SCHEDULES

SCHEDULE 16Non-residents: investment managers

Section 38

Part 1Eligibility to be UK representative

F31

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F32

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Part 2Eligibility to be agent of independent status

FA 2003

F43

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ITA 2007

4

ITA 2007 is amended as follows.

5

1

Section 827 (meaning of “investment transaction”) is amended as follows.

2

For subsections (2) and (3) substitute—

2

In this section “investment transaction” means any transaction of a description specified for the purposes of this section in regulations made by the Commissioners for Her Majesty's Revenue and Customs.

3

Provision made in regulations under subsection (2) may, in particular, have effect in relation to the tax year current on the day on which the regulations are made.

6

1

Section 1014(2) (orders and regulations under the Income Tax Acts: excluded powers) is amended as follows.

2

In paragraph (g)(iia), omit “and”.

3

After paragraph (g)(iia) insert—

iib

section 827(2) (meaning of “investment transaction”), and

Part 3Non-residents liable to tax: disregarded investment income or profits

FA 2003

F57

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F58

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F59

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ITA 2007

10

1

Section 818 of ITA 2007 (the independent investment manager conditions) is amended as follows.

2

In subsection (1), for the words from “if” to the end substitute “ if conditions A to E are met. ”

3

Omit subsections (7) and (8).

Part 4Commencement

11

F21

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F12

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3

The amendments made by paragraph 10 have effect for the tax year 2008-09 and subsequent tax years.

4

Subject to sub-paragraphs (1) to (3), the amendments made by this Schedule come into force on the day on which this Act is passed.

5

But, despite the coming into force of paragraph 2, 3 or 5—

a

the superseded provision, and

b

any regulations made under the superseded provision,

continue to have effect until such time as the first regulations under the new regulation-making power come into force.

6

In sub-paragraph (5)—

  • “new regulation-making power” means the regulation-making power substituted by paragraph 2, 3 or 5, and

  • “superseded provision” means—

    1. a

      in relation to paragraph 2, the existing section 127(12) and (13) of FA 1995,

    2. b

      in relation to paragraph 3, the existing paragraph 3(3) and (4) of Schedule 26 to FA 2003, or

    3. c

      in relation to paragraph 5, the existing section 827(2) and (3) of ITA 2007.