UKPGA-2007-11 Finance Act 2007 UK

Corporation tax is charged for the financial year 2008; and for that year the rate of corporation tax is—

In this section “ring fence profits” has the same meaning as in Chapter 5 of Part 12 of ICTA (see section 502(1) and (1A)).

The Alcoholic Liquor Duties Act 1979 (c. 4) is amended as follows.

In section 36(1AA)(a) (standard rate of duty on beer), for “£13.26” substitute “ £13.71 ”.

In section 62(1A) (rates of duty on cider)—

For Part 1 of the Table in Schedule 1 substitute—.

The amendments made by this section are deemed to have come into force on 26th March 2007.

For the Table in Schedule 1 to the Tobacco Products Duty Act 1979 (c. 7) substitute—

The amendment made by subsection (1) is deemed to have come into force at 6 p.m. on 21st March 2007.

For the Table in section 11(2) of FA 1997 substitute—

In section 11(3) of that Act, for “40 per cent” substitute “ 50 per cent ”.

The amendments made by this section have effect in relation to accounting periods beginning on or after 1st April 2007.

Schedule 1 contains amendments of and relating to Part 2 of BGDA 1981 (gaming duties) imposing a remote gaming duty.

The amendments made by Schedule 1 have effect in respect of the provision of facilities on or after a date appointed by the Commissioners for Her Majesty's Revenue and Customs by order made by statutory instrument.

Section 23 of BGDA 1981 (amount of duty payable on amusement machine licence) is amended as follows.

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After subsection (6) insert—

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The Hydrocarbon Oil Duties Act 1979 (c. 5) is amended as follows.

In section 6(1A) (hydrocarbon oil: rates of duty)—

In section 6AA(3) (biodiesel), for “£0.2835” substitute “ £0.3035 ”.

In section 6AD(3) (bioethanol), for “£0.2835” substitute “ £0.3035 ”.

In section 8(3) (road fuel gas)—

In section 11(1) (rebate on heavy oil)—

In section 13A(1) (rebate on unleaded petrol), for “£0.0617” substitute “ £0.0642 ”.

In section 14(1) (rebate on light oil for use as furnace oil), for “£0.0729” substitute “ £0.0929 ”.

The amendments made by this section come into force on 1st October 2007.

Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows.

In paragraph 1 (general)—

Paragraph 1B (graduated rates for light passenger vehicles) is amended as follows.

For the words from “Table A” to “date,” substitute “ the following table ”.

For “, or is liable to the standard rate or the premium” substitute.

For Tables A and B substitute—

For paragraphs 1D and 1E substitute—

In paragraph 1J (light goods vehicles)—

In paragraph 2(1) (motorcycles)—

The amendments made by this section have effect in relation to licences taken out on or after 22nd March 2007.

For the Table in paragraph 42(1) of Schedule 6 to FA 2000 substitute—.

The amendment made by subsection (1) has effect in relation to supplies treated as taking place on or after 1st April 2008.

In section 16(4) of FA 2001 (rate of aggregates levy), for “£1.60” substitute “ £1.95 ”.

The amendment made by subsection (1) has effect in relation to aggregate subjected to commercial exploitation on or after 1st April 2008.

Section 42 of FA 1996 (amount of landfill tax) is amended as follows.

In—for “£21” substitute “ £24 ”.

The amendments made by subsection (2) have effect in relation to disposals made (or treated as made) on or after 1st April 2007 (but before 1st April 2008).

In subsection (1)(a), for “£24” substitute “ £32 ” and, in subsection (2), for “£24 were to £2” substitute “ £32 were to £2.50 ”.

The amendments made by subsection (4) come into force on 1st April 2008 and have effect in relation to disposals made (or treated as made) on or after that date.

The Treasury may impose charges by providing for Community tradeable emissions allowances to be allocated in return for payment.

The Treasury must by regulations make provision for and in connection with allocations of allowances in return for payment.

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The regulations may make any other provision about allocations which the Treasury consider appropriate, including (in particular)—

The Treasury may make schemes about the conduct and terms of allocations (to have effect subject to any regulations under this section); and schemes may in particular include provision about—

“Community tradeable emissions allowances” are transferable allowances which—and “greenhouse gases” means carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride.

Subsection (4)(c) does not permit the creation of a criminal offence with maximum penalties in excess of the maximum penalties which an instrument under section 2(2) of the European Communities Act 1972 may provide in respect of an offence created by such an instrument.

Regulations under this section are to be made by statutory instrument.

A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons unless a draft of the regulations has been laid before, and approved by a resolution of, that House.

Section 312 of ITTOIA 2005 (deduction for expenditure on energy-saving items) is amended as follows.

In subsection (1)(b) (expenditure incurred in acquiring and installing energy-saving item in dwelling-house), for “in the dwelling-house an energy-saving item” substitute “ an energy-saving item in the dwelling-house or in a building containing the dwelling-house ”.

In subsection (1)(c) (expenditure incurred before 6th April 2009), for “2009” substitute “ 2015 ”.

In section 313 of that Act (restrictions on relief), insert at the end—

In section 314 of that Act (regulations), insert at the end—

The amendments made by subsections (2) and (4) have effect in relation to expenditure incurred on or after 6th April 2007.

The amendment made by subsection (5) is deemed always to have had effect.

Regulations under section 314 of ITTOIA 2005 made on or after the day on which this Act is passed but before 31st December 2007 may include provision having effect in relation to expenditure incurred on or after 6th April 2007.

In FA 2003, after section 58A insert—

In section 114 of FA 2003 (stamp duty land tax: orders and regulations), insert at the end—

In ITTOIA 2005, after section 782 insert—

The amendment made by subsection (1) has effect for the tax year 2007-08 and subsequent tax years.

In ITTOIA 2005, after section 782A (inserted by section 20) insert—

In TCGA 1992, after section 263 insert—

The amendment made by subsection (1) has effect for the tax year 2007-08 and subsequent tax years.

The amendment made by subsection (2) has effect in relation to disposals on or after 6th April 2007.

Section 17(3) of FA 2001 (exempt aggregate) is amended as follows.

Omit “or” at the end of paragraph (d).

After that paragraph insert—.

Insert “ or ” at the end of paragraph (e).

The amendment made by subsection (3) comes into force on such day as the Treasury may by order made by statutory instrument appoint.

In section 53(4) of FA 1996 (credit: bodies concerned with the environment), after paragraph (c) insert—.

The amendment made by subsection (1) is deemed to have come into force on 22nd March 2007.

Schedule 3 contains provision about managed service companies.

That Schedule is deemed to have come into force on 6th April 2007.

TCGA 1992 is amended as follows.

In section 8 (company's total profits to include chargeable gains)—

After section 16 insert—

In section 288(1) (interpretation), in the definition of “allowable loss”, after “16” insert “ , 16A ”.

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The amendments made by this section have effect in relation to losses accruing on disposals made on or after 6th December 2006.

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In section 552 of that Act (information: duty of insurers), after subsection (12) insert—

In ITTOIA 2005, after section 541 insert—

The amendments made by this section have effect in relation to a policy or contract if—

TCGA 1992 is amended as follows.

In section 184A(2) (losses accruing on disposals of pre-change assets not deductible from gains unless gains accrue on disposals of pre-change assets), omit “unless the gains accrue to the company on a disposal of a pre-change asset”.

In section 184B(2) (losses not deductible from gains accruing on disposals of pre-change assets unless losses accrue on disposals of pre-change assets), omit “unless the loss accrues to the company on a disposal of a pre-change asset”.

Section 70 of FA 2006 (which inserted sections 184A to 184F of TCGA 1992) is amended as follows.

In subsection (9) (special provision for qualifying changes of ownership and disposals before 5th December 2005)—

For subsections (10) and (11) substitute—

The amendment made by subsection (2) has effect in relation to gains accruing on disposals made on or after 21st March 2007.

The amendment made by subsection (3) has effect in relation to losses accruing on disposals made on or after that date.

The amendments made by subsections (5) and (6) have effect in relation to disposals made on or after that date; but the amendment made by subsection (5)(d) has no effect in relation to disposals made before 9th May 2007.

In FA 1994, after section 227 insert—

The amendment made by subsection (1) has effect in relation to any case where the corporate member (as the surrendering company) and the other company (as the claimant company) first meet the conditions in section 402(2) or (3) of ICTA on or after 21st March 2007.

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Part 2 of ITTOIA 2005 (trading income) is amended as follows.

In section 38 (restriction of deductions for employee benefit contributions), for subsection (1) substitute—

In section 39 (making of “employee benefit contributions), for subsection (1) substitute—

In section 41 (timing and amount of certain benefits), for “the third party” (in both places) substitute “ a scheme manager ”.

In section 42 (provision or payment out of employee benefit contributions)—

In section 44(1) (interpretation), for the definition of “the third party” substitute—

The amendments made by this section have effect in relation to employee benefit contributions made on or after 21st March 2007.

Part 1 of Schedule 7 contains provisions relating to gross roll-up business, capital redemption business and miscellaneous minor matters relating to insurance companies.

The amendments made by that Part of that Schedule have effect—

Subsection (2) is subject to the transitional provisions in Part 2 of that Schedule.

Part 1 of Schedule 8 contains provision about the basis of taxation of insurance companies and related matters.

The amendments made by that Part of that Schedule have effect for periods of account of insurance companies beginning on or after 1st January 2007.

Subsection (2) is subject to the transitional provisions in Part 2 of that Schedule.

In FA 1994, after section 227A (inserted by section 33) insert—

The amendment made by subsection (1) has effect in any case where the first underwriting year in which profits or losses of the predecessor's final underwriting year are declared is 2007 or a later underwriting year.

Section 462 of ICTA (conditions for tax exempt business) is amended as follows.

For subsection (1) substitute—

In subsection (2), for “under section 460(1) for profits arising from any part of a life or endowment” substitute “ in relation to profits arising from any part of a ”.

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The amendments made by this section are deemed to have come into force on 1st January 2007.

In section 437(1C) of ICTA (general annuity business), omit paragraphs (c)(i) and (d)(i).

In section 656 of that Act (purchased life annuities other than retirement annuities), omit subsections (5) and (6).

In section 658 of that Act (supplementary), omit subsections (1) and (4) to (6).

In section 828(4) of that Act (parliamentary procedure for orders and regulations), omit “658(3)”.

In section 717 of ITTOIA 2005 (exemption for part of purchased life annuity payment), omit subsection (3).

Omit section 723 of that Act (officer of Revenue and Customs to determine certain questions).

In section 724 of that Act (regulations)—

In section 873(3) of that Act (parliamentary procedure for orders and regulations), omit paragraph (b).

The amendments made by subsections (1) to (3) and (5) to (7) come into force on such day as the Treasury may by order appoint; and different days may be appointed for different purposes.

Schedule 13 contains provision for corporation tax purposes about the sale and repurchase of securities.

Schedule 14 contains minor and consequential amendments in relation to the sale and repurchase of securities.

The Treasury may by order make such other amendments (including repeals and revocations) of enactments or instruments as may appear appropriate in consequence of, or otherwise in connection with, those Schedules.

Schedule 13, and the amendments made by Schedule 14, have effect in accordance with provision made by the Treasury by order.

Any order under this section—

Schedule 17 contains provisions about Real Estate Investment Trusts.

The amendments made by that Schedule have effect in respect of—

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In section 686A(2)(a) of ICTA (receipts to be treated as income subject to special rate of tax: payment by company), after “made” insert “ by way of qualifying distribution ”.

In Type 1(b) in section 482 of ITA 2007 (types of amount to be charged at special rates for trustees), after “made” insert “ by way of qualifying distribution ”.

The amendments made by this section have effect in respect of payments made to the trustees of a settlement on or after 6th April 2006.

Section 498 of ITA 2007 (trustees' tax pool) is amended as follows.

In subsection (1)—

After subsection (2) insert—

The amendments made by this section have effect in relation to gains arising to the trustees of a settlement on or after 6th April 2007.

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In section 756A of ICTA (definition of “offshore fund”), for subsection (3) substitute—

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In Schedule 27 to ICTA (distributing funds), in sub-paragraph (1)(c) of paragraph 6 (investments of offshore fund in other offshore funds which could, apart from that paragraph, be certified as distributing funds not to count towards limit in section 760(3)(a)), omit “without regard to the provisions of this paragraph,”.

In section 152 of ITA 2007 (losses from miscellaneous transactions), in subsection (8), insert at the end “ except that income on which income tax is charged under section 761(1)(b)(i) of ICTA is not “section 1016 income” for the purposes of subsection (2)(a) ”.

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The amendment made by subsection (4) has effect in relation to account periods (within the meaning of Chapter 5 of Part 17 of ICTA) beginning on or after 1st January 2007.

The amendment made by subsection (5) has effect in relation to transactions on or after 6th April 2007.

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In paragraph 10 of Schedule 18 to FA 1998 (other claims and elections to be included in company tax return), insert at the end—

Section 83 of FA 2005 (continued application of old UK GAAP to securitisation companies during transitional period) is amended as follows.

In subsection (1)(b) (old UK GAAP to apply to periods of account ending before 1st January 2008), insert at the beginning “ (subject to subsection (7A)(a)) ”.

After subsection (7) insert—

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In section 418 of ITA 2007 (donations to charity by individuals: limits)—

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The amendment made by subsection (1) has effect in relation to gifts made on or after 6th April 2007.

The amendment made by subsection (2) has effect in relation to gifts made in an accounting period ending on or after 6th April 2007.

In Part 3 of Schedule 5 to ITEPA 2003 (enterprise management incentives: qualifying companies), in paragraph 19 (excluded activities: receipt of royalties or licence fees)—

The amendments made by subsection (1) have effect in relation to options granted on or after 6th April 2007.

They also have effect in relation to a qualifying option within subsection (4), for the purpose of determining at any time on or after that date whether an activity is an excluded activity.

An option is within this subsection if it was granted before 6th April 2007 and, immediately before that date—

Subsection (6) applies in respect of an option within subsection (4) if—

The activity is to be treated, in relation to the option, as not being an excluded activity at that time.

In section 219 of ITEPA 2003 (exclusion of lower-paid employments from parts of benefits code: extra amounts to be added in connection with a car), omit subsections (5) and (6).

The repeal made by subsection (1) has effect for the tax year 2007-08 and subsequent tax years.

In section 411 of ITEPA 2003 (exception for payments and benefits for forces), the existing provision becomes subsection (1) and after that subsection insert—

The amendments made by subsection (1) have effect for the tax year 2006-07 and subsequent tax years.

In ITEPA 2003, after section 297 insert—

The amendment made by subsection (1) has effect in relation to payments whenever made.

Section 480 of ITA 2007 (meaning of “accumulated or discretionary income”) is amended as follows.

In subsection (3)(c) (income from service charges held on trust by relevant housing body), for the words after “charges” substitute “ which are paid in respect of dwellings in the United Kingdom and are held on trust. ”

For subsections (5) and (6) substitute—

The amendments made by this section have effect for the tax year 2007-08 and subsequent tax years.

In paragraph 23 of Schedule 15 to FA 2004 (charge to income tax on benefits received by former owner of property), for sub-paragraphs (3) and (4) substitute—

The amendment made by subsection (1) is deemed to have come into force on 21st March 2007.

Section 31 of ITTOIA 2005 (relationship between rules prohibiting and allowing deductions: trading income) is amended as follows.

In subsection (1) (priority of relevant permissive rules over relevant prohibitive rules), in paragraph (b) (sections to which that priority rule is subject), for “sections 48 (car or motor cycle hire) and” substitute “ section 36 (unpaid remuneration), section 38 (employee benefit contributions), section 48 (car or motor cycle hire) and section ”.

In subsection (3) (meaning of “relevant prohibitive rule”), after “sections” insert “ 36, 38, ”.

Section 274 of ITTOIA 2005 (provision corresponding to section 31 of that Act in case of property income) is amended as follows.

In subsection (1)(b), for “sections 48 (car or motor cycle hire) and” substitute “ section 36 (unpaid remuneration), section 38 (employee benefit contributions), section 48 (car or motor cycle hire) and section ”.

In subsection (3), after “sections” insert “ 36, 38, ”.

The amendments made by this section have effect for the tax year 2007-08 and subsequent tax years.

In FA 2003, after section 75 insert (in place of the section inserted by the Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2006 (S.I. 2006/ 3237))—

The amendment made by subsection (1) has effect in respect of disposals and acquisitions if the disposal mentioned in new section 75A(1)(a) (inserted by that subsection) takes place on or after 6th December 2006.

But—

Schedule 15 to FA 2003 (stamp duty land tax: partnerships) is amended as follows.

A reference in this section to a provision of that Schedule is to the provision as it had effect before variation by the Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2006.

In Step Two of paragraph 12(1) (transfer to partnership: how to calculate the “sum of the lower proportions”)—

In paragraph 12, after sub-paragraph (2) insert—

Omit paragraph 13 (transfer to partnership where all partners are companies).

In paragraph 14 (transfer of interest in property-investment partnership)—and in the italic cross-heading before it, omit “for consideration”.

In Step Two of paragraph 20(1) (transfer from partnership: how to calculate the “sum of the lower proportions”)—

In paragraph 20, after sub-paragraph (2) insert—

After paragraph 27 insert—

For paragraph 36 substitute—

In paragraph 39 (“connected persons”), insert at the end—

In Schedule 16 to FA 2003 (trusts and powers)—

The amendments made by subsections (1) to (11) have effect in respect of transfers occurring on or after the day on which this Act is passed.

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The amendment made by subsection (12) has effect in respect of acquisitions occurring on or after the day on which this Act is passed.

An amendment made by this section replaces, to the extent provided for by subsections (13) to (15), any variation made by the Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2006 (S.I. 2006/3237).

Despite subsections (13) to (16), the transitional provisions of sub-paragraphs (8) to (10) of paragraph 2 of the Schedule to the Stamp Duty Land Tax (Variation of the Finance Act 2003) Regulations 2006 (S.I. 2006/3237) continue to have effect in relation to the amendments made by this section as in relation to that paragraph.

In section 75 of FA 1986 (relief on acquisition of undertaking of company in pursuance of scheme for reconstruction of that company), after subsection (5) insert—

In section 77 of that Act (relief on acquisition of target company's share capital), after subsection (3) insert—

In Part 2 of Schedule 7 to FA 2003 (SDLT: reconstruction and acquisition reliefs), in paragraph 7 (reconstruction relief) after sub-paragraph (5) insert—

The amendments made by subsections (1) and (2) have effect in relation to any instrument executed on or after the day on which this Act is passed.

The amendment made by subsection (3) has effect in relation to any land transaction of which the effective date is on or after that day.

In FA 2003, after section 73A insert—

In section 48 of that Act (stamp duty land tax: exempt interests), after subsection (3) insert—

For the text of sections 71A(8), 72(7), 72A(8) and 73(5)(a) of that Act (alternative finance arrangements: meaning of “financial institution”), substitute “ In this section “financial institution” has the meaning given by section 46 of the Finance Act 2005 (alternative finance arrangements). ”

The amendments made by this section—

In section 47(1) of FA 2003 (exchanges), insert at the end “ (and they are not linked transactions within the meaning of section 108) ”.

In section 108 of that Act (linked transactions), insert at the end—

The amendments made by this section have effect in relation to a set of land transactions if the effective date of any of them is on or after the day on which this Act is passed.

In Schedule 9 to FA 2003 (right to buy and shared ownership leases), insert at the end—

The amendment made by subsection (1) has effect in relation to land transactions with an effective date on or after the day on which this Act is passed.

In Chapter 7 of Part 2 of the School Standards and Framework Act 1998 (c. 31) (“the 1998 Act”) (new framework for maintained schools), omit sections 79 and 79A (no stamp duty or SDLT payable in respect of certain transfers).

The repeal of—has effect in relation to any land transaction of which the effective date is on or after the day on which this Act is passed.

Subject to that, the repeal of section 79 of the 1998 Act has effect in relation to any instrument executed on or after that day.

FA 2003 is amended as follows.

In section 76(3) (payment to accompany land transaction return), omit paragraph (b).

In section 80(2) (adjustment for change of circumstance: payment to accompany return), for paragraph (d) substitute—

In section 81 (withdrawal of relief: further return)—

In section 81A(1) (later linked transaction: return), for paragraph (d) substitute—

In section 86 (payment of tax)—

In paragraph 2 of Schedule 10 (payment to accompany land transaction return), omit sub-paragraph (2)(b).

For each of paragraphs 3(3)(d), 4(3)(d) and 8(3)(d) of Schedule 17A (leases) substitute—

The amendments made by this section have effect as follows—

Section 114 of the Police and Criminal Evidence Act 1984 (c. 60) (application of Act to customs and excise) is amended as follows.

In paragraph (a) of subsection (2)—

In the opening words of paragraph (b) of that subsection, for “investigations of offences conducted by officers of Customs and Excise” substitute “ investigations of offences conducted by officers of Revenue and Customs ”.

In sub-paragraph (i) of that paragraph, for “section” substitute “ sections ”.

In the section 14A deemed to be inserted by that sub-paragraph—

After that section insert—

In paragraph (c) of subsection (2)—

After that paragraph insert—

After that subsection insert—

For subsection (3) substitute—

The heading of section 114 accordingly becomes “ Application of Act to Revenue and Customs ”.

Article 85 of the Police and Criminal Evidence (Northern Ireland) Order 1989 (S.I. 1989/1341 (N.I. 12)) (application of Order to customs and excise) is amended as follows.

In sub-paragraph (a) of paragraph (1)—

In the opening words of sub-paragraph (b) of that paragraph, for “investigations of offences conducted by officers of Customs and Excise” substitute “ investigations of offences conducted by officers of Revenue and Customs ”.

In paragraph (i) of that sub-paragraph, for “Article” substitute “ Articles ”.

In the Article 16A deemed to be inserted by that paragraph—

After that Article insert—

After sub-paragraph (b) of paragraph (1) insert—

After that paragraph insert—

For paragraph (2) substitute—

The heading of Article 85 accordingly becomes “ Application of Order to Revenue and Customs ”.

In Schedule 2 to CRCA 2005 (restrictions on the exercise of functions), omit—

Nothing in section 6 or 7 of CRCA 2005 (initial functions) restricts the functions in connection with which officers of Revenue and Customs may exercise a power under—

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Schedule 22 contains amendments and repeals consequential on extension of police powers to Revenue and Customs.

Sections 82 and 83 and this section come into force in accordance with provision made by the Treasury by order.

The power to make an order under subsection (5) is exercisable by statutory instrument.

This section relates to the Criminal Justice and Public Order Act 1994 (c. 33).

Sections 136 to 139 (execution of warrants and powers of arrest and search) shall apply to an officer of Revenue and Customs as they apply to a constable; and for that purpose—

In the application of section 137C where a person is arrested under section 137A by an officer of Revenue and Customs in respect of a specified offence that is being investigated by an officer of Revenue and Customs—

Where section 137C applies in accordance with subsection (2A), Schedule 7B applies with the following modifications—

In the application of section 137C where a person is arrested under section 137A by an officer of Revenue and Customs in respect of a specified offence other than one that is being investigated by an officer of Revenue and Customs—

Where section 137C applies in accordance with subsection (2C), Schedule 7B applies with the following modifications—

In the application of those sections to an officer of Revenue and Customs—

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An officer of Revenue and Customs may exercise a power under sections 136 to 139 in the exercise of any function of the Commissioners for Her Majesty's Revenue and Customs or of officers of Revenue and Customs, within the meaning of the Commissioners for Revenue and Customs Act 2005 (see section 51(2) to (2B) of that Act) .

In subsection (2)—“office of Revenue and Customs” means premises wholly or partly occupied by Her Majesty's Revenue and Customs, and“designated office of Revenue and Customs” has the meaning given by an order under section 114 of the Police and Criminal Evidence Act 1984 (c. 60) (power to extend provisions to HMRC) or, in Northern Ireland, by an order under Article 85 of the Police and Criminal Evidence (Northern Ireland) Order 1989 (S.I. 1989/1341 (N.I. 12)) (power to extend Order to HMRC).

In section 136, after subsection (8) insert—

Section 8 of TMA 1970 (personal tax return) is amended as follows.

In subsection (1)(a), omit “, on or before the day mentioned in subsection (1A) below”.

Omit subsection (1A).

After subsection (1C) insert—

Section 8A of TMA 1970 (trustee's tax return) is amended as follows.

In subsection (1)(a), omit “, on or before the day mentioned in subsection (1A) below”.

Omit subsection (1A).

After subsection (1AA) insert—

In section 12AA of TMA 1970, for subsection (4) (partnership return: filing date) substitute—

For subsection (5) of that section (partnership return where a company is a partner: filing date) substitute—

In section 9(2) of TMA 1970 (returns to include self-assessment)—

In section 9ZA of TMA 1970 (amendment of personal or trustee return), for subsection (3) substitute—

In section 9A(6) of TMA 1970 (notice of enquiry: “the filing date”), for the words from “means” to the end substitute “ means, in relation to a return, the last day for delivering it in accordance with section 8 or 8A. ”

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In section 28C of TMA 1970 (determination of tax where no return delivered), for subsection (6) substitute—

In section 33A of TMA 1970 (error in partnership return)—

In section 93(10) of TMA 1970 (penalty for failure to make individual or trustee return), for the definition of “filing date” substitute—

In section 93A of TMA 1970 (failure to make partnership return), after subsection (7) insert—

In subsection (8) of section 93A, omit the definition of “the filing date”.

In paragraph 4 of Schedule 15 to FA 2006 (accountancy change: spreading of adjustment)—

Sections 88 to 91 have effect—

In subsection (1)(b) “relevant period” means a period in respect of which a return is required.

Section 135 of FA 2002 (mandatory electronic filing) is amended as follows.

In subsection (7), after paragraph (b) insert—.

In subsection (10), for the definition of “taxation matter” substitute—

Section 76 of VATA 1994 (assessment) is amended as follows.

In subsection (1), after paragraph (c) insert—.

In that subsection, before “may have ceased” insert “ or the regulations ”.

In subsection (3), insert at the end—

In section 83 of VATA 1994 (appeals), after paragraph (zb) insert—.

In section 84 of VATA 1994 (appeals), after subsection (6A) insert—

Section 204 of FA 2003 (mandatory electronic payment by large employers) is amended as follows.

For subsections (1) and (2) substitute—

In subsection (5)(b), for “the Inland Revenue” substitute “ Her Majesty's Revenue and Customs ”.

In subsection (6)(a), for “the Inland Revenue” substitute “ Her Majesty's Revenue and Customs ”.

In subsection (8)—

In subsection (12)—

The heading accordingly becomes “ Mandatory electronic payment ”.

In section 205(1) of FA 2003 (application of section 204 for other purposes)—

The Commissioners may make regulations providing for a payment to HMRC made by cheque to be treated as made when the cheque clears, as defined in the regulations.

Section 70A of TMA 1970 (payment by cheque treated as made on receipt by HMRC) is subject to regulations under subsection (1).

Regulations under subsection (1)—

Regulations under subsection (1)—

In this section—

In section 204 of FA 2003 (electronic payment), insert at the end—

In section 70A of TMA 1970 (payments by cheque), insert at the end—

In VATA 1994, after section 58A insert—

In section 9A(2)(a) of TMA 1970 (period during which HMRC can open enquiry into return), for “after the filing date;” substitute “ after the day on which the return was delivered; ”.

In section 12AC(2)(a) of TMA 1970 (period during which HMRC can open enquiry into partnership return), for “after the filing date;” substitute “ after the day on which the return was delivered; ”.

In paragraph 24(2) of Schedule 18 to FA 1998 (period during which HMRC can open enquiry into company tax return), for “from the filing date.” substitute “ from the day on which the return was delivered (subject to sub-paragraph (6)). ”

In paragraph 24 of that Schedule, insert at the end—

The amendments made by subsections (1) and (2) apply to returns which relate to the tax year 2007-08 or a later tax year.

The amendments made by subsections (3) and (4) apply to returns which relate to accounting periods ending after 31st March 2008.

Schedule 24 contains provisions imposing penalties on taxpayers who—

That Schedule comes into force in accordance with provision made by the Treasury by order.

An order—

The power to make an order is exercisable by statutory instrument.

In section 77A of VATA 1994 (joint and several liability of traders in supply chain where tax unpaid), for subsection (9) substitute—

In section 97(4) of that Act (orders ceasing to have effect unless approved by House of Commons), after paragraph (ea) insert—.

Schedule 4 to VATA 1994 (matters to be treated as supply of goods or services) is amended as follows.

In paragraph 5 (non-business use etc of business goods), omit sub-paragraph (4A) (exception to rule in case of interests in land and buildings etc that non-business use of business assets treated as supply of services).

In paragraph 9 (application of paragraphs 5 to 8 where land forms part of assets of business), insert at the end—

Paragraph 7 of Schedule 6 to VATA 1994 (valuation of supply of services otherwise than for consideration by virtue of paragraph 5(4) of Schedule 4 etc) is amended as follows.

The existing provision becomes sub-paragraph (1) and after that sub-paragraph insert—

The amendment made by subsection (2) comes into force on 1st September 2007.

The amendment made by subsection (3) has effect in relation to surrenders on or after 21st March 2007.

Section 49 of VATA 1994 (transfers of going concern) is amended as follows.

In subsection (1) (transferor's supplies treated as transferee's supplies for purposes of registration and transferor's records to be kept by transferee after transfer)—

In subsection (2) (regulations for securing continuity of Act in case of transfers of going concerns), after “a business” insert “ , or part of a business, ”.

After that subsection insert—

In subsection (3) (provision which may be made by regulations), in paragraph (a), after “the transferor” insert “ (other than the duties mentioned in subsection (2A) above) ”.

After that subsection insert—

In section 94(6) of VATA 1994 (meaning of “business” etc)—

In paragraph 1(2) of Schedule 1 to that Act (registration in respect of taxable supplies), after “Where a business” insert “ , or part of a business, ”.

In paragraph 8(2)(b) of Schedule 4 to that Act (matters to be treated as supply of goods or services), after “a business” insert “ , or part of a business, ”.

The amendments made by this section have effect in relation to transfers pursuant to contracts entered into on or after 1st September 2007.

In section 72 of FA 1994 (interpretation: “premium”), after subsection (1A) insert—

The amendment made by subsection (1) has effect in relation to amounts charged on or after 22nd March 2007.

Section 185 of FA 1993 (abolition of PRT for oil fields with development consents on or after 16th March 1993) is amended as follows.

In subsection (1) (meaning of “non-taxable field” and “taxable field”), after paragraph (b) insert “ or an oil field which does not meet the conditions in paragraphs (a) and (b) above but which does meet the conditions in subsection (1A) below ”.

After that subsection insert—

In subsection (7) (meaning of “development” etc), for “subsections (1) and (2)” substitute “ this section ”.

An oil field which meets the conditions in subsection (1A) of section 185 of FA 1993 (as inserted by subsection (3) above) becomes a non-taxable field for the purposes of any enactment relating to petroleum revenue tax—

Section 6A of the Oil Taxation Act 1983 (c. 56) (tax-exempt tariffing receipts) is amended as follows.

In subsection (4), insert at the end

In subsection (5), insert at the end—

The amendments made by this section are deemed to have come into force on 1st July 2007.

In section 6 of the Oil Taxation Act 1975 (c. 22) (allowance of unrelievable loss from abandoned field), after subsection (4) insert—

The amendment made by subsection (1) is deemed to have come into force on 1st July 2007.

In section 5 of VERA 1994 (exempt vehicles), after subsection (2) insert—

In section 60(3) of that Act (orders subject to affirmative procedure), after “under” insert “ section 5(3) or ”.

Section 32(1)(c) of the Limitation Act 1980 (c. 58) (extended period for bringing action in case of mistake) does not apply in relation to any action brought before 8th September 2003 for relief from the consequences of a mistake of law relating to a taxation matter under the care and management of the Commissioners of Inland Revenue.

Subsection (1) has effect regardless of how the grounds on which the action was brought were expressed and of whether it was also brought otherwise than for such relief.

But subsection (1) does not have effect in relation to an action, or so much of an action as relates to a cause of action, if—

If the judgment of any court was given on or after 6th December 2006 but before the day on which this Act is passed, the judgment is to be taken to have been what it would have been had subsections (1) to (3) been in force at all times since the action was brought (and any defence of limitation which would have been available had been raised).

And any payment made to satisfy a liability under the judgment which (in consequence of subsection (4)) is to be taken not to have been imposed is repayable (with interest from the date of the payment).

Subsection (1) also does not have effect in relation to an action, or so much of an action as relates to a cause of action, if the consequences of a mistake of law to which the action, or cause of action, relates is the charging of tax contrary to EU law.

In this section—“group litigation order” means an order of a court providing for the case management of actions which give rise to common or related issues of fact or law, and“judgment” includes order (and “given” includes made).

Part 7 of FA 2004 (disclosure of tax avoidance schemes) is amended as follows.

After section 306 insert—

In section 307 (“promoter”), insert at the end—

After section 308 insert—

After section 313 insert—

After section 314 insert—

After section 317 insert—

In section 318(1) (interpretation)—

In section 98C of TMA 1970 (notifications under Part 7 of FA 2004)—

The amendments made by this section come into force on the passing of this Act; and—

The Treasury may by regulations make provision about—

Regulations may, in particular, make provision—

Regulations may make provision only if the Treasury think it necessary or expedient for the purposes of complying with the United Kingdom's obligations under the Mergers Directive.

In this section—“the Mergers Directive” means Council Directive 2009/133/EC,“SCE” means an SCE formed in accordance with Council Regulation (EC) 1435/2003 on the Statute for a European Cooperative Society, and“SE” means an SE formed in accordance with Council Regulation (EC) 2157/2001 on the Statute for a European Company.

Regulations under this section may—

In this section “the Taxes Acts” has the meaning given by section 118(1) of TMA 1970.

The Excise Duties (Small Non-Commercial Consignments) Relief Regulations 1986 (S.I. 1986/938) are revoked.

The revocation made by subsection (1) does not apply in relation to goods consigned before the day on which this Act is passed.

In section 1(4)(b) of the Provisional Collection of Taxes Act 1968 (c. 2) (circumstances in which a resolution affecting income tax etc ceases to have effect), for “Standing Committee” substitute “ Public Bill Committee ”.

In section 50(2)(a) of FA 1973 (corresponding provision for stamp duty), for “Standing Committee” substitute “ Public Bill Committee ”.

In this Act—“BGDA 1981” means the Betting and Gaming Duties Act 1981 (c. 63),“CAA 2001” means the Capital Allowances Act 2001 (c. 2),“CEMA 1979” means the Customs and Excise Management Act 1979 (c. 2),“CRCA 2005” means the Commissioners for Revenue and Customs Act 2005 (c. 11),“CTA 2009” means the Corporation Tax Act 2009;“ICTA” means the Income and Corporation Taxes Act 1988 (c. 1),“IHTA 1984” means the Inheritance Tax Act 1984 (c. 51),“ITA 2007” means the Income Tax Act 2007 (c. 3),“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003 (c. 1),“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005 (c. 5),“TCGA 1992” means the Taxation of Chargeable Gains Act 1992 (c. 12),“TMA 1970” means the Taxes Management Act 1970 (c. 9),“VATA 1994” means the Value Added Tax Act 1994 (c. 23), and“VERA 1994” means the Vehicle Excise and Registration Act 1994 (c. 22).

In this Act—“FA”, followed by a year, means the Finance Act of that year, and“F(No.2)A”, followed by a year, means the Finance (No.2) Act of that year.

Paragraph 34 (other commodities: deemed supplies) is amended as follows.

In sub-paragraph (1)(b), for “or 24” substitute “ , 24 or 45A ”.

After sub-paragraph (3) insert—

Paragraph 45 (reduced-rate supplies: variation of notices under paragraph 44) is amended as follows.

Omit sub-paragraphs (2) to (4).

In sub-paragraph (5)—

In sub-paragraph (6)—

In sub-paragraph (7), for the words from “the original notice” to the end substitute

The italic heading before that paragraph accordingly becomes “ Reduced-rate supplies: variation of certificates under paragraph 44 ”.

Paragraph 11 (exemption: supply not for burning in UK) is amended as follows.

In sub-paragraph (1)—

In sub-paragraph (3)—

Paragraph 101 (civil penalties: incorrect notifications etc) is amended as follows.

Omit sub-paragraph (1).

In sub-paragraph (2)—

In sub-paragraph (3)—

In sub-paragraph (4)—

In sub-paragraph (5)—

The italic heading before paragraph 101 accordingly becomes “ Civil penalties: incorrect certificates ”.

Paragraphs 2 to 10 come into force on such day as the Treasury may by order made by statutory instrument appoint.

But any power to make regulations under any provision inserted or amended by any of those paragraphs may be exercised at any time after this Act is passed.

The power to make an order under sub-paragraph (1)—

In ITA 2007, before section 104 (and the italic cross-heading before it) insert—

The amendment made by sub-paragraph (1) has effect in relation to any loss made by an individual in a trade in the tax year 2007-08 or any subsequent tax year.

But, in the case of a loss made by an individual in a trade in a tax year the basis period for which begins before 2nd March 2007 (a “straddling basis period”), the amount of that loss for the purposes of section 103C of ITA 2007 is—

“The pre-announcement loss” is determined as follows.

Calculate the profits or losses of the straddling basis period, but without regard to capital allowances and qualifying film expenditure (within the meaning of section 103D of ITA 2007).

If that calculation produces a loss and the individual has made a contribution of an amount as capital to the firm or LLP in question—apportion the loss produced by that calculation to the part of the straddling basis period which begins with the relevant date and falls before 2nd March 2007 in proportion to the number of days in that part.

Calculate so much of the loss of the straddling basis period as derives from relevant pre-announcement capital expenditure.

The pre-announcement loss is the sum of—

In sub-paragraph (6) “the relevant date” means—

For the purposes of this paragraph the amount of the loss of the straddling basis period that derives from relevant pre-announcement capital expenditure is determined on a just and reasonable basis.

In this paragraph “relevant pre-announcement capital expenditure” means—and for this purpose “an unconditional obligation” means an obligation which may not be varied or extinguished by the exercise of any right conferred on the firm or LLP in question (whether or not under the contract).

For the purposes of this paragraph—

Section 62 of ITA 2007 (partners: losses of a tax year etc) applies for the purposes of this paragraph as it applies for the purposes of Chapter 3 of Part 4 of that Act.

In ITA 2007, before section 114 insert—

The amendment made by sub-paragraph (1) has effect in relation to any amount contributed to a firm or LLP as capital on or after 2nd March 2007 (but see sub-paragraph (4)).

For this purpose—

The amendment made by sub-paragraph (1) has no effect in relation to any amount contributed by an individual on or after 2nd March 2007 if—

ICTA has effect, in relation to any loss made by an individual in a trade in the tax year 2006-07 the basis period for which ends on or after 2nd March 2007, as if provision corresponding to section 103C of ITA 2007 were included in Chapter 7 of Part 4 of ICTA.

Sub-paragraphs (3) to (13) of paragraph 1 apply for the purposes of sub-paragraph (1) above.

ICTA has effect for the tax year 2006-07 as if provision corresponding to section 113A of ITA 2007 were included in that Chapter.

Sub-paragraphs (2) to (4) of paragraph 2 apply for the purposes of sub-paragraph (3) above.

The provisions which are treated by this paragraph as included in Chapter 7 of Part 4 of ICTA have effect as if—and references in paragraphs 1(3) to (13) and 2(2) to (4) to any of those expressions are to be read accordingly.

Section 102 (overview of Chapter 3 of Part 4) is amended as follows.

In subsection (1)—

In subsection (2), for “sections 115 and 116” substitute “ section 115 ”.

ICTA is amended as follows.

In section 347A(1) (annual payments: general rule), as it had effect before ITA 2007, omit paragraph (b) together with the “and” before it (payment to which section applies not income of any company for corporation tax purposes).

The amendment made by sub-paragraph (2) has effect in relation to payments made on or after 6th December 2006 but before 6th April 2007.

Omit section 347A (as amended by ITA 2007).

The amendment made by sub-paragraph (4) has effect in relation to payments made on or after 6th April 2007.

In section 660C of ICTA, omit subsection (4) (income which is income of settlor alone for income tax purposes by virtue of section 624 or 629 of ITTOIA 2005 not income of any company for corporation tax purposes).

The amendment made by sub-paragraph (1) has effect in relation to accounting periods ending on or after 6th March 2007.

But income which arises in an accounting period beginning before that date is to be chargeable to corporation tax as a result of that amendment only if it arises on or after that date.

Section 263E of TCGA 1992 (structured finance arrangements) is amended as follows.

In subsection (2) (condition A: person making disposal of asset subsequently acquires it), for the words from “subsequently” to the end substitute “ (and no-one else) has the right or obligation under the arrangement to acquire the asset disposed of by that disposal at any subsequent time (whether or not the right or obligation is subject to any conditions). ”

In subsection (3) (condition B: asset ceases to exist)—

After subsection (4) insert—

In subsection (5) (disregard of subsequent acquisitions), for “Any” substitute “ Except in a case falling within subsection (4A), any ”.

The amendments made by this paragraph have effect in relation to disposals made on or after 6th March 2007.

The amendments made by this paragraph also have effect in relation to any disposal made by a person before that date if the person makes a claim to that effect under this sub-paragraph.

In section 171(2) of TCGA 1992 (exceptions to rule that disposals within the same group of companies produce neither a gain nor a loss), after paragraph (da) insert.

The amendment made by sub-paragraph (1) has effect in relation to cases where the option is exercised on or after 6th March 2007 (whenever the option was granted).

Chapter 17 of Part 2 of CAA 2001 (plant and machinery allowances: anti-avoidance) is amended as follows.

In section 228A(2) (application of sections 228B to 228D in case of a lease and finance leaseback), for “Sections 228B to 228D” substitute “ Sections 228B and 228C ”.

In section 228F (lease and finance leaseback)—

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The amendments made by this paragraph have effect in relation to post-commencement rentals that fall to be taken into account in calculating for tax purposes the income or profits for any post-commencement period of account.

In this paragraph—“post-commencement period of account” means any period of account ending on or after 6th December 2006, and“post-commencement rental” means—any amount receivable on or after 6th December 2006 in respect of any period beginning on or after that date, or the appropriate fraction of any amount receivable on or after that date in respect of any period beginning before, and ending on or after, that date, but does not include any amount received before that date.

For this purpose the “appropriate fraction”, in relation to any amount received in respect of any period, means the fraction—PCP WP where—“PCP” means the number of days in the part of the period falling on or after 6th December 2006, and“WP” means the number of days in the whole of the period.

Sub-paragraph (9) applies if the amounts that, in accordance with section 228D of CAA 2001 as applied by section 228F of that Act, fall to be taken into account in calculating for tax purposes the income or profits for any post-commencement period of account comprise both post-commencement rentals and other amounts.

For the purposes of section 228D of CAA 2001 as applied by section 228F of that Act, the amount of the gross earnings is taken to be so much of the gross earnings as, on a just and reasonable basis, relates to those other amounts.“Gross earnings” has the meaning given by section 228D(5) of CAA 2001.

Section 755A (treatment of chargeable profits and creditable tax apportioned to company carrying on life assurance business) is amended as follows.

In subsection (4), for the words after “referable to” substitute “ gross roll-up business carried on by the UK company. ”

In subsection (6)(c), for “a category of business specified in paragraphs (a) to (c) of subsection (4) above” substitute “ gross roll-up business ”.

In subsection (13), for paragraphs (a) to (d) substitute—.

Section 255 (apportionment of allowances and charges) is amended as follows.

For subsections (1) and (1A) substitute—

Omit subsection (2).

In subsection (3)—

Section 256 (different giving effect rules for different categories of business) is amended as follows.

In subsection (3), for paragraphs (a) to (c) substitute “ section 436A of ICTA (gross roll-up business) ”.

In subsection (4)—

Section 545 (investment assets) is amended as follows.

In subsection (3), in the second sentence, for “sections 432ZA to 432E, or section 438B,” substitute “ section 432A ”.

In subsection (5)—

This paragraph applies where a loss... is treated by virtue of section 444AZA of ICTA as a loss of the transferee....

Where any losses so treated would (assuming the transferor had continued to carry on the business transferred after the transfer) have been losses to which paragraph 81(1) would have applied, the amount of such losses to be treated as losses of the transferee in any period of account must not exceed—G R B P×P B T L G R B T L where—“GRBP” has the same meaning as in section 444AZA(2) of ICTA,“PBTL” is the mean of the opening and closing liabilities of the transferred pension business for the period of account, and“GRBTL” is the mean of the opening and closing liabilities of the transferred gross roll-up business for the period of account.

This paragraph applies where section 444AZB of ICTA has effect in relation to a transferee and the circumstances specified in sub-paragraph (2) or (3) below apply.

The circumstances are that—

The circumstances are that—

The appropriate fraction of any amount treated by virtue of section 444AZB(2) of ICTA as a loss of the transferee (a “gross roll-up business loss”) available to be set off against profits chargeable under section 436A of ICTA is to be treated for the purposes of paragraph 81 as an unused pension business loss.

The relevant fraction of any gross roll-up business loss is to be treated for the purposes of paragraph 82 as an unused non-pension business loss.

In this paragraph “the appropriate fraction”, in relation to a period of account, is—P B T L T L where—“PBTL” is the mean of the opening and closing liabilities of the transferred pension business for the period of account, and“TL” is the mean of the opening and closing liabilities of the transferred life assurance business for the period of account.

In this paragraph the “the relevant fraction”, in relation to a period of account, is—N P B T L T L where—“NPBTL” is the mean of the opening and closing liabilities of the transferred gross roll-up business which is not pension business for the period of account, and“TL” is the mean of the opening and closing liabilities of the transferred life assurance business for the period of account.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In consequence of sub-paragraph (1), omit—

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In section 66 of FA 2002 (election to continue postponement of mark to market)—

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 444A of ICTA (transfers of business: expenses, losses and section 432F(2) excesses) is amended as follows.

In subsection (1), omit “Subject to subsection (7) below,”.

Omit—

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In section 213(10) of TCGA 1992, for “before the transfer” substitute “ before the relevant transfer date (within the meaning of that section) ”.

FA 1989 is amended as follows.

Omit—

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Paragraph 16 of Schedule 7 to FA 1991 (transitional relief for old general annuity contracts) is amended as follows.

In sub-paragraph (7), in the definition of “old annuity contract”, insert at the end “ (including one forming part of the business transferred to another insurance company by an insurance business transfer scheme) ”.

After that sub-paragraph insert—

TCGA 1992 is amended as follows.

In section 211 (application of section 139), for subsections (2) and (2A) substitute—

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The amendments made by paragraphs 1 to 3 and 13 to 15 have effect in relation to periods of account beginning on or after 1st January 2007.

The amendments made by paragraphs 4, 6 to 10(5), 11 and 12 have effect in accordance with provision made by an order made by the Treasury.

But the amendments made by paragraphs 11 and 12 also have effect

The amendment made by paragraph 5 has effect in relation to transfers of business with a transfer date after 21st March 2007.

The amendment made by paragraph 9 has effect in relation to contracts entered into in a period of account beginning on or after 1 January 2008.

The amendment made by paragraph 10(2) has effect in relation to transfers taking place on or after 6th December 2006.

The amendments made by paragraph 10(3) and (4) have effect in relation to assets transferred on or after 1 January 2008.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In ICTA, omit section 444ACA (transfers of business).

In section 432E(2A) of that Act, omit “444ACA(2),” and paragraph (b).

In section 211 of TCGA 1992 (transfers of business: application of section 139 of that Act), as amended by paragraph 14 of Schedule 9 to this Act, after subsection (2) insert—

In paragraph 17 of Schedule 7AC to TCGA 1992 (substantial shareholdings exemption: special rules for assets of insurance company's long-term insurance fund), after sub-paragraph (4) insert—

TCGA 1992 is amended as follows.

In section 210B(6)(a) (disposal and acquisition of section 440A securities), for the words after “are” substitute “ assets within section 212(1). ”

Omit—

In section 431(2) of ICTA (interpretative provisions relating to insurance companies) insert at the appropriate place—,, and.

Omit—

In section 431(2) of ICTA (interpretative provisions relating to insurance companies) insert at the appropriate place—, and.

Omit—

In section 431(2) of ICTA (interpretative provisions relating to insurance companies) insert at the appropriate place—.

In section 440 of ICTA (transfer of assets etc)—

Omit—

Omit the following provisions.

In ICTA—

In FA 1989—

In paragraph 16(7) of Schedule 7 to FA 1991, the words from “and, subject to that,” to the end.

In TCGA 1992—

In FA 1996—

In paragraph 13(3) of Schedule 18 to FA 1998, the words after “1988”.

In CAA 2001—

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In FA 2002—

In Schedule 23 to FA 2003—

Section 134(4)(c) of FA 2006.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In paragraph 17 of Schedule 7 to FA 1991 (transitional provisions for chargeable gains and unrelieved general annuity business)—

Omit the following provisions (which are obsolete or of limited value).

In the Table in section 98 of TMA 1970, the words “or 441A(3)” in both columns.

In ICTA—

In FA 1989—

In FA 1996—

Paragraph 18 of Schedule 12 to FA 1997 (leasing arrangements: meaning of “accounting purposes” for insurance companies).

Paragraph 86 of Schedule 18 to FA 1998 (non-annual actuarial investigations).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 87(3) and (4) of FA 2001 (tax credits etc).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The amendment made by paragraph 1 has effect on and after 10th May 2007.

The amendments made by paragraphs 2, 4(2) and (4), 5, 6 and 8 to 15 have effect in relation to periods of account beginning on or after 1st January 2007.

But the amendment made by paragraph 2(4) does not apply where the transfer of business concerned took place before 10th May 2007.

The amendment made by paragraph 3 has effect in relation to losses accruing in a period of account beginning on or after 1st January 2007.

The amendment made by paragraph 4(3) has effect in relation to periods of account beginning on or after 1st January 2005.

This paragraph applies if a general insurer makes any technical provisions for a period of account.

The amount of the technical provisions stated in the accounts for that period is to be taken into account in the calculation for tax purposes of the profits of the general insurer's trade for that period unless an officer of Revenue and Customs considers that that amount exceeds the appropriate amount.

In that case—

“The appropriate amount” means such amount as is determined in accordance with regulations made by the Commissioners for Her Majesty's Revenue and Customs to be the appropriate amount to be taken into account in that calculation.

Any such determination must be made by reference to the time at which the technical provisions are made.

This paragraph applies if an officer of Revenue and Customs gives a notice of enquiry under paragraph 24(1) of Schedule 18 to FA 1998 to a general insurer.

The officer may by notice require the general insurer (at the general insurer's own expense) to provide the officer with a report as to whether (and, if so, the extent to which) the amount of any technical provisions stated in the accounts for any period covered by the company tax return into which the enquiry is made exceeds the appropriate amount.

The report must cover such matters, and be in such form, as the officer may reasonably require for the purposes of the enquiry.

The report must be made by a person who is appointed by the general insurer unless the officer requires the report to be made instead by another person.

As soon as the general insurer appoints a person to make the report, the general insurer must give a notice to the officer specifying that person.

A notice under sub-paragraph (2) must specify the time (which must not be less than 30 days) within which the general insurer is to comply with it.

The following provisions of Schedule 36 to FA 2008 (information and inspection powers) apply in relation to a notice under sub-paragraph (2) as they apply in relation to a taxpayer notice under that Schedule—

In paragraph 1 “general insurer” means—

In paragraph 2 “general insurer” means—

For the purposes of sub-paragraphs (1) and (2) “general business” means business which consists of the effecting or carrying out of contracts that fall within Part 1 of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544).

In the case of members of a Lloyd's syndicate, references in paragraph 1 to any accounts for a period are to the return of the syndicate's profits or loss for that period under regulation 4 of the Lloyd's Underwriters (Tax) Regulations 2005 (S.I. 2005/3338).

In paragraph 1 “period of account”—

In paragraphs 1 and 2 “technical provisions”, except in the case of members of a Lloyd's syndicate, means any of the following—

In paragraphs 1 and 2 “technical provisions”, in the case of members of a Lloyd's syndicate (“the syndicate”), means—as may be determined by or under regulations made by the Commissioners for Her Majesty's Revenue and Customs.

For this purpose—and in paragraph (b) “closing year” has the same meaning as in Chapter 3 of Part 2 of FA 1993 or Chapter 5 of Part 4 of FA 1994.

In this paragraph—“Lloyd's syndicate” means a syndicate of underwriting members of Lloyd's formed for an underwriting year, and“underwriting year” means the calendar year.

In this paragraph references to provisions for claims outstanding, unearned premiums and unexpired risks have the same meaning as in Schedule 3 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

The Commissioners for Her Majesty's Revenue and Customs may by regulations—

The Treasury may by regulations amend sub-paragraphs (1) to (3) (definition of “general insurer”).

In the event of any changes in the rules or practice of Lloyd's, the Commissioners for Her Majesty's Revenue and Customs may by regulations make such amendments of paragraph 1 and this paragraph as appear to the Commissioners to be expedient having regard to those changes.

Regulations under section 182(1)(a) of FA 1993 or section 229(1)(a) of FA 1994 (assessment and collection of tax charged in case of Lloyd's underwriters) may, in particular, include provision applying paragraph 2 with modifications in the case of members of a Lloyd's syndicate.

Regulations under paragraph 1 or this paragraph may—

Paragraphs 1 to 3 have effect in relation to periods of account ending on or after the day on which this Act is passed.

The repeal of section 107 of FA 2000 made by paragraph 4 has effect as follows.

The repeal of—has effect in relation to any amount that would otherwise have been treated as a receipt or an expense of a trade in computing for tax purposes the profits of the trade for any period of account ending on or after the day on which this Act is passed.

The repeal of—has effect so that no election may be made under that subsection in respect of technical provisions made by a general insurer for any period of account which begins on or after that day.

There is a restriction in relation to any election made by a general insurer under that subsection in respect of technical provisions made by the general insurer for the final election period.

The restriction is that the amount of the part of those provisions which the general insurer elects not to be taken into account in computing for tax purposes the profits of the general insurer's trade for that period must not exceed 10% of the total amount of those provisions.

In sub-paragraph (5) “the final election period”, in relation to any general insurer, means the general insurer's first period of account ending on or after the day on which this Act is passed.

The purpose of this Schedule is to secure that in the case of an arrangement—the charge to corporation tax in that case in respect of chargeable gains reflects the fact that the arrangement equates, in substance, to such a transaction.

But this is not to be read as preventing the rules in this Schedule about corporation tax in respect of chargeable gains from having no effect in relation to debtor quasi-repos and creditor quasi-repos.

This paragraph applies if—

The sale of the securities, and the subsequent purchase of those or similar securities, by the borrower under the arrangement are to be ignored for the purposes of corporation tax in respect of chargeable gains (but see sub-paragraph (5)).

If at any time after the initial sale of the securities—the borrower is to be treated for the purposes of corporation tax in respect of chargeable gains as disposing of the securities at that time for a consideration equal to their market value at that time.

The accounting condition ceases to be met if, in accordance with generally accepted accounting practice, the accounts of the borrower for any period after the one in which the advance is received do not record a financial liability in respect of the advance (except as a result of the subsequent purchase of the securities or similar securities).

If sub-paragraph (3) applies because the accounting condition ceases to be met, any subsequent purchase of those or similar securities by the borrower under the arrangement is not to be ignored for the purposes of corporation tax in respect of chargeable gains as a result of this paragraph.

For the purposes of this paragraph references to the borrower include a partnership of which the borrower is a member.

This paragraph applies if—

The purchase of the securities, and the subsequent sale of those or similar securities, by the lender under the arrangement are to be ignored for the purposes of corporation tax in respect of chargeable gains (but see sub-paragraph (5)).

If at any time after the initial purchase of the securities—the lender is to be treated for the purposes of corporation tax in respect of chargeable gains as acquiring the securities at that time for a consideration equal to their market value at that time.

The accounting condition ceases to be met if, in accordance with generally accepted accounting practice, the accounts of the lender for any period after the one in which the advance is made do not record a financial asset in respect of the advance (except as a result of the subsequent sale of the securities or similar securities).

If sub-paragraph (3) applies because the accounting condition ceases to be met, any subsequent sale of those or similar securities by the lender under the arrangement is not to be ignored for the purposes of corporation tax in respect of chargeable gains as a result of this paragraph.

For the purposes of this paragraph references to the lender include a partnership of which the lender is a member.

In this Schedule—“arrangement” includes any agreement or understanding (whether or not legally enforceable),“creditor quasi-repo” has the meaning given by section 544 of CTA 2009,“creditor repo” has the meaning given by section 543 of CTA 2009,“debtor quasi-repo” has the meaning given by section 549 of CTA 2009,“debtor repo” has the meaning given by section 548 of CTA 2009,“discharge”, in relation to a liability, means the discharge of the liability in whole or in part (and “discharged” is to be read accordingly),“the loan relationship rules” means the provisions of Part 5 of CTA 2009,“market value” has the same meaning as in TCGA 1992,“overseas dividend”, in relation to overseas securities, means any interest, dividend or other annual payment payable in respect of the securities,“overseas securities” means shares, stock or other securities issued by—a government or public or local authority of a territory outside the United Kingdom, or any other body of persons not resident in the United Kingdom,“securities” (except in the definition of “overseas securities”) means shares, stock or other securities issued by—the government of the United Kingdom, any public or local authority in the United Kingdom, or any company or other body resident in the United Kingdom, or overseas securities, and“tax advantage” has the meaning given by section 840ZA of ICTA.

For the purposes of this Schedule references to a person's receiving any asset include the person's obtaining directly or indirectly the value of any asset or otherwise deriving directly or indirectly any benefit from it.

For the purposes of this Schedule—

For the purposes of this Schedule securities are similar if they entitle their holders to—in spite of any difference in the total nominal amounts of the respective securities or in the form in which they are held or the manner in which they can be transferred.

For the purposes of this Schedule it does not matter whether or not provision of any arrangement conferring a right or imposing an obligation on any person to buy any securities is subject to any conditions.

For the purposes of this Schedule an arrangement is in force from the time when the securities are initially sold until the earlier of—

For this purpose “the relevant repurchase” means—

Any reference in this Schedule to an amount being recognised in determining a company's profit or loss for a period is to an amount being recognised for accounting purposes—

In determining for the purposes of this Schedule whether an amount is recorded as a financial asset or liability in respect of the advance it is to be assumed that the period of account in which the advance is received or made ended immediately after the receipt or making of the advance.

For the purposes of paragraphs 6(4) and 11(4)—

If any person does not draw up accounts in accordance with generally accepted accounting practice, this Schedule applies as if the accounts had been drawn up by the person in accordance with that practice.

The Treasury may by regulations provide for all or any of the provisions of this Schedule to apply with modifications in relation to either or both of the following cases—

A case is a non-standard repo case if—

Condition A is that those securities, or similar or other securities, are not subsequently bought under the arrangement or arrangements.

Condition B is that provision is made by or under an arrangement for different or additional securities to be treated as, or as included with, securities which, for the purposes of the subsequent purchase, are to represent those initially sold.

Condition C is that provision is made by or under an arrangement for securities to be treated as not so included.

A case involves redemption arrangements if—

The regulations may—

Regulations about paragraph 6 or 11 may, in particular, include modifications of TCGA 1992 in relation to cases where, as a result of the regulations, any acquisition or disposal is excluded from those which are to be ignored for the purposes of corporation tax in respect of chargeable gains.

In this paragraph—“modifications” include exceptions and omissions, and“repo” means—a debtor repo or debtor quasi-repo, or a creditor repo or creditor quasi-repo (including anything treated, as a result of section 547 of CTA 2009, as a creditor repo for the purposes of section 546 of that Act).

Section 263A (agreements for sale and repurchase of securities) is amended as follows.

In subsection (1), for the words from the beginning to “were different” substitute “ Subject to subsections (3) and (4) below, in any case falling within section 607(1) of ITA 2007 (treatment of price differences under repos) ”.

After that subsection insert—

Omit subsection (2).

For subsections (5) and (6) substitute—

The heading accordingly becomes “ Agreements for sale and repurchase of securities: capital gains tax ”.

For paragraph 12 of Schedule 7AC substitute—

Section 747 of ICTA (imputation of chargeable profits and creditable tax of controlled foreign companies) is amended as follows.

After subsection (3) insert—

After subsection (5) insert—

Part 2 of Schedule 25 to ICTA (supplementary provision in relation to cases where apportionment under section 747(3) does not apply: exempt activities) is amended as follows.

In paragraph 5, after sub-paragraph (1) insert—

In paragraph 8, in sub-paragraph (1), after “fulfilled” insert “ in relation to a company which is not resident in an EEA territory ”.

Insert at the end of that paragraph—

In section 748(1) of ICTA (cases where apportionment under section 747(3) does not apply), omit paragraph (c) (together with the “or” at the end of it).

In Schedule 25 to ICTA (supplementary provision in relation to cases where apportionment under section 747(3) does not apply), omit Part 3 (the public quotation condition).

The amendments made by this Schedule have effect in relation to accounting periods of controlled foreign companies beginning on or after 6th December 2006.

In the case of an accounting period (a “straddling period”) of a controlled foreign company—the amendments made by this Schedule have effect as if, for the purposes of Chapter 4 of Part 17 of ICTA, so much of the straddling period as falls before that date, and so much of the straddling period as falls on or after that date, were separate accounting periods.

The company's chargeable profits for the straddling period, and its creditable tax (if any) for that period, are to be apportioned to the two separate accounting periods on a just and reasonable basis.

Each of the following expressions—“accounting period”,“chargeable profits”,“controlled foreign company”, and“creditable tax”, has the same meaning in this paragraph as in Chapter 4 of Part 17 of ICTA.

Part 3 of Schedule 15 to FA 2000 (requirements as to issuing company) is amended as follows.

In paragraph 15 (introduction to Part) after paragraph (f) insert—.

After paragraph 22 insert—

The amendments made by this paragraph do not have effect in relation to shares issued before the day on which this Act is passed.

Chapter 4 of Part 5 of ITA 2007 (the issuing company) is amended as follows.

In section 180 (overview of Chapter 4), after paragraph (e) insert—.

After section 186 insert—

The amendments made by this paragraph do not have effect in relation to—

For the purposes of sub-paragraph (4)(b)—

Part 6 of ITA 2007 is amended as follows.

In section 286(3) (qualifying holdings: introduction) after paragraph (j) insert—.

After section 297 insert—

In section 327 (certain requirements of Chapter 4 to be treated as met)—

This paragraph is deemed to have come into force on 6th April 2007.

The amendments made by this paragraph do not have effect in relation to—