “the excise” substitute “ any excise ”.

ITEPA 2003 is amended as follows.

Part 7A of ITEPA 2003 (as inserted by paragraph 1 of this Schedule) has effect in relation to relevant steps taken on or after 6 April 2011; and the other amendments made by this Schedule have effect accordingly. Sub-paragraph (1) is subject to the following paragraphs.

ITA 2007 is amended as follows.

This paragraph applies where the bank levy is charged as provided for by paragraph 5 and the relevant entity is a UK resident bank or a building society. To determine the amount of the relevant entity’s chargeable equity and liabilities— Sub-paragraph (4) applies where— The amount within sub-paragraph (2)(c)(ii) is— For the purposes of this paragraph and paragraph 22 the relevant entity’s assets, equity and liabilities are to be determined by reference to the amounts recognised in the entity’s financial statements for the chargeable period as prepared under international accounting standards or UK GAAP. In reducing the amount of any equity or liabilities under sub-paragraph (2)(c), long term equity and liabilities are to be reduced before short term liabilities.

Schedule 18 to FA 1998 (company tax returns) is amended as follows.

The Treasury may by regulations make provision for relief from the bank levy for the purpose of affording relief from double taxation in relation to the bank levy and any equivalent foreign levy imposed by the law of a foreign territory. Regulations under this paragraph must specify the equivalent foreign levy or levies in respect of which they are made. Regulations under this paragraph may, in particular— Regulations under this paragraph may— Regulations under this paragraph are to be made by statutory instrument. A statutory instrument containing regulations under this paragraph— The reciprocity condition is met if the Treasury is satisfied that in relation to the foreign territory or each of the foreign territories concerned—

In section 1(1)(a) (overview of contents of Act) for “7” substitute “ 7A ”.

This paragraph applies if— Subject to what follows, Chapter 2 of Part 7A of ITEPA 2003 is to apply by reason of the early step; and the amendments made by this Schedule have effect accordingly. In determining the tax year for which the employment income of A counts for the purposes of section 554Z2(1) of ITEPA 2003, the early step is treated as having been taken on 6 April 2012; but otherwise Chapter 2 of Part 7A of that Act applies by reference to when the early step was actually taken. The amount which (apart from this sub-paragraph) would count as employment income of A is to be reduced by an amount to reflect so much of the sum paid as has been repaid to P before 6 April 2012 by the person to whom the payment was made; and the Tax Acts are to apply in relation to the sum paid so far as repaid to P before that date by that person as if Chapter 2 of Part 7A of ITEPA 2003 had never applied by reason of the early step, with any adjustments that need to be made to any assessment to tax being made accordingly. The amount of the reduction (if any) under sub-paragraph (4)— Section 554Z5 of ITEPA 2003 does not apply in relation to the early step and, in the application of that section in relation to any other relevant step (whenever taken), the early step is to be ignored. Section 554Z12 of ITEPA 2003 does not apply in relation to the early step. For the purposes of section 687A(3)(a) of ITEPA 2003 (as inserted by paragraph 29 of this Schedule), the early step is treated as having been taken on 6 April 2012. For the purposes of section 41(1A) of ITTOIA 2005 (as inserted by paragraph 38(3) of this Schedule), the early step is treated as having been taken on 6 April 2012; and for the purpose of determining whether section 41(1A) of that Act applies, section 41(1) is to be read as substituted by paragraph 38(2) of this Schedule. For the purposes of section 1293(1A) of CTA 2009 (as inserted by paragraph 47(3) of this Schedule), the early step is treated as having been taken on 6 April 2012; and for the purpose of determining whether section 1293(1A) of that Act applies, section 1293(1) is to be read as substituted by paragraph 47(2) of this Schedule.

In section 30 (calculation of income tax liability: additional tax)—

This paragraph applies for the purposes of paragraph 21(2) if— For the purposes of sub-paragraph (1)— This sub-paragraph applies to a liability which the relevant entity has to N if— Section 556 of CTA 2009 (meaning of securities and similar securities) applies for the purposes of this sub-paragraph as it applies for the purposes of Chapter 10 of Part 6 of that Act. The amount of the relevant entity’s net settlement liabilities is to be reduced (but not below nil) by the amount of the relevant entity’s net settlement assets. The relevant entity’s “net settlement liabilities” are the relevant entity’s liabilities so far as they— The relevant entity’s “net settlement assets” are its assets so far as corresponding to N’s net settlement liabilities. “N’s net settlement liabilities” means N’s liabilities so far as they are covered by the provision mentioned in sub-paragraph (1)(c). If the relevant entity’s net settlement liabilities exceed the entity’s net settlement assets, and a proportion (A%) of those liabilities is long term liabilities and a proportion (B%) of those liabilities is short term liabilities, under sub-paragraph (4)—

paragraphs 50 and 51 of Schedule 19 to the Finance Act 2011 (the bank levy).

Amend section 3 (structure of employment income Parts) as follows. Part 7A deals with employment income provided through third parties. In subsection (2) for “7” substitute “ 7A ”.

This paragraph applies if— For the purposes of sub-paragraph (1)(a) section 554C(1)(d) of ITEPA 2003 is to be read as if the words “or makes it available under an arrangement which permits its use” were omitted. In this paragraph “readily convertible asset” means anything mentioned in section 702(1)(a) to (c) of ITEPA 2003 (ignoring section 702(3)). Subject to what follows, Chapter 2 of Part 7A of ITEPA 2003 is to apply by reason of the early step; and the amendments made by this Schedule have effect accordingly. In determining the tax year for which the employment income of A counts for the purposes of section 554Z2(1) of ITEPA 2003, the early step is treated as having been taken on 6 April 2012; but otherwise Chapter 2 of Part 7A of that Act applies by reference to when the early step was actually taken. The amount which (apart from this sub-paragraph) would count as employment income of A is to be reduced to nil if— and the Tax Acts are to apply in relation to the early step as if Chapter 2 of Part 7A of ITEPA 2003 had never applied by reason of it, with any adjustments that need to be made to any assessment to tax being made accordingly. Section 554Z5 of ITEPA 2003 does not apply in relation to the early step and, in the application of that section in relation to any other relevant step (whenever taken), the early step is to be ignored. Section 554Z8 of ITEPA 2003 applies in relation to the early step as if subsection (6)(b) were omitted. Section 554Z12 of ITEPA 2003 does not apply in relation to the early step. For the purposes of section 695A(3)(a) of ITEPA 2003 (as inserted by paragraph 31 of this Schedule), the early step is treated as having been taken on 6 April 2012. For the purposes of section 41(1A) of ITTOIA 2005 (as inserted by paragraph 38(3) of this Schedule), the early step is treated as having been taken on 6 April 2012; and for the purpose of determining whether section 41(1A) of that Act applies, section 41(1) is to be read as substituted by paragraph 38(2) of this Schedule. For the purposes of section 1293(1A) of CTA 2009 (as inserted by paragraph 47(3) of this Schedule), the early step is treated as having been taken on 6 April 2012; and for the purpose of determining whether section 1293(1A) of that Act applies, section 1293(1) is to be read as substituted by paragraph 47(2) of this Schedule.

In section 58 (meaning of “adjusted net income), at the end insert—

After paragraph 3 insert—

For the “or” after section 7(6)(b) (meaning of “specific employment income”) substitute—.

For the purpose of determining whether Chapter 2 of Part 7A of ITEPA 2003 would have applied by reason of the early step as mentioned in paragraph 53(1)(b) or 54(1)(d), section 554G of ITEPA 2003 is to be read— “group of companies” means a company and any other companies of which it has control (as defined in section 995 of ITA 2007) For the purpose of determining whether Chapter 2 of Part 7A of ITEPA 2003 would have applied by reason of the early step, Chapter 1 of that Part is to be read as if section 554N(13) to (16) were omitted. If, by virtue of section 554O of ITEPA 2003, Chapter 2 of Part 7A of that Act would not have applied by reason of the early step, section 554O(3) and (4) have effect in relation to the car loan. But, for this purpose, if the repayment date is before 6 April 2012, in section section 554O(3) and (4) references to the repayment date are to be read as references to 6 April 2012.

In section 413 (gift aid: overview of Chapter), after subsection (4) insert—

Paragraph 8 is amended as follows. 3. Any amount of the bank levy chargeable by virtue of paragraph 50 or 51 of Schedule 19 to the Finance Act 2011 (the bank levy). Sub-paragraph (1B) applies if an amount of the bank levy chargeable by virtue of paragraph 50 or 51 of Schedule 19 to the Finance Act 2011 (the bank levy) is added at the third step. Any deductions made at the fourth step are to be treated as made from all other amounts before being made from the amount of the bank levy.

Amend section 10 (provision relating to “taxable specific income”) as follows. In subsection (3) for “or 7” substitute “ , 7 or 7A ”. After subsection (4) insert—

This paragraph applies for the purposes of section 554Q of ITEPA 2003 in a case in which— The requirement of subsection (2)(b) of that section is to be treated as met in that case.

In section 431 (gifts of shares, securities and real property to charities etc), after subsection (6) insert—

Paragraph 11 is amended as follows. The existing provision becomes sub-paragraph (1). Sub-paragraph (1) does not affect—

Amend section 13 (person liable for tax) as follows. In subsection (3) for “or 7” substitute “ , 7 or 7A ”. After subsection (4A) insert— In subsection (5) for “or (4A)” substitute “ , (4A) or (4B) or section 554Z12(3) ”.

This paragraph applies for the purposes of section 554R of ITEPA 2003 in a case in which— The requirement of subsection (6)(b) of that section is to be treated as met in that case.

In section 543 (meaning of “non-charitable expenditure”), omit subsection (1)(g) and (h).

After section 63(4) (the benefits code) insert—

This paragraph applies if— Chapter 3 of Part 7A of ITEPA 2003 has effect— Section 554Z17(7) of ITEPA 2003 applies for the purposes of this paragraph as it applies for the purposes of Chapter 3 of Part 7A of that Act.

Sections 549 to 557 (substantial donor transactions) are repealed.

Under Step 1 in section 218(1) (exclusion of lower-paid employments from benefits code: calculation of earnings rate for tax year)—

This paragraph applies if— After any reductions under sections 554Z4 and 554Z6 to 554Z8 of ITEPA 2003, the value of the chargeable step is to be reduced (but not below nil) by an amount reflecting the extent to which, as determined under sub-paragraph (1)(f), that value represents (or still represents) This sub-paragraph applies where— This sub-paragraph applies where— In sub-paragraph (1)(f)(ii) “return” does not include any return so far as, it is reasonable to suppose, the return exceeds the return which might have been expected applying the assumption that all relevant connected persons are acting at arm's length of each other. In sub-paragraph (3) “relevant connected person” means a person with a connection (direct or indirect) to an arrangement (within the meaning of Part 7A of ITEPA 2003) by virtue of which the return arises. For the purposes of sub-paragraph (1)(e), a person is not to be regarded as having paid, or otherwise accounted for, any tax by reason only of making—

In Schedule 2 (transitionals and savings), omit paragraphs 105 and 106.

In section 222(1)(a) and (3) (payments treated as earnings: payments by employer on account of tax where deduction not possible) after “687,” insert “ 687A, ”.

arrangements (in Chapter 8 of Part 13) section 809ZR” “charity (in Chapter 8 of Part 13) paragraph 1 of Schedule 6 to FA 2010 (and see also section 809ZR)” “the donor (in Chapter 8 of Part 13) section 809ZJ(3)” “potentially advantaged person (in Chapter 8 of Part 13) section 809ZJ(5)” “relievable charity donation (in Chapter 8 of Part 13) section 809ZI(1)” “tainted donation (in Chapter 8 of Part 13) section 809ZJ

After section 227(4) (scope of exemptions to income tax under Part 4) insert—

Amend section 271 (income tax exemptions: removal benefits and expenses) as follows. In subsection (1) after “earnings” insert “ or by virtue of Part 7A ”. In subsection (2) for “Subsection” substitute “ In relation to earnings, subsection ”. After subsection (2) insert—

Amend section 287 (income tax exemptions: limit on exemption for removal benefits and expenses) as follows. In subsection (2)— After subsection (5) insert—

Amend section 394 (employer-financed retirement benefits: charge on benefit received) as follows. After subsection (4) insert— After subsection (5) insert—

After section 428(6) (restricted employment-related securities: amount of charge) insert—

In section 431(3) (restricted employment-related securities: election for disapplication of Chapter 2 of Part 7)—

In section 437(1)(a) (convertible employment-related securities: market value) after “option)” insert “ or Chapter 2 of Part 7A (employment income provided through third parties) ”.

After section 441(9) (convertible employment-related securities: amount of gain realised) insert—

In section 446B(4) (employment-related securities with artificially depressed market value: charge on acquisition)—

After section 446C(4) (employment-related securities with artificially depressed market value: amount of charge) insert—

After section 446S(3) (employment-related securities acquired for less than market value: notional loan) insert—

In section 446T(3) (employment-related securities acquired for less than market value: amount of notional loan)—

In section 446V (employment-related securities acquired for less than market value: charges under Chapter 3C of Part 4 to be additional to other charges)—

In section 452(2) (shares in research institution spin-out companies: market value on acquisition)—

In section 480(5) (employment-related securities options: deductible amounts)—

section 567A (deduction to avoid double taxation where Part 7A has applied to the source of the pension income);

After section 567 insert—

After section 687(4) (PAYE: payments by intermediary) insert—

After section 687 insert—

Amend section 689 (PAYE: employee of non-UK employer) as follows. After subsection (1) insert— In subsection (4) after “sections” insert “ 687A and ”.

Before section 696 insert—

After section 696(2) (PAYE: readily convertible assets) insert—

In section 710(2)(a) (PAYE: accounting for tax on notional payments) after “687,” insert “ 687A, ”.

Amend section 716A (priority rule in relation to certain dividend income) as follows. Make the existing text subsection (1). After subsection (1) insert—

Subject to sub-paragraph (2), the amendments made by this Schedule have effect in relation to relievable charity donations made on or after 1 April 2011. The repeals made by paragraphs 12 to 14, 16, 18 and 22 to 25 have effect in relation to any transaction, other than an excluded transaction, occurring on or after 1 April 2013. A transaction is “excluded” if it is entered into in pursuance of a contract made before 1 April 2013, other than in pursuance of a variation of the contract made on or after that date.

The relevant group is a “UK banking group” if—

This paragraph applies if the relevant group is a UK banking group or a building society group. To determine the amount of the relevant group’s chargeable equity and liabilities— Sub-paragraph (4) applies where— The amount within sub-paragraph (2)(c)(ii) is— For the purposes of this paragraph and paragraph 16 the relevant group’s assets, equity and liabilities are to be determined by reference to— In reducing the amount of any equity or liabilities under sub-paragraph (2)(c), long term equity and liabilities are to be reduced before short term liabilities.

This paragraph applies where the bank levy is charged as provided for by paragraph 5 and the relevant entity is a relevant foreign bank. The chargeable equity and liabilities of the relevant entity is the amount of its UK allocated equity and liabilities (see paragraph 24) as at the end of the chargeable period.

This paragraph applies where an entity does not prepare financial statements (consolidated or otherwise) for a period (“the relevant period”). If the relevant period is 12 months or less, this Schedule (apart from this paragraph) applies as if that period were a period of account of the entity. If the relevant period is more than 12 months, this Schedule (apart from this paragraph) applies as if each period to which sub-paragraph (4) applies were a period of account of the entity. This sub-paragraph applies to a period if— Sub-paragraph (6) applies if, at the end of a period of 36 months beginning with a relevant date, an entity has not prepared financial statements for a period which begins with that date. The entity is to be treated for the purposes of this paragraph as not having prepared financial statements for that period or, if that period exceeds 24 months, for the first 24 months of that period. “Relevant date” means—

The relevant group is a “building society group” if the parent entity is a building society.

This paragraph applies for the purposes of paragraph 15(2) if— For the purposes of sub-paragraph (1)— This sub-paragraph applies to a liability which M has to N if— Section 556 of CTA 2009 (meaning of securities and similar securities) applies for the purposes of this sub-paragraph as it applies for the purposes of Chapter 10 of Part 6 of that Act. The amount of M’s net settlement liabilities is to be reduced (but not below nil) by the amount of M’s net settlement assets. “M’s net settlement liabilities” means M’s liabilities so far as they— “M’s net settlement assets” means the assets of M, or of another member of the relevant group, so far as corresponding to N’s net settlement liabilities. But if this paragraph applies in relation to more than one member of the relevant group, no part of an asset may be included in the net settlement assets of more than one such member. “N’s net settlement liabilities” means N’s liabilities so far as they are covered by the provision mentioned in sub-paragraph (1)(c). If M’s net settlement liabilities exceed M’s net settlement assets, and a proportion (A%) of those liabilities is long term liabilities and a proportion (B%) of those liabilities is short term liabilities, under sub-paragraph (4)—

The relevant group is a “foreign banking group” if—

The relevant group is a “relevant non-banking group” if—

This Schedule applies to the Crown but not to Her Majesty in Her private capacity (within the meaning of the Crown Proceedings Act 1947).

Part 5 of CTA 2009 (loan relationships) is amended as follows.

The amendments made by this Schedule have effect in relation to periods of account beginning on or after 6 December 2010. But, for the purposes of sub-paragraph (1), a period of account beginning before, and ending on or after, 6 December 2010 is to be treated as if so much of the period as falls before that date, and so much of the period as falls on or after that date, were separate periods of account. The following provisions of CTA 2009 do not have effect where they apply by reason of tax avoidance arrangements to which the company became a party before 23 March 2011—

In section 30 of TCGA 1992 (tax-free benefits)—

Part 8 of CTA 2009 (intangible fixed assets) is amended as follows. In section 780 (deemed realisation and reacquisition at market value), in subsection (5)(b) before “associated” insert “ certain ”. In section 783 (associated companies leaving group at same time), for subsection (1) substitute—, and, in the section heading, for “Associated” substitute “ Certain associated ”. In section 788 (provisions supplementing provisions about degrouping), for subsection (3) substitute—

The amendments made by this Part of this Schedule have effect on and after commencement in relation to the deduction of any pre-entry loss within paragraph 1(2) of Schedule 7A to TCGA 1992 (as substituted by paragraph 3 of this Schedule) regardless of— In this paragraph “commencement” means the day on which this Act is passed.

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But see section 227A (individuals who meet flexible drawdown conditions). After section 227 insert—

This paragraph applies in the case of a person who, immediately before 6 April 2011, was entitled to dependants’ alternatively secured pension. Where the last alternatively secured pension year began on or after 7 April 2010, the reference in paragraph 23(1)(a) of Schedule 28 to FA 2004 (drawdown pension year) to the day on which the dependant first becomes entitled to drawdown pension is to be read as a reference to the day on which that alternatively secured pension year began. Accordingly, any alternatively secured pension year which began on or after 7 April 2010 is to be regarded, on and after 6 April 2011, as a drawdown pension year. For the purposes of pension death benefit rule 4 in section 167 of FA 2004, the amount which, immediately before 6 April 2011, was the basis amount for that alternatively secured pension year by virtue of paragraph 27 of Schedule 28 to FA 2004 continues, on and after that date, to be the basis amount for that year. In this paragraph “the last alternatively secured pension year” means the alternatively secured pension year in which 5 April 2011 fell.

The amendments made by paragraphs 47 and 50 have effect in relation to dispositions made (or treated as made) on or after 6 April 2011.

The trustees or managers of a registered pension scheme may make any payment under the scheme which, by virtue of the amendments made by this Schedule, is an authorised member payment (within the meaning of section 164 of FA 2004), despite any provision of the rules of the pension scheme (however framed) prohibiting the making of such a payment. In the case of a personal pension scheme within the meaning of section 1 of the Pension Schemes Act 1993, nothing in subsection (1) of section 28 of that Act (ways of giving effect to protected rights) is to be taken to prevent the trustees or managers of the scheme from giving effect to the protected rights of a member of the scheme in the way provided for by subsection (1A) of that section. In the case of a personal pension scheme within the meaning of section 1 of the Pension Schemes (Northern Ireland) Act 1993, nothing in subsection (1) of section 24 of that Act (ways of giving effect to protected rights) is to be taken to prevent the trustees or managers of the scheme from giving effect to the protected rights of a member of the scheme in the way provided for by subsection (1A) of that section.

The Treasury may by order add to, repeal or otherwise amend any of paragraphs 16, 18(8) to (17), 20(8) to (17), 22 and 25. An order under this paragraph may make consequential amendments of this Schedule. An order under this paragraph may have retrospective effect in relation to— Orders under this paragraph are to be made by statutory instrument. A statutory instrument containing an order under this paragraph may not be made unless a draft has been laid before, and approved by a resolution of, the House of Commons.

This paragraph applies if— For the purpose of determining the chargeable equity and liabilities of the relevant group the joint venture is to be treated as if it were (as the case may be) a UK resident entity covered by paragraph 17(10) or a UK resident bank covered by paragraph 19(10)— In this paragraph references to the amounts recognised in the relevant consolidated financial statements are to— “The applicable accounting standards” means—

This paragraph applies if— In this paragraph “the relevant arrangements”— Sub-paragraph (4) applies if an effect of the relevant arrangements is that the bank levy is not charged or assessed as it would have been in the absence of the relevant arrangements. The bank levy is charged or assessed as it would have been ignoring that effect. The cases covered by sub-paragraph (3) include (in particular) cases in which the bank levy is charged or assessed but an effect of the relevant arrangements is that the amount of the bank levy charged or assessed— In sub-paragraphs (3) and (5) references to the relevant arrangements do not include those arrangements to the extent to which any of the following sub-paragraphs applies to them. This sub-paragraph applies to the relevant arrangements so far as their effect is to increase, on an ongoing basis, the excluded equity and liabilities of the relevant group or the relevant entity. This sub-paragraph applies to the relevant arrangements so far as their effect is to increase, on an ongoing basis, the long term equity and liabilities of the relevant group or the relevant entity. This sub-paragraph applies to the relevant arrangements so far as— This sub-paragraph applies to the relevant arrangements so far as— This sub-paragraph applies to the relevant arrangements so far as they are an agreement within paragraph 16(1)(c) and (d), 18(8)(c) and (d), 20(8)(c) and (d), 22(1)(c) and (d) or 25(1)(c) and (d). This sub-paragraph applies to the relevant arrangements so far as their effect is to increase, on an ongoing basis, the amount of the high quality liquid assets of the relevant group or the relevant entity. If the relevant group is a foreign banking group or a relevant non-banking group, in the sub-paragraphs above references to the relevant group are to be read as references to the members of the group, collectively, which are relevant members. In sub-paragraph (13) “relevant member”—

An officer of Revenue and Customs may by notice in writing require a relevant data-holder to provide relevant data. Part 2 of this Schedule sets out who is a relevant data-holder. In relation to a relevant data-holder, “relevant data” means data of a kind specified for that type of data-holder in regulations made by the Treasury. The data that a relevant data-holder may be required to provide— A notice under this paragraph is referred to as a data-holder notice.

Relevant data specified in a data-holder notice must be provided by such means and in such form as is reasonably specified in the notice. If the notice specifies that the data are to be provided by sending them somewhere, the data must be sent to such address and within such period as is reasonably specified in the notice. If the notice specifies that the data are to be provided by making documents available for inspection somewhere, the documents must be made available for inspection at such place and time as is— A place used solely as a dwelling may not be specified under sub-paragraph (3)(a). A data-holder notice requiring the provision of specified documents requires the documents to be provided only if they are in the data-holder’s possession or power. A power in this paragraph to specify something in a notice includes power to specify it in a document referred to in the notice.

If an officer of Revenue and Customs thinks it reasonable to do so, HMRC may retain documents provided pursuant to a data-holder notice for a reasonable period. While a document is being retained, the data-holder may, if the document is reasonably required for any purpose, request a copy of it. The retention of a document under this paragraph is not to be regarded as breaking any lien claimed on the document. If a document retained under this paragraph is lost or damaged, the Commissioners are liable to compensate the owner of the document for any expenses reasonably incurred in replacing or repairing the document.

TMA 1970 is amended as follows. Omit— In the Table in section 98 (special returns etc), omit the entries (so far as they continue to have effect) relating to— In that Table— In section 103ZA (disapplication of sections 100 to 103)—

In Schedule 18 to FA 1986 (securities: other provisions), omit paragraph 8(4) and (5).

ITTOIA 2005 is amended as follows. In Chapter 4 of Part 3 (profits of property businesses: lease premiums etc), omit section 302B(3) and (4). In Chapter 5 of Part 5 (settlements: amounts treated as income of settlor), omit section 647.

FA 2008 is amended as follows.

This paragraph applies if an applicant authority of another member State makes a request in accordance with MARD for the recovery in the United Kingdom of a claim. The claim in relation to which such a request is made is referred to as “the foreign claim”. Such steps may be taken by or on behalf of the relevant UK authority to enforce the foreign claim as might be taken (whether or not by the relevant UK authority) to enforce a corresponding UK claim. “Steps” includes any legal or administrative steps, whether by way of legal proceedings, distress, diligence or otherwise. See paragraphs 7 and 8 for the meaning of “the relevant UK authority” and “corresponding UK claim”. The steps mentioned in sub-paragraph (3) include exercising any powers of set-off that the relevant UK authority would have been entitled to exercise if the foreign claim had been payable to it under an enactment. Any enactment or rule of law relating to a corresponding UK claim is to apply, with any necessary adaptations, in relation to the foreign claim. The enactments applied by sub-paragraph (7) include in particular those relating to the recovery of penalties and to the charging and recovery of interest on unpaid amounts.

In relation to any kind of foreign claim, the relevant UK authority may by regulations make provision as to the application, non-application or adaptation of any enactment or rule of law relating to corresponding UK claims. Paragraph 6(7) is subject to any provision so made.

Steps under paragraph 6(3) must not be taken or continued against a person if a final decision on the foreign claim has been given in the person’s favour by a court, tribunal or other competent body in the member State in question. For this purpose, a final decision is one against which no appeal lies or against which an appeal lies within a period that has expired without an appeal having been brought. If the person shows that such a decision has been given in respect of part of the foreign claim, steps under paragraph 6(3) must not be taken or continued in relation to that part.

Regulations under this Schedule are to be made by statutory instrument. A statutory instrument containing regulations under this Schedule is subject to annulment in pursuance of a resolution of the House of Commons.

Section 48 of FA 1998 (gifts of money for relief in poor countries etc) is repealed. Accordingly, the following provisions are repealed—

Section 311 (amounts not fully recognised for accounting purposes) is amended as follows. In subsection (2)— Omit subsections (3) to (5A). In subsection (6)— After subsection (6) insert—

For sections 31 to 34 of TCGA 1992 (which make provision about disposals by companies of shares in or securities of other companies) substitute—

The amendments made by paragraphs 48 and 51 to 57 have effect in relation to deaths occurring on or after 6 April 2011.

This paragraph applies for the purpose of determining the chargeable equity and liabilities of the relevant group or the relevant entity if, as at the end of the chargeable period— The JV liabilities are to be left out for the purpose of determining the chargeable equity and liabilities. In sub-paragraph (1)(b) the reference to the liabilities of the parent entity includes any liabilities which, in the absence of this paragraph, would form part of the chargeable equity and liabilities of the relevant group. The JV liabilities are subject to a double charge if conditions A and B are met. Condition A is that an entity (“V”) which has an interest in the joint venture for the purposes of the JV standard— V falls within this sub-paragraph if— Condition B is that— “JV standard” means those provisions of international accounting standards or UK GAAP which relate to joint ventures.

Section 1139 of CTA 2010 (definition of “tax advantage”) is amended as follows. In subsection (2)— After subsection (3) insert—

In section 39 (dormant bank and building society accounts), in subsection (1), omit paragraph (a).

Section 312 (determination of credits and debits where amounts not fully recognised) is amended as follows. For subsection (1A) substitute— In subsection (1B) omit “by reference to which that condition is met”. But—

In section 176 of TCGA 1992 (depreciatory transactions within a group), in subsection (1), for “on or after 31st March 1982” substitute “ within the period of 6 years ending with the disposal ”.

Schedule 36 (information and inspection powers) is amended as follows. Omit paragraph 34A. In paragraph 61A (involved third parties)—

In section 440 (overview of Chapter 15), in subsection (2), omit the “and” at the end of paragraph (e), and after paragraph (f) insert, and

In section 179 of TCGA 1992 (company ceasing to be member of group), in subsection (9)(b), after “section 30” insert “ or 31 ”.

After section 455 insert—

In section 464 (priority of Part for corporation tax purposes), in subsection (4), omit the “and” at the end of paragraph (a) and after paragraph (b) insert, and

In Part 2 of Schedule 28 to FA 2004, paragraph 22 (dependant’s unsecured pension fund) is amended as follows. In sub-paragraph (1), for “dependant’s unsecured pension fund” substitute “dependant’s drawdown pension fund”. In sub-paragraph (2)(a), for “dependant’s unsecured pension” substitute “dependants’ drawdown pension”. In sub-paragraph (3)— The heading before paragraph 22 becomes “Dependant’s drawdown pension fund”.

In Part 9 of ITEPA 2003 (pension income), Chapter 4 (foreign pensions: general rules) is amended as follows. In section 574 (“pension”: interpretation)— In section 575(1) (taxable pension income), at the end insert “and section 576A”. After section 576 insert—

Equity or liabilities are “excluded” so far as they consist of equity or liabilities which are specified to be excluded— The Treasury may also by order add to, repeal or otherwise amend any of paragraphs 29 to 39. An order under this paragraph may make consequential amendments of paragraph 76 (“long term” liabilities: non-protected deposits). An order under this paragraph may have retrospective effect in relation to— Orders under this paragraph are to be made by statutory instrument. A statutory instrument containing an order under this paragraph may not be made unless a draft has been laid before, and approved by a resolution of, the House of Commons.

The Commissioners for Her Majesty’s Revenue and Customs are responsible for the collection and management of the bank levy. In this Part of this Schedule “HMRC” means Her Majesty’s Revenue and Customs.

This paragraph applies where the bank levy is charged as provided for by paragraph 4. In this paragraph and paragraph 55 “chargeable member” means a member of the relevant group within paragraph 53(3). The relevant group’s responsible member is the entity (“E”) in relation to which the following requirements are met— See paragraph 55 for further provision about nominations. If— the responsible member is the parent entity. If no entity meets the requirements in sub-paragraph (3) and the relevant group is a foreign banking group or a relevant non-banking group, the responsible member is the entity in relation to which the following requirements are met— In sub-paragraph (5)(c) “relevant member”— If no entity meets the requirements of sub-paragraph (3) or sub-paragraph (4) or (5) (as the case may be), the responsible member is the member of the relevant group determined by HMRC within the period of 30 days after the end of the chargeable period. HMRC must give written notice of a determination under sub-paragraph (7) to the member concerned within that period. HMRC cannot determine as the responsible member under sub-paragraph (7)— In relation to chargeable periods arising by virtue of paragraph 41 (chargeable periods: entities which do not prepare financial statements), the Treasury may by order modify the time limit applying to determinations under sub-paragraph (7) (including determinations in cases to which paragraph 65(3) applies). An order under sub-paragraph (10) may amend paragraphs 41 to 44 of Schedule 18 to FA 1998 (discovery assessments and determinations) in relation to any bank levy charged by virtue of paragraph 41 of this Schedule. Orders under sub-paragraph (10) are to be made by statutory instrument. A statutory instrument containing an order under sub-paragraph (10) is subject to annulment in pursuance of a resolution of the House of Commons. An order under sub-paragraph (10) may have retrospective effect in relation to—

Liabilities representing protected deposits are excluded. A deposit is “protected” so far as it is covered by the Financial Services Compensation Scheme under section 213 of FISMA 2000 (“the FSCS”). A deposit is “protected” so far as it is covered by a scheme which— Sub-paragraph (5) applies for the purposes of sub-paragraphs (2) and (3) if— The scheme is treated— In sub-paragraph (4) “scheme deposit” means a deposit the whole or part of which is covered by the scheme (disregarding sub-paragraph (5)). A deposit is “protected” so far as it is covered by a guarantee— In sub-paragraph (2), and sub-paragraphs (4), (5) and (6) so far as relating to a scheme within sub-paragraph (2), “deposit” has the meaning given by article 5(2) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544). In sub-paragraphs (3) and (7), and sub-paragraphs (4), (5) and (6) so far as relating to a scheme within sub-paragraph (3), “deposit” has the meaning given by article 5(2) of that Order but ignoring the exclusions in articles 6 to 9AB. If two or all of sub-paragraphs (2), (3) and (7) apply to a deposit, the amount of the deposit “protected” is the highest amount which results from any one of those sub-paragraphs.

This paragraph applies for the purposes of paragraph 54(3). Only one nomination may be made during the chargeable period. A nominator may nominate itself. HMRC may from time to time publish requirements as to the information to be included with a nomination. HMRC may reject a nomination within the period of 30 days starting with the day on which it receives the nomination. HMRC may reject a nomination only if—

Equity and liabilities which are “tier one capital equity and liabilities” are excluded. “Tier one capital equity and liabilities” means, in relation to an entity or a group of entities, so much of the entity or group’s equity and liabilities as—

Sovereign repo liabilities are excluded. “Sovereign repo liability” means a liability of a person (“A”) which represents a sum of money or other asset received by A from another person (“B”) under an arrangement where— Section 556 of CTA 2009 (meaning of securities and similar securities) applies for the purposes of sub-paragraph (2) as it applies for the purposes of Chapter 10 of Part 6 of that Act. Securities are “high quality” if— “Debt securities” has the same meaning as that term has in section BIPRU 12.7.3 of the FSA Handbook.

Sovereign stock-lending liabilities are excluded. “Sovereign stock-lending liabilities” means liabilities of the lender to redeliver equivalent cash collateral under a stock lending arrangement in respect of high quality securities. Section 805 of CTA 2010 (“stock lending arrangement”) applies for the purposes of sub-paragraph (2) as it applies for the purposes of Chapter 5 of Part 17 of that Act, and the reference in sub-paragraph (2) to “the lender” is to be construed accordingly. Paragraph 31(3) and (4) apply for the purposes of this paragraph.

Relevant insurance liabilities are excluded. “Relevant insurance liabilities” means liabilities of a regulated insurer carrying on an insurance business which are— The liabilities of a regulated insurer within sub-paragraph (2)(c) include a liability which would be a liability of the insurer within that provision if the insurer prepared consolidated financial statements. In this paragraph—

Relevant property, plant and equipment reserves are excluded. “Relevant property, plant and equipment reserves” means equity amounts representing revaluation reserves relating to the revaluation of property, plant and equipment under International Accounting Standard 16 or Financial Reporting Standard 15. “Property, plant and equipment” has the meaning given, for the time being, by International Accounting Standard 16.

Relevant tax liabilities are excluded. In relation to liabilities to be determined by reference to amounts recognised, or which would have been recognised, in consolidated financial statements or financial statements prepared under international accounting standards, “relevant tax liabilities” means liabilities representing— In relation to liabilities to be determined by reference to amounts recognised, or which would have been recognised, in consolidated financial statements or financial statements prepared under UK GAAP, “relevant tax liabilities” means liabilities representing—

Relevant retirement benefit liabilities are excluded. In relation to liabilities to be determined by reference to amounts recognised, or which would have been recognised, in consolidated financial statements or financial statements prepared under international accounting standards, “relevant retirement benefit liabilities” means liabilities under defined benefit plans within the meaning, for the time being, of International Accounting Standard 19. In relation to liabilities to be determined by reference to amounts recognised, or which would have been recognised, in consolidated financial statements or financial statements prepared under UK GAAP, “relevant retirement benefit liabilities” means liabilities under defined benefit schemes within the meaning, for the time being, of Financial Reporting Standard 17.

Financial services compensation scheme liabilities are excluded. “Financial services compensation scheme liabilities” means liabilities representing—

Liabilities representing clients’ money held by an authorised person are excluded. “Authorised person” means an entity which— “Clients’ money”— but does not include a deposit within the meaning of article 5(2) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544) ignoring the exclusions in articles 6 to 9AB.

Currency liabilities are excluded. “Currency liabilities” means liabilities of an entity or a group of entities representing notes issued by the entity or a member of the group as currency.

IHTA 1984 is amended as follows.

Section 683 of ITEPA 2003 (PAYE income) is amended as follows. In subsection (3), for “subsections (3A) and (4)” substitute “subsections (3A) and (3B)”. After subsection (3A) insert—

In consequence of the amendments made by this Schedule, omit the following provisions—

The bank levy is charged if, as at the end of a period of account (“the chargeable period”) of an entity (“the relevant entity”), the relevant entity— An entity falls within this sub-paragraph if it is an entity in relation to which paragraph 4(1) applies as at the end of the chargeable period. An entity (“A”) falls within this sub-paragraph if— This paragraph applies in relation to periods of account ending on or after 1 January 2011.

Sub-paragraphs (2) to (6) apply if the chargeable period starts on or before the day on which this Act is passed (whether or not it ends on or before that day). Paragraph 54(3)(c) has effect as if for the words “during the chargeable period but no later than 45 days after it started” there were substituted “within the period of 7 days starting with the day on which this Act is passed”. Paragraph 54(7) has effect as if for the words “30 days after the end of the chargeable period” there were substituted “15 days starting with the day on which this Act is passed”. Paragraph 55(5) has effect as if for “30” there were substituted “7”. Sub-paragraph (6) applies if, before the passing of this Act— For the purposes of paragraphs 54(3)(c) and 55(5) (as modified above) the nomination is to be treated as if it were made by the entity and received by HMRC immediately after the passing of this Act. The requirements covered by paragraph 55(4) include any requirements published by HMRC before the passing of this Act which are stated to apply for the purposes of nominations for responsible members. But such requirements are to apply only to nominations made during 2011. Regulations under section 59E of TMA 1970, in relation to amounts within subsection (11)(d) of that section (amounts of bank levy), made on or before 31 December 2011 may have effect in relation to amounts of bank levy which—

Section 12 (dispositions allowable for income tax or conferring benefits under pension scheme) is amended as follows. In subsection (2F), omit paragraph (b) (and the “and” before it). In subsection (2G)—

dependants’ income withdrawal (in Chapter 5A of Part 9) section 579D”; “income withdrawal (in Chapter 5A of Part 9) section 579D

In section 151 (treatment of pension rights, etc), in subsection (2), for “Subject to sections 151A and 151C below, an interest” substitute “An interest”.

In section 200 (transfer on death)—

In section 210 (pension rights, etc), omit subsections (2) and (3).

Section 216 (delivery of accounts) is amended as follows. In subsection (1), omit paragraph (bca). In subsection (3)(a), omit “(or would do apart from section 151A(3)(b) or 151C(3)(b) above)”. In subsection (4), omit “(or would be apart from section 151A(3)(b), 151C(3)(b) or 151B(4) above)”. In subsection (6), omit paragraph (ac). In subsection (7), for “, 126 or 151D” substitute “or 126”.

In section 226 (payment: general rules), in subsection (4)—

In section 233 (interest on unpaid tax), in subsection (1)(c)—

In section 272 (general interpretation), omit the definition of “scheme administrator”.