UKPGA-2010-33 Finance (No. 3) Act 2010 UK

Current to 2026-05-05

Contents
preamble

Most Gracious Sovereign WE, Your Majesty's most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty's public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Paragraph

Most Gracious Sovereign

Part 1

Income tax, corporation tax and capital gains tax

Income tax and corporation tax

s. 1 — Shared lives care

Schedule 1 contains provision extending foster-care relief to other forms of care.

s. 2 — Payments to special guardians and those in receipt of residence orders
s. 2(1)

Part 6 of ITTOIA 2005 (exempt income) is amended as follows.

s. 2(2)

In section 744 (payments to adopters: England and Wales)—

s. 2(2)(a)

the existing provision becomes subsection (1),

s. 2(2)(b)

in that subsection, omit the “and” before paragraph (e) and after that paragraph insert—,

s. 2(2)(c)

after that subsection insert—, and

s. 2(2)(d)

in the heading, after “adopters” insert “ , etc ”.

s. 2(3)

In section 745 (payments to adopters: Scotland)—

s. 2(3)(a)

the existing provision becomes subsection (1),

s. 2(3)(b)

in that subsection, omit the “and” before paragraph (d) and after that paragraph insert—,

s. 2(3)(c)

after that subsection insert—, and

s. 2(3)(d)

in the heading, after “adopters” insert “ , etc ”.

s. 2(4)

In section 746 (payments to adopters: Northern Ireland)—

s. 2(4)(a)

the existing provision becomes subsection (1),

s. 2(4)(b)

in that subsection, omit the “and” before paragraph (c) and after that paragraph insert—,

s. 2(4)(c)

after that subsection insert—, and

s. 2(4)(d)

in the heading, after “adopters” insert “ , etc ”.

s. 2(5)

The amendments made by this section have effect in relation to the tax year 2010-11 and subsequent tax years.

s. 3 — Qualifying care relief: capital allowances
s. 3(1)

Chapter 2 of Part 7 of ITTOIA 2005 (qualifying care relief) is amended as follows.

s. 3(2)

In section 824 (capital allowances: introduction), after subsection (2) insert—

s. 3(3)

For section 825 substitute—

s. 3(4)

The amendments made by this section have effect in relation to chargeable periods ending on or after the day on which this Act is passed (“the commencement day”).

s. 3(5)

For anyone who was a relevant individual for the most recent chargeable period ending before the commencement day, sections 825B and 825C of ITTOIA 2005 have effect (on and after that day) as if references in those sections to section 825A were references to section 825 as it was in force immediately before the commencement day.

s. 4 — Seafarers' earnings
s. 4(1)

Section 378 of ITEPA 2003 (deductions from seafarers' earnings: eligibility) is amended as follows.

s. 4(2)

In subsection (1)(a), after “relevant taxable earnings” insert “ or EEA-resident earnings ”.

s. 4(3)

After subsection (5) insert—

s. 4(4)

The amendments made by this section have effect for the tax year 2011-12 and subsequent tax years but only in relation to eligible periods beginning on or after 6 April 2011.

s. 5 — Venture capital schemes

Schedule 2 contains provision about venture capital schemes.

s. 6 — Enterprise management incentives
s. 6(1)

Schedule 5 to ITEPA 2003 (enterprise management incentives) is amended as follows.

s. 6(2)

In paragraph 8 (qualifying companies: introduction), omit the “and” at the end of the entry relating to “number of employees” and after the entry relating to “trading activities” insert

s. 6(3)

After paragraph 14 insert—

s. 6(4)

In paragraph 15(1) (meaning of “qualifying trade”), omit paragraph (a) (requirement that trade be carried on wholly or mainly in United Kingdom).

s. 6(5)

The amendments made by this section have effect in relation to options granted on or after the day on which this Act is passed.

s. 7 — Settlor to return excess repayment to trustees etc
s. 7(1)

Section 646 of ITTOIA 2005 (adjustments between settlor and trustees etc) is amended as follows.

s. 7(2)

For subsection (4) substitute—

s. 7(3)

In subsection (5), for “excess” substitute “ repayment ”.

s. 7(4)

After subsection (6) insert—

s. 7(5)

In subsection (7), for “Any” substitute “ Subject to subsections (6A) and (6B), any ”.

s. 7(6)

The amendments made by this section have effect in relation to repayments of tax for the tax year 2010-11 or any subsequent tax year.

s. 8 — Collection of income tax where sum deducted by payer

In Chapter 16 of Part 15 of ITA 2007, after section 963 (collection of income tax on certain payments by other persons) insert—

s. 9 — Company distributions

Schedule 3 contains provision about company distributions.

s. 10 — REITs: stock dividends

Schedule 4 contains provision about the issue of stock dividends by a company UK REIT or the principal company of a group UK REIT.

s. 11 — Financing costs and income of group companies

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

s. 12 — Consortium claims for group relief

Schedule 6 contains provision about claims for group relief from corporation tax made by companies which are members of, or owned by, a consortium.

s. 13 — R&D relief for SMEs: removal of intellectual property condition
s. 13(1)

Part 13 of CTA 2009 (additional relief for expenditure on research and development) is amended as follows.

s. 13(2)

In section 1052 (qualifying expenditure on in-house direct R&D)—

s. 13(2)(a)

in subsection (1), for “conditions A to E” substitute “ conditions A, B, D and E ”, and

s. 13(2)(b)

omit subsection (4) (condition C: intellectual property created as result of research and development to which expenditure is attributable to be vested in company).

s. 13(3)

In section 1053 (qualifying expenditure on contracted out R&D)—

s. 13(3)(a)

in subsection (1)(b), for “conditions A to D” substitute “ conditions A, C and D ”, and

s. 13(3)(b)

omit subsection (3) (condition B: same intellectual property condition).

s. 13(4)

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

s. 13(5)

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

s. 13(6)

Omit section 1139 (meaning of “intellectual property”).

s. 13(7)

In Schedule 4 to CTA 2009 (index of defined expressions), omit the entry relating to “intellectual property (in Part 13)”.

s. 13(8)

The amendments made by this section have effect in relation to expenditure incurred by a company in an accounting period ending on or after 9 December 2009.

s. 14 — Film tax credit: unused losses
s. 14(1)

Section 1201 of CTA 2009 (film tax credit claimable where company has surrenderable loss) is amended as follows.

s. 14(2)

In subsection (2)—

s. 14(2)(a)

for “any period” substitute “ an accounting period ”, and

s. 14(2)(b)

in paragraph (a), for “the company's loss” substitute “ the company's available loss ”.

s. 14(3)

After that subsection insert—

s. 14(4)

In subsection (4), in the definition of “S”, for “surrendered in previous periods” substitute “ previously surrendered ”.

s. 14(5)

After that subsection insert—

s. 14(6)

In section 1202(4) of that Act (company's loss reduced by amount surrendered), for “loss in the separate film trade” substitute “ available loss ”.

s. 14(7)

The amendments made by this section have effect in relation to accounting periods ending on or after 9 December 2009.

s. 14(8)

In relation to those accounting periods the amendments, and corresponding amendments of paragraphs 6 and 11 of Schedule 5 to FA 2006, are to be treated as always having had effect.

s. 15 — Insurance business transfer schemes: non-profit fund transferred assets

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

Chargeable gains

s. 16 — Capital gains tax private residence relief: adult placement carers
s. 16(1)

In section 223(8) of TCGA 1992 (amount of relief), before the “and” at the end of paragraph (a) insert—.

s. 16(2)

In section 224 of that Act (amount of relief: further provisions), insert at the end—

s. 16(3)

In that Act, after section 225C insert—

s. 16(4)

The amendments made by this section have effect in relation to disposals made on or after 9 December 2009.

s. 16(5)

Until the coming into force of paragraph 11 of schedule 12 to the Public Services Reform (Scotland) Act 2010, the reference to that provision in section 225D(4) of TCGA 1992 is to section 2(16) of the Regulation of Care (Scotland) Act 2001.

s. 17 — Reinvestment of ring fence assets: acquisition by member of group
s. 17(1)

After section 198G of TCGA 1992 insert—

s. 17(2)

The amendment made by this section has effect in relation to disposals made on or after 22 April 2009 (whether the acquisition takes place before, on or after that date).

Capital allowances

s. 18 — First-year allowances on zero-emission goods vehicles

Schedule 7 contains provision about first-year allowances on zero-emission goods vehicles.

Part 2

Other taxes and duties

Value added tax

s. 19 — Non-business use of business assets etc

Schedule 8 contains—

s. 19(a)

provision about input tax, and

s. 19(b)

provision about supplies under paragraph 5(4) of Schedule 4 to VATA 1994.

s. 20 — Supplies of gas, heat or cooling
s. 20(1)

In section 9A of VATA 1994 (reverse charge on gas and electricity supplied by persons outside the United Kingdom)—

s. 20(1)(a)

for subsection (5) substitute—, and

s. 20(1)(b)

in the heading, for “and electricity” substitute “ , electricity, heat or cooling ”.

s. 20(2)

In Schedule 4 to VATA 1994 (matters to be treated as supply of goods or services), in paragraph 3 after “refrigeration” insert “ or other cooling, ”.

s. 20(3)

The amendments made by this section have effect in relation to supplies made on or after 1 January 2011.

s. 21 — Supplies of aircraft etc
s. 21(1)

Schedule 8 to VATA 1994 (zero-rating) is amended as follows.

s. 21(2)

In Note (A1) of Group 8 (transport: definition of “qualifying aircraft” etc), for paragraph (b) substitute—

s. 21(3)

After that Note insert—

s. 21(4)

The amendments made by this section have effect in relation to supplies made, and acquisitions and importations taking place, on or after 1 January 2011.

s. 22 — Postal services etc
s. 22(1)

In Schedule 8 to VATA 1994 (zero-rating), in Group 8—

s. 22(1)(a)

in item 4 (transport of passengers), for “the Post Office company” substitute “ a universal service provider ”, and

s. 22(1)(b)

after Note (4D) insert—

s. 22(2)

In Schedule 9 to that Act (exemptions), for Group 3 (postal services) substitute—

s. 22(3)

The following provisions are omitted—

s. 22(3)(a)

in section 96(1) of VATA 1994, the definition of “the Post Office company”, and

s. 22(3)(b)

paragraph 22(3) and (4) of Schedule 8 to the Postal Services Act 2000.

s. 22(4)

The amendments made by this section have effect in relation to supplies made on or after 31 January 2011.

Tobacco products duty

s. 23 — Long cigarettes
s. 23(1)

In section 4 of TPDA 1979 (calculation of duty on long cigarettes)—and, in the heading, for “9 cm.” substitute “ 8 cm. ”.

s. 23(1)(a)

for “than 9 cm.” substitute “ than 8 cm. ”, and

s. 23(1)(b)

for “each 9 cm. or part thereof” substitute “ the first 8 cm. of it, each 3 cm. portion of the remainder of it (if any) and the remaining portion of it (if any) ”,

s. 23(2)

The amendments made by this section come into force on 1 January 2011.

Landfill tax

s. 24 — Landfill tax: criteria for determining material to be subject to lower rate
s. 24(1)

In section 42 of FA 1996 (amount of landfill tax), for subsection (4) substitute—

s. 24(2)

The amendment made by this section has effect in relation to disposals made, or treated as made, on or after 1 April 2011.

Part 3

Administration

s. 25 — Interest: corporation tax and petroleum revenue tax
s. 25(1)

Schedule 9 contains amendments of FA 2009 relating to late payment interest and repayment interest on amounts of corporation tax and petroleum revenue tax.

s. 25(2)

That Schedule comes into force on such day as the Treasury may by order appoint.

s. 25(3)

An order under subsection (2)—

s. 25(3)(a)

may commence a provision generally or only for specified purposes, and

s. 25(3)(b)

may appoint different days for different provisions or for different purposes.

s. 25(4)

The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which appears appropriate in consequence of, or otherwise in connection with, that Schedule.

s. 25(5)

An order under subsection (4) may—

s. 25(5)(a)

make different provision for different purposes, and

s. 25(5)(b)

make provision amending, repealing or revoking any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it).

s. 25(6)

An order under this section is to be made by statutory instrument.

s. 25(7)

A statutory instrument containing an order under subsection (4) which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.

s. 26 — Penalties for failure to make returns etc
s. 26(1)

Schedule 10 contains provision amending Schedule 55 to FA 2009 (penalties in respect of failures to make returns and other documents relating to liabilities for tax).

s. 26(2)

Schedule 10 comes into force on such day as the Treasury may by order appoint.

s. 26(3)

An order under subsection (2)—

s. 26(3)(a)

may commence a provision generally or only for specified purposes, and

s. 26(3)(b)

may appoint different days for different provisions or for different purposes.

s. 26(4)

The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which appears appropriate in consequence of, or otherwise in connection with, that Schedule.

s. 26(5)

An order under subsection (4) may—

s. 26(5)(a)

make different provision for different purposes, and

s. 26(5)(b)

make provision amending, repealing or revoking any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it).

s. 26(6)

An order under this section is to be made by statutory instrument.

s. 26(7)

A statutory instrument containing an order under subsection (4) which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.

s. 27 — Penalties for failure to pay tax
s. 27(1)

Schedule 11 contains provision amending Schedule 56 to FA 2009 (penalties in respect of failures to comply with obligations to pay tax).

s. 27(2)

Schedule 11 comes into force on such day as the Treasury may by order appoint.

s. 27(3)

An order under subsection (2)—

s. 27(3)(a)

may commence a provision generally or only for specified purposes, and

s. 27(3)(b)

may appoint different days for different provisions or for different purposes.

s. 27(4)

The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which appears appropriate in consequence of, or otherwise in connection with, that Schedule.

s. 27(5)

An order under subsection (4) may—

s. 27(5)(a)

make different provision for different purposes, and

s. 27(5)(b)

make provision amending, repealing or revoking any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it).

s. 27(6)

An order under this section is to be made by statutory instrument.

s. 27(7)

A statutory instrument containing an order under subsection (4) which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.

s. 28 — Recovery of overpaid stamp duty land tax and petroleum revenue tax etc
s. 28(1)

Schedule 12 contains—

s. 28(1)(a)

provision amending Part 4 of FA 2003 (stamp duty land tax) in respect of the recovery of overpaid tax etc, and

s. 28(1)(b)

provision amending Schedule 2 to OTA 1975 (management and collection of petroleum revenue tax) in respect of the recovery of overpaid tax etc.

s. 28(2)

The amendments made by Schedule 12 have effect in relation to claims made on or after 1 April 2011.

s. 28(3)

The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which appears appropriate in consequence of, or otherwise in connection with, that Schedule.

s. 28(4)

An order under this section may—

s. 28(4)(a)

make different provision for different purposes, and

s. 28(4)(b)

make provision amending, repealing or revoking any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it).

s. 28(5)

An order under this section is to be made by statutory instrument.

s. 28(6)

A statutory instrument containing an order under this section which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.

s. 29 — Excise duties: compliance checks
s. 29(1)

Schedule 13 contains provision about information and inspection powers, record-keeping and time limits for assessments and claims involving excise duties.

s. 29(2)

The amendments made by that Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint.

s. 29(3)

An order under subsection (2)—

s. 29(3)(a)

may appoint different days for different provisions or for different purposes, and

s. 29(3)(b)

may include transitional provision and savings.

Part 4

Miscellaneous provisions

s. 30 — Pension scheme under section 67 of Pensions Act 2008
s. 30(1)

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

s. 30(2)

In section 67 of the Pensions Act 2008 (duty to establish pension scheme) —

s. 30(2)(a)

omit subsection (3), and

s. 30(2)(b)

in subsection (4), for “that Chapter” substitute “ Chapter 2 of Part 4 of the Finance Act 2004 ”.

s. 31 — Asbestos compensation settlements

Schedule 14 contains provision about the taxation of settlements the purpose of which is to make compensation payments to or in respect of individuals affected by an asbestos-related condition.

Part 5

Final provisions

s. 32 — Interpretation
s. 32(1)

In this Act—“BGDA 1981” means the Betting and Gaming Duties Act 1981;“CAA 2001” means the Capital Allowances Act 2001;“CTA 2009” means the Corporation Tax Act 2009;“CTA 2010” means the Corporation Tax Act 2010;“HODA 1979” means the Hydrocarbon Oil Duties Act 1979;“ICTA” means the Income and Corporation Taxes Act 1988;“IHTA 1984” means the Inheritance Tax Act 1984;“ITA 2007” means the Income Tax Act 2007;“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003;“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005;“OTA 1975” means the Oil Taxation Act 1975;“TCGA 1992” means the Taxation of Chargeable Gains Act 1992;“TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010;“TMA 1970” means the Taxes Management Act 1970;“TPDA 1979” means the Tobacco Products Duty Act 1979;“VATA 1994” means the Value Added Tax Act 1994;“VERA 1994” means the Vehicle Excise and Registration Act 1994.

s. 32(2)

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

s. 33 — Short title

This Act may be cited as the Finance (No. 3) Act 2010.

Sch 1

Shared lives care

Extension of foster-care relief

Sch 1 para 1

Chapter 2 of Part 7 of ITTOIA 2005 (foster-care relief) is amended as follows.

Sch 1 para 2
Sch 1 para 2(1)

Section 803 (overview of Chapter 2) is amended as follows.

Sch 1 para 2(2)

For subsection (1) substitute—

Sch 1 para 2(3)

In subsections (2) and (5), for “foster-care” substitute “ qualifying care ”.

Sch 1 para 3
Sch 1 para 3(1)

Section 804 (person who qualifies for relief) is amended as follows.

Sch 1 para 3(2)

For subsection (1) substitute—

Sch 1 para 3(3)

In subsection (3), for “foster-care” substitute “ qualifying care ”.

Sch 1 para 3(4)

After that subsection insert—

Sch 1 para 4

After section 804 insert—

Sch 1 para 5
Sch 1 para 5(1)

In section 805(1) (meaning of “foster-care receipts”)—

Sch 1 para 5(1)(a)

for “foster-care” substitute “ qualifying care ”, and

Sch 1 para 5(1)(b)

in paragraph (a), for “foster care” substitute “ qualifying care ”.

Sch 1 para 5(2)

Accordingly, in the heading of section 805, for “foster-care” substitute “ qualifying care ”.

Sch 1 para 6

After section 805 insert—

Sch 1 para 7

After section 806 insert—

Sch 1 para 8
Sch 1 para 8(1)

In section 807 (calculation of “total foster-care receipts”), for “foster-care” substitute “ qualifying care ”.

Sch 1 para 8(2)

Accordingly, in the heading of that section, for “foster-care” substitute “ qualifying care ”.

Sch 1 para 9

In section 808(1)(b) (the individual's limit), before “child” insert “ adult or ”.

Sch 1 para 10

For section 809 substitute—

Sch 1 para 11

In section 810(1) (share of fixed income: income period not a year), for “foster-care” substitute “ qualifying care ”.

Sch 1 para 12
Sch 1 para 12(1)

Section 811 (the amount per child) is amended as follows.

Sch 1 para 12(2)

For subsection (1) substitute—

Sch 1 para 12(3)

In subsection (3), for “subsection (2)” substitute “ subsection (1A) or (2) ”.

Sch 1 para 12(4)

In subsection (4), for “foster care for a child” substitute “ qualifying care for an adult or child ”.

Sch 1 para 12(5)

Accordingly, in the heading, before “child” insert “ adult or ”.

Sch 1 para 13

For section 812 substitute—

Sch 1 para 14
Sch 1 para 14(1)

In section 813(1) (full foster-care relief: trading income), for “foster-care” substitute “ qualifying care ”.

Sch 1 para 14(2)

Accordingly, in the heading of section 813, for “foster-care” substitute “ qualifying care ”.

Sch 1 para 15
Sch 1 para 15(1)

In section 814(1) (full foster-care relief: income chargeable under Chapter 8 of Part 5), for “foster-care” substitute “ qualifying care ”.

Sch 1 para 15(2)

Accordingly, in the heading of section 814, for “foster-care” substitute “ qualifying care ”.

Sch 1 para 16

In section 815(a) and (b) (alternative calculation of profits: introduction), for “foster-care” substitute “ qualifying care ”.

Sch 1 para 17

In section 816(1) and (2)(a) (alternative calculation of profits: trading income), for “foster-care” substitute “ qualifying care ”.

Sch 1 para 18

In section 817(1) and (2)(a) (alternative calculation of profits: income chargeable under Chapter 8 of Part 5), for “foster-care” substitute “ qualifying care ”.

Sch 1 para 19

In section 818(1)(a) and (b) (election for alternative method of calculating profits), for “foster-care” substitute “ qualifying care ”.

Sch 1 para 20

In section 819(1)(b) (adjustment of assessment), for “foster care” substitute “ qualifying care ”.

Sch 1 para 21

In section 820(a) and (b) (periods of account not ending on 5th April), for “foster-care” substitute “ qualifying care ”.

Sch 1 para 22
Sch 1 para 22(1)

Section 821 (meaning of “relevant limit”) is amended as follows.

Sch 1 para 22(2)

In subsection (1)—

Sch 1 para 22(2)(a)

for “foster-care” substitute “ qualifying care ”, and

Sch 1 para 22(2)(b)

in paragraph (b), before “child” insert “ adult or ”.

Sch 1 para 22(3)

In subsection (2), before “child”, in both places where it occurs, insert “ adult or ”.

Sch 1 para 23

In section 822(1) (full relief), for “foster-care” substitute “ qualifying care ”.

Sch 1 para 24

In section 823(1)(a) and (2)(a) (alternative method of calculating profits), for “foster-care” substitute “ qualifying care ”.

Sch 1 para 25

In section 824(1)(a) and (2)(b) (capital allowances: introduction), for “foster-care” substitute “ qualifying care ”.

Sch 1 para 26

In section 825(2) and (4)(a) (carried forward unrelieved qualifying expenditure), for “foster care” substitute “ qualifying care ”.

Sch 1 para 27

In section 826(b) (excluded capital expenditure), for “foster care” substitute “ qualifying care ”.

Sch 1 para 28

In section 827(a) (excluded capital expenditure: subsequent treatment of asset), for “foster care” substitute “ qualifying care ”.

Sch 1 para 29

Accordingly, for the heading of Chapter 2 of Part 7 of ITTOIA 2005 substitute “ qualifying care relief ”.

Consequential amendments

Sch 1 para 30

ITTOIA 2005 is amended as follows.

Sch 1 para 31

In section 1(5) (overview of Act), for “foster-care” substitute “ qualifying care ”.

Sch 1 para 32
Sch 1 para 32(1)

In section 23 (rent-a-room and foster-care relief)—

Sch 1 para 32(1)(a)

in subsection (3), for “foster-care” substitute “ qualifying care ”, and

Sch 1 para 32(1)(b)

in subsection (4), for “foster care” substitute “ qualifying care ”.

Sch 1 para 32(2)

Accordingly—

Sch 1 para 32(2)(a)

in the heading of that section, for “foster-care” substitute “ qualifying care ”, and

Sch 1 para 32(2)(b)

in the heading immediately preceding that section, for “foster-care” substitute “ qualifying care ”.

Sch 1 para 33

In section 688(2)(b) (income charged), for “foster care” substitute “ qualifying care ”.

Sch 1 para 34

In the heading of Part 7, for “FOSTER-CARE” substitute “ QUALIFYING CARE ”.

Sch 1 para 35

In the table in Part 2 of Schedule 4 (index of expressions defined in this Act etc)—and

Sch 1 para 35(a)

omit the entries for “foster-care receipts” and “foster-care relief”,

Sch 1 para 35(b)

after the entry for “provides foster care” insert—,

Sch 1 para 35(c)

after the entry for “purchased life annuity” insert—,

Sch 1 para 35(d)

after the entry for “residence” insert—,

Sch 1 para 35(e)

in the entry for “total foster-care receipts”, for “foster-care” substitute “ qualifying care ”.

Commencement

Sch 1 para 36
Sch 1 para 36(1)

The amendments made by this Schedule have effect for the tax year 2010-11 and subsequent tax years.

Sch 1 para 36(2)

But an individual within sub-paragraph (3) may elect to be treated for income tax purposes as if those amendments had effect instead for the tax year 2011-12 and subsequent tax years (and accordingly to remain entitled, for the tax year 2010-11, to the benefit of any relevant concession so far as applicable to the individual).

Sch 1 para 36(3)

An individual is within this sub-paragraph if the individual has qualifying care receipts for the tax year 2010-11 in respect of the provision of shared lives care (with or without qualifying care receipts in respect of the provision of foster care).

Sch 1 para 36(4)

A relevant concession is an existing HMRC concession (within the meaning of section 160 of FA 2008)—

Sch 1 para 36(4)(a)

which is in force immediately before the passing of this Act, and

Sch 1 para 36(4)(b)

to which effect is given (in whole or in part) by this Schedule.

Sch 1 para 36(5)

An election under sub-paragraph (2) must be made on or before the first anniversary of the normal self-assessment filing date for the tax year 2010-11 (or such later date as an officer of Revenue and Customs may, in a particular case, allow).

Transitional provision

Sch 1 para 37
Sch 1 para 37(1)

This paragraph applies if—

Sch 1 para 37(1)(a)

an individual had qualifying care receipts in respect of the provision of shared lives care—

Sch 1 para 37(1)(a)(i)

for the pre-commencement tax year, or

Sch 1 para 37(1)(a)(ii)

for a continuous series of tax years up to and including the pre-commencement tax year,

Sch 1 para 37(1)(b)

the receipts were receipts of a trade,

Sch 1 para 37(1)(c)

a relevant concession applied to the individual in respect of those receipts, and

Sch 1 para 37(1)(d)

the individual did not derive any taxable income, other than qualifying care receipts, from the trade.

Sch 1 para 37(2)

Sections 824 to 827 of ITTOIA 2005 (capital allowances) are to have effect as if the individual had been a relevant individual for—

Sch 1 para 37(2)(a)

the pre-commencement tax year, or

Sch 1 para 37(2)(b)

if sub-paragraph (1)(a)(ii) applies, the pre-commencement tax year and each earlier tax year in the series.

Sch 1 para 37(3)

“The pre-commencement tax year” means the tax year immediately preceding—

Sch 1 para 37(3)(a)

for an individual who makes an election under paragraph 36, the tax year 2011-12,

Sch 1 para 37(3)(b)

otherwise, the tax year 2010-11.

Sch 1 para 37(4)

“Relevant concession” has the same meaning as in paragraph 36.

Sch 2

Venture capital schemes

Enterprise investment scheme

Sch 2 para 1
Sch 2 para 1(1)

Part 5 of ITA 2007 (enterprise investment scheme) is amended as follows.

Sch 2 para 1(2)

In section 179 (meaning of “qualifying business activity”)—

Sch 2 para 1(2)(a)

in subsection (2)(b)(i), omit “wholly or mainly in the United Kingdom”,

Sch 2 para 1(2)(b)

omit subsection (3),

Sch 2 para 1(2)(c)

in subsection (4)(b)(i) and (ii), omit “wholly or mainly in the United Kingdom”, and

Sch 2 para 1(2)(d)

omit subsection (5).

Sch 2 para 1(3)

In section 180 (overview of Chapter 4), before paragraph (a) insert—.

Sch 2 para 1(4)

Before section 181 insert—

Sch 2 para 1(5)

After section 191 (and before the italic heading “Excluded activities”) insert—

Venture capital trusts

Sch 2 para 2
Sch 2 para 2(1)

Part 6 of ITA 2007 (venture capital trusts) is amended as follows.

Sch 2 para 2(2)

In section 274 (requirements for the giving of approval)—

Sch 2 para 2(2)(a)

in the table in subsection (2), in the first entry, in column 2, for “included in the official UK list” substitute “ admitted to trading on a regulated market ”,

Sch 2 para 2(2)(b)

in the last entry in the table, in columns 1 and 2, for “30%” substitute “ 70% ”,

Sch 2 para 2(2)(c)

in paragraphs (c) and (d) of subsection (3), for “30%” substitute “ 70% ”, and

Sch 2 para 2(2)(d)

at the end insert—

Sch 2 para 2(3)

In section 275(3)(b) (alternative requirements for the giving of approval), for “30%” substitute “ 70% ”.

Sch 2 para 2(4)

In section 278(1) (conditions relating to value of investments: general), for “30%” substitute “ 70% ”.

Sch 2 para 2(5)

In section 280(2) (conditions relating to qualifying holdings and eligible shares), for “30%” substitute “ 70% ”.

Sch 2 para 2(6)

In section 285 (interpretation of Chapter 3 of Part 6), for subsection (3) substitute—

Sch 2 para 2(7)

In section 286 (qualifying holdings: introduction), in subsection (3), before paragraph (a) insert—.

Sch 2 para 2(8)

Before section 287 insert—

Sch 2 para 2(9)

In section 289(5) (the proportion of eligible shares requirement), for “285(3)” substitute “ 285(3A) and (3B) ”.

Sch 2 para 2(10)

In section 291 (carrying on of qualifying activity requirement)—

Sch 2 para 2(10)(a)

in subsection (2), for “A qualifying trade carried on wholly or mainly in the United Kingdom” substitute “ Carrying on a qualifying trade ”,

Sch 2 para 2(10)(b)

in subsection (3), omit “wholly or mainly in the United Kingdom”, and

Sch 2 para 2(10)(c)

in subsection (4)(b), omit “wholly or mainly in the United Kingdom”.

Sch 2 para 2(11)

In section 300(2) (meaning of “qualifying trade”), for paragraphs (a) and (b) substitute—.

Sch 2 para 2(12)

After section 302 (and before the italic heading “Excluded activities”) insert—

Sch 2 para 2(13)

In section 313 (interpretation of Chapter 4 of Part 6)—

Sch 2 para 2(13)(a)

in subsection (6), omit the “and” at the end of paragraph (a) and after paragraph (b) insert, and

Sch 2 para 2(13)(b)

after subsection (7) insert—

Interpretation

Sch 2 para 3
Sch 2 para 3(1)

Chapter 1 of Part 16 of ITA 2007 (definitions) is amended as follows.

Sch 2 para 3(2)

In section 989 (the definitions), omit the definition of “permanent establishment”.

Sch 2 para 3(3)

After section 1007 insert—

Sch 2 para 4
Sch 2 para 4(1)

Schedule 4 to that Act (index of defined expressions) is amended as follows.

Sch 2 para 4(2)

In column 2 of the entry for “eligible shares (in Chapter 3 of Part 6)”, for “285(3)” substitute “ 285(3A) and (3B) ”.

Sch 2 para 4(3)

In column 1 of the entry for “the 30% eligible shares condition (in Chapter 3 of Part 6)”, for “30%” substitute “ 70% ”.

Sch 2 para 4(4)

For the entry for “permanent establishment” substitute—.

Consequential repeal

Sch 2 para 5

In consequence of the amendment made by paragraph 3(2), omit paragraph 562(6) of Schedule 1 to CTA 2010.

Commencement of amendments relating to 70% eligible shares condition

Sch 2 para 6
Sch 2 para 6(1)

The amendments made by paragraphs 2(2)(b) and (c), (3) to (6) and 4(2) and (3) have effect in relation to accounting periods ending on or after the commencement day.

Sch 2 para 6(2)

The amendments mentioned in sub-paragraph (1) do not have effect in relation to shares or securities held by a company (“the investing company”) if the shares or securities—

Sch 2 para 6(2)(a)

are issued before the commencement day, or

Sch 2 para 6(2)(b)

are issued on or after that day and are acquired by the investing company before 6 April 2018 by means of the investment of protected money.

Sch 2 para 6(3)

In this paragraph “protected money” means—

Sch 2 para 6(3)(a)

money raised by the issue before the commencement day of shares in or securities of the investing company, or

Sch 2 para 6(3)(b)

money derived from the investment of such money.

Commencement of other provisions of this Schedule

Sch 2 para 7
Sch 2 para 7(1)

The amendments made by paragraph 1 have effect in relation to shares issued on or after the commencement day.

Sch 2 para 7(2)

The amendments made by paragraph 2(2)(a) and (d) have effect in relation to accounting periods ending on or after the commencement day (and have effect in relation to shares issued at any time).

Sch 2 para 7(3)

The amendments made by paragraphs 2(7), (8) and (10) to (12), 3, 4(4) and 5 have effect in relation to shares or securities issued on or after the commencement day.

Sch 2 para 7(4)

The amendments made by paragraph 2(9) and (13) have effect in relation to shares issued at any time.

Meaning of “the commencement day”

Sch 2 para 8
Sch 2 para 8(1)

In paragraphs 6 and 7 “the commencement day” means such day as the Treasury may by order appoint.

Sch 2 para 8(2)

An order may appoint different days for different provisions or different purposes.

Sch 3

Company distributions

Meaning of “distribution” in the Corporation Tax Acts

Sch 3 para 1
Sch 3 para 1(1)

Part 23 of CTA 2010 (company distributions) is amended as follows.

Sch 3 para 1(2)

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

Sch 3 para 1(3)

After section 1027 insert—

Meaning of “distribution” in Income Tax Acts

Sch 3 para 2

In section 989 of ITA 2007 (definitions for the purposes of the Income Tax Acts), in the definition of “distribution”, after “Chapters 2 to 5 of Part 23 of CTA 2010” insert “ , disregarding section 1027A of that Act ”.

Distributions subject to the charge to corporation tax on income

Sch 3 para 3
Sch 3 para 3(1)

Part 9A of CTA 2009 (company distributions) is amended as follows.

Sch 3 para 3(2)

In section 931A (charge to tax), omit subsection (2) and for subsection (3) substitute—

Sch 3 para 3(3)

In section 931H (dividends derived from transactions not designed to reduce tax)—

Sch 3 para 3(3)(a)

in the heading, for “Dividends” substitute “ Distributions ”,

Sch 3 para 3(3)(b)

in subsection (1)—

Sch 3 para 3(3)(b)(i)

after “dividend” insert “ or other distribution ”, and

Sch 3 para 3(3)(b)(ii)

for “paid” substitute “ made ”,

Sch 3 para 3(3)(c)

in subsection (2), for “dividend is paid” substitute “ distribution is made ”,

Sch 3 para 3(3)(d)

in subsections (3) and (4)—

Sch 3 para 3(3)(d)(i)

for “dividend” substitute “ distribution ”, and

Sch 3 para 3(3)(d)(ii)

for “paid” substitute “ made ”, and

Sch 3 para 3(3)(e)

in subsection (5)—

Sch 3 para 3(3)(e)(i)

for “dividend” substitute “ distribution ”,

Sch 3 para 3(3)(e)(ii)

for “paid” (in both places) substitute “ made ”, and

Sch 3 para 3(3)(e)(iii)

for “dividends” substitute “ distributions ”.

Sch 3 para 3(4)

After section 931R insert—

Distributions giving rise to deemed disposals

Sch 3 para 4
Sch 3 para 4(1)

TCGA 1992 is amended as follows.

Sch 3 para 4(2)

In section 22 (disposal where capital sums derived from assets), after subsection (3), insert—

Sch 3 para 4(3)

In section 122 (deemed disposal on receipt of certain distributions), after subsection (5) insert—

Commencement

Sch 3 para 5
Sch 3 para 5(1)

The amendments made by this Schedule have effect in relation to distributions made on or after 1 July 2009.

Sch 3 para 5(2)

An amendment corresponding to that made by paragraph 1, having effect in relation to distributions made on or after 1 July 2009, is to be treated as having been made in section 211 of ICTA.

Treatment of distributions of UK resident companies made before 1 July 2009

Sch 3 para 6
Sch 3 para 6(1)

Section 1285 of CTA 2009 (UK company distributions exempt from corporation tax) and section 208 of ICTA (which was the predecessor of section 1285 of CTA 2009) are to be treated as always having had effect (before their repeal) as if references in them to a distribution included a distribution to which sub-paragraph (2) applies.

Sch 3 para 6(2)

This sub-paragraph applies to a distribution that—

Sch 3 para 6(2)(a)

falls within the meaning of Chapters 2 to 5 of Part 23 of CTA 2010, as amended by paragraph 1, but

Sch 3 para 6(2)(b)

does not fall within that meaning disregarding that amendment.

Sch 3 para 6(3)

Section 22 of TCGA 1992 (disposal where capital sums derived from assets) is to be treated as always having had effect as if subsection (1) of that section did not apply where a company receives, or becomes entitled to receive—

Sch 3 para 6(3)(a)

a capital distribution within the meaning of section 122 of that Act made before 1 July 2009, or

Sch 3 para 6(3)(b)

a distribution that is exempt from corporation tax under section 1285 of CTA 2009 or section 208 of ICTA, as modified by sub-paragraph (1).

Sch 3 para 6(4)

Section 122 of that Act (deemed disposal on receipt of certain distributions) is to be treated as always having had effect as if references in it to a capital distribution did not include a distribution that is exempt from corporation tax under section 1285 of CTA 2009 or section 208 of ICTA, as modified by sub-paragraph (1).

Election to opt out of effect of Schedule in relation to a distribution made before 22 June 2010

Sch 3 para 7
Sch 3 para 7(1)

If a company so elects, this Schedule has effect in relation to a relevant distribution received by the company as if—

Sch 3 para 7(1)(a)

the amendments made by paragraphs 1 to 4 were of no effect, and

Sch 3 para 7(1)(b)

paragraphs 5(2) and 6 were of no effect.

Sch 3 para 7(2)

An election under this paragraph has effect only in relation to such distributions as are specified in the election.

Sch 3 para 7(3)

In this paragraph “relevant distribution” means a distribution made before 22 June 2010.

Sch 4

REITs: stock dividends

Amendment of TCGA 1992

Sch 4 para 1

After section 142 of TCGA 1992 (capital gains on stock dividends) insert—

Amendment of ITA 2007

Sch 4 para 2

In section 973 of ITA 2007 (REITs: income tax due in respect of distributions), after subsection (3) insert—

Amendment of CTA 2010

Sch 4 para 3

Part 12 of CTA 2010 (Real Estate Investment Trusts) is amended as follows.

Sch 4 para 4
Sch 4 para 4(1)

Section 530 (condition as to distribution of profits) is amended as follows.

Sch 4 para 4(2)

In subsection (1), omit paragraph (b) (but not the word “and” at the end of it).

Sch 4 para 4(3)

In subsection (4), omit paragraph (a) (including the word “and” at the end of it).

Sch 4 para 4(4)

After subsection (6) insert—

Sch 4 para 5

In section 549 (distributions: supplementary), after subsection (2) insert—

Sch 4 para 6

In section 550 (attribution of distributions), in subsection (2)(a), for “payments” substitute “ distributions ”.

Sch 4 para 7

In section 553 (meaning of “holder of excessive rights”), in subsection (2)(a), for “dividends” substitute “ distributions ”.

Sch 4 para 8

After section 554 (regulations: distributions to holders of excessive rights) insert—

Sch 4 para 9
Sch 4 para 9(1)

Section 564 (breach of condition as to distribution of profits) is amended as follows.

Sch 4 para 9(2)

In subsection (5)(a), omit “by way of dividend”.

Sch 4 para 9(3)

After subsection (9) insert—

Sch 4 para 10

After section 599 (calculation of profits) insert—

Sch 4 para 11

In section 605 (property rental business: exclusion of business producing listed income), after subsection (2) insert—

Commencement

Sch 4 para 12

The amendments made by this Schedule have effect in relation to distributions made on or after the day on which this Act is passed.

Sch 5

Financing costs and income of group companies

Introduction

Sch 5 para 1

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

Amendment of Chapter 1 (introduction)

Sch 5 para 2

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

Amendments of Chapter 2 (application of Part)

Sch 5 para 3

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

Sch 5 para 4

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

Sch 5 para 5

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

Sch 5 para 6

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

Sch 5 para 7

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

Sch 5 para 8

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

Sch 5 para 9

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

Sch 5 para 10

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

Sch 5 para 11

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

Sch 5 para 12

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

Amendments of Chapter 3 (disallowance of deductions)

Sch 5 para 13

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

Sch 5 para 14

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

Sch 5 para 15

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

Sch 5 para 16

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

Amendment of Chapter 4 (exemption of financing income)

Sch 5 para 17

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

Amendments of Chapter 5 (intra-group financing income where payer denied deduction)

Sch 5 para 18

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

Amendments of Chapter 7 (“financing expense amount” and “financing income amount”)

Sch 5 para 19

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

Sch 5 para 20

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

Sch 5 para 21

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

Sch 5 para 22

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

Sch 5 para 23

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

Sch 5 para 24

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

Amendment of Chapter 8 (the “tested expense amount” and “tested income amount”)

Sch 5 para 25

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

Amendments of Chapter 9 (the “available amount”)

Sch 5 para 26

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

Sch 5 para 27

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

Sch 5 para 28

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

Amendments of Chapter 10 (other interpretative provisions)

Sch 5 para 29

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

Sch 5 para 30

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

Sch 5 para 31

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

Sch 5 para 32

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

Sch 5 para 33

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

Amendment of transitional provision

Sch 5 para 34

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

Amendments of index of defined expressions

Sch 5 para 35

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

Commencement

Sch 5 para 36

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

Election to defer the application of some of the amendments made by this Schedule

Sch 5 para 37

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

Sch 6

Consortium claims for group relief

Introductory

Sch 6 para 1

Chapter 4 of Part 5 of CTA 2010 (claims for group relief) is amended as follows.

Sch 6 para 2

In section 129 (overview of Chapter), in subsection (2), for “Sections 130 to 134” substitute “ Sections 130 to 134A ”.

Sch 6 para 3

In section 130(2) (group relief claims on amounts surrenderable under Chapter 2), in Requirement 3—

Sch 6 para 3(a)

in paragraph (c), for “section 133(1), (3) and (4)” substitute “ section 133(1) and (3) to (8) ”, and

Sch 6 para 3(b)

in paragraph (d), for “section 133(2), (3) and (4)” substitute “ section 133(2) to (8) ”.

Sch 6 para 4
Sch 6 para 4(1)

Section 133 (conditions to be met for consortium claims for group relief) is amended as follows.

Sch 6 para 4(2)

In subsection (1)—

Sch 6 para 4(2)(a)

omit the “and” at the end of paragraph (e), and

Sch 6 para 4(2)(b)

for paragraph (f) substitute—

Sch 6 para 4(3)

In subsection (2)—

Sch 6 para 4(3)(a)

omit the “and” at the end of paragraph (e), and

Sch 6 para 4(3)(b)

for paragraph (f) substitute—

Sch 6 para 4(4)

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

Sch 6 para 5

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

Sch 6 para 6
Sch 6 para 6(1)

Section 146 (maximum amount of group relief in consortium claims) is amended as follows.

Sch 6 para 6(2)

In subsection (3)—

Sch 6 para 6(2)(a)

omit the “and” at the end of paragraph (a), and

Sch 6 para 6(2)(b)

after that paragraph insert—.

Sch 6 para 6(3)

In subsection (6), at the end insert “ , assuming that the link company was UK related. ”

Sch 6 para 6(4)

In subsection (8)—

Sch 6 para 6(4)(a)

omit the “and” at the end of the definition of “consortium claim”, and

Sch 6 para 6(4)(b)

at the end insert

Limitations on group relief based on proportion of voting power held by company

Sch 6 para 7
Sch 6 para 7(1)

Section 143 (which makes provision limiting the amount of group relief that is available in cases where the surrendering company is owned by a consortium) is amended as follows.

Sch 6 para 7(2)

In subsection (3)—

Sch 6 para 7(2)(a)

omit the “and” at the end of paragraph (b), and

Sch 6 para 7(2)(b)

at the end of paragraph (c) insert

Sch 6 para 7(3)

In subsection (4)(a), for “paragraphs (a) to (c)” substitute “ paragraphs (a) to (d) ”.

Sch 6 para 8
Sch 6 para 8(1)

Section 144 (which makes provision limiting the amount of group relief that is available in cases where the claimant company is owned by a consortium) is amended as follows.

Sch 6 para 8(2)

In subsection (3)—

Sch 6 para 8(2)(a)

omit the “and” at the end of paragraph (b), and

Sch 6 para 8(2)(b)

at the end of paragraph (c) insert

Sch 6 para 8(3)

In subsection (4)(a), for “paragraphs (a) to (c)” substitute “ paragraphs (a) to (d) ”.

Limitations on group relief where arrangements preventing control are in place

Sch 6 para 9

After section 146 insert—

Commencement

Sch 6 para 10

The amendments made by this Schedule have effect in relation to accounting periods beginning on or after 12 July 2010.

Sch 7

First-year allowances for zero-emission goods vehicles

Sch 7 para 1

CAA 2001 is amended as follows.

Sch 7 para 2

In section 39 (first-year allowances available for certain types of qualifying expenditure only), at the appropriate place in the list insert—.

Sch 7 para 3

After section 45D insert—

Sch 7 para 4

In section 46 (general exclusions applying to first-year qualifying expenditure), in subsection (1), at the appropriate place in the list insert—.

Sch 7 para 5
Sch 7 para 5(1)

Section 52 (first-year allowances) is amended as follows.

Sch 7 para 5(2)

In subsection (3), at the appropriate place in the Table insert—

Sch 7 para 5(3)

In subsection (5)—

Sch 7 para 5(3)(a)

omit the “and” at the end of the entry for section 210, and

Sch 7 para 5(3)(b)

after that entry insert—.

Sch 7 para 6

After section 212S insert—

Sch 7 para 7

The amendments made by this Schedule have effect—

Sch 7 para 7(a)

for the purposes of corporation tax, for chargeable periods ending on or after 1 April 2010, and

Sch 7 para 7(b)

for the purposes of income tax, for chargeable periods ending on or after 6 April 2010.

Sch 8

Value added tax: non-business use of business assets etc

Input tax

Sch 8 para 1
Sch 8 para 1(1)

Section 24 of VATA 1994 (input tax and output tax) is amended as follows.

Sch 8 para 1(2)

Omit subsection (3) (accommodation used for domestic purposes by company director etc).

Sch 8 para 1(3)

In subsection (5) (goods or services used partly for business purposes), for the words after “other purposes” substitute

Sch 8 para 1(4)

After that subsection insert—

Sch 8 para 1(5)

In subsection (6) (powers to make regulations), after paragraph (d) insert—

Sch 8 para 1(6)

After that subsection insert—

Sch 8 para 1(7)

Omit subsection (7) (definition of “director” etc).

Sch 8 para 1(8)

The amendments made by sub-paragraphs (2), (4) and (7) come into force on 1 January 2011 and apply in relation to VAT incurred by a taxable person on or after that date.

Sch 8 para 1(9)

For the purposes of sub-paragraph (8), the VAT “incurred” by a person in respect of an asset is—and VAT within paragraphs (a) to (d) is incurred at the time of the supply, acquisition or importation in question.

Sch 8 para 1(9)(a)

VAT on the supply to the person of the asset,

Sch 8 para 1(9)(b)

VAT on the supply to the person of any goods or services the expenditure on which constitutes expenditure related to the asset,

Sch 8 para 1(9)(c)

VAT on the acquisition by the person from another member State of the asset or anything comprised in it, and

Sch 8 para 1(9)(d)

VAT paid or payable by the person on the importation of the asset or anything comprised in it from a place outside the member States;

Sch 8 para 2

In section 26 of VATA 1994 (input tax allowable under section 25), in subsection (4) for “and supplementary” substitute “ , supplementary, consequential and transitional ”.

Non-business use of certain assets not to be treated as supply of services

Sch 8 para 3
Sch 8 para 3(1)

In paragraph 5 of Schedule 4 to VATA 1994 (matters to be treated as supply of goods or services), after sub-paragraph (4) (non-business use of business asset treated as supply of services) insert—

Sch 8 para 3(2)

This paragraph comes into force on 1 January 2011.

Sch 8 para 3(3)

This paragraph does not apply in relation to an asset in respect of which the person in question or any of that person's predecessors incurred VAT before 1 January 2011.

Sch 8 para 3(4)

But, where VAT is incurred by such a person before that date in respect of the asset, VAT incurred by such a person on or after that date in respect of the asset is not to be treated as referable to that person's business purposes by virtue of paragraph 5(4) and (6) of Schedule 4 to VATA 1994 if, and to the extent that, the asset is used or to be used for that person's private use or the private use of that person's staff, or more generally for purposes other than those of that person's business.

Sch 8 para 3(5)

For the purposes of this paragraph—“asset” means anything falling within any of paragraphs (a) to (f) of paragraph 5(4A) of Schedule 4 to VATA 1994 (as inserted by sub-paragraph (1) above);“the person in question” means the person carrying on the business referred to in paragraph 5(4) of that Schedule;“predecessor” has the same meaning as in paragraph 5 of that Schedule; and references to the VAT “incurred” by a person in respect of an asset are to be construed in accordance with paragraph 1(9).

Output tax charge where credit attributable to purported paragraph 5(4) supply

Sch 8 para 4
Sch 8 para 4(1)

Sub-paragraph (2) applies where—

Sch 8 para 4(1)(a)

a person carrying on a business or any of that person's predecessors has been allowed credit under sections 25 and 26 of VATA 1994 for input tax on the basis that the input tax is attributable to a thing done or to be done which is or would be a paragraph 5(4) supply,

Sch 8 para 4(1)(b)

some or all of that credit was allowed before 22 January 2010,

Sch 8 para 4(1)(c)

disregarding sub-paragraph (2), the thing done or to be done is not or would not be a paragraph 5(4) supply, and

Sch 8 para 4(1)(d)

the credit allowed as mentioned in paragraph (a) is not reversed in full.

Sch 8 para 4(2)

The thing done or to be done is to be treated for the purposes of VATA 1994 as if it were or would be a paragraph 5(4) supply.

Sch 8 para 4(3)

But sub-paragraph (2) does not confer on the person allowed credit as mentioned in sub-paragraph (1)(a) any entitlement to that credit under sections 25 and 26 of that Act.

Sch 8 para 4(4)

For the purposes of sub-paragraph (1) credit for input tax is “allowed” under sections 25 and 26 of VATA 1994 to the extent that the credit is claimed, and the claim is satisfied by one or more of the following—

Sch 8 para 4(4)(a)

the deduction of input tax under section 25(2) of that Act from any output tax that is due to the Commissioners;

Sch 8 para 4(4)(b)

a payment by the Commissioners in respect of the credit under section 25(3) of that Act;

Sch 8 para 4(4)(c)

the setting off of the credit against a sum payable to the Commissioners, whether under section 81(3) of that Act or section 130 of FA 2008 or otherwise.

Sch 8 para 4(5)

In this paragraph—“paragraph 5(4) supply” means a supply under paragraph 5(4) of Schedule 4 to VATA 1994 (goods held or used for the purposes of a business which are put to private use etc);“predecessor” has the same meaning as in paragraph 5 of that Schedule.

Sch 8 para 4(6)

This paragraph is to be treated as having always had effect.

Sch 9

Interest

Sch 9

Corporation tax

Amendments of sections 101 to 104

Sch 9 para 1

FA 2009 is amended as follows.

Sch 9 para 2

In section 101 (late payment interest on sums due to HMRC), omit subsection (2)(a).

Sch 9 para 3
Sch 9 para 3(1)

Section 102 (repayment interest on sums to be paid by HMRC) is amended as follows.

Sch 9 para 3(2)

Omit subsection (2)(a).

Sch 9 para 3(3)

In subsection (4), before paragraph (a) insert—.

Sch 9 para 4

After section 103 insert—

Sch 9 para 5

In section 104(1), for “103” substitute “ 103A (and Schedules 53 to 54A) ”.

Amendments of Schedule 53

Sch 9 para 6

Schedule 53 to FA 2009 (late payment interest) is amended as follows.

Sch 9 para 7

In Part 1 (special provision as to amount carrying late payment interest), after paragraph 2 insert—

Sch 9 para 8

In Part 2 (special provision as to late payment interest start date), after paragraph 6 insert—

Amendments of Schedule 54

Sch 9 para 9

Schedule 54 to FA 2009 (repayment interest) is amended as follows.

Sch 9 para 10

Insert at the beginning—

Sch 9 para 11

In Part 2 (special provision as to repayment interest start date), after paragraph 9A insert—

New Schedule

Sch 9 para 12

After Schedule 54 to FA 2009 insert—

Sch 9

Petroleum revenue tax

Sch 9 para 13

FA 2009 is amended as follows.

Sch 9 para 14

In section 101 (late payment interest on sums due to HMRC), omit subsection (2)(b).

Sch 9 para 15

In section 102 (repayment interest on sums to be paid by HMRC), omit subsection (2)(b).

Sch 9 para 16

Schedule 53 (late payment interest) is amended as follows.

Sch 9 para 17

After paragraph 11 insert—

Sch 9 para 18

After paragraph 14 insert—

Sch 9 para 19

In Schedule 54 (repayment interest), after paragraph 12 insert—

Sch 10

Penalty for failure to make returns etc

Sch 10 para 1

Schedule 55 to FA 2009 (penalty for failure to make returns etc) is amended as follows.

Sch 10 para 2
Sch 10 para 2(1)

Paragraph 1 (penalty for failure) is amended as follows.

Sch 10 para 2(2)

In sub-paragraph (2), for “13” substitute “ 13J ”.

Sch 10 para 2(2A)

In sub-paragraph (4), in the definition of “filing date”, at the end insert“ (or, in the case of a return mentioned in item 7AA or 7AB of the Table, to the tax authorities to whom the return is required to be delivered) ”.

Sch 10 para 2(3)

The Table is amended as follows.

Sch 10 para 2(4)

After item 7 insert—.

Sch 10 para 2(5)

Insert at the end—.

Sch 10 para 3

For paragraph 2 (amount of penalty for occasional or annual returns) and the italic heading preceding it substitute—

Sch 10 para 4
Sch 10 para 4(1)

Paragraph 6 (amount of penalty for occasional returns and annual returns) is amended as follows.

Sch 10 para 4(2)

In sub-paragraph (2), after “P” in the first place it occurs insert “ deliberately ”.

Sch 10 para 4(3)

In sub-paragraph (5), for “any other case” substitute “ any case not falling within sub-paragraph (2) ”.

Sch 10 para 5
Sch 10 para 5(1)

Paragraph 11 (amount of penalty for certain CIS returns after 12 months) is amended as follows.

Sch 10 para 5(2)

In sub-paragraph (2), after “P” in the first place it occurs insert “ deliberately ”.

Sch 10 para 5(3)

In sub-paragraph (5), for “any other case” substitute “ any case not falling within sub-paragraph (2) ”.

Sch 10 para 6
Sch 10 para 6(1)

Paragraph 12 (amount of penalty for other CIS returns after 12 months) is amended as follows.

Sch 10 para 6(2)

In sub-paragraph (2), after “P” insert “ deliberately ”.

Sch 10 para 7

After paragraph 13 insert—

Sch 10 para 8

In paragraph 14(1) (reductions for disclosure), for “or 11(3) or (4)” substitute “ , 11(3) or (4), 13E(3) or (4) or 13J(3) or (4) ”.

Sch 10 para 9

In paragraph 15(5) (reductions for disclosure not below certain amounts)—

Sch 10 para 9(a)

for “paragraph 11(3) or (4)” substitute “ sub-paragraph (3) or (4) of any of paragraphs 11, 13E and 13J ”, and

Sch 10 para 9(b)

for “paragraph 11(3)(b) or (4)(b) (as the case may be)” substitute “ paragraph (b) of that sub-paragraph ”.

Sch 10 para 10

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

Sch 10 para 11

For paragraph 23(1) (no liability where there is reasonable excuse for failure) substitute—

Sch 11

Penalty for failure to make payments on time

Sch 11 para 1

Schedule 56 to FA 2009 (penalty for failure to make payments on time) is amended as follows.

Sch 11 para 2
Sch 11 para 2(1)

Paragraph 1 (penalty for failure) is amended as follows.

Sch 11 para 2(2)

In sub-paragraph (2), for “8” substitute “ 8J ”.

Sch 11 para 2(3)

After sub-paragraph (4) insert—

Sch 11 para 2(4)

The Table is amended as follows.

Sch 11 para 2(5)

In item 2, in column 3, omit “(except an amount falling within item 20)”.

Sch 11 para 2(6)

In item 4, in column 4, for “section 62” substitute “ section 71 ”.

Sch 11 para 2(7)

After item 6 insert—.

Sch 11 para 2(8)

After item 11 insert—.

Sch 11 para 2(9)

After item 13 insert—.

Sch 11 para 2(10)

After item 16 insert—.

Sch 11 para 2(11)

After item 17 insert—.

Sch 11 para 2(12)

Omit item 20.

Sch 11 para 2(13)

In item 23—

Sch 11 para 2(13)(a)

in columns 2 and 3, for “items 1 to 6, 9 or 10” substitute “ items 1 to 6A, 6BA, 6BB, 6C, 9, 10 , 11A or 11B to 11M ”, and

Sch 11 para 2(13)(b)

in column 3, for “any of items 18 to 20” substitute “ item 18 or 19 ”.

Sch 11 para 2(14)

In item 24—

Sch 11 para 2(14)(a)

in column 2, for “items 1 to 6, 9 or 10” substitute “ items 1 to 6A, 6BA, 6BB, 6C, 9, 10 , 11A or 11B to 11M ”, and

Sch 11 para 2(14)(b)

in column 3, for “any of items 18 to 20” substitute “ item 18 or 19 ”.

Sch 11 para 3

In paragraph 2 (assessments and determinations in default of return), in paragraph (c), for “10” substitute “ 11M ”.

Sch 11 para 4

After paragraph 2 insert—

Sch 11 para 5
Sch 11 para 5(1)

Paragraph 3 (amount of penalty for occasional amounts and amounts due for periods of 6 months or more) is amended as follows.

Sch 11 para 5(2)

Sub-paragraph (1) is amended as follows.

Sch 11 para 5(3)

In paragraph (a), for “... 3B and 7 to 24” substitute “ ... 3B, 6B, 7 to 11ZA and 12 to 24 ”.

Sch 11 para 5(4)

In paragraph (b)—

Sch 11 para 5(4)(a)

for “item 2 or 4” substitute “ any of items 2, 4, 6A, 6C and 11A to 11M ”, and

Sch 11 para 5(4)(b)

omit the “and” at the end.

Sch 11 para 5(5)

After paragraph (c) insert

Sch 11 para 5(6)

After sub-paragraph (1) insert—

Sch 11 para 6

For paragraph 6 substitute—

Sch 11 para 7

After paragraph 8 insert—

Sch 11 para 8

After paragraph 8J insert—

Sch 11 para 9
Sch 11 para 9(1)

Paragraph 11 (assessment) is amended as follows.

Sch 11 para 9(2)

In sub-paragraph (4), for “unpaid tax” substitute “ tax which was due or payable ”.

Sch 11 para 9(3)

After sub-paragraph (4) insert—

Sch 11 para 10

For paragraph 16(1) (no liability where there is reasonable excuse for failure) substitute—

Sch 12

Recovery of overpaid tax etc

Sch 12

Stamp duty land tax

Sch 12 para 1

Part 4 of FA 2003 (stamp duty land tax) is amended as follows.

New provisions relating to overpaid tax

Sch 12 para 2

In Schedule 10 (returns, enquiries, assessments and appeals), for paragraph 34 and the italic heading preceding it substitute—

Consequential amendments

Sch 12 para 3

In section 113 (functions conferred on “the Inland Revenue”), omit subsection (3)(b)(ii).

Sch 12 para 4
Sch 12 para 4(1)

Schedule 10 (returns, enquiries, assessments and appeals) is amended as follows.

Sch 12 para 4(2)

In the heading at the beginning of Part 6, after “Relief in the case of” insert “ overpaid tax or ”.

Sch 12 para 4(3)

In paragraph 45(1) (determination of market value by relevant tribunal), for “paragraphs 34(6) or” substitute “ paragraph ”.

Sch 12 para 5

In Schedule 11A (claims not included in returns etc), in paragraph 14(5) (application of provisions of Schedule 10)—

Sch 12 para 5(a)

for “and 44” substitute “ , 44 and 45 ”, and

Sch 12 para 5(b)

omit “(settling of appeals by agreement)”.

Sch 12

Petroleum revenue tax

Claims for recovery of overpaid tax etc

Sch 12 para 6

Schedule 2 to OTA 1975 (management and collection of petroleum revenue tax) is amended as follows.

Sch 12 para 7

In the Table in paragraph 1(1) (applying provisions of TMA 1970 in relation to management and collection of petroleum revenue tax), omit the entry relating to section 33 of TMA 1970.

Sch 12 para 8

In paragraph 10(1A) (time limit for assessments and determinations) for “and 12B” substitute “ , 12B and 13E ”.

Sch 12 para 9

In paragraph 12(1B) (disapplication of time limits for further assessments and determinations)—

Sch 12 para 9(a)

omit the “or” at the end of paragraph (a), and

Sch 12 para 9(b)

after that paragraph insert—.

Sch 12 para 10

After paragraph 13 insert—

Sch 12 para 11
Sch 12 para 11(1)

Paragraph 14 (appeals) is amended as follows.

Sch 12 para 11(2)

After sub-paragraph (1) insert—

Sch 12 para 11(3)

In sub-paragraph (9) for “section 33 of the Taxes Management Act 1970 as applied by paragraph 1 above” substitute “ paragraph 13A ”.

Sch 12 para 11(4)

In sub-paragraph (10) for “the appeal that” substitute “ an appeal under sub-paragraph (1) ”.

Sch 12 para 11(5)

After sub-paragraph (10) insert—

Consequential amendments

Sch 12 para 12
Sch 12 para 12(1)

Schedule 24 to FA 2007 (penalties for errors) is amended as follows.

Sch 12 para 12(2)

In the Table in paragraph 1, after the first entry relating to petroleum revenue tax insert—

Sch 12 para 12(3)

In paragraph 1(5), after “Oil Taxation Act 1975” insert “ or a statement or declaration under paragraph 13A of that Schedule ”.

Sch 12 para 13

In FA 2009—

Sch 12 para 13(a)

in Schedule 51 (time limits for assessments, claims etc), omit paragraph 18(2), and

Sch 12 para 13(b)

in Schedule 52 (recovery of overpaid tax etc), omit paragraph 11.

Sch 13

Excise duties: compliance checks

Sch 13

Record-keeping

Sch 13 para 1
Sch 13 para 1(1)

Section 118A of CEMA 1979 (duty of revenue traders to keep records) is amended as follows.

Sch 13 para 1(2)

In subsection (1)(b), for “require” substitute “ specify in writing (and different lesser periods may be specified for different cases) ”.

Sch 13 para 1(3)

For subsection (3) substitute—

Sch 13 para 1(4)

Omit subsections (4) to (6).

Sch 13 para 2

In consequence of the amendment made by paragraph 1(4)—

Sch 13 para 2(a)

in FA 1994, omit section 256(3), and

Sch 13 para 2(b)

in the Criminal Procedure (Consequential Provisions) (Scotland) Act 1995, omit paragraph 18(2) of Schedule 4.

Sch 13

Time limits

Assessments

Sch 13 para 3
Sch 13 para 3(1)

Section 12 of FA 1994 (assessments to excise duty) is amended as follows.

Sch 13 para 3(2)

In subsections (4)(a) and (5), for “three years” substitute “ 4 years ”.

Sch 13 para 3(3)

In subsection (5), for the words from “in the case” to the end substitute “ in any case falling within subsection (5A)(a) or (b) ”.

Sch 13 para 3(4)

After subsection (5) insert—

Sch 13 para 3(5)

After subsection (6) insert—

Sch 13 para 3(6)

Omit subsection (7).

Sch 13 para 3(7)

The amendments made by this paragraph have effect in relation to the making of assessments under section 20AAB(4) of HODA 1979 as to the making of assessments under section 12(1) of FA 1994 (see section 20AAB(5) of HODA 1979).

Sch 13 para 4

In consequence of the amendment made by paragraph 3(6), omit paragraph 22 of Schedule 6 to the Serious Crime Act 2007.

Sch 13 para 5
Sch 13 para 5(1)

Section 12A of FA 1994 (other assessments relating to excise duty matters) is amended as follows.

Sch 13 para 5(2)

In subsections (4)(a) and (6), for “three years” substitute “ 4 years ”.

Sch 13 para 5(3)

In subsection (6), for the words from “where the assessment” to the end substitute “ falling within section 12(5A)(a) or (b) ”.

Sch 13 para 5(4)

After subsection (6) insert—

Sch 13 para 6
Sch 13 para 6(1)

Schedule 4A to BGDA 1981 (unlicensed amusement machines) is amended as follows.

Sch 13 para 6(2)

In paragraph 2(3)(a), for “three years” substitute “ 4 years ”.

Sch 13 para 6(3)

In sub-paragraph (5) of paragraph 6—

Sch 13 para 6(3)(a)

for “three years” substitute “ 4 years ”, and

Sch 13 para 6(3)(b)

omit “or (7)”.

Sch 13 para 6(4)

For sub-paragraph (6) of that paragraph substitute—

Sch 13 para 6(5)

Omit sub-paragraph (7) of that paragraph.

Claims

Sch 13 para 7

In section 137A(4) of CEMA 1979 (recovery of overpaid excise duty), for “three years” substitute “ 4 years ”.

Sch 13 para 8

In Schedule 3 to FA 2001 (excise duty: payments by Commissioners in case of error or delay), in each of the following provisions, for “three years” substitute “ 4 years ”

Sch 13 para 8(a)

paragraph 7(1)(d),

Sch 13 para 8(b)

paragraph 8(1)(e),

Sch 13 para 8(c)

paragraph 9(1)(g), and

Sch 13 para 8(d)

paragraph 10(1)(b).

Sch 13

Information and inspection powers

Sch 13 para 9

CEMA 1979 is amended as follows.

Sch 13 para 10

In section 112 (power of entry upon premises etc of revenue traders), after subsection (6) insert—

Sch 13 para 11

After that section insert—

Sch 13 para 12

After section 118B insert—

Sch 13 para 13

In section 118C (entry and search of premises and persons), omit subsections (2), (2A) and (2B).

Sch 13 para 14

In section 118D (order for access to recorded information), in subsection (5), for “118B and 118C” substitute “ 118B to 118C ”.

Sch 13 para 15
Sch 13 para 15(1)

Section 118G (offences under Part 9) is amended as follows.

Sch 13 para 15(2)

The existing provisions become subsection (1).

Sch 13 para 15(3)

After that subsection insert—

Sch 13 para 16
Sch 13 para 16(1)

Section 161A (power to search premises: search warrant) is amended as follows.

Sch 13 para 16(2)

After subsection (2) insert—

Sch 13 para 16(3)

In subsection (3), for “subsections (1) and (2)” substitute “ subsections (1), (2) and (2A) ”.

Sch 14

Asbestos compensation settlements

Inheritance tax

Sch 14 para 1
Sch 14 para 1(1)

Section 58 of IHTA 1984 (relevant property) is amended as follows.

Sch 14 para 1(2)

For the word “and” at the end of subsection (1)(e) substitute—.

Sch 14 para 1(3)

After subsection (3) insert—

Sch 14 para 1(4)

The amendments made by this paragraph are treated as having come into force on 6 April 2006.

Capital gains tax

Sch 14 para 2
Sch 14 para 2(1)

Section 271 of TCGA 1992 (other miscellaneous exemptions) is amended as follows.

Sch 14 para 2(2)

After subsection (1)(e) insert—.

Sch 14 para 2(3)

After subsection (1) insert—

Sch 14 para 2(4)

The amendments made by this paragraph are treated as having come into force on 6 April 2006.

Income tax

Sch 14 para 3
Sch 14 para 3(1)

ITA 2007 is amended as follows.

Sch 14 para 3(2)

In section 462(11) (overview of Part), after “charitable trusts” insert “ and section 838A for special provision about asbestos compensation settlements ”.

Sch 14 para 3(3)

After section 838 (exemption from income tax for local authorities and local authority associations) insert—

Sch 14 para 3(4)

The amendments made by sub-paragraphs (2) and (3) are treated as having had effect for the tax year 2007-08 and subsequent tax years.

Sch 14 para 3(5)

ICTA is treated as having had effect for the tax year 2006-07 with an amendment, after section 518 of that Act, which corresponds to that made by sub-paragraph (3).