Finance Act 2004

Part 1Excise duties

Tobacco products duty

1Rates of tobacco products duty

Alcoholic liquor duties

2Rate of duty on beer

3Rates of duty on wine and made-wine

4Duty stamps for spirits etc

Hydrocarbon oil etc duties

7Sulphur-free fuel

8Definition of “fuel oil”

9Mixing of rebated oil

12Fuel substitutes

14Treatment of certain energy products

Betting and gaming duties

15General betting duty: pool betting

16Rates of gaming duty

Amusement machine licence duty

17Amusement machine licence duty: rates

Vehicle excise duty

18Fee for payment of duty by credit card

Part 2Value added tax

19Disclosure of VAT avoidance schemes

21Reverse charge on gas and electricity supplied by persons outside UK

22Use of stock in trade cars for consideration less than market value

Part 3Income tax, corporation tax and capital gains tax

Chapter 1Income tax and corporation tax charge and rate bands

23Charge and rates for 2004-05

24Personal allowances for those aged 65 or more

Corporation tax

25Charge and main rate for financial year 2005

26Small companies' rate and fraction for financial year 2004

27Corporation tax starting rate and fraction for financial year 2004

28The non-corporate distribution rate

29Special rates of tax applicable to trusts

Chapter 2Corporation tax: general

Transfer pricing

30Provision not at arm’s length: transactions between UK taxpayers etc

31Exemptions for dormant companies and small and medium-sized enterprises

32Special applications of paragraph 6 of Schedule 28AA to the Taxes Act 1988

Penalties: temporary relaxation

33Provision not at arm’s length: temporary relaxation of liability to penalty

Thin capitalisation

34Payments of excessive interest etc

35Elimination of double counting etc

36Balancing payments and elections to pay tax instead

Transfer pricing and thin capitalisation: commencement

37Commencement and transitional provisions

Expenses of companies with investment business and insurance companies

38Expenses of management: companies with investment business

39Accounting period to which expenses of management are referable

40Expenses of insurance companies

41Related amendments to other enactments

42Commencement of sections 38 to 41

43Companies with investment business: transitional provisions

44Insurance companies: transitional provisions

Amounts reversing expenses of management deducted

45Amounts reversing expenses of management deducted: charge to tax

Power to make consequential amendments

46Power to make consequential amendments

Insurance companies: miscellaneous

47Insurance companies etc.

Loan relationships and derivative contracts

48Loan relationships: miscellaneous amendments

49Derivative contracts: miscellaneous amendments

Accounting practice

50Generally accepted accounting practice

51Use of different accounting practices within a group of companies

52Amendment of enactments that operate by reference to accounting practice

53Treatment of expenditure on research and development

54Trading profits etc. from securities: taxation of amounts taken to reserves

55Duty of company to give notice of coming within charge to corporation tax

55ASection 55: exception to duty to give notice

56Relief for community amateur sports clubs

Chapter 3Construction industry scheme

58Sub-contractors

Deductions on account of tax from contract payments to sub-contractors

60Contract payments

61Deductions on account of tax from contract payments

62Treatment of sums deducted

Registration of sub-contractors

63Registration for gross payment or for payment under deduction

64Requirements for registration for gross payment

65Change in control of company registered for gross payment

66Cancellation of registration for gross payment

67Registration for gross payment: appeals

68Registration for payment under deduction: cancellation and appeals

Verification, returns , security etc and penalties

69Verification etc of registration status of sub-contractors

70Periodic returns by contractors etc

70ASecurity for payments to HMRC

71Collection and recovery of sums to be deducted

73Regulations under this Chapter: supplementary

73ADesignated international organisations: exemption from section 59

74Meaning of “construction operations”

75Meaning of “the Inland Revenue” etc and delegation of Board’s functions

76Consequential amendments

77Commencement and transitional provision

Chapter 4Personal taxation

Taxable benefits

78Childcare and childcare vouchers

79Exemption for loaned computer equipment

81Emergency vehicles

82European travel expenses of MPs and other representatives

83Giving through the self-assessment return

Gifts with a reservation

84Charge to income tax by reference to enjoyment of property previously owned

Employment-related securities and options

85Relief where national insurance contributions met by employee

86Shares in employee-controlled companies and unconnected companies

87Restricted securities with artificially depressed value

88Shares under approved plans and schemes

89Shares acquired on public offer

90Associated persons etc.

91Income of spouses: jointly held property

92Minor amendments of or connected with ITEPA 2003

Chapter 5Enterprise incentives

93Enterprise investment scheme

94Venture capital trusts

95Corporate venturing scheme

96Enterprise management incentives: subsidiaries

Chapter 6Exemption from income tax for certain interest and royalty payments

Exemption from income tax

98Exemption from income tax for certain interest and royalty payments

99Permanent establishments and “25% associates”

Exemption notices

100Interest payments: exemption notices

Payment without deduction

101Payment of royalties without deduction at source

102Claim for tax deducted at source from exempt interest or royalty payments

Special relationships and anti-avoidance

103Special relationships

104Anti-avoidance

105Consequential amendments

106Transitional provision

Chapter 7Savings income: double taxation arising from withholding tax

107Introductory

Credit etc for special withholding tax

108Income tax credit etc for special withholding tax

109Capital gains tax credit etc for special withholding tax

110Credit under Part 18 of Taxes Act 1988 to be allowed first

Computation of income etc

111Computation of income etc subject to special withholding tax only

112Computation of income etc subject to foreign tax and special withholding tax

Certificates to avoid levy of special withholding tax

113Issue of certificate

114Refusal to issue certificate and appeal against refusal

115Supplementary

Chapter 8Chargeable gains

116Restriction of gifts relief etc

117Private residence relief

118Authorised unit trusts: treatment of umbrella schemes

Chapter 9Avoidance involving loss relief or partnership

Individuals benefited by film relief

119Individuals benefited by film relief

120“Disposal of a right of the individual to profits arising from the trade”

121“The losses claimed” and “the individual’s capital contribution to the trade”

122Computing the chargeable amount

122APartners: meaning of “capital contribution to the trade”

123“Film-related losses” and “non-taxable consideration”

Individuals in partnership: restriction of relief

124Restriction of relief: non-active partners

125Partnerships exploiting films

Individuals in partnership: exit charge

126Losses derived from exploiting licence: introductory

127Charge to income tax

128Definitions for purposes of section 127

129Disposals to which section 126 applies

130“A significant amount of time”

Companies in partnership

131Companies in partnership

132Companies in partnership: supplementary

133Relationship with chargeable gains

Chapter 10Avoidance: miscellaneous

134Finance leasebacks

135Rent factoring of leases of plant or machinery

136Manufactured dividends

137Manufactured payments under arrangements having an unallowable purpose

139Gifts of shares, securities and real property to charities etc

140Life policies etc.: restriction of corresponding deficiency relief

Chapter 11Miscellaneous

Reliefs for business

141Relief for research and development: software and consumable items

142Temporary increase in amount of first-year allowances for small enterprises

143Deduction for expenditure by landlords on energy-saving items

144Lloyd’s names: conversion to limited liability underwriting

Offshore matters

145Offshore funds

146Meaning of “offshore installation”

147Immediate needs annuities

148Corporation tax: health service bodies

Part 4Pension schemes etc

Chapter 1Introduction

149Overview of Part 4

150Meaning of “pension scheme”

151Meaning of “member”

152Meaning of “arrangement”

Chapter 2Registration of pension schemes

153Registration of pension schemes

153APower to require information or documents in relation to applications for registration

153BPower to inspect documents in relation to applications for registration

153CPenalties for failure to comply with information notices etc

153DPenalties for inaccurate information in applications

153EPenalties for inaccurate information or documents provided under information notice

153FPenalties for false declarations

154Persons by whom registered pension scheme may be established

155Persons by whom scheme may be established: supplementary

156Appeal against decision not to register

156ACases where application for registration not decided within 6 months

De-registration

157De-registration

158Grounds for de-registration

159Appeal against decision to de-register

159APower to require information or documents for purpose of considering if scheme administrator is fit and proper

159BPower to inspect documents for purpose of considering if scheme administrator is fit and proper

159CPenalties for failure to comply with information notices etc

159DPenalties for inaccurate information or documents provided under information notice

Chapter 3Payments by registered pension schemes

160Payments by registered pension schemes

161Meaning of “payment” etc

162Meaning of “loan”

163Meaning of “borrowing” etc

Authorised member payments

164Authorised member payments

165Pension rules

166Lump sum rule

167Pension death benefit rules

168Lump sum death benefit rule

169Recognised transfers

170Appeal against decision to exclude recognised overseas pension scheme

171Scheme administration member payments

Unauthorised member payments

172BIncrease in rights of connected person on death

172BAIncrease in rights on death arising from alternatively secured pension fund etc

172CAllocation of unallocated employer contributions

172DLimit on increase in benefits

174Value shifting

174ATaxable property held by investment-regulated pension schemes

Authorised employer payments

175Authorised employer payments

176Public service scheme payment

177Authorised surplus payment

178Compensation payments

179Authorised employer loan

180Scheme administration employer payments

Unauthorised employer payments

181Value shifting

Alternatively secured pensions

181AMinimum level of payment

182Unauthorised borrowing: money purchase arrangements other than collective money purchase arrangements

183Effect of unauthorised borrowing: money purchase arrangements other than collective money purchase arrangements

184Unauthorised borrowing: other arrangements

185Effect of unauthorised borrowing: other arrangements

Income and gains from taxable property

185AIncome from taxable property

185BAnnual profits and deemed profits

185CDeemed market value

185DApportionment to pension scheme

185ECredit for tax paid

185FGains from taxable property

185GDisposal by person holding directly

185HDisposal of interest in vehicle

185ICredit for tax paid

Repayments of lump sums

185JEffect of repayment of certain pre-6 April 2015 lump sums

Chapter 4Registered pension schemes: tax reliefs and exemptions

Scheme investments

187Chargeable gains

Members' contributions

188Relief for contributions

189Relevant UK individual

190Annual limit for relief

191Methods of giving relief

192Relief at source

192ARelief at source: additional relief

192BRelief at source: excessive relief given

193Relief under net pay arrangements

193ANet pay arrangements: relief where no income tax liability

194Relief on making of claim

195Transfer of certain shares to be treated as payment of contribution

195ALife assurance premium contributions

Employers' contributions

196Relief for employers in respect of contributions paid

196APower to restrict relief

196BEmployer asset-backed contributions: denial of relief (1)

196CEmployer asset-backed contributions: “acceptable structured finance arrangement” (1)

196DEmployer asset-backed contributions: denial of relief (2)

196EEmployer asset-backed contributions: “acceptable structured finance arrangement” (2)

196FEmployer asset-backed contributions: denial of relief (3)

196GEmployer asset-backed contributions: “acceptable structured finance arrangement” (3)

196HEmployer asset-backed contributions: “relevant change in relation to the partnership” and “person involved in the relevant change”

196IEmployer asset-backed contributions: change in lender's original position under acceptable structured finance arrangement etc

196JEmployer asset-backed contributions: further events which cause section 196I to apply

196KEmployer asset-backed contributions: “advances” under acceptable structured finance arrangements

196LEmployer asset-backed contributions: supplementary

197Spreading of relief

198Spreading of relief: cessation of business

199Deemed contributions

199AIndirect contributions

200No other relief for employers in connection with contributions

201Relief for employees

Inland Revenue contributions

202Minimum contributions under pensions legislation

Inheritance tax exemptions

203Inheritance tax exemptions

Chapter 5Registered pension schemes: tax charges

Charges on authorised payments

204Authorised pensions and lump sums

205Short service refund lump sum charge

205ASerious ill-health lump sum charge

206Special lump sum death benefits charge

207Authorised surplus payments charge

Unauthorised payments charge

208Unauthorised payments charge

209Unauthorised payments surcharge

210Surchargeable unauthorised member payments

211Valuation of crystallised rights for purposes of section 210

212Valuation of uncrystallised rights for purposes of section 210

213Surchargeable unauthorised employer payments

213AHigh income excess relief charge

213BHigh income

213CGross income

213DRelevant income

213EThe appropriate rate

213FTotal pension savings amount

213GMoney purchase arrangements other than cash balance arrangements

213HCash balance arrangements

213IAdjustment of closing rights

213JDefined benefits arrangements

213KAdjustment of closing pension and lump sum

213LAge-related factors

213MUprating of opening rights, pension and lump sum

213NHybrid arrangements

213OAnti-avoidance

213PPower to make regulations about charge

214Lifetime allowance charge

215Amount of charge

216Benefit crystallisation events and amounts crystallised

217Persons liable to charge

218Individual’s lifetime allowance and standard lifetime allowance

219Availability of individual’s lifetime allowance

220Pension credits from previously crystallised rights

221Non-residence: general

222Non-residence: money purchase arrangements

223Non-residence: other arrangements

224Transfers from recognised overseas pension scheme: general

225Overseas scheme transfers: money purchase arrangements

226Overseas scheme transfers: other arrangements

Annual allowance charge

227Annual allowance charge

227ZAThe chargeable amount

227AIndividuals who meet flexible drawdown conditions

227BThe alternative chargeable amount

227CMeaning of “money-purchase input sub-total”

227DPension input amounts in respect of certain hybrid arrangements

227EPension input periods ending before rights are first flexibly accessed

227FPension input periods in which rights are first flexibly accessed

227GWhen pension rights are first flexibly accessed

228Annual allowance

228ZATapered reduction of annual allowance: high-income individual

228ZBAnti-avoidance in connection with section 228ZA

228ACarry forward of unused annual allowance

228BCarry forward: certain periods treated as pension input periods

228CAnnual allowance for, and carry-forward from, 2015-16

229Total pension input amount

230Cash balance arrangements

231Cash balance arrangements: uprating of opening value

232Cash balance arrangements: adjustments of closing value

233Other money purchase arrangements

234Defined benefits arrangements

235Defined benefits arrangements: uprating of opening value

236Defined benefits arrangements: adjustments of closing value

236ZADefined benefits arrangements: public service pension schemes

236APost-entitlement enhancements

237Hybrid arrangements

237ZAPension input amounts for input periods ending in 2015-16

237ALiability of individual

237BLiability of scheme administrator

237BATime limit for notices under section 237B

237DDischarge of scheme administrator's liability

237EConsequential benefit adjustments to be reasonable etc

237FPower to modify rules

238Pension input period : arrangement commencing before 9 July 2015

238ZAPension input periods from 9 July 2015 for existing arrangement

238ZBPension input periods for arrangement commencing after 8 July 2015

238APower to make orders about charge

Scheme sanction charge

239Scheme sanction charge

240Amount of charge

241Scheme chargeable payment

De-registration charge

242De-registration charge

CHAPTER 5ARegistered pension schemes established outside the United Kingdom

242AMeaning of “non-UK registered scheme”

242BMeaning of “UK-relieved funds”

242CApplication of this Part to non-UK registered schemes

242DNon-UK registered schemes: annual allowance charge

242EInvestment-regulated non-UK registered schemes

Chapter 6Schemes that are not registered pension schemes

243Overseas pension schemes: migrant member relief

244Non-UK schemes: application of certain charges

Non-UK schemes: the overseas transfer charge

244AOverseas transfer charge

244AAOverseas transfer charge: introduction

244ABOverseas transfer charge: interpretation

244ACOverseas transfer charge: transfers where no exclusion applies

244BExclusion: member and receiving scheme in same country

244CExclusion: receiving scheme in EEA state or Gibraltar, and member resident in UK or EEA state

244DExclusion: receiving scheme is an occupational pension scheme

244EExclusion: receiving scheme set up by international organisation

244FExclusion: receiving scheme is an overseas public service scheme

244GExclusions: avoidance of double charge, and transitional protections

244HPower to provide for further exclusions

244ICircumstances in which exclusions do not apply

244IAOverseas transfer charge: transfers exceeding available allowance

244IBMember’s overseas transfer allowance

244ICAvailability of member’s overseas transfer allowance

244IDInformation to be provided by relieved relevant non-UK scheme on block transfer

244JPersons liable to charge

244JAAmount of charge

244KMeaning of “transferred value”

244LAccounting for overseas transfer charge by scheme managers

244MRepayments of charge on subsequent excluding events

244NDischarge of liability of scheme administrator or manager

Employer-financed retirement benefit schemes

245Restriction of deduction for contributions by employer

246Restriction of deduction for non-contributory provision

246ACase where no relief for provision by an employer

247Abolition of income tax charge in respect of employer payments

248Employer’s cost of insuring against non-payment of benefit

249Taxation of non-pension benefits

Chapter 7Compliance

250Registered pension scheme return

251Information: general requirements

252Notices requiring documents or particulars

253Appeal against notices

Accounting and assessment

254Accounting for tax by scheme administrators

255Assessments under this Part

255AElectronic payment

255BPayments to be cleared payments

Registration regulations

256Enhanced ... allowance regulations

257Registered pension scheme return

258Information required by regulations

259Documents and particulars required by notice

260Accounting return

261Enhanced ... allowance regulations: documents and information

262Enhanced ... allowance regulations: failures to comply

263... Enhanced protection: benefit accrual

264False statements etc

265Winding-up to facilitate payment of lump sums

266Transfers to insured schemes

Relief from liability in respect of returned unauthorised member payments

266AMember's liability

266BScheme's liability

Discharge of tax liability: good faith

267Lifetime allowance charge

268Unauthorised payments surcharge and scheme sanction charge

269Appeal against decision on discharge of liability

Scheme administrator

270Meaning of “scheme administrator”

271Liability of scheme administrator

272Trustees etc. liable as scheme administrator

272ALiabilities of independent trustee

272BLiabilities of scheme administrator appointed by independent trustee etc

272CFormer scheme administrator etc to retain liability

273Members liable as scheme administrator

273ZAIncome and gains from taxable property

273AInsurance company liable as scheme administrator

273BPower of trustees or managers to make certain payments

274Supplementary

Chapter 8Supplementary

National Employment Savings Trust and Master Trust schemes

274ZANational Employment Savings Trust and Master Trust schemes

Dormant pension benefits

274ZBTreatment of pension benefits reclaimed from reclaim fund etc

274APower to split schemes

275Insurance company

276Relevant valuation factor

277Valuation assumptions

278Market value

278ADisqualifying pension credits

278BAnnuities and scheme pensions: meaning of “related to”

279Other definitions

280Abbreviations and general index

Other supplementary provisions

281Minor and consequential amendments

282Orders and regulations

283Transitionals and savings

284Commencement

285Certain receipts not to be tariff receipts

286Petroleum extraction activities: exploration expenditure supplement

287Restrictions on expenditure allowable

288Terminal losses

Part 6Other taxes

Climate change levy

289Supplies to producers of commodities

Aggregates levy

290Transitional tax credit in Northern Ireland: changes to existing scheme

291Transitional tax credit in Northern Ireland: new scheme

Lorry road-user charge

292Lorry road-user charge

Inheritance tax

293Delivery of accounts etc

294Grant of probate

295Amendments to penalty regime

Stamp duty land tax and stamp duty

296Miscellaneous amendments

Stamp duty land tax

298Notification, registration and penalties

299Claims not included in returns

300Assents and appropriations by personal representatives

301Chargeable consideration

302Charities relief

303Shared ownership leases

304Application to certain partnership transactions

305Liability of partners

Part 7Disclosure of tax avoidance schemes

305AIntroduction

306Meaning of “notifiable arrangements” and “notifiable proposal”

306ADoubt as to notifiability

307Meaning of “promoter”

308Duties of promoter

308ASupplemental information

309Duty of person dealing with promoter outside United Kingdom

310Duty of parties to notifiable arrangements not involving promoter

310ADuty to provide further information requested by HMRC

310BFailure to provide information under section 310A: application to the Tribunal

310CDuty of promoters to provide updated information

310DNotice of potential allocation of reference number: arrangements and proposals suspected of being notifiable

311Allocation of reference number to arrangements

311ADuty of HMRC to notify persons of reference number

311BRight of appeal: section 311(3) case

311CDuty to provide further information requested by HMRC: section 311(3) case

312Duty of promoter to notify client of number : section 311(2) case

312ZADuty to notify client of reference number: section 311(3) case

312ADuty of client to notify parties of number

312BDuty of client to provide information ...

313Duty of parties to notify HMRC of reference number etc

313ZADuty to provide details of clients

313ZBEnquiry following disclosure of client details

313ZCDuty of employer to notify HMRC of details of employees etc

313APre-disclosure enquiry

313BReasons for non-disclosure: supporting information

313CProvision of information to HMRC by introducers

314Legal professional privilege

314AOrder to disclose

316Information to be provided in form and manner specified by HMRC

316ADuty to provide additional information

316BConfidentiality

316CPublication by HMRC

316DSection 316C: subsequent judicial rulings

317Regulations under Part 7

317ASpecial Commissioners: procedure

318Interpretation of Part 7

319Part 7: commencement and savings

Part 8Miscellaneous matters

320Exclusion of extended limitation period in England, Wales and Northern Ireland

321Exclusion of extended prescriptive period in Scotland

322Mutual assistance: customs union with the Principality of Andorra

323Ending of shipbuilders' relief

324Government borrowing: preparations for possible adoption of Euro

325Premium bonds

Part 9Supplementary provisions

327Interpretation

SCHEDULE 1New Schedule 2A to the Alcoholic Liquor Duties Act 1979

The Schedule inserted before Schedule 3 to the Alcoholic Liquor...

SCHEDULE 2Disclosure of value added tax avoidance schemes

Part 1Principal amendments of Value Added Tax Act 1994

1After section 58 of the Value Added Tax Act 1994...

2After Schedule 11 to that Act insert— SCHEDULE 11A Disclosure...

Part 2Consequential amendments

3In section 70 of the Value Added Tax Act 1994...

4In section 83 of that Act (appeals) after paragraph (z)...

5(1) Section 84 of that Act (further provisions relating to...

6In section 97 of that Act (orders, rules and regulations)...

SCHEDULE 3Corporation tax: the non-corporate distribution rate: supplementary provisions

Part 1General provisions

1The provisions of this Schedule supplement section 13AB (corporation tax:...

Meaning of “non-corporate distribution”

2(1) A “non-corporate distribution” means a distribution made by a...

Calculation of company’s “underlying rate of corporation tax”

3(1) A company’s underlying rate of corporation tax for an...

Matching: distributions not exceeding basic profits

4Where in an accounting period the total amount of the...

Matching: distributions exceeding basic profits

5Where in an accounting period the total amount of the...

Part 2Allocation of excess NCDs to other companies

Allocation of excess NCDs to other companies

6(1) This Part of this Schedule provides for the allocation...

Allocation of excess NCDs to other group companies

7(1) If at the end of the distribution period the...

Allocation of excess NCDs: period or periods to which amount to be allocated

8(1) Excess NCDs falling to be allocated to another company...

Allocation of excess NCDs: degrouping

9(1) This paragraph applies where a company (“company A”) ceases...

Allocation of excess NCDs: procedure

10(1) The basic rule is that the allocation of excess...

Allocation of excess NCDs: amounts proving to be excessive

11(1) This paragraph applies where an amount of excess NCDs...

Allocation of excess NCDs to companies not resident in the United Kingdom

12(1) The provisions of this Part of this Schedule as...

Part 3Other supplementary provisions

Carry forward of excess NCDs

13(1) Any excess NCDs not allocated to another company under...

Definition of a group

14(1) For the purposes of section 13AB and this Schedule...

Accounting period treated as ending if company ceases to be a member of a group

15(1) Section 13AB and this Schedule apply in relation to...

Treatment of distributions made otherwise than in an accounting period

16For the purposes of section 13AB and this Schedule, a...

Holding companies treated as carrying on a business

17(1) For the purposes of section 13AB and this Schedule...

18In section 13AB and this Schedule— “basic profits” means the...

SCHEDULE 4Amendments relating to the rate applicable to trusts

Sums paid to settlor otherwise than as income

1(1) Section 677 of the Taxes Act 1988 (sums paid...

Trustees chargeable to income tax at 30 per cent in certain cases

2The side-note to section 694 of the Taxes Act 1988...

3The amendments made by paragraph 1 have effect for the...

SCHEDULE 5Provision not at arm’s length: related amendments

Taxes Management Act 1970

Notice of enquiry

1(1) Section 9A of the Taxes Management Act 1970 (c....

Income and Corporation Taxes Act 1988

2. . . . . . . . . ....

Petroleum extraction activities: ring fence trade: charges on income

3(1) Section 494 of the Taxes Act 1988 (charges on...

Assumptions for calculating chargeable profits etc: transfer pricing

4In Schedule 24 to the Taxes Act 1988, paragraph 20...

Finance Act 1996

5. . . . . . . . . ....

6. . . . . . . . . ....

7. . . . . . . . . ....

8. . . . . . . . . ....

Finance Act 1998

9The Finance Act 1998 (c. 36) is amended as follows....

Scope of enquiry

10(1) In Schedule 18 (company tax returns, assessments and related...

Finance Act 2000

Introductory: tonnage tax: transactions not at arm’s length

11Schedule 22 to the Finance Act 2000 (c. 17) (tonnage...

Transactions between tonnage tax company and another person

12(1) Paragraph 58 is amended as follows.

Transactions between tonnage tax trade and other activities of same company

13(1) Paragraph 59 is amended as follows.

Finance Act 2002

14. . . . . . . . . ....

15. . . . . . . . . ....

16. . . . . . . . . ....

SCHEDULE 6Expenses of companies with investment business and insurance companies

SCHEDULE 7Insurance companies etc

Transfers of business

1. . . . . . . . . ....

2. . . . . . . . . ....

3. . . . . . . . . ....

4. . . . . . . . . ....

5. . . . . . . . . ....

Chargeable gains

6(1) In section 210A(10) of the Taxation of Chargeable Gains...

Double taxation

7. . . . . . . . . ....

Meaning of “referable”

8. . . . . . . . . ....

9(1) . . . . . . . . ....

SCHEDULE 8Loan relationships: miscellaneous amendments

1Schedule 9 to the Finance Act 1996 (c. 8) (loan...

Late interest: close companies where limited partnership is collective investment scheme etc

2(1) Paragraph 2 (late interest) is amended as follows.

Bad debts etc: release of amount where creditor is subject to insolvency proceedings

3(1) Paragraph 5 (bad debts etc) is amended as follows....

Bad debt etc: parties having connection and creditor in insolvent administrative receivership

4(1) Paragraph 6A (bad debt etc: parties having connection and...

Deemed assignment of assets and liabilities on company ceasing to be resident in UK etc

5(1) After paragraph 10 (imported losses etc) insert— Deemed assignment...

Discounted securities of close companies: limited partnership collective investment scheme etc

6(1) Paragraph 18 (discounted securities of close companies) is amended...

Interpretation of references to major interest

7(1) Paragraph 20 (major interest) is amended as follows.

SCHEDULE 9Derivative contracts: miscellaneous amendments

1Schedule 26 to the Finance Act 2002 (c. 23) is...

Power to amend provisions of Schedule 26

2(1) Paragraph 13 is amended as follows.

Deemed assignment of derivative contracts on company ceasing to be resident in UK etc

3(1) At the beginning of Part 6 (special computational provisions)...

Derivative contracts for unallowable purposes

4(1) In paragraph 23, in sub-paragraph (7) (definition of amount...

Open-ended investment companies: capital profits and losses

5(1) In paragraph 33(4)(b) (which refers to a subsequent statement...

SCHEDULE 10Amendment of enactments that operate by reference to accounting practice

Part 1Loan relationships

Main computational provisions

1(1) Section 84 of the Finance Act 1996 (c. 8)...

2(1) Section 84A of that Act (exchange gains and losses...

3For sections 85 and 86 of that Act (authorised accounting...

4In section 87 of that Act (accounting method where parties...

5In section 88 of that Act (exemption from section 87...

6(1) Section 88A of that Act (accounting method where rate...

7Omit section 90 of that Act (changes of accounting method)....

8After that section insert— Change of accounting basis applicable to...

9(1) Omit section 92 of that Act (convertible securities etc....

10Omit section 92A of that Act (convertible securities etc.: debtor...

11(1) Omit sections 93, 93A and 93B of that Act...

12Omit section 94 of that Act (indexed gilt-edged securities).

13After that section insert— Loan relationships with embedded derivatives (1) This section applies where a company is permitted or...

14In section 95 of that Act (gilt strips), in subsection...

15In section 96 of that Act (special rules for certain...

16In section 101 of that Act (financial instruments), after subsection...

17(1) Section 103 of that Act (interpretation) is amended as...

Special computational provisions

18Schedule 9 to the Finance Act 1996 (c. 8) (loan...

19In paragraph 3 (1) (options etc.) for “an authorised accruals...

20(1) Paragraph 5 (bad debts etc.) is amended as follows....

21(1) Paragraph 5A (bad debts and consortium relief) is amended...

22(1) Paragraph 6 (bad debts etc where parties have a...

23(1) Paragraph 6A (bad debts etc.: parties having connection and...

24(1) Paragraph 6B (bad debts etc. : companies becoming connected)...

25(1) Paragraph 6C (bad debts etc. : cessation of connection)...

26In paragraph 8 (restriction on writing off overseas sovereign debts...

27(1) Paragraph 9 (further restriction on bringing into account losses...

28In paragraph 10 (imported losses etc. ), for sub-paragraph (1)...

29In paragraph 10A (deemed disposal on company ceasing to be...

30In paragraph 11 (transactions not at arm’s length), for sub-paragraph...

31In paragraph 12 (continuity of treatment: groups etc.), in sub-paragraph...

32In paragraph 13 (loan relationships for unallowable purposes), in the...

33(1) Paragraph 14 (debits and credits treated as relating to...

34In paragraph 16 (amounts imputed under Schedule 28AA to the...

35(1) Paragraph 19 (partnerships involving companies) is amended as follows....

36After paragraph 19 insert— Adjustment on change of accounting policy...

Collective investment schemes etc.

37Schedule 10 to the Finance Act 1996 (c. 8) (loan...

38For paragraph 1A (investment trusts and venture capital trusts: capital...

39(1) Paragraph 2A (authorised unit trusts) is amended as follows....

40(1) Paragraph 2B (open-ended investment companies) is amended as follows....

41(1) Paragraph 4 (company holdings in unit trusts and offshore...

42In Schedule 11 to the Finance Act 1996 (c. 8)...

Consequential amendments

43In section 440 of the Taxes Act 1988 (insurance companies:...

44In section 730A of that Act (treatment of price differential...

45In Schedule 28A of that Act (change in ownership of...

46In paragraph 7(3) of Schedule 26 to the Transport Act...

Part 2Derivative contracts

Method of taxation

47(1) In Schedule 26 to the Finance Act 2002 (c....

48(1) Paragraph 16 of that Schedule (exchange gains and losses...

Accounting methods

49In the heading to Part 4 of that Schedule for...

50For paragraphs 17 to 20 of that Schedule (authorised accounting...

51In paragraph 21 (basis of accounting for contracts falling within...

Special provision for bad debt etc.

52In the heading to Part 5 of that Schedule (special...

53(1) Paragraph 22 of that Schedule (bad debts etc.) is...

Special computational provisions

54In paragraph 22A of that Schedule (deemed assignment of derivative...

55In paragraph 23 of that Schedule (derivative contracts for unallowable...

56(1) Paragraph 25 of that Schedule (debits and credits treated...

57In paragraph 30 of that Schedule (transactions within groups: authorised...

58In paragraph 31A of that Schedule (amounts imputed under Schedule...

Collective investment schemes

59(1) Paragraph 32 of that Schedule (authorised unit trusts: capital...

60(1) Paragraph 33 of that Schedule (open-ended investment companies: capital...

61In paragraph 34 of that Schedule (power to amend paragraphs...

62In paragraph 36 of that Schedule (contracts relating to holdings...

63For paragraph 38 of that Schedule (investment trusts and venture...

64In paragraph 48 of that Schedule (election to treat contract...

65In paragraph 49(4) of that Schedule (partnerships involving companies: provisions...

66For paragraph 50 of that Schedule (partnerships involving companies: application...

67After that paragraph insert— Adjustment on company changing to international...

68Omit paragraph 52 of that Schedule (meaning of “statutory accounts”)....

69In paragraph 54 (1) of that Schedule (interpretation)—

Consequential amendment

70In section 440 of the Taxes Act 1988 (insurance companies:...

Part 3Intangible fixed assets

Excluded assets: assets in respect of which capital allowances previously made

71In Part 10 of Schedule 29 to the Finance Act...

Adjustment on change of accounting policy

72In Part 13 of that Schedule (supplementary provisions), after paragraph...

References to amounts recognised in profit and loss account

73(1) In Part 15 of that Schedule (interpretation) paragraph 134(a)...

Consequential amendments

74In paragraph 15(4) of that Schedule (credits on revaluation of...

75In paragraph 20 (1) of that Schedule (realisation of asset...

76In paragraph 27 (1) of that Schedule (calculation of tax...

Part 4Foreign currency accounting

Main provisions

77For sections 92 to 94AB of the Finance Act 1993...

Consequential amendments

78(1) Section 730BB of the Taxes Act 1988 (exchange gains...

Transitional provision

79Where a company carries forward to its first period of...

SCHEDULE 11Conditions for registration for gross payment

Part 1Conditions to be satisfied by individuals

1(1) In the case of an application for an individual...

The business test

2The applicant must satisfy the Inland Revenue, by such evidence...

The turnover test

3(1) The applicant must satisfy the Inland Revenue, by such...

The compliance test

4(1) The applicant must, subject to sub-paragraphs (3) and (4),...

Part 2Conditions to be satisfied by firms

5In the case of an application for an individual or...

The business test

6The applicant must satisfy the Inland Revenue, by such evidence...

The turnover test

7(1) The partners must satisfy the Inland Revenue, by such...

The compliance test

8(1) Subject to sub-paragraphs (2) and (3), each of the...

Exception from compliance test: firms

8A(1) The conditions in paragraph 8 (the compliance test: firms)...

Part 3Conditions to be satisfied by companies

9In the case of an application for a company to...

The business test

10The company must satisfy the Inland Revenue, by such evidence...

The turnover test

11(1) The company must either— (a) satisfy the Inland Revenue,...

The compliance test

12(1) The company must, subject to sub-paragraphs (2) and (3),...

Exception from the compliance test: companies

12A(1) The conditions in paragraph 12 (compliance test: companies) do...

Part 4Supplementary provisions

Power to amend conditions for registration for gross payment

13(1) The Treasury may by order made by statutory instrument...

“Qualifying period”

14In this Schedule “the qualifying period” means the period of...

14A(1) For any part of the qualifying period falling on...

Regulations under this Schedule

15Any power under this Schedule to make regulations prescribing the...

16Regulations under paragraph 3(1), 7 (1) or 11 (1) prescribing...

SCHEDULE 12Construction industry scheme: consequential amendments

Records to be kept for purposes of returns

1(1) Section 12B of the Taxes Management Act 1970 (c....

General rule as to when corporation tax is due and payable

2(1) Section 59D of the Taxes Management Act 1970 is...

Claim for repayment in advance of liability being established

3(1) Section 59DA of the Taxes Management Act 1970 is...

Priority of claim for tax

4(1) Section 62 of the Taxes Management Act 1970 is...

Recovery of tax in Scotland

5(1) Section 63 of the Taxes Management Act 1970 (c....

Priority of claim for tax in Scotland

6(1) Section 64 of the Taxes Management Act 1970 is...

Special returns etc

7(1) Section 98 of the Taxes Management Act 1970 is...

Special penalties in the case of certain returns

8(1) Section 98A of the Taxes Management Act 1970 is...

Sub-contractors in the construction industry

9(1) The Taxes Act 1988 is amended as follows.

Designated international organisations: miscellaneous exemptions

10(1) Section 582A of the Taxes Act 1988 is amended...

Application of Income Tax Acts to public departments etc

11(1) Section 829 of the Taxes Act 1988 is amended...

Provisions for securing payment by company of outstanding tax

12(1) Section 130 of the Finance Act 1988 (c. 39)...

Supplementary provisions relating to contributions: Great Britain

13(1) Schedule 1 to the Social Security Contributions and Benefits...

Supplementary provisions relating to contributions: Northern Ireland

14(1) Schedule 1 to the Social Security Contributions and Benefits...

Transitional provisions concerning construction workers supplied by agencies

15(1) Section 56 of the Finance Act 1998 (c. 36)...

Company tax returns, assessments and related matters

16(1) Schedule 18 to the Finance Act 1998 is amended...

Calculation of deemed employment payment

17(1) Section 54 of the Income Tax (Earnings and Pensions)...

SCHEDULE 13Childcare and childcare vouchers

1In Chapter 11 of Part 4 of the Income Tax...

Childcare vouchers

2(1) Chapter 4 of Part 3 of the Income Tax...

3In Chapter 6 of Part 4 of the Income Tax...

SCHEDULE 14Vans

1The Income Tax (Earnings and Pensions) Act 2003 (c. 1)...

2(1) Section 114 (cars, vans and related benefits) is amended...

3In section 116(2) (when car is first made available and...

4In section 119 (where alternative to benefit of car offered),...

5For sections 155 to 166 substitute— Cash equivalent of the...

6After section 169 insert— Van available to more than one...

7(1) Section 170 (orders etc.) is amended as follows.

8In section 237 (exemption from Chapter 10 of Part 3...

SCHEDULE 15Charge to income tax on benefits received by former owner of property

1In this Schedule— “IHTA 1984” means the Inheritance Tax Act...

2(1) For the purposes of this Schedule whether a person...

3(1) This paragraph applies where— (a) an individual (“the chargeable...

4(1) For any taxable period the chargeable amount in relation...

5(1) For the purposes of paragraph 4 the annual value...

6(1) This paragraph applies where— (a) an individual (“the chargeable...

7(1) For any taxable period the chargeable amount in relation...

Intangible property comprised in settlement where settlor retains an interest

8(1) This paragraph applies where— (a) the terms of a...

9(1) For any taxable period the chargeable amount in relation...

Excluded transactions

10(1) For the purposes of paragraphs 3(2) and 6(2) (the...

Exemptions from charge

11(1) Paragraph 3 (land), paragraph 6 (chattels) and paragraph 8...

Chargeable person resident or domiciled outside the United Kingdom

12(1) This Schedule does not apply in relation to any...

Exemption in cases where aggregate notional annual values do not exceed £5,000

13(1) This paragraph applies where, in relation to any person...

Power of Treasury to confer further exemptions by regulations

14Regulations may confer further exemptions from the charges to income...

15Except as otherwise provided by this Schedule, the value of...

Changes in distribution of deceased’s estate

16Any disposition made by a person (“the chargeable person”) in...

17Where a person (“A”) acts as guarantor in respect of...

Persons chargeable under different provisions by reference to same property

18(1) Where, in any year of assessment, a person (“the...

Relationship with Part 3 of Income Tax (Earnings and Pensions) Act 2003

19Where, in any year of assessment, a person is (apart...

20(1) Regulations under this Schedule may— (a) make different provision...

Election for application of inheritance tax provisions

21(1) This paragraph applies where— (a) a person (“the chargeable...

22(1) This paragraph applies where— (a) a person (“the chargeable...

23(1) In this paragraph— “election” means an election under paragraph...

SCHEDULE 16Relief where national insurance contributions met by employee

Income tax relief: restricted securities

1(1) Chapter 2 of Part 7 of the Income Tax...

Income tax relief: convertible securities

2(1) Chapter 3 of Part 7 of the Income Tax...

Income tax relief: securities options

3(1) Chapter 5 of Part 7 of the Income Tax...

Consequential amendments: PAYE

4(1) Part 11 of the Income Tax (Earnings and Pensions)...

Consequential amendments: corporation tax relief

5(1) Schedule 23 of the Finance Act 2003 (c. 14)...

Consequential amendments: capital gains tax

6(1) Section 119A of the Taxation of Chargeable Gains Act...

Other consequential amendments

7(1) In section 484(7) of the Income Tax (Earnings and...

SCHEDULE 17Minor amendments of or connected with the Income Tax (Earnings and Pensions) Act 2003

Free or subsidised meals

1(1) In Chapter 11 of Part 4 of the Income...

Payments to non-approved pension schemes: exception for employment where earnings not within main charging provisions

2(1) In Chapter 1 of Part 6 of the Income...

Time limit for assessment: income received after year for which it is assessable

3(1) In Part 4 of the Taxes Management Act 1970...

Computation of profits or gains under Schedule D: delayed payment of remuneration

4(1) In section 43 of the Finance Act 1989 (c....

Donations to charity by individuals: application to Crown employment

5(1) In section 25(2) of the Finance Act 1990 (c....

Payments on account of income tax

6(1) Section 108 of the Finance Act 1995 (c. 4)...

Tax relief for expenditure on R&D or remediation of contaminated land: staff costs

7(1) In Schedule 20 to the Finance Act 2000 (c....

Gains and losses of a company from intangible fixed assets: delayed payment of remuneration

8(1) In Schedule 29 to the Finance Act 2002 (c....

Minor corrections of the Income Tax (Earnings and Pensions) Act 2003

9(1) The Income Tax (Earnings and Pensions) Act 2003 (c....

Other minor corrections

10(1) In section 59A(8)(b) of the Taxes Management Act 1970...

SCHEDULE 18Enterprise investment scheme

Part 1Income tax relief

(1) Section 289 of the Taxes Act 1988 (eligibility for...

Part 2Deferral relief

12Schedule 5B to the Taxation of Chargeable Gains Act 1992...

13(1) In paragraph 1(2) (definition of qualifying investment)—

14In paragraph 1A (failure of conditions of application)—

15(1) In paragraph 10 (re-investment in same company, etc)—

16(1) In paragraph 13 (value received by investor) in sub-paragraph...

17(1) In paragraph 14 (value received by other persons) in...

18(1) In paragraph 14A (certain receipts to be disregarded for...

19(1) In paragraph 16 (information)— (a) in sub-paragraph (6), for...

20(1) In paragraph 19 (1) (interpretation)— (a) before the definition...

Part 3Commencement

21Except where otherwise provided, the amendments made by this Schedule...

SCHEDULE 19Venture capital trusts

Part 1Increase in relief on investments and distributions

In paragraph 1(3) of Schedule 15B to the Taxes Act...

Part 2Abolition of deferral relief

Main amendments

4Section 151A(3) of the Taxation of Chargeable Gains Act 1992...

5Schedule 5C to that Act (venture capital trusts: deferred charge...

Consequential amendment

6(1) The Taxation of Chargeable Gains Act 1992 is amended...

7(1) The amendments made by this Part have effect in...

Part 3Miscellaneous

Schedule 28B to the Taxes Act 1988 (venture capital trusts:...

SCHEDULE 20Corporate venturing scheme

1Schedule 15 to the Finance Act 2000 (c. 17) (the...

2In paragraph 3 (meaning of “the qualification period”)—

3In paragraph 15 (introduction) after paragraph (e) insert—

4In paragraph 20 (the qualifying subsidiaries requirement) for sub-paragraph (2)...

5(1) Paragraph 21 (meaning of “qualifying subsidiary”) is amended as...

6After paragraph 21 insert— The property managing subsidiaries requirement (1) The issuing company is not a qualifying issuing company...

7In paragraph 23 (the trading activities requirement)—

8In paragraph 24 (ceasing to meet trading requirements by reason...

9In paragraph 25 (meaning of “qualifying trade”) in sub-paragraph (3)(b),...

10In paragraph 35 (requirement as to the shares) in sub-paragraph...

11In paragraph 36 (requirement as to money raised)—

12In paragraph 40 (entitlement to claim)— (a) in sub-paragraph (2),...

13In paragraph 102 (minor definitions etc) after sub-paragraph (7) insert—...

14In paragraph 103 (index of defined expressions), after the entry...

15The amendments made by this Schedule have effect in relation...

SCHEDULE 21Chargeable gains: restriction of gifts relief etc

Penalties for failure to furnish particulars etc

1(1) Section 98 of the Taxes Management Act 1970 (c....

Charge on settlor with interest in settlement etc: supplementary provisions

2(1) Section 79 of the Taxation of Chargeable Gains Act...

Relief for gifts of business assets

3(1) Section 165 of the Taxation of Chargeable Gains Act...

Gifts relief not to be available on certain transfers to settlor-interested settlements etc

4After section 169A of the Taxation of Chargeable Gains Act...

Gifts on which inheritance tax is chargeable etc

5(1) Section 260 of the Taxation of Chargeable Gains Act...

Payment by instalments of tax on gifts

6(1) Section 281 of the Taxation of Chargeable Gains Act...

Recovery of tax from donee

7(1) Section 282 of the Taxation of Chargeable Gains Act...

Application of taper relief

8(1) Schedule A1 to the Taxation of Chargeable Gains Act...

Relief for gifts of business assets

9(1) Schedule 7 to the Taxation of Chargeable Gains Act...

10(1) The amendment in paragraph 1(2) of this Schedule has...

SCHEDULE 22Chargeable gains: private residence relief

Relief on disposal of private residence

1(1) Section 222 of the Taxation of Chargeable Gains Act...

Amount of relief

2(1) Section 223 of the Taxation of Chargeable Gains Act...

Amount of relief: further provisions

3(1) Section 224 of the Taxation of Chargeable Gains Act...

Private residence occupied under terms of settlement

4(1) Section 225 of the Taxation of Chargeable Gains Act...

Private residence held by personal representatives

5After section 225 of the Taxation of Chargeable Gains Act...

Private residence relief: cases where relief obtained under section 260

6After section 226 of the Taxation of Chargeable Gains Act...

7(1) The amendments in paragraphs 1(2) and 4(4)(a) of this...

Transitional provision

8(1) This paragraph has effect where section 226A of the...

SCHEDULE 23Finance leasebacks: transitional provision

1(1) Sections 228B to 228E of the Capital Allowances Act...

2(1) This paragraph applies if the pre-commencement rentals are greater...

3(1) This paragraph applies where— (a) the existing leaseback terminates,...

4Section 228C shall not apply where the existing leaseback terminates...

5(1) Section 228C applies subject to this paragraph where—

6(1) This paragraph applies if— (a) the existing leaseback terminates...

7(1) This paragraph applies if the pre-commencement rentals are greater...

8(1) This paragraph applies where— (a) the existing leaseback terminates,...

9Section 228E shall not apply where the existing leaseback terminates...

Chargeable gains

10(1) Sub-paragraph (2) applies where— (a) an existing leaseback is...

Interpretation

11(1) In this Schedule— “existing leaseback” means a leaseback the...

SCHEDULE 24Manufactured dividends

Amendments of sections 231AA, 231AB and 233 of the Taxes Act 1988

1(1) In section 231AA of the Taxes Act 1988 (no...

Amendments of paragraph 2A of Schedule 23A to the Taxes Act 1988

2(1) In Schedule 23A to the Taxes Act 1988 (manufactured...

Amendment of the Taxation of Chargeable Gains Act 1992

3(1) . . . . . . . . ....

SCHEDULE 25Lloyd’s names: conversion to limited liability underwriting

1The Finance Act 1993 (c. 34) is amended as follows....

2After section 179A insert— Conversion to limited liability underwriting Schedule 20A to this Act (which makes provision for certain...

3After Schedule 20 insert— SCHEDULE 20A Lloyd’s underwriters: conversion to...

SCHEDULE 26Offshore funds

Computation of UK equivalent profits: creditor relationships

1(1) In paragraph 5(3) of Schedule 27 to the Taxes...

Computation of UK equivalent profits: derivative contracts

2(1) In paragraph 5(3) of Schedule 27 to the Taxes...

Treatment of umbrella funds and funds comprising more than one class of interest

3At the beginning of Chapter 5 of Part 17 of...

Treatment of umbrella funds and funds comprising more than one class of interest

4(1) Section 757 of that Act (disposal of material interests...

Treatment of umbrella funds and funds comprising more than one class of interest

5In section 758 of that Act (offshore funds operating equalisation...

Treatment of umbrella funds and funds comprising more than one class of interest

6(1) Section 759 of that Act (material interests in offshore...

Treatment of umbrella funds and funds comprising more than one class of interest

7(1) Section 760 of that Act (non-qualifying offshore funds) is...

Treatment of umbrella funds and funds comprising more than one class of interest

8(1) Schedule 27 to that Act (distributing funds: supplementary) is...

Treatment of umbrella funds and funds comprising more than one class of interest

9In Schedule 28 to that Act (computation of offshore income...

Treatment of umbrella funds and funds comprising more than one class of interest

10In section 587B of the Taxes Act 1988 (gifts of...

Treatment of umbrella funds and funds comprising more than one class of interest

11In section 212 of the Taxation of Chargeable Gains Act...

Treatment of umbrella funds and funds comprising more than one class of interest

12. . . . . . . . . ....

Investment conditions to be met by funds seeking certification as distributing fund

13(1) Section 760 of the Taxes Act 1988 (non-qualifying offshore...

Investment conditions to be met by funds seeking certification as distributing fund

14(1) In Schedule 27 to the Taxes Act 1988 (distributing...

Exchange of interests of different classes

15(1) After section 762 of the Taxes Act 1988 insert—...

Correction of cross-reference

16(1) In section 763(6) of the Taxes Act 1988 (offshore...

Transitional provision

17(1) This paragraph applies for the purposes of determining whether...

SCHEDULE 27Meaning of “offshore installation”

Part 1The new definition

1In Part 19 of the Taxes Act 1988 (supplemental provisions),...

2In section 832 (1) of the Taxes Act 1988 (interpretation...

3Subject to the following provisions of this Schedule, paragraphs 1...

Part 2Minor and consequential amendments

The Taxes Act 1988

4(1) Chapter 3 of Part 7 of the Taxes Act...

The Taxes Act 1988

5(1) Schedule 28B to the Taxes Act 1988 (venture capital...

Finance Act 2000 (c. 17)

6(1) Schedule 15 to the Finance Act 2000 (the corporate...

Finance Act 2000 (c. 17)

7(1) In Schedule 22 to the Finance Act 2000 (tonnage...

Capital Allowances Act 2001 (c. 2)

8In section 94 of the Capital Allowances Act 2001 (expenditure...

Capital Allowances Act 2001 (c. 2)

9(1) Section 153 of the Capital Allowances Act 2001 (ships...

Capital Allowances Act 2001 (c. 2)

10In Part 2 of Schedule 1 to the Capital Allowances...

Capital Allowances Act 2001 (c. 2)

11(1) Paragraphs 8 to 10 have effect—

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

12In section 40 of the Income Tax (Earnings and Pensions)...

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

13In section 305 of the Income Tax (Earnings and Pensions)...

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

14For section 385 of the Income Tax (Earnings and Pensions)...

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

15In Part 2 of Schedule 1 to the Income Tax...

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

16Paragraphs 12 to 15 have effect for the year 2004-05...

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

17(1) Schedule 5 to the Income Tax (Earnings and Pensions)...

SCHEDULE 28Registered pension schemes: authorised pensions—supplementary

Part 1Pension rules

Defined benefits and money purchase arrangements

Ill-health condition

1For the purposes of this Part the ill-health condition is...

2(1) . . . . . . . . ....

2A(1) Where this paragraph applies in relation to a pension...

Money purchase arrangements

Lifetime annuity

3(1) For the purposes of this Part an annuity payable...

Drawdown pension

4“Drawdown pension” means— (a) a short-term annuity, or

5“ Alternatively secured pension ” means income withdrawal.

Short-term annuity

6(1) For the purposes of this Part an annuity payable...

Income withdrawal

7Income withdrawal” means an amount (other than an annuity) which...

Member's drawdown pension fund

8(1) For the purposes of this Part the member's drawdown...

Member's flexi-access drawdown fund

8A(1) For the purposes of this Part the member's flexi-access...

Conversion of certain drawdown pension funds into flexi-access drawdown funds

8B(1) Sub-paragraph (2) applies if— (a) a member's drawdown pension...

8C(1) Sub-paragraph (2) applies if— (a) a member's drawdown pension...

8D(1) Sub-paragraphs (2) and (3) apply if—

Drawdown pension year and basis amount for drawdown pension year

9(1) “Drawdown pension year” means— (a) the period of 12...

Unsecured pension year and basis amount for unsecured pension year

10(A1) This paragraph applies in relation to drawdown pension years...

10A(1) This paragraph applies in relation to drawdown pension years...

10B(1) This paragraph applies if the member has reached the...

Member’s alternatively secured pension fund

11(1) For the purposes of this Part the member’s alternatively...

Alternatively secured pension year and basis amount for alternatively secured pension year

12(1) “Alternatively secured pension year” means— (a) the period of...

Alternatively secured pension year and basis amount for alternatively secured pension year

13(1) For the first alternatively secured pension year, the basis...

Relevant annuity

14(1) A “relevant annuity”is an annuity of a description prescribed...

Minimum income requirement

14A. . . . . . . . . ....

14B(1) . . . . . . . . ....

The relevant day

14C“The relevant day” means— (a) . . . . ....

Relevant contributions

14D“Relevant contributions” means— (a) relievable pension contributions paid by or...

Valid and accepted declarations

14E(1) A declaration is “valid” if it complies with such...

Part 2Pension death benefit rules

Defined benefits and money purchase arrangements

Meaning of “dependant”

15(1) A person who was married to , or a...

Dependants' scheme pension

16(1) . . . . . . . . ....

16A(1) Paragraphs 16B and 16C apply where—

16AAParagraphs 16B and 16C do not apply if—

16AB(1) Paragraph 16B does not apply if, at all times...

16AC(1) This paragraph applies for the purposes of paragraph 16AB(4)....

16AD(1) This paragraph applies for the purposes of paragraph 16AB(4)....

16AE(1) In paragraphs 16AC(3) and 16AD(3), U% means the highest...

16B(1) Where a pension is payable under the pension scheme...

16C(1) Where a pension is payable under the pension scheme...

Money purchase arrangements

Dependants' annuity

17(1) For the purposes of this Part an annuity payable...

Dependants' drawdown pension

18“Dependants' drawdown pension” means— (a) a dependants' short-term annuity, or...

19“ Dependants' alternatively secured pension ” means dependants' income withdrawal....

Dependants' short-term annuity

20(1) For the purposes of this Part an annuity payable...

Dependants' income withdrawal

21Dependants' income withdrawal” means an amount (other than an annuity)...

Dependant's drawdown pension fund

22(1) For the purposes of this Part a dependant's drawdown...

Dependant's flexi-access drawdown fund

22A(1) For the purposes of this Part a dependant's flexi-access...

Conversion of certain dependants' drawdown funds into flexi-access drawdown funds

22B(1) Sub-paragraph (2) applies if— (a) a dependant's drawdown pension...

22C(1) Sub-paragraph (2) applies if— (a) a dependant's drawdown pension...

22D(1) Sub-paragraphs (2) and (3) apply if—

Drawdown pension year and basis amount for drawdown pension year

23(1) “Drawdown pension year” means— (a) the period of 12...

24(A1) This paragraph applies in relation to drawdown pension years...

24A(1) This paragraph applies in relation to drawdown pension years...

24B(1) This paragraph applies if the dependant has reached the...

Minimum income requirement

24C. . . . . . . . . ....

24D(1) The Treasury may by order amend paragraph 24C(2) so...

The relevant day

24E“The relevant day” means— (a) . . . . ....

Relevant contributions

24F“Relevant contributions” means— (a) relievable pension contributions paid by or...

Valid and accepted declarations

24G(1) A declaration is “valid” if it complies with such...

Dependant’s alternatively secured pension fund

25(1) For the purposes of this Part a dependant’s alternatively...

Alternatively secured pension year and basis amount for alternatively secured pension year

26(1) “Alternatively secured pension year” means— (a) the period of...

27(1) For the first alternatively secured pension year, the basis...

Meaning of “nominee”

27A(1) “ Nominee of the member ” means an individual—...

Nominees' annuity

27AA(1) For the purposes of this Part an annuity payable...

Nominees' drawdown pension

27B“Nominees' drawdown pension” means— (a) a nominees' short-term annuity, or...

Nominees' short-term annuity

27C(1) For the purposes of this Part an annuity payable...

Nominees' income withdrawal

27D“Nominees' income withdrawal” means an amount (other than an annuity)...

Nominee's flexi-access drawdown fund

27E(1) For the purposes of this Part a nominee's flexi-access...

Meaning of “successor”

27F(1) “ Successor of the member ” means an individual—...

Successors' annuity

27FA(1) For the purposes of this Part an annuity payable...

Successors' drawdown pension

27G“Successors' drawdown pension” means— (a) a successors' short-term annuity, or...

Successors' short-term annuity

27H(1) For the purposes of this Part an annuity payable...

Successors' income withdrawal

27J“Successors' income withdrawal” means an amount (other than an annuity)...

Successor's flexi-access drawdown fund

27K(1) For the purposes of this Part a successor's flexi-access...

SCHEDULE 29Registered pension schemes: authorised lump sums—supplementary

Part 1Lump sum rule

Pension commencement lump sum

1(1) For the purposes of this Part a lump sum...

1A(1) Paragraph 1(1)(c) is to be omitted when deciding whether...

1B(1) When deciding whether a lump sum to which this...

2In paragraph 1 “ the permitted maximum ”, in relation...

2A(1) This paragraph defines “ the applicable amount ” in...

2B(1) This paragraph defines “ the applicable amount ” in...

2C(1) This paragraph defines “ the applicable amount ” in...

2D(1) This paragraph defines “ the applicable amount ” in...

3(1) Where the member becomes entitled to income withdrawal, the...

Pension commencement lump sums: anti-avoidance

3A(1) Where this paragraph applies in relation to a pension...

3B(1) Sub-paragraph (2) applies if— (a) sums or assets held...

Pension commencement excess lump sum

3C(1) For the purposes of this Part a lump sum...

Serious ill-health lump sum

4(1) For the purposes of this Part a lump sum...

Uncrystallised funds pension lump sum

4A(1) For the purposes of this Part a lump sum...

Short service refund lump sum

5(1) For the purposes of this Part a lump sum...

Refund of excess contributions lump sum

6(1) A lump sum is a refund of excess contributions...

Trivial commutation lump sum

7(1) For the purposes of this Part a lump sum...

8(1) The value of the member’s relevant crystallised pension rights...

9(1) The value of the member’s uncrystallised rights on the...

Winding-up lump sum

10(1) For the purposes of this Part a lump sum...

11For the purposes of this Part a lump sum is...

11A(1) A lump sum is a transitional 2013/14 lump sum...

Interpretation ...

12(1) Expressions used in this Part of this Schedule and...

12A(1) In this Part of this Schedule, a reference to...

Part 2Lump sum death benefit rule

Defined benefits arrangements

Defined benefits lump sum death benefit

13(1) For the purposes of this Part a lump sum...

Pension protection lump sum death benefit

14(1) For the purposes of this Part a lump sum...

Money purchase arrangements

Uncrystallised funds lump sum death benefit

15(1) For the purposes of this Part a lump sum...

Annuity protection lump sum death benefit

16(1) For the purposes of this Part a lump sum...

Drawdown pension fund lump sum death benefit

17(1) For the purposes of this Part a lump sum...

Flexi-access drawdown fund lump sum death benefit

17A(1) For the purposes of this Part a lump sum...

Charity lump sum death benefit

18(1) A lump sum death benefit is a charity lump...

Transfer lump sum death benefit

19(1) For the purposes of this Part a lump sum...

Defined benefits and money purchase arrangements

Trivial commutation lump sum death benefit

20(1) A lump sum death benefit is a trivial commutation...

21(1) For the purposes of this Part a lump sum...

Interpretation of Part 2

22(1) Expressions used in this Part of this Schedule and...

SCHEDULE 29ATaxable property held by investment-regulated pension schemes

Part 1Investment-regulated pension schemes

Schemes other than occupational pension schemes

1(1) For the purposes of the taxable property provisions a...

Occupational pension schemes

2(1) For the purposes of the taxable property provisions a...

Separate self-controlled section

3(1) This paragraph applies in the case of an arrangement...

Related persons

4(1) For the purposes of this Part of this Schedule...

5Where sums or assets held for the purposes of an...

Part 2Taxable property

Taxable property

6For the purposes of the taxable property provisions property is...

Residential property

7(1) Subject as follows, for the purposes of the taxable...

8(1) For the purposes of the taxable property provisions a...

9(1) The Treasury may by order amend this Part of...

10(1) Residential property is not taxable property in relation to...

Tangible moveable property

11(1) The Treasury may by order provide that, for the...

Part 3Acquisition and holding of taxable property

12(1) For the purposes of the taxable property provisions an...

13(1) For the purposes of the taxable property provisions an...

14(1) For the purposes of the taxable property provisions a...

Exception to direct holding

15(1) A person does not hold an interest in taxable...

Indirect holding

16(1) For the purposes of the taxable property provisions a...

17(1) For the purposes of paragraph 16 a person holds...

18(1) For the purposes of paragraph 16 a person holds...

19(1) For the purposes of paragraph 16 a pension scheme...

Exceptions to indirect holding

20(1) A pension scheme does not hold an interest in...

21(1) This paragraph applies to a vehicle in which a...

22(1) This paragraph applies to a vehicle in which a...

23(1) This paragraph applies to a vehicle in which a...

24(1) For the purposes of paragraphs 22 and 23 this...

25(1) This paragraph contains provisions supplementary to paragraph 24.

26(1) This paragraph applies to a vehicle in which a...

Deemed acquisition

27Where— (a) an investment-regulated pension scheme holds an interest in...

28(1) Subject to paragraph 29, this paragraph applies where—

29(1) Where there is an increase in the extent of...

Associated persons

30(1) For the purposes of this Part of this Schedule...

Part 4Amount and timing of unauthorised payment

31(1) This Part of this Schedule has effect for determining—...

Acquisition: basic rules

32(1) This paragraph applies to a case within subsection (1)...

Acquisition: further provisions

33(1) This paragraph applies where— (a) an investment-regulated pension scheme...

34(1) This paragraph applies where— (a) an investment-regulated pension scheme...

35(1) This paragraph applies where— (a) an investment-regulated pension scheme...

36(1) The Treasury may by regulations make provision with respect...

Post-acquisition unauthorised payments

37(1) The Treasury may by regulations make provision for an...

Improvement of taxable property

38(1) This paragraph applies to a case within subsection (2)...

Conversion or adaptation as residential property

39(1) This paragraph applies to a case within subsection (3)...

40(1) This paragraph applies to a case within subsection (3)...

Apportionment to pension scheme

41(1) This paragraph applies for determining— (a) whether the amount...

42(1) References in this Schedule to the extent of an...

43(1) For the purposes of this Schedule, and except in...

Deemed acquisition: adjustment

44(1) This paragraph applies where an investment-regulated pension scheme is...

Apportionment to member

45(1) This paragraph has effect for determining—

SCHEDULE 30Registered pension schemes: employer loans

Charge of adequate value

1(1) A charge is of adequate value if it meets...

Loan repayment date

2(1) “Loan repayment date” means the date by which the...

3(1) “Loan year” means— (a) the period of 12 months...

Required amount

4“The required amount”, in relation to a period beginning with...

Amount of unauthorised payment

Loan does not comply with section 179(1) when made

5(1) If a loan does not comply with section 179...

Loan ceases to be secured by charge of adequate value

6If at any time after a loan is made the...

Further reduction in value of charge which is not of adequate value

7(1) If at any time after a loan is made—...

Loan ceases to comply with repayment terms

8(1) If at any time after a loan is made—...

Increase in extent to which loan does not comply with repayment terms

9(1) If at any time after a loan is made—...

Prevention of double charging

10(1) This paragraph applies if on any date there is...

Total unauthorised payments not to exceed amount of loan

11If the aggregate amount of the unauthorised payments in relation...

12(1) Amount 1 arises if paragraph (a) of section 179...

13(1) Amount 2 arises if paragraph (b) of section 179...

14(1) Amount A arises if paragraph (a) of section 179(2)...

15(1) Amount B arises if paragraph (b) of section 179(2)...

16(1) Amount C arises if paragraph (c) of section 179(2)...

SCHEDULE 31Taxation of benefits under registered pension schemes

1Part 9 of ITEPA 2003 (pension income) is amended as...

2In section 565 (structure of Part 9), for “Chapters 16...

3(1) Section 566(4) (nature of charge to tax on pension...

4In section 567(4)(a) (amount charged to tax), for “15” substitute...

5In section 568 (person liable to tax), for “15” substitute...

6After Chapter 5 insert— Chapter 5A PENSIONS UNDER REGISTERED PENSION...

7Omit Chapters 6, 7, 8 and 9 (pensions under approved...

8(1) Section 610 (annuities under sponsored superannuation schemes) is amended...

9In section 611(3) (annuities in recognition of another’s service), for...

10Omit Chapter 13 (return of surplus additional voluntary contributions under...

11After Chapter 15 insert— CHAPTER 15A LUMP SUMS UNDER REGISTERED...

12Omit Chapter 16 (lump sums).

13In section 644(2) (pensions to which section 580 or 590...

14(1) Section 683 of ITEPA 2003 (PAYE income) is amended...

15In Part 2 of Schedule 1 to ITEPA 2003 (index...

SCHEDULE 32Registered pension schemes: benefit crystallisation events ...

A1(1) This Schedule applies for the purposes of sections 232...

The benefit crystallisation events

A2(1) Benefit crystallisation event 1 occurs in relation to an...

General: meaning of “the relevant pension schemes”

1In this Schedule “the relevant pension schemes” means the registered...

Post-75 events not generally benefit crystallisation events

2The only sort of event that constitutes a benefit crystallisation...

2A(1) This paragraph applies where an amount of overseas transfer...

2B(1) This paragraph applies for the purposes of benefit crystallisation...

3(1) This paragraph applies for the purposes of benefit crystallisation...

4(1) This paragraph applies for the purposes of benefit crystallisation...

5(1) This paragraph applies where— (a) immediately before the individual...

6For the purposes of benefit crystallisation events 2, 3 and...

Benefit crystallisation events 2 and 4: early lifetime annuities

7(1) This paragraph has effect if— (a) the individual becomes...

Benefit crystallisation event 2: early pensions

8For the purposes of benefit crystallisation event 2 if—

9(1) For the purposes of benefit crystallisation event 2 “P”...

Benefit crystallisation event 3: disregarding abatement

9AFor the purposes of benefit crystallisation event 3, any abatement...

Benefit crystallisation event 3: excepted circumstances

10(A1) For the purposes of benefit crystallisation event 3 “excepted...

Benefit crystallisation event 3: threshold annual rate

10A(1) This paragraph applies for the purposes of benefit crystallisation...

Benefit crystallisation event 3: permitted margin

11(1) This paragraph applies for the purposes of benefit crystallisation...

Benefit crystallisation event 3: permitted margin

12(1) This paragraph applies for the purposes of benefit crystallisation...

13(1) For the purposes of benefit crystallisation event 3 “XP”...

14(1) For the purposes of benefit crystallisation event 5 “DP”...

14ZA(1) This paragraph applies where, immediately before the individual reaches...

14ZBIn determining, for the purposes of benefit crystallisation event 5A,...

14AFor the purposes of benefit crystallisation event 5B “ remaining...

14BFor the purposes of benefit crystallisation events 5C and 5D...

14C(1) For the purposes of benefit crystallisation events 5C and...

Benefit crystallisation event 6: meaning of “relevant lump sum”

15For the purposes of benefit crystallisation event 6 a lump...

15ABenefit crystallisation event 6 does not apply in relation to...

16For the purposes of benefit crystallisation event 7 a lump...

17(1) This paragraph applies for the purposes of benefit crystallisation...

SCHEDULE 33Overseas pension schemes: migrant member relief

Relief for members' etc. contributions

1(1) An individual who is a relevant migrant member of...

Relief for employers' contributions

2(1) Subsections (2) to (5) of section 196 (relief for...

3In ITEPA 2003, after section 308 insert— Exemption of contributions...

Meaning of “relevant migrant member”

4(1) For the purposes of this Schedule an individual who...

Meaning of “qualifying” overseas pension scheme

5(1) For the purposes of this Schedule an overseas pension...

6(1) This paragraph applies where an overseas pension scheme is...

SCHEDULE 34Non-UK schemes: application of certain charges and protections etc

Member payment charges

1(1) For the purposes of the member payment charges the...

2(1) The member payment provisions do not apply in relation...

3(1) The member payment provisions do not apply in relation...

4(1) The member payment provisions do not apply in relation...

4A. . . . . . . . . ....

5Sections 205 to 206 (short service refund lump sum charge......

5ZA(1) The provisions of Chapter 15A of Part 9 of...

5A(1) Sub-paragraph (2) applies if— (a) a payment is made...

6(1) The amount of any liability to tax imposed on...

7(1) The member payment provisions apply with respect to a...

Unauthorised payment charge: alternatively secured pension etc

7ZAThe Commissioners for Her Majesty’s Revenue and Customs may by...

Unauthorised payment charge: taxable property

7A(1) The Commissioners for Her Majesty's Revenue and Customs may...

7B. . . . . . . . . ....

Annual allowance charge

8(1) The provisions of this Part relating to the annual...

9The annual allowance provisions apply by virtue of paragraph 8...

9ZA(1) For the purposes of determining the annual allowance charge...

9ZB(1) Sub-paragraph (2) has effect if at any particular time—...

9A(1) This paragraph applies where an individual—

9B(1) This paragraph applies where an individual—

10(1) Sections 230 (1) and 234 (1) (cash balance and...

11(1) Section 233 (1) (other money purchase arrangements) applies by...

12(1) The annual allowance provisions apply by virtue of paragraph...

Enhancement of allowances

12A(1) The provisions of Schedule 36 relating to the enhancement...

13(1) The provisions of this Part relating to the lifetime...

14(1) This paragraph applies in relation to the amount crystallised...

15(1) An individual who is a relieved member of a...

16(1) This paragraph applies on the occurrence of a transfer...

17Section 217 (persons liable to charge) applies with respect to...

18(1) This paragraph applies where sums and assets held for...

19(1) The provisions of this Part of this Act relating...

Meaning of “double tax arrangements”

20In this Schedule “double tax arrangements” means arrangements having effect...

SCHEDULE 35Pension schemes etc: minor and consequential amendments

Taxes Management Act 1970 (c. 9)

1In section 9(1A) of the Taxes Management Act 1970 (tax...

Income and Corporation Taxes Act 1988 (c. 1)

2The Income and Corporation Taxes Act 1988 (c. 1) is...

3In section 21A(2) (Schedule A: computation of amount chargeable), insert...

4In section 56(3)(b) (transfers in deposits and debts: exemption for...

5. . . . . . . . . ....

6In section 129B(2) (stock lending fees), for “sections 592(2), 608(2)(a),...

7. . . . . . . . . ....

8. . . . . . . . . ....

9In section 266 (1) (life assurance premiums), for “sections 274...

10(1) Section 266A (life assurance premiums paid by employer) is...

11. . . . . . . . . ....

12. . . . . . . . . ....

13. . . . . . . . . ....

14. . . . . . . . . ....

15. . . . . . . . . ....

16. . . . . . . . . ....

17. . . . . . . . . ....

18. . . . . . . . . ....

19. . . . . . . . . ....

20. . . . . . . . . ....

21In section 464(5) (policies and contracts to be disregarded in...

22(1) Section 466 (interpretation of Chapter 2 of Part 12)...

23. . . . . . . . . ....

24. . . . . . . . . ....

25. . . . . . . . . ....

26In section 613(4) (parliamentary pension funds)— (a) omit “respective” and...

27. . . . . . . . . ....

28. . . . . . . . . ....

29. . . . . . . . . ....

30. . . . . . . . . ....

31. . . . . . . . . ....

32. . . . . . . . . ....

33In section 824(9) (repayment supplements), after “settlement” insert “, scheme...

34. . . . . . . . . ....

35. . . . . . . . . ....

36. . . . . . . . . ....

Finance Act 1990 (c. 29)

37. . . . . . . . . ....

Taxation of Chargeable Gains Act 1992 (c. 12)

38The Taxation of Chargeable Gains Act 1992 is amended as...

39In section 13(10B)(b) (attribution of gains to members of non-resident...

40For sections 239A and 239B (cessation of approval of retirement...

41In section 288 (1) (interpretation), after the definition of “recognised...

42(1) Paragraph 2 of Schedule 1 (application of exempt amount...

Finance Act 1996 (c. 8)

43The Finance Act 1996 is amended as follows.

44In section 148 (mis-sold personal pensions), after subsection (6) insert—...

45. . . . . . . . . ....

Finance Act 1999 (c. 16)

46(1) Paragraph 6A of Schedule 19 to the Finance Act...

Capital Allowances Act 2001 (c. 2)

47The Capital Allowances Act 2001 is amended as follows.

48In section 4(2A) (expenditure and sums that are not capital...

49. . . . . . . . . ....

Finance Act 2002 (c. 23)

50. . . . . . . . . ....

51. . . . . . . . . ....

52. . . . . . . . . ....

53. . . . . . . . . ....

Income Tax (Earnings and Pensions) Act 2003 (c. 1)

54The Income Tax (Earnings and Pensions) Act 2003 is amended...

55In section 23(3) (calculation of “chargeable overseas earnings”), in Step...

56In section 54 (1) (calculation of deemed employment payment), in...

57In section 56(8) (application of Income Tax Acts in relation...

58In section 218(4) (“lower-paid employment”: deductions to be subtracted), for...

59In section 315(5) (limited exemption for expenses connected with certain...

60(1) Section 327 (deductions from earnings: general) is amended as...

61In section 381 (deductions from seafarers' earnings: taking account of...

62(1) Section 407 (payments and benefits on termination of employment:...

63(1) Section 408 (payments and benefits on termination of employment:...

64In section 563 (former employees: deductions for liabilities), in the...

65(1) Schedule 1 (abbreviations and defined expressions) is amended as...

SCHEDULE 36Pension schemes etc: transitional provisions and savings

Part 1Pre-commencement pension schemes

Deemed registration of existing schemes

1(1) Any pension scheme which, immediately before 6th April 2006,...

Opting out of deemed registration

2(1) Paragraph 1 (1) does not apply to a pension...

Power to modify rules of existing schemes

3(1) The Board of Inland Revenue may by regulations make...

Scheme administrator

4(1) Where under paragraph 1 (1) a pension scheme is...

Post-commencement withdrawal of approval

5(1) The repeal by this Act of—

Pre-commencement liabilities of scheme administrator

6Any liabilities or obligations of— (a) the administrator of a...

Part 2Pre-commencement rights: enhancement of allowances etc

Enhancement of lump sum allowance and lump sum and death benefit allowance

6A(1) Sub-paragraph (2) applies, in relation to a relevant benefit...

“Primary protection”

7(1) This paragraph applies in the case of an individual...

8(1) The value of the individual’s relevant uncrystallised pension rights...

9(1) This paragraph applies if any of the individual’s uncrystallised...

10(1) The value of the individual’s relevant crystallised pension rights...

11(1) This paragraph applies where— (a) paragraph 7 applies in...

11A(1) This paragraph applies where— (a) paragraph 7 applies in...

11B(1) This paragraph and paragraphs 11C and 11D specify the...

11C(1) In arriving at the aggregate mentioned in paragraph 11B(2)...

11D(1) Sub-paragraph (2) applies where any of the lump sum...

“Enhanced protection”

12(1) This paragraph applies on and after 6th April 2006...

13Relevant benefit accrual occurs in relation to an individual under...

14(1) For the purposes of paragraph 13(a) a relevant contribution...

15(1) For the purposes of paragraph 13(b) “the relevant crystallised...

15A(1) This paragraph applies where— (a) a person is paid...

16(1) This paragraph specifies the post-commencement earnings limit if the...

17(1) This paragraph specifies the post-commencement earnings limit in any...

17A(1) There is an impermissible transfer into a relevant existing...

Pre-commencement pension credits

18(1) This paragraph applies in the case of an individual...

Individuals permitted to take pension before normal minimum pension age

19(1) This paragraph applies where a relevant benefit crystallisation event...

Pre-commencement pensions

20(1) This paragraph makes provision about an individual who, on...

Pension credits from previously crystallised rights

20A(1) This paragraph applies in relation to a relevant benefit...

Non-residence: general

20B(1) This paragraph applies in relation to a relevant benefit...

Non-residence: money purchase arrangements

20C(1) This paragraph applies in the case of an arrangement...

Non-residence: other arrangements

20D(1) This paragraph applies in the case of an arrangement...

Transfers from recognised overseas pension scheme: general

20E(1) This paragraph applies in relation to a relevant benefit...

Overseas scheme transfers: money purchase arrangements

20F(1) This paragraph applies in the case of a recognised...

Overseas scheme transfers: other arrangements

20G(1) This section applies in the case of a recognised...

Part 3Pre-commencement benefit rights

Rights to take benefit before normal minimum pension age

21(1) If paragraph 22 , 23 or 23ZB applies in...

22(1) This paragraph applies in relation to a registered pension...

23(1) This paragraph applies in relation to a registered pension...

23ZA(1) Sub-paragraph (2) applies if— (a) there is a recognised...

23ZBProtected pension age: scheme rights existing before 4 November 2021

23ZC(1) This paragraph applies in relation to sums or assets...

23A(1) Where— (a) paragraph 19 applies to a benefit crystallisation...

Lump sum rights exceeding £375,000: primary and enhanced protection

24(1) If the lump sum condition and the registration condition...

25(1) The amount of an individual’s total lump sum rights...

26(1) This paragraph applies if any of the individual’s uncrystallised...

27If (and for so long as) paragraph 12 (enhanced protection)...

28(1) If paragraph 12 (enhanced protection) does not apply in...

29(1) If (and for so long as) paragraph 12 (enhanced...

29AChapter 15A of Part 9 of ITEPA 2003 (pension income:...

30(1) Any part of a lump sum falling within paragraph...

Entitlement to lump sums exceeding 25% of uncrystallised rights

31(1) If the pension condition is met in relation to...

32(1) Subject to sub-paragraph (2), the value of the individual’s...

33(1) Subject to sub-paragraph (2), the value of the individual’s...

34(1) Paragraph 2 of Schedule 29 (pension commencement lump sums:...

35(1) For the tax year 2006-07, Schedule 29 (authorised lump...

Right to payment of lump sum death benefit

36(1) This paragraph applies to a member of a registered...

Part 4Other provisions

Pre-commencement ill-health insurance contracts

37(1) Payments under protected ill-health insurance contracts are not unauthorised...

Pre-commencement holdings of taxable property

37A(1) This paragraph applies in relation to an investment-regulated pension...

37B(1) Paragraph 37A ceases to apply to an investment-regulated pension...

37C(1) This paragraph applies where— (a) on 6th April 2006...

37D(1) This paragraph applies where— (a) sub-paragraph (1) or (2)...

37E(1) This paragraph applies where— (a) paragraph 37A would otherwise...

Post-commencement acquisitions of taxable property

37F(1) This paragraph applies where on or after 6th April...

37G(1) Where Condition A or B is met in relation...

37H(1) This paragraph applies where on or after 6th April...

37I(1) Where Condition A, B or C is met in...

Pre-commencement loans to sponsoring employers

38(1) This paragraph applies to a loan if—

Retirement annuity contracts: carry-back of pre-commencement contributions

39The repeal by this Act of section 619(4) of ICTA...

Members' contributions to pre-commencement retirement annuity contracts

40(1) Relief in respect of contributions made by a member...

Employers' contributions relieved before 6th April 2006

41To the extent that any contribution paid by an employer...

Spreading of employer’s contributions

42The power of the Board of Inland Revenue under section...

Taxation of annuities paid under pre-commencement retirement annuity contracts

43(1) Chapter 9 of Part 9 of ITEPA 2003 (taxation...

Taxation of pensions accruing (but not taxed) pre-commencement and paid or received post-commencement

44(1) If an amount which accrued but was not paid...

Pensions taxed pre-commencement but accruing post-commencement

45(1) If an amount which was paid but had not...

Taxation of certain annuities for dependants purchased pre-commencement

45A(1) The charge to tax under Part 9 of ITEPA...

Application of PAYE to certain annuities in payment at commencement

46(1) Taxable pension income for the tax year 2006-07 or...

Authorised surplus payments charge: pre-19th March 1986 winding-up

47Section 207 (authorised surplus payments charge) does not apply to...

Annual allowance charge: post-commencement contributions to discharge pre-commencement unfunded promises

48(1) This paragraph applies where, during the period beginning with...

49(1) This paragraph applies if notice of intention to rely...

Saving of sections 605 and 651A of ICTA

50The repeal by this Act of sections 605 and 651A...

Individuals with pre-commencement entitlement to corresponding relief

51(1) This paragraph applies where the Board of Inland Revenue...

Continuing operation of section 392 of ITEPA 2003

52Section 392 of ITEPA 2003 (non-approved schemes: relief where no...

Benefits taxable under Chapter 2 of Part 6 of ITEPA 2003: contributions taxed pre-commencement

53(1) Paragraph 54 or 55 has effect where—

54(1) This paragraph has effect if— (a) all of the...

55(1) This paragraph has effect if paragraph 54 does not....

Inheritance tax

56(1) This paragraph applies in relation to a fund or...

57(1) The percentage of the assets of the fund or...

58(1) Section 151 of the Inheritance Tax Act 1984 (treatment...

SCHEDULE 37Oil taxation: tax-exempt tariffing receipts and assets producing them

Part 1Amendments of the Oil Taxation Act 1983 relating to allowable expenditure and disposal receipts

1The Oil Taxation Act 1983 (c. 56) is amended in...

Expenditure incurred on long-term assets other than non-dedicated mobile assets

2(1) Section 3 (expenditure incurred on long-term assets other than...

Exclusion from s.3(4) of expenditure on assets giving rise to tax-exempt tariffing receipts

3After section 3 insert— Exclusion from section 3(4) of expenditure...

Expenditure related to exempt gas: asset use giving rise to tax-exempt tariffing receipts

4(1) Section 4 (expenditure related to exempt gas and deballasting)...

Disposal receipts from assets used in a way that gives rise to tax-exempt tariffing receipts

5(1) Section 7 (chargeable receipts from disposals) is amended as...

Assets no longer in use for the principal field

6(1) In Schedule 1 (allowable expenditure) in Part 1 (extensions...

Brought-in assets

7(1) In Part 2 of Schedule 1, paragraph 7 is...

Subsequent use of new asset otherwise than in connection with a taxable field

8(1) In Part 2 of Schedule 1, paragraph 8 is...

Part 2Transitional provision

Expenditure incurred in transitional period: restriction of tax-exempt tariffing receipts

9(1) In this paragraph— “claim period” has the same meaning...

Part 3Amendments of the Taxes Act 1988

10The Taxes Act 1988 is amended in accordance with the...

Section 496: treatment of tax-exempt tariffing receipts for income and corporation tax

11(1) Section 496 (tariff receipts) is amended as follows.

Part 4Amendments of other enactments

Finance Act 1999

Qualifying assets

Qualifying assets

12(1) Section 98 of the Finance Act 1999 (c. 16)...

SCHEDULE 38Schedule to be inserted as Schedule 19B to the Taxes Act 1988

The following is the Schedule to be inserted as Schedule...

SCHEDULE 39Stamp duty land tax and stamp duty

Part 1Amendments to Part 4 of the Finance Act 2003: general

1Part 4 of the Finance Act 2003 (c. 14) (stamp...

Variation of lease

2In section 43 (land transactions)— (a) in paragraph (c) of...

Agreement for lease

3In section 44 (contract and conveyance), after subsection (9) insert—...

Contract providing for conveyance to third party

4(1) After section 44 insert— Contract providing for conveyance to...

Contract and conveyance: effect of transfer of rights

5(1) Section 45 (contract and conveyance: effect of transfer of...

Relief for sale and leaseback arrangements

6(1) Section 57A (sale and leaseback arrangements) (inserted by the...

Registration of land transactions

7In section 79 (registration of land transactions etc), in subsection...

“Effective date” of a transaction

8In section 119 (meaning of “effective date” of a transaction),...

Chargeable consideration

9(1) Schedule 4 (chargeable consideration) is amended as follows.

Provisions relating to leases

10In Schedule 5 (amount of tax chargeable: rent), after paragraph...

Provisions relating to leases

11(1) Schedule 17A (further provisions relating to leases) (inserted by...

Transfer of rights after 10th July 2003 relating to earlier contract: applicability of SDLT regime

12In Schedule 19 (commencement and transitional provisions), in paragraph 3...

13(1) Paragraph 4, and paragraphs 7 and 8 so far...

Part 2Re-enactment, with changes, of amendments made by section 109 regulations

Introduction and revocation

14(1) This Part of this Schedule contains amendments to Parts...

Meaning of taking possession

15(1) Section 44 (contract and conveyance) is amended as follows....

Relief for sale and leaseback arrangements

16After section 57 (disadvantaged areas relief) insert— Sale and leaseback...

Relief for certain acquisitions of residential property

17(1) For sections 58 and 59 (relief for certain exchanges...

Initial transfer of assets to trustees of unit trust scheme

18After section 64 insert— Initial transfer of assets to trustees...

Return or further return in consequence of later linked transaction

19(1) After section 81 (further return where relief withdrawn) insert—...

Declaration by person authorised to act on behalf of purchaser

20After section 81A (inserted by paragraph 19 above) insert— Declaration...

Crown application

21(1) Section 107 (Crown application) is amended as follows.

Further provision relating to leases

22(1) For section 120 (meaning of “lease” and other supplementary...

Abolition of stamp duty: application to duplicates and counterparts

23In section 125(5) (abolition of stamp duty except on instruments...

Application of transitional provisions to certain contracts

24In Schedule 19 (commencement and transitional provisions), after paragraph 4...

Stamping of contract or agreement where transaction on completion or grant of lease subject to stamp duty land tax

25(1) In Schedule 19 (commencement and transitional provisions), after paragraph...

26This Part of this Schedule applies in relation to any...

SCHEDULE 40Stamp duty land tax: claims not included in returns

The following is the Schedule inserted after Schedule 11 to...

SCHEDULE 41Stamp duty land tax: application to certain partnership transactions

1In Schedule 15 to the Finance Act 2003 (c. 14)...

2The following amendments are consequential on the amendment made by...

3(1) The preceding provisions of this Schedule have effect in...

SCHEDULE 42Repeals

Part 1Excise duties

Part 2Income Tax, Corporation Tax and Capital Gains Tax

Part 3Pension schemes etc

Part 4Other taxes

Part 5Miscellaneous matters

Royal arms

Finance Act 2004

2004 CHAPTER 12

An Act 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.

[22nd July 2004]

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:—