Finance Act 2003

Part 2 U.K. Charitable and non-charitable trusts

Interpretation U.K.

6 U.K. In section 539 of the Taxes Act 1988 (introductory) in subsection (3), insert each of the following definitions at the appropriate place—

• ““charitable trust” means any trust established for charitable purposes only;”;

““non-charitable trust” means any trust other than a charitable trust.”.

Method of charging gain to tax U.K.

7 (1) Section 547 of the Taxes Act 1988 is amended as follows. U.K.

F1 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In paragraph (b) of that subsection (which refers to trusts created by a company) before “trusts” insert “ non-charitable ”.

F2 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5 (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7 (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F8 (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9 (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10 (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Sch. 34 para. 7(2) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)

F2 Sch. 34 para. 7(4) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)

F3 Sch. 34 para. 7(5) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)

F4 Sch. 34 para. 7(6) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)

F5 Sch. 34 para. 7(7) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)

F6 Sch. 34 para. 7(8) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)

F7 Sch. 34 para. 7(9) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)

F8 Sch. 34 para. 7(10) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)

F9 Sch. 34 para. 7(11) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)

F10 Sch. 34 para. 7(12) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)

Method of charging gain to tax: multiple interests U.K.

8 (1) Section 547A of the Taxes Act 1988 is amended as follows. U.K.

(2) In subsection (3) (the cases where a person has a relevant interest) in paragraph (a) (which refers to trusts created by an individual) before “trusts” insert “ non-charitable ”.

(3) In paragraph (b) of that subsection (which refers to trusts created by a company) before “trusts” insert “ non-charitable ”.

(4) After paragraph (c) of that subsection (personal representatives) insert—

“(cc) in the case of trustees of a charitable trust, if a share in the rights is held by them or as security for a debt owed by them;”.

(5) In paragraph (d) of that subsection (trustees) after “trustees” insert “ of a non-charitable trust ”.

(6) For the word “or” at the end of sub-paragraph (i) of that paragraph substitute the following sub-paragraph—

“(ia) if a share in the rights is held by them which does not also fall within paragraph (a), (b) or (c) above or sub-paragraph (i) above; or”.

(7) In subsection (6) (rights or share held on trusts created by two or more persons) before “trusts”, where first occurring, insert “ non-charitable ”.

(8) In subsection (10) (case where different shares of the whole trust property originate from different persons)—

(a) in paragraph (a), before “trusts” insert “ non-charitable ”; and

(b) in the closing words, before “trusts” insert “ non-charitable ”.

Deemed surrender of certain loans U.K.

9 (1) Section 548(1) of the Taxes Act 1988 is amended as follows. U.K.

F11 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In paragraph (c) (condition that sum is lent to, or at the direction of, the individual or company by, or by arrangement with, the body issuing etc the policy or contract) after “company” insert “ or those trustees ”.

Textual Amendments

F11 Sch. 34 para. 9(2) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)

Right of individual to recover tax from trustees U.K.

F12 10 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F12 Sch. 34 para. 10 repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)

Right of company to recover tax from trustees U.K.

11 U.K. In section 551A of the Taxes Act 1988, in subsection (1) (company liable as settlor) in paragraph (b), for “trust” substitute “ non-charitable trusts ”.

Section 547(1)(cc) and (d)(ia): exception for certain old policies and contracts U.K.

F13 12 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F13 Sch. 34 para. 12 repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2)