Finance Bill
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Finance Bill EUROPEAN CONVENTION ON HUMAN RIGHTS Mr Chancellor of the Exchequer has made the following statement under section 19(1)(a) of the Human Rights Act 1998: In my view the provisions of the Finance Bill are compatible with the Convention rights. Bill 86 54/2 Finance Bill CONTENTS PART 1 CHARGES, RATES, THRESHOLDS ETC Income tax 1 Charge and rates for 2007-08 Corporation tax 2 Charge and main rates for financial year 2008 3 Small companies’ rates and fractions for financial year 2007 Inheritance tax 4 Rates and rate bands for 2010-11 Alcohol and tobacco 5 Rates of duty on alcoholic liquor 6 Rates of tobacco products duty Gambling 7 Rates of gaming duty 8 Remote gaming duty 9 Amusement machine licence duty Environment 10 Fuel duty rates and rebates 11 Rates of vehicle excise duty 12 Rates of air passenger duty 13 Rates of climate change levy 14 Rate of aggregates levy 15 Rates of landfill tax 16 Emissions trading: charges for allocations Bill 86 54/2 ii Finance Bill PART 2 ENVIRONMENT Energy-saving: houses 17 Corporation tax deduction for expenditure on energy-saving items 18 Extension of income tax deduction for expenditure on energy-saving items 19 SDLT relief for new zero-carbon homes Domestic microgeneration 20 Income tax exemption for domestic microgeneration 21 Renewables obligation certificates for domestic microgeneration Other measures 22 Aggregates levy: exemption for aggregate removed from railways etc 23 Climate change levy: reduced-rate supplies etc 24 Landfill tax: bodies concerned with the environment PART 3 INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX Anti-avoidance 25 Managed service companies 26 Restrictions on trade loss relief for partners 27 Extension of restrictions on allowable capital losses 28 Life policies etc: effect of rebated or reinvested commission 29 Avoidance involving financial arrangements 30 Companies carrying on business of leasing plant or machinery 31 Restrictions on companies buying losses or gains: tax avoidance schemes 32 Lloyd’s corporate members: restriction of group relief 33 Employee benefit contributions 34 Schemes etc designed to increase double taxation relief Capital allowances 35 Industrial and agricultural buildings allowances 36 Temporary increase in first-year capital allowances for small enterprises Insurance and friendly societies 37 Insurance companies: gross roll-up business etc 38 Insurance companies: basis of taxation etc 39 Insurance companies: transfers etc 40 Insurance companies: miscellaneous 41 Technical provisions made by general insurers 42 Lloyd’s: cessation of business by corporate members 43 Transfers of business by friendly societies to insurance companies etc 44 Tax exempt business of friendly societies 45 Purchased life annuities: self-assessment Finance Bill iii Repos 46 Sale and repurchase of securities CFCs 47 Controlled foreign companies R&D 48 Vaccine research relief: amount of deduction for SMEs 49 Research and development tax relief: definition of SME etc Venture capital schemes etc 50 Venture capital schemes etc REITs 51 Real Estate Investment Trusts Alternative finance 52 Alternative finance investment bond 53 Profit share agency Trusts 54 Trust income 55 Trust gains on contracts for life insurance Other corporation tax measures 56 Offshore funds 57 Election out of special film rules for film production companies 58 Securitisation companies Other income tax measures 59 Gift aid: limits 60 Enterprise management incentives: excluded activities 61 Benefits code: whether employment is “lower-paid employment” 62 Armed forces redundancy schemes 63 Armed forces: the Operational Allowance 64 Service charge income 65 Charge on benefits received by former owner of property: late elections 66 Unpaid remuneration and employee benefit contributions PART 4 PENSIONS 67 Abolition of contributions relief for life assurance premium contributions 68 Alternatively secured pensions etc 69 Miscellaneous iv Finance Bill PART 5 SDLT, STAMP DUTY AND SDRT SDLT: anti-avoidance provisions 70 Anti-avoidance 71 Partnerships Reliefs in relation to shares etc 72 Exemptions: intermediaries, repurchases etc 73 Acquisition relief: disregard of company holding own shares Other reliefs etc 74 SDLT: alternative finance arrangements 75 SDLT: exchanges 76 SDLT: shared ownership trusts 77 SDLT: shared ownership lease 78 Certain transfers of school land SDLT: administration 79 Payment of tax 80 Self-certificate declarations PART 6 INVESTIGATION, ADMINISTRATION ETC Investigation etc 81 Criminal investigations: powers of Revenue and Customs 82 Northern Ireland criminal investigations 83 Sections 81 and 82: supplementary 84 Criminal investigations: Scotland 85 Search warrants 86 Cross-border exercise of powers Filing dates 87 Personal tax returns 88 Trustee’s tax return 89 Partnership tax returns 90 Consequential amendments 91 Commencement Other administration 92 Mandatory electronic filing of returns 93 Mandatory electronic payment 94 Payment by cheque 95 Enquiry into returns Finance Bill v 96 Penalties for errors PART 7 MISCELLANEOUS Value added tax and insurance premium tax 97 VAT: joint and several liability of traders in supply chain where tax unpaid 98 VAT: non-business use etc of business goods 99 VAT: transfers of going concerns 100 IPT: meaning of “premium” Petroleum revenue tax 101 Abolition of PRT for fields recommissioned after earlier decommissioning 102 Tax-exempt tariffing receipts 103 Allowance of unrelievable loss from abandoned field Other miscellaneous measures 104 Amendments connected with Gambling Act 2005 105 VED: exempt vehicles 106 Limitation period in old actions for mistake of law relating to direct tax 107 Disclosure of tax avoidance schemes 108 Meaning of “recognised stock exchange” etc 109 Mergers Directive: regulations 110 Excise duties: small consignment relief PART 8 FINAL PROVISIONS 111 Interpretation 112 Repeals 113 Short title Schedule 1 — Remote gaming duty Part 1 — Imposition of duty Part 2 — Consequential amendments Schedule 2 — Climate change levy: reduced-rate supplies etc Schedule 3 — Managed service companies Part 1 — Amendments of ITEPA 2003 Part 2— Calculation of profits of MSCs: deduction for deemed employment payments Schedule 4 — Restrictions on trade loss relief for partners Schedule 5 — Avoidance involving financial arrangements Schedule 6 — Companies carrying on business of leasing plant or machinery Schedule 7 — Insurance business: gross roll-up business etc Part 1 — Amendments Part 2 — Transitional provisions vi Finance Bill Schedule 8 — Insurance companies: basis of taxation etc Part 1 — Amendments Part 2 — Transitional provisions Schedule 9 — Insurance companies: transfers etc Schedule 10 — Insurance companies: miscellaneous Schedule 11 — Technical provisions made by general insurers Schedule 12 — Friendly societies: transfers to insurance companies etc Schedule 13 — Sale and repurchase of securities Schedule 14 — Sale and repurchase of securities: minor and consequential amendments Schedule 15 — Controlled foreign companies Schedule 16 — Venture capital schemes etc Part 1— Limit on number of employees of company in which investment is made Part 2 — Limit on amount raised annually by company through risk capital schemes Part 3 — Excluded activities: receipt of royalties and licence fees Part 4 — Meaning of “qualifying 90% subsidiary” Part 5 — Other amendments Schedule 17 — Real Estate Investment Trusts Schedule 18— Pensions schemes: abolition of relief for life assurance premium contributions etc Schedule 19 — Alternatively secured pensions and transfer lump sum death benefit etc Schedule 20 — Pension schemes etc: miscellaneous Schedule 21 — Exemptions from stamp duty and SDRT: intermediaries, repurchases etc Schedule 22 — Amendments and repeals consequential on extension of HMRC powers Part 1 — Amendments Part 2 — Repeals Schedule 23 — Extension of HMRC powers: Scotland Schedule 24 — Penalties for errors Part 1 — Liability for penalty Part 2 — Amount of penalty Part 3 — Procedure Part 4 — Miscellaneous Part 5 — General Schedule 25 — Amendments connected with Gambling Act 2005 Part 1 — Amendments of the Tax Acts Part 2 — Amendments of BGDA 1981 Part 3 — Amendments of FA 1993 relating to lottery duty Part 4 — Amendments of FA 1997 relating to gaming duty Part 5 — Miscellaneous amendments Part 6 — Commencement Schedule 26 — Meaning of “recognised stock exchange” etc Schedule 27 — Repeals Part 1 — Environment Part 2 — Income tax, corporation tax and capital gains tax Part 3 — Pensions Part 4 — SDLT, stamp duty and SDRT Part 5 — Investigation, administration etc Part 6 — Miscellaneous Finance Bill 1 Part 1 — Charges, rates, thresholds etc A BILL TO Grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance. Most Gracious Sovereign E, Your Majesty’s most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary Wsupplies 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:— PART 1 CHARGES, RATES, THRESHOLDS