Finance Act 2010

1. Introductory Text

2. Part 1 Charges, rates etc

   1. Income tax

      1. 1. Charge, main rates, thresholds and allowances etc for 2010-11

   2. Corporation tax

      1. 2. Charge and main rate for financial year 2011

      2. 3. Small profits rates and fractions for financial year 2010

   3. Capital gains tax

      1. 4. Increase in entrepreneurs’ relief

   4. Capital allowances

      1. 5. Annual investment allowance

   5. Stamp duty land tax

      1. 6. Relief for first-time buyers

      2. 7. Rate in respect of residential property where consideration over £1m

   6. Inheritance tax

      1. 8. Rate bands

   7. Alcohol and tobacco

      1. 9. Rates of alcoholic liquor duties

      2. 10. Rates of tobacco products duty

   8. Vehicle excise duty

      1. 11. Rates for motorcycles

   9. Fuel duties

      1. 12. Fuel duties: rates and rebates from April 2010

      2. 13. Fuel duties: further changes in rates and rebates

   10. Other environmental taxes

       1. 14. Rates of air passenger duty

       2. 15. Standard rate of landfill tax

       3. 16. Rate of aggregates levy

       4. 17. Rates of climate change levy

       5. 18. Climate change levy: reduced-rate supplies

   11. Gambling

       1. 19. Rate of bingo duty

       2. 20. Rates of gaming duty

       3. 21. Amusement machine licence duty

   12. New taxes

       1. 22. Bank payroll tax

       2. 23. Pensions: high income excess relief charge

3. Part 2 Anti-avoidance and revenue protection

   1. Losses, capital allowances etc

      1. 24. Sideways relief etc

      2. 25. Property loss relief

      3. 26. Capital allowance buying

      4. 27. Leased assets

      5. 28. Cushion gas

      6. 29. Sale of lessors: consortium relationships

   2. Charities etc

      1. 30. Charities and community amateur sports clubs: definitions

      2. 31. Gifts of shares etc to charities

      3. 32. Miscellaneous amendments

   3. Remittance basis

      1. 33. “Relevant person”

      2. 34. Foreign currency bank accounts

   4. Other international matters

      1. 35. Penalties: offshore income etc

      2. 36. Reliefs and reductions for foreign tax

      3. 37. Asset transfer to non-resident company: recovery of postponed charge

   5. Securities etc

      1. 38. Transactions in securities

      2. 39. Approved CSOP schemes: eligible shares

      3. 40. Unauthorised unit trusts

      4. 41. Index-linked gilt-edged securities

      5. 42. Approved share incentive plans

   6. Loan relationships and derivative contracts

      1. 43. Close companies: release of loans to participators etc

      2. 44. Connected companies: releases of debts

      3. 45. Relationships treated as loan relationships etc: repos

      4. 46. Risk transfer schemes

   7. Insurance companies

      1. 47. Apportionment of asset value increases

   8. Pensions

      1. 48. Extension of special annual allowance charge

      2. 49. Information

   9. Value added tax and insurance premium tax

      1. 50. Extension of reverse charge provisions to supplies of services

      2. 51. Insurance premium tax: separate contracts

   10. Inheritance tax

       1. 52. Reversionary interests of purchaser or settlor etc in relevant property

       2. 53. Interests in possession

   11. Stamp taxes

       1. 54. SDRT: depositary receipt systems and clearance services systems

       2. 55. SDLT: partnerships

   12. Administration

       1. 56. Disclosure of tax avoidance schemes

       2. 57. Opening of postal packets

4. Part 3 Other provisions

   1. Income tax: benefits in kind

      1. 58. Zero and low emission vehicles

      2. 59. Cars with CO₂ emissions figure

      3. 60. Subsidised meals for employees: salary sacrifice etc

   2. Corporation tax

      1. 61. Sale of lessors: election out of charge

      2. 62. Accounting standards: loan relationships and derivative contracts

   3. Miscellaneous

      1. 63. Champions League final

      2. 64. FSCS intervention in relation to insurance contracts

      3. 65. Stamp duty and SDRT: clearing houses

      4. 66. Alcoholic liquor duties: power to amend definition of “cider”

      5. 67. Climate change levy: compatible state aid

   4. 68. Pensions: minor corrections

   5. Final provisions

      1. 69. Interpretation

      2. 70. Short title

5. SCHEDULES

   1. SCHEDULE 1

      Bank payroll tax

      1. Part 1 The tax

         1. 1. The tax

         2. 2. Rate

         3. 3. “Taxable company”

         4. 4. “Relevant remuneration”

         5. 5. “Excluded remuneration”

         6. 6. “Awarded”

         7. 7. “Amount” of remuneration

         8. 8. “The chargeable period”

         9. 9. “Relevant banking employee”

         10. 10. Multiple employments

         11. 11. Payments etc to intermediaries

         12. 12. Arrangements for future payments etc

         13. 13. Loans

         14. 14. Anti-avoidance

         15. 15. No deduction in computing profits

      2. Part 2 Collection and management of tax

         1. 16. Responsibility for collection and management

         2. 17. Due date for payment

         3. 18. Obligation to deliver return

         4. 19. Content etc of return

         5. 20. Failure to include self-assessment

         6. 21. Amendment of return by company

         7. 22. Correction of return by HMRC

         8. 23. Enquiry into return

         9. 24. Determination by HMRC

         10. 25. Discovery assessment by HMRC

         11. 26. Notice of a discovery assessment— (a) must be served on...

         12. 27. (1) No discovery assessment may be made after the relevant...

         13. 28. (1) If a discovery assessment is made with respect to...

         14. 29. Collection and recovery

         15. 30. Interest on late payments and repayments

         16. 31. Overpaid tax etc

         17. 32. Appeals and other proceedings

         18. 33. (1) Where a provision of FA 1998 is applied by...

         19. 34. Obligation to preserve records

         20. 35. (1) A taxable company which fails to comply with paragraph...

         21. 36. Information powers

         22. 37. Penalties

         23. 38. (1) Schedule 55 to FA 2009 (penalties for failure to...

         24. 39. (1) Schedule 56 to FA 2009 (penalties for failure to...

         25. 40. Miscellaneous

         26. 41. Chapter 6 of Part 22 of CTA 2010 (collection etc...

         27. 42. Section 118(5) to (7) of TMA 1970 (meaning of carelessly...

      3. Part 3 Definitions

         1. 43. “UK resident bank” and “relevant foreign bank”

         2. 44. “Relevant regulated activity”, “capital resources condition”, “excluded company”, “asset management activities”, “linked entity” etc

         3. 45. “Member of a banking group”

         4. 46. “The trading income of the group” for the relevant period

         5. 47. “Investment company” etc

         6. 48. “Financial trading company” etc

         7. 49. Other interpretative provisions

   2. SCHEDULE 2

      Pensions: high income excess relief charge

      1. 1. Part 4 of FA 2004 (pension schemes etc) is amended...

      2. 2. After section 213 insert— High income excess relief charge High...

      3. 3. (1) Section 282 (orders and regulations) is amended as follows....

      4. 4. In Schedule 34 (non-UK schemes: application of certain charges), after...

      5. 5. The amendments made by this Schedule have effect for the...

   3. SCHEDULE 3

      Sideways relief etc

      1. 1. Amendments of Chapter 2 of Part 4 of ITA 2007

      2. 2. In section 60(1)(c) (overview of Chapter), for “(see sections 75”...

      3. 3. In section 64(8) (deduction of losses from general income)—

      4. 4. In section 72(5) (relief for individuals for losses in first...

      5. 5. Before section 74A insert— No relief for tax-generated losses (1) This section applies if— (a) during a tax year...

      6. 6. Omit section 74B (no relief for tax-generated losses in case...

      7. 7. (1) Section 74C (meaning of “non-active capacity” for purposes of...

      8. 8. (1) Section 74D (meaning of “qualifying film expenditure” for purposes...

      9. 9. Omit section 81 (dealings in commodity futures).

      10. 10. Other amendments

      11. 11. Commencement

   4. SCHEDULE 4

      Capital allowance buying

      1. 1. Part 2 of CAA 2001 (plant and machinery allowances) is...

      2. 2. After Chapter 16 insert— Chapter 16A Avoidance involving allowance buying...

      3. 3. For the heading of Chapter 17 substitute “Other anti-avoidance”.

      4. 4. Section 247 (giving effect to allowances and charges: trades) is...

      5. 5. The amendments made by this Schedule have effect where the...

      6. 6. But in relation to cases where the relevant day is...

   5. SCHEDULE 5

      Leased assets

      1. 1. Restriction of qualifying expenditure

      2. 2. Restriction of deduction for rental rebate

      3. 3. Arrangements reducing disposal value of asset

   6. SCHEDULE 6

      Charities and community amateur sports clubs: definitions

      1. Part 1 Definition of “charity”, “charitable company” and “charitable trust”

         1. 1. Definition of “charity” etc

         2. 2. Jurisdiction condition

         3. 3. Registration condition

         4. 4. Management condition

         5. 5. Periods over which management condition treated as met

         6. 6. Publication of names and addresses of bodies or trusts regarded by HMRC as charities

         7. 7. Enactments to which this Part applies

      2. Part 2 Repeals of superseded definitions and other consequential amendments

         1. 8. FA 1982

         2. 9. FA 1983

         3. 10. IHTA 1984

         4. 11. FA 1986

         5. 12. FA 1989

         6. 13. TCGA 1992

         7. 14. F(No.2)A 1997

         8. 15. FA 1999

         9. 16. CAA 2001

         10. 17. ITEPA 2003

         11. 18. FA 2003

         12. 19. In paragraph 1 (charities relief), omit sub-paragraph (4).

         13. 20. In paragraph 4 (charitable trusts), in sub-paragraph (2), omit “and...

         14. 21. ITTOIA 2005

         15. 22. F(No.2)A 2005

         16. 23. ITA 2007

         17. 24. FA 2008

         18. 25. CTA 2009

         19. 26. FA 2009

         20. 27. CTA 2010

         21. 28. TIOPA 2010

         22. 29. Power to make further consequential provision

      3. Part 3 Meaning of “community amateur sports club”

         1. 30. Chapter 9 of Part 13 of CTA 2010 (community amateur...

         2. 31. In section 658(1) (meaning) omit the “and” at the end...

         3. 32. After section 661 insert— The location condition (1) A club meets the location condition for the purposes...

      4. Part 4 Commencement

         1. 33. Commencement of Part 1

         2. 34. Commencement of Part 2

         3. 35. Commencement of Part 3

   7. SCHEDULE 7

      Gifts of shares etc to charities

      1. 1. Gifts by individuals

      2. 2. (1) Section 437 (value of net benefit to charity) is...

      3. 3. After section 438 insert— Acquisition value of qualifying investments (1) For the purposes of this Chapter the acquisition value...

      4. 4. In Schedule 4 to ITA 2007 (index of defined expressions),...

      5. 5. Gifts by companies

      6. 6. (1) Section 209 (value of net benefit to charity) is...

      7. 7. After section 210 insert— Acquisition value of qualifying investments (1) For the purposes of this Chapter the acquisition value...

      8. 8. In Schedule 4 to CTA 2010 (index of defined expressions),...

      9. 9. Commencement and corresponding ICTA amendments

      10. 10. Amendments corresponding to the ones made by paragraphs 6 and...

   8. SCHEDULE 8

      Charities: miscellaneous amendments

      1. 1. Payroll giving

      2. 2. Payments to bodies outside the UK: non-charitable expenditure

      3. 3. Gift aid: disqualified overseas gifts

      4. 4. Gift aid administration: charitable trusts

      5. 5. (1) ITA 2007 is amended as follows.

      6. 6. Gift aid administration: charitable companies

      7. 7. In CTA 2010, after section 477 insert— Claims Claims in...

      8. 8. Commencement

   9. SCHEDULE 9

      Foreign currency bank accounts

      1. 1. In TCGA 1992, after section 252 insert— Foreign currency bank...

      2. 2. In that Act, after Schedule 8 insert— Schedule 8A Foreign...

      3. 3. The amendments made by this Schedule have effect in relation...

   10. SCHEDULE 10

       Penalties: offshore income etc

       1. 1. Schedule 24 to FA 2007

       2. 2. For paragraph 4 substitute— (1) This paragraph sets out the penalty payable under paragraph...

       3. 3. For paragraph 10 substitute— (1) If a person who would otherwise be liable to...

       4. 4. In paragraph 12 (interaction with other penalties), for sub-paragraph (4)...

       5. 5. In Part 5 (general), before the heading “Interpretation” insert— Classification...

       6. 6. After paragraph 23A insert— UK” means the United Kingdom, including the territorial sea of...

       7. 7. Schedule 41 to FA 2008

       8. 8. For paragraph 6 substitute— (1) This paragraph sets out the penalty payable under paragraph...

       9. 9. For paragraph 13 substitute— (1) If a person who would otherwise be liable to...

       10. 10. Schedule 55 to FA 2009

       11. 11. (1) Paragraph 6 (amount of penalty if failure continues more...

       12. 12. After paragraph 6 insert— (1) Information is category 1 information if—

       13. 13. (1) Paragraph 15 (reductions for disclosure) is amended as follows....

       14. 14. In paragraph 17 (interaction with other penalties)—

   11. SCHEDULE 11

       Reliefs and reductions for foreign tax

       1. 1. Effect of foreign tax becoming payable

       2. 2. (1) Section 85 of TIOPA 2010 (schemes about effect of...

       3. 3. (1) The amendments made by paragraphs 1 and 2 have...

       4. 4. Schemes about deemed foreign tax

       5. 5. Foreign tax payable by other participants

       6. 6. Claims etc made before scheme or arrangement made

       7. 7. Limit on reduction for foreign tax

   12. SCHEDULE 12

       Transactions in securities

       1. 1. Income tax

       2. 2. For sections 682 to 694 substitute— Introduction Overview of Chapter...

       3. 3. In section 698(6) (counteraction notices), omit— (a) the entry relating...

       4. 4. Omit section 699 (limit on amount assessed in section 689...

       5. 5. In section 700 (timing of assessments in section 690 cases)—...

       6. 6. In the heading before section 701, omit “and information powers”....

       7. 7. (1) Section 713 (interpretation) is amended as follows.

       8. 8. Corporation tax

       9. 9. In section 733(2) (company liable to counteraction of corporation tax...

       10. 10. Omit section 735 (abnormal dividends used for exemptions or reliefs)....

       11. 11. Consequential amendments

       12. 12. (1) Schedule 4 to that Act (index of defined expressions)...

       13. 13. In FA 2007, in Schedule 26, omit paragraph 12(11).

       14. 14. In CTA 2010, in Schedule 1, omit paragraphs 545 and...

       15. 15. Commencement

   13. SCHEDULE 13

       Unauthorised unit trusts

       1. 1. Amendments of Chapter 13 of Part 15 of ITA 2007

       2. 2. Consequential amendments

       3. 3. Commencement

       4. 4. Transitional provision: opening value of trustees’ double tax relief pool

   14. SCHEDULE 14

       Index-linked gilt-edged securities

       1. 1. Amendments of Chapter 12 of Part 5 of CTA 2009

       2. 2. In section 398(2) (overview of Chapter), for paragraph (a) substitute—...

       3. 3. For the heading before section 399 substitute— Index-linked gilt-edged securities...

       4. 4. (1) Section 399 (index-linked gilt-edged securities: basic rules) is amended...

       5. 5. (1) Section 400 (index-linked gilt-edged securities: adjustments for changes in...

       6. 6. After section 400 insert— Adjustments for changes in index: relevant...

       7. 7. Consequential amendment

       8. 8. Commencement

       9. 9. Transitional provision

   15. SCHEDULE 15

       Connected companies: releases of debts

       1. 1. Amendments of section 322 of CTA 2009

       2. 2. Amendments of Chapter 6 of Part 5 of CTA 2009

       3. 3. Commencement

       4. 4. Transitional provision

   16. SCHEDULE 16

       Risk transfer schemes

       1. 1. Amendments

       2. 2. In section 1(4) (overview of Act) omit the “and” at...

       3. 3. After Part 21 insert— Part 21A Risk transfer schemes Introduction...

       4. 4. In Schedule 4 (index of defined expressions), insert at the...

       5. 5. Commencement and transitional provision

   17. SCHEDULE 17

       Disclosure of tax avoidance schemes

       1. 1. Introduction

       2. 2. Initial marketing

       3. 3. (1) Section 308(2) (duties of promoter) is amended as follows....

       4. 4. In section 313A(1) (pre-disclosure enquiry), for “of a proposal or...

       5. 5. In section 318(1) (interpretation), after the definition of “HMRC” insert—...

       6. 6. Promoters to provide client lists

       7. 7. In section 316 (information to be provided in manner and...

       8. 8. In section 317(2) (regulations), after “may” insert “make different provision...

       9. 9. Information provided to introducers

       10. 10. Penalties

       11. 11. Commencement

   18. SCHEDULE 18

       Sale of lessors: election out of charge

       1. 1. Main changes

       2. 2. (1) Section 382 (introduction to Chapter) is amended as follows....

       3. 3. In section 383 (income and matching expense in different accounting...

       4. 4. For section 392 (and the italic heading before it) substitute—...

       5. 5. After section 394 insert— “Qualifying change of ownership” “Qualifying change...

       6. 6. After section 398 insert— Election out of qualifying change of...

       7. 7. Interpretation

       8. 8. In Schedule 4 to that Act (index of defined expressions),...

       9. 9. Commencement etc

       10. 10. Amendments corresponding to those made by this Schedule, having effect...

       11. 11. Neither section 398F of CTA 2010 (inserted by paragraph 6)...

       12. 12. Section 398A of CTA 2010 (as inserted by paragraph 6)...

       13. 13. Section 398D of CTA 2010 (as inserted by paragraph 6)—...

   19. SCHEDULE 19

       Accounting standards: loan relationships and derivative contracts

       1. 1. Loan relationships

       2. 2. Derivative contracts

       3. 3. Affirmative resolution procedure

   20. SCHEDULE 20

       Champions League final

       1. 1. Exemption from income tax

       2. 2. Exclusion of certain income

       3. 3. Tax avoidance

       4. 4. Disapplication of section 966 of ITA 2007

       5. 5. Interpretation

       6. 6. In this Schedule— “the 2011 Champions League final” means the...