Launch conference for the project on the prevention and control of noncommunicable diseases (NCDs): Moscow, Russian Federation, 1 December 2014: meeting report
In section 2(2)(a) of FA 2010 (main corporation tax rate for financial year 2011 on profits other than ring fence profits), for “28%” substitute “ 27% ”.
Schedule 1 contains provision in relation to the rates at which capital gains tax is charged.
In section 2(1) of VATA 1994 (rate of VAT), for “17.5 per cent” substitute “ 20 per cent ”.
In section 21(4) of that Act (restriction on value of imported goods), for “28.58 per cent” substitute “ 25 per cent ”.
The amendment made by subsection (1) has effect in relation to any supply made on or after 4 January 2011 and any acquisition or importation taking place on or after that date.
The amendment made by subsection (2) has effect in relation to goods imported on or after 4 January 2011.
Schedule 2 contains provision for a supplementary charge to value added tax on supplies spanning the date of the VAT change.
In section 51(2) of FA 1994 (rates of insurance premium tax)—
in paragraph (a) (higher rate), for “17.5 per cent” substitute “ 20 per cent ”, and
in paragraph (b) (standard rate), for “5 per cent” substitute “ 6 per cent ”.
The amendments made by subsection (1) have effect in relation to a premium falling to be regarded for the purposes of Part 3 of FA 1994 as received under a taxable insurance contract by an insurer on or after 4 January 2011.
In the application of sections 67A and 67C of FA 1994 (announced increase in rate) in relation to the increases made by this section—
the announcement for the purposes of section 67A(1) is to be taken to have been made on 22 June 2010, and
the date of the change is 4 January 2011.
In FA 1999, omit section 125; and the repeal of that section comes into force in accordance with the provision made by this section for the coming into force of the amendments made by subsection (1).
The Treasury may by order made by statutory instrument repeal section 23 of, and Schedule 2 to, FA 2010 (high income excess relief charge).
No order may be made under subsection (1) after 31 December 2010.
Section 1014 of ITA 2007 (orders and regulations under Income Tax Acts) does not apply to the power under subsection (1).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule 4 contains provision about expenses and allowances paid to members of the House of Commons and other representatives.
Schedule 5 contains amendments of sections 311, 312 and 599A of CTA 2009 (loan relationships and derivative contracts: treatment of amounts not fully recognised for accounting purposes).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In Chapter 1 of Part 12 of ICTA (insurance companies etc), after section 432CA insert—
The amendment made by subsection (1) has effect in relation to transfers of business taking place on or after 24 March 2010.
In this Act—
For the purposes of this Schedule, a supply of goods or services spans the date of the VAT change where— The relevant conditions are— Condition A is that the supplier and the person to whom the supply is made are connected with each other at any time in the period— Paragraph 5 modifies condition A in cases involving a series of supplies. Condition B is that the aggregate of the following is more than £100,000— Condition C is that a prepayment in respect of the supply is financed by the supplier or a person connected with the supplier (see paragraph 7). In sub-paragraph (6) “prepayment”, in respect of a supply, means a payment that is received by the supplier before the basic time of supply. Condition D is that full payment of the amount shown on the VAT invoice referred to in sub-paragraph (1)(a) is not due before the end of the period of 6 months beginning with the date on which the invoice is issued. This paragraph does not apply in relation to a supply consisting of the grant of a right to goods or services (see paragraph 3).
This paragraph applies for the purposes of condition B in paragraphs 2 and 3. “Relevant consideration” means—
but does not include any amount in respect of VAT. A supply within paragraph 2(1), or a grant of a right within paragraph 3(1), is related to another such supply or grant if they are both made as part of the same scheme. “Scheme” includes any arrangements, transaction or series of transactions.
In this Schedule a reference to receipt of a payment by the person making a supply or granting a right (however expressed) includes a reference to receipt by a person to whom a right to receive it has been assigned.
Expressions used in this Schedule and in VATA 1994 have the same meaning in this Schedule as in that Act. In this Schedule—
“CTA 2009” means the Corporation Tax Act 2009;
“CTA 2010” means the Corporation Tax Act 2010;
There is no supplementary charge under this Schedule on a supply of goods within paragraph 2 if—
the only relevant condition met is condition D,
the VAT invoice—
relates to a supply of goods made under a hire-purchase, conditional sale or credit sale agreement,
forms part of that agreement, and
is issued in accordance with normal commercial practice in relation to a supply made under such an agreement, and
the basic time of supply of the goods is intended and expected to be within 6 months of the date of the VAT invoice which relates to the supply.
“ICTA” means the Income and Corporation Taxes Act 1988;
This paragraph applies where— In condition A in paragraphs 2 and 3, the references to the supplier and the grantor include any person who makes one of the supplies or grants one of the rights in the series.
Section 1122 of CTA 2010 (connected persons) applies for the purposes of this Schedule.
For the purposes of this Schedule, in relation to a listed supply, “the basic time of supply” is the end of the period to which the VAT invoice or payment mentioned in paragraph 18(1) relates, except as provided in sub-paragraphs (2) and (4). Where the person making the supply issues an invoice—
Where, by virtue of the operation of sub-paragraph (2) of paragraph 8 of Schedule 28 to FA 2004 (automatic designation of funds as available for payment of unsecured pension at age 75), a person to whom this Schedule applies becomes entitled to a pension under an arrangement, the amount of any lump sum to which the person becomes entitled in connection with the pension does not form part of any relevant uncrystallised funds for the purposes of that sub-paragraph.
Section 294 of ITEPA 2003 (European travel expenses of MPs and other representatives) is amended as follows. For subsection (1) substitute— In subsection (3)(b), for sub-paragraph (iii) substitute— The amendments made by this paragraph have effect in relation to sums paid to members under the relevant Act on or after 7 May 2010. In relation to sums paid on or after that date in accordance with a resolution of the House of Commons passed before that date, section 294 of ITEPA 2003 continues to have effect as if those amendments had not been made.
Despite paragraph 5, the amount crystallised by benefit crystallisation event 1 in section 216 of FA 2004 (benefit crystallisation events and amounts crystallised) is to be taken to include the amount of any such lump sum (regardless of whether or not it has been paid to the person). Accordingly, the person becoming entitled to such a lump sum is not a benefit crystallisation event under that section.
Paragraph 1 of Schedule 29 to FA 2004 (pension commencement lump sum) has effect in relation to any such lump sum as if in sub-paragraph (3)(b) the words “otherwise than by virtue of the operation of paragraph 8(2) of Schedule 28” were omitted.
If there are any remaining uncrystallised funds at the end of the period referred to in paragraph 1(1)(c) of Schedule 29 to FA 2004 (period for payment of pension commencement lump sum), they are to be treated, for the purposes of paragraph 8 of Schedule 28 to that Act, as having been designated under the arrangement as available for the payment of unsecured pension at that time. If the person dies before the end of that period, any remaining uncrystallised funds are to be treated, for the purposes of paragraph 8 of Schedule 28 to FA 2004, as having been designated under the arrangement as available for the payment of unsecured pension immediately before the person’s death. “Remaining uncrystallised funds” means such of the sums and assets held for the purposes of the arrangement as are not member-designated funds and have not been applied towards the provision of a scheme pension or a dependants’ scheme pension.
“the basic time of supply”, in relation to that part of the supply, is the end of the billing period. For the purposes of sub-paragraph (2), the listed supply (and the consideration for the supply) must be apportioned between periods on a just and reasonable basis. Where a listed supply is treated as taking place by virtue of— “the basic time of supply” is the date of the grant of the tenancy or lease.
For the purposes of any provision (however framed) that is included in the rules of a registered pension scheme in consequence of any provision of FA 2004 mentioned in paragraphs 2 to 4, the trustees or managers of the pension scheme may treat any relevant person as if the person had not reached the age of 75. A “relevant person” is a person— Where the trustees or managers of a registered pension scheme so determine, the rules of the pension scheme are to be treated as conferring on any person to whom this Schedule applies an entitlement to a lump sum in connection with a pension of the kind mentioned in paragraph 5.
In ITEPA 2003, after section 293 insert— The amendment made by sub-paragraph (1) has effect in relation to payments made under section 5(1) of the Parliamentary Standards Act 2009 on or after 7 May 2010. In relation to payments made on or after that date in accordance with a resolution of the House of Commons passed before that date, ITEPA 2003 continues to have effect as if that amendment had not been made.
This paragraph applies in relation to a supply within paragraph 2 which arises from the letting, hiring or rental of assets. There is no supplementary charge under this Schedule if—
In this Part of this Schedule, “normal commercial practice”, in relation to a supply or grant of a right, means—
normal commercial practice of the supplier or grantor at a time when an increase in the rate of VAT in force under section 2 of VATA 1994 is not expected, or
if the supplier or grantor has no such practice, the normal commercial practice of suppliers making similar supplies, or granters granting similar rights, in the United Kingdom at such a time.
The amount of the supplementary charge on a supply within paragraph 2 is equal to the difference between— The amount of the supplementary charge on a grant of a right to goods or services within paragraph 3 is equal to the difference between— (but see sub-paragraph (3)). If the basic time of supply for some of those goods and services is before the date of the VAT change, sub-paragraph (2) has effect as if the references to the amount of VAT chargeable and to the amount of VAT that would be chargeable were references to the relevant proportion of each of those amounts. “The relevant proportion” is— where— P is so much of the consideration for the grant of the right as is attributable on a just and reasonable basis to a right to the goods and services for which the basic time of supply is on or after the date of the VAT change, and W is the whole of the consideration for the grant of the right.
In this Act “FA”, followed by a year, means the Finance Act of that year.
This Act may be cited as the Finance (No.2) Act 2010.
Section 2
but does not include any amount in respect of VAT. A supply within paragraph 2(1), or a grant of a right within paragraph 3(1), is related to another such supply or grant if they are both made as part of the same scheme. “Scheme” includes any arrangements, transaction or series of transactions.
TCGA 1992 is amended as follows.
For section 4 (rate of capital gains tax) substitute—
After section 4A (as substituted by paragraph 2) insert—
In section 169H (introduction to entrepreneurs' relief), in subsection (1), for “relief from capital gains tax” substitute “ for a lower rate of capital gains tax ”.
Section 169N (amount of relief: general) is amended as follows. For subsections (2) to (4) substitute— In subsection (7), for “subsection (3)” substitute “ subsection (4) ”.
In section 169O (amount of relief: special provision for certain trust disposals), in subsection (3), omit “with no reduction under subsection (2) of that section”.
In section 169P (amount of relief: special provision for certain associated disposals), in subsection (3), omit “with no reduction under subsection (2) of that section”.
For section 169R (reorganisations involving acquisition of qualifying corporate bonds) substitute—
Paragraph 1 of Schedule 5B (enterprise investment scheme: re-investment) is amended as follows. After sub-paragraph (5) insert—
In Schedule 3 to FA 2008 (entrepreneurs' relief), in paragraph 7 (transitionals: reorganisations)—
in sub-paragraph (5), for “section 169N(1) to (3)” substitute “ section 169N(1) and (2) ”;
after sub-paragraph (7) insert—
There is a supplementary charge to value added tax on a supply of goods or services that is treated as taking place on or after 22 June 2010 if— In this Schedule “the date of the VAT change” means 4 January 2011. For the cases in which a supply, other than the grant of a right to goods or services, spans the date of the VAT change and the relevant conditions in relation to such a supply, see paragraph 2. For the cases in which a supply consisting of the grant of a right to goods or services spans the date of the VAT change and the relevant conditions in relation to such a supply, see paragraph 3. Sub-paragraph (1) has effect subject to the exceptions made by or under Part 2 of this Schedule. In this Schedule— Part 3 contains provision about liability for, and the amount of, a supplementary charge under this Schedule, Part 4 contains special provision about listed supplies, and Part 5 contains provision about administration and interpretation. A supplementary charge to value added tax under this Schedule is to be treated for all purposes as if it were value added tax charged in accordance with VATA 1994.
There is no supplementary charge under this Schedule on a supply of goods or services within paragraph 2 or a grant of a right to goods or services within paragraph 3 if—
the only relevant condition met is condition B, and
the supply is made, or the right is granted, in accordance with normal commercial practice in relation to the supply of, or the grant of a right to, such goods or services.
The Treasury may by order provide that there is no supplementary charge under this Schedule on supplies (including grants of rights to goods or services) of a description specified in the order. An order under this paragraph—
The provisions of FA 2004 listed in sub-paragraph (2) have effect in relation to a person to whom this Schedule applies as if— The provisions are—
Any term used in this Schedule and in Part 4 of FA 2004 has the same meaning in this Schedule as it has in that Part.
In paragraph 8 of that Schedule (transitionals: EIS and VCT)—
in sub-paragraph (7), for “section 169N(1) to (3)” substitute “ section 169N(1) and (2) ”;
after sub-paragraph (9) insert—
In paragraphs 6 and 20 of Schedule 28 to FA 2004 (short-term annuities), sub-paragraph (1) has effect in relation to an annuity to which this paragraph applies as if the reference in paragraph (d) of that sub-paragraph to the age of 75 were a reference to the age of 77. This paragraph applies to an annuity that—
Sub-paragraphs (6) and (7) of paragraph 11 of Schedule 28 to FA 2004 (cases where member’s whereabouts are unknown at age 75) have effect in relation to a person to whom this Schedule applies as if—
any reference in sub-paragraphs (6)(a) and (7) to the age of 75 were a reference to the age of 77, and
for paragraph (b) of sub-paragraph (6) there were substituted—
“ICTA” means the Income and Corporation Taxes Act 1988;
The amendment made by paragraph 2 has effect in relation to gains accruing on or after 23 June 2010.
Section 311 of CTA 2009 (loan relationships: amounts not fully recognised for accounting purposes) is amended as follows. In subsection (2)— In subsection (3)(a), for “the period” substitute “any period”. In subsection (4)(a)— In subsection (4A)(a)— After subsection (4A) insert— In subsection (5), omit “for the period”. After subsection (5) insert—
The amendment made by paragraph 3 has effect in relation to the tax year 2010-11 and subsequent tax years.
Section 312 of that Act (determination of credits and debits where amounts not fully recognised) is amended as follows. In subsection (1), omit paragraph (b) and the “or” before it. After that subsection insert— In subsection (4)(b)—
The amendments made by paragraphs 4 to 7 and 9 have effect in relation to qualifying business disposals occurring on or after 23 June 2010.
Section 599A of that Act (derivative contracts: amounts not fully recognised for accounting purposes) is amended as follows. In subsection (2)— In subsection (3)(a)— In subsection (3)(b), for “relevant contribution” substitute “contribution”. In subsection (4), omit “for the period”. In subsection (5)(a)— After subsection (5) insert—
The amendment made by paragraph 8 has effect in relation to relevant transactions occurring on or after 23 June 2010.
The amendment made by paragraph 10 has effect if the first relevant disposal occurs on or after 23 June 2010.
The amendment made by paragraph 11 has effect if the first relevant chargeable event occurs on or after 23 June 2010.
In relation to the tax year 2010-11— do not include gains accruing before 23 June 2010.
the reference in section 4(2), (3) and (4) of TCGA 1992 (as substituted by paragraph 2) to gains accruing in a tax year, and
the reference in section 4(5) of that Act (as so substituted) to the amount on which the individual is chargeable to capital gains tax,
Gains treated as accruing to an individual under section 10A of TCGA 1992 (temporary non-residents) in the tax year 2010-11 are to be treated for the purposes of this Schedule as accruing before 23 June 2010.
Chargeable gains treated as accruing to an individual under section 12(2) of TCGA 1992 (non-UK domiciled individuals to whom remittance basis applies) in the tax year 2010-11 are to be treated for the purposes of this Schedule as accruing on the day the related foreign chargeable gains are remitted. For the purposes of sub-paragraph (1), foreign chargeable gains under section 809J of ITA 2007 (section 809I: order of remittances) in the tax year 2010-11 are to be treated as remitted before 23 June 2010.
Chargeable gains treated as accruing to a settlor under section 86(4)(a) of TCGA 1992 (attribution of gains to settlors with interest in non-resident or dual resident settlements) in the tax year 2010-11 are to be treated for the purposes of this Schedule as accruing before 23 June 2010.
This paragraph makes provision, for the purposes of this Schedule, in relation to— Such of the chargeable gains within sub-paragraph (1)(a), (b) or (c) as result from the matching of capital payments received before 23 June 2010 are to be treated as accruing before that date. Such of the chargeable gains within sub-paragraph (1)(a), (b) or (c) as result from the matching of capital payments received on or after that date are to be treated as accruing on or after that date. The reference in sub-paragraph (1)(b) to section 89(2) of TCGA 1992 is to be read as including a reference to that section as applied by section 90(6)(a) of that Act (transfers between settlements).
Section 3
For the purposes of this Schedule, a supply consisting of the grant by a person (“the grantor”) of a right to goods or services spans the date of the VAT change where— In relation to the grant of the right, the relevant conditions are conditions A to C. Condition A is that the grantor and the person to whom the right is granted are connected with each other at any time in the period— Paragraph 5 modifies condition A in cases involving a series of supplies. Condition B is that the aggregate of the following is more than £100,000— Condition C is that the payment made in respect of the grant of the right is financed by the grantor or a person connected with the grantor (see paragraph 7). In this Schedule references to a right to goods or services include—
This paragraph applies if, on the date on which a supplementary charge under this Schedule becomes due (“the due date”), the person who is liable to pay the charge under paragraph 16 is not a taxable person. The supplementary charge must be accounted for by that person in accordance with VATA 1994 (and regulations made under that Act) as if it were VAT due in the last period for which the person was required to make a return by or under VATA 1994. If an amount assessed as due by way of supplementary charge under this Schedule would (in the absence of this sub-paragraph) carry interest from a date earlier than the due date, it is to be treated as only carrying interest from the due date.
“ITA 2007” means the Income Tax Act 2007;
In this Schedule the “basic time of supply” is the time given by subsection (2) or (3) of section 6 of VATA 1994 (disregarding subsections (4) to (14) of that section). Sub-paragraph (1) does not apply in relation to listed supplies (see Part 4 of this Schedule).
This paragraph applies for the purposes of condition C in paragraphs 2 and 3. A payment is financed by a person if, directly or indirectly, the person— In sub-paragraph (2) the references to providing funds for a purpose are to—
The Treasury may by order amend this Part of this Schedule by adding, modifying or omitting relevant conditions. An order under this paragraph—
A supplementary charge under this Schedule on a supply within paragraph 2— A supplementary charge under this Schedule on a supply consisting of the grant of a right to goods or services within paragraph 3— If, on the date on which the supplementary charge becomes due, the person who would be liable to pay the charge under sub-paragraph (1) or (2)— the supplementary charge is a liability of the representative member of the group.
This paragraph applies where— The consideration for the supply is to be increased by an amount equal to the supplementary charge, unless the contract provides otherwise.
The amendments made by this Schedule have effect in relation to periods of account beginning on or after 22 June 2010. But, for the purposes of sub-paragraph (1), a period of account beginning before, and ending on or after, 22 June 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.
In this Schedule “listed supply” means a supply falling within sub-paragraph (2)— The following supplies fall within this sub-paragraph— The Treasury may by order amend sub-paragraph (2) by—
An order under this Schedule is to be made by statutory instrument. A statutory instrument containing an order under this Schedule is subject to annulment in pursuance of a resolution of the House of Commons, unless it is an instrument to which sub-paragraph (4) applies. Sub-paragraph (4) applies to a statutory instrument containing an order made under paragraph 10 (or under that paragraph and under other provisions) which extends the supplies that are subject to a supplementary charge under this Schedule. An instrument to which this sub-paragraph applies— In reckoning the period of 28 days no account is to be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than 4 days. The order ceasing to have effect does not affect—
Regulations under paragraph 2A of Schedule 11 to VATA 1994 (VAT invoices) may make provision about the provision, replacement or correction of invoices in connection with a supplementary charge under this Schedule.
Section 6
“TCGA 1992” means the Taxation of Chargeable Gains Act 1992;
This Schedule applies to persons who reach the age of 75 on or after 22 June 2010.
Section 7
ITEPA 2003 is amended as follows. For section 292 substitute— In section 360 (disallowance of certain accommodation expenses of MPs and other representatives), insert at the end— The amendment made by sub-paragraph (2) has effect in relation to payments made under section 5(1) of the Parliamentary Standards Act 2009 on or after 7 May 2010. In relation to payments made on or after that date in accordance with a resolution of the House of Commons passed before that date, ITEPA 2003 continues to have effect as if that amendment had not been made. The amendment made by sub-paragraph (3) has effect in relation to expenses incurred on or after that date.
Section 8