Finance Act 2009

Other matters U.K.

122 Inheritance tax: agricultural property and woodlands relief for EEA land U.K.

(1) Part 5 of IHTA 1984 (miscellaneous reliefs) is amended as follows.

(2) In section 115 (agricultural property relief: preliminary), in subsection (3), insert at the end “(or, in the case of property outside the United Kingdom, the Channel Islands and the Isle of Man, if it were subject to provisions equivalent in effect to such a covenant).”

(3) For subsection (5) of that section substitute—

“(5) This Chapter applies to agricultural property only if it is in—

(a) the United Kingdom, the Channel Islands or the Isle of Man, or

(b) a state, other than the United Kingdom, which is an EEA state (within the meaning given by Schedule 1 to the Interpretation Act 1978) at the time of the transfer of value in question.”

(4) In section 116 (agricultural property relief: the relief), insert at the end—

“(8) In its application to property outside the United Kingdom, the Channel Islands and the Isle of Man, this section has effect as if any reference to a right or obligation under the law of any part of the United Kingdom were a reference to an equivalent right or obligation under the law governing dispositions of that property.”

(5) In section 125 (woodlands relief), in paragraph (a) of subsection (1), omit “in the United Kingdom”.

(6) After that subsection insert—

“(1A) But this section applies only if the land is in the United Kingdom or another state which is an EEA state (within the meaning given by Schedule 1 to the Interpretation Act 1978) at the time of the person's death.”

(7) The amendments made by this section have effect in relation to transfers of value where the tax payable but for this section (or, in the case of tax payable by instalments, the last instalment of that tax)—

(a) would have been due on or after 22 April 2009, or

(b) was paid or due on or after 23 April 2003.

(8) Where tax falling within subsection (7) has been paid, Her Majesty's Revenue and Customs must repay the tax (together with interest under section 235(1) of IHTA 1984) if, but only if, a claim for repayment is made on or before—

(a) the date determined under section 241(1) of that Act as the last date on which the claim may be made, or

(b) 21 April 2010,

whichever is later.

(9) Where, by virtue of the amendments made by subsections (5) and (6), an election is made under section 125 of IHTA 1984, that election must be made on or before—

(a) the date determined under section 125(3) as the last date on which the election may be made, or

(b) 21 April 2010,

whichever is later.

123 Alternative finance investment bonds U.K.

Schedule 61 contains provision about the taxation of chargeable gains, stamp duty land tax and capital allowances for and in connection with arrangements [F1 to which section 564G of ITA 2007 or section 151N of TCGA 1992 (investment bond arrangements) applies].

Textual Amendments

F1 Words in s. 123 substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 228 (with Sch. 9 paras. 1-9, 22)

124 Mutual societies: tax consequences of transfers of business etc U.K.

(1) The Treasury may by regulations make provision for and in connection with—

(a) the tax consequences of a transfer of all or part of the business or engagements of a mutual society,

(b) the tax consequences of an amalgamation of mutual societies, and

(c) the tax consequences of the conversion of a mutual society into a company.

(2) “Mutual society” means—

(a) a building society incorporated (or deemed to be incorporated) under the Building Societies Act 1986,

(b) a friendly society within the meaning of the Friendly Societies Act 1992, or

[F2 (c) a registered society within the meaning of the Co-operative and Community Benefit Societies Act 2014.]

(3) Regulations under this section may, in particular, make provision about—

(a) relief from tax in respect of losses,

(b) capital allowances,

(c) the taxation of chargeable gains (including provision conferring relief for specified transfers and amalgamations),

(d) the treatment of intangible fixed assets and goodwill,

(e) the treatment of loan relationships (and matters treated as loan relationships),

(f) the treatment of derivative contracts (and contracts treated as derivative contracts),

(g) exemption or other relief from stamp duty, stamp duty reserve tax or stamp duty land tax, and

(h) the treatment of arrangements the purpose, or one of the main purposes, of which is to secure a tax advantage.

(4) Regulations under this section may, in particular—

(a) modify enactments and instruments relating to tax (whenever passed or made),

(b) make different provision for different cases or different purposes, and

(c) make incidental, consequential or transitional provision (including provision modifying enactments and instruments, whenever passed or made).

(5) Regulations under this section may include provision having effect in relation to any time before they are made if the provision does not increase any person's liability to tax.

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

(7) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

(8) In this section—

• “arrangements” includes any arrangements, scheme or understanding of any kind, whether or not legally enforceable and whether involving a single transaction or two or more transactions;

• “company” means a company formed and registered under the Companies Act 2006 (or treated as formed and registered under that Act);

• “derivative contract” has the same meaning as in Part 7 of CTA 2009 (see section 576 of that Act);

• “goodwill” and “intangible fixed asset” have the same meaning as in Part 8 of CTA 2009 (see sections 713 and 715 of that Act);

• “loan relationship” has the same meaning as in the Corporation Tax Acts (see section 302(1) and (2) of CTA 2009);

• “modify” includes amend, repeal or revoke;

• “tax” includes stamp duty;

• “tax advantage” means—

  (a)

  a relief from tax (including a tax credit) or increased relief from tax,

  (b)

  a repayment of tax or increased repayment of tax,

  (c)

  the avoidance, reduction or delay of a charge to tax or an assessment to tax, or

  (d)

  the avoidance of a possible assessment to tax.

Textual Amendments

F2 S. 124(2)(c) substituted (1.8.2014) by Co-operative and Community Benefit Societies Act 2014 (c. 14), s. 154, Sch. 4 para. 147 (with Sch. 5)

125 National Savings ordinary accounts: surplus funds U.K.

(1) As soon as practicable after the passing of this Act—

(a) the Director of Savings and the Commissioners must prepare a statement showing the relevant surplus, and

(b) the Commissioners must pay the relevant surplus into the Consolidated Fund.

(2) The relevant surplus is the amount held by the Commissioners by virtue of section 17 of the 1971 Act (including any such amount held in investments), less the aggregate of—

(a) such sums as the Treasury may determine to be equal to those expended by the Director of Savings in connection with ordinary accounts,

(b) such sums as are necessary to defray the expenses incurred by the Commissioners in connection with ordinary accounts, and

(c) such sums as are required to be paid into the Consolidated Fund by virtue of section 20 of the 1971 Act.

(3) The Commissioners—

(a) must pay into the Consolidated Fund the sums determined in accordance with subsection (2)(a), and

(b) may retain the sums determined in accordance with subsection (2)(b).

(4) As soon as practicable after preparing a statement under subsection (1), the Director of Savings and the Commissioners must transmit the statement to the Comptroller and Auditor General who must—

(a) examine, certify and make a report on it, and

(b) lay copies of the statement, together with copies of that report, before Parliament.

(5) The Treasury may by order repeal or otherwise amend any enactment if the repeal or amendment appears to the Treasury to be necessary or expedient in consequence of—

(a) the closure of ordinary accounts and the transfer of their balances to other accounts (see, in particular, regulations 2B to 2BB of the National Savings Bank Regulations 1972 (S.I. 1972/764)), or

(b) this section.

(6) An order under subsection (5) is to be made by statutory instrument.

(7) No order may be made under subsection (5) unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons.

(8) In this section—

(a) a reference to sums expended or expenses incurred in connection with ordinary accounts includes a reference to sums expended or expenses incurred in connection with the holding of amounts by virtue of section 17 of the 1971 Act (including their holding in investments), and

(b) expressions used in this section and in the 1971 Act have the same meaning in this section as in that Act.

(9) In this section—

• “the 1971 Act” means the National Savings Bank Act 1971;

• “enactment” includes—

  (a)

  an enactment contained in the 1971 Act, and

  (b)

  subordinate legislation (which has the same meaning as in the Interpretation Act 1978).