SCHEDULES
SCHEDULE 13Employer asset-backed pension contributions etc
PART 4Transitional provision relating to Part 3
Adjustments
29
1
For the purposes of paragraphs 30 and 31—
a
amount A is the total amount of relief given in respect of E's contribution,
b
amount B is the total of the following amounts—
i
any amounts of income which are charged to tax by virtue of a relevant provision,
ii
any amounts brought into account in calculating income for tax purposes by virtue of a relevant provision (so far as not reflected in sub-paragraph (i)), and
iii
any amounts stopped from being the subject of an income deduction by virtue of a relevant provision (so far as not reflected in sub-paragraph (i) or (ii)), and
c
subject to sub-paragraph (9), amount C is the amount of the payment mentioned in sub-paragraph (6) or (8) (as the case may be) so far as the payment—
i
is made under the asset-backed arrangement on the completion day,
ii
is not reflected in amount B,
iii
is not the subject of an income deduction, and
iv
is not a contribution paid by E under the relevant scheme but nevertheless becomes (directly or indirectly) part of the sums held for the purposes of the relevant scheme.
2
In sub-paragraph (1)(b) “relevant provision” means—
a
paragraph 23, 24 or 25 above (as the case may be);
b
a relevant charging provision (as defined in paragraph 26 above) as applied in relation to the asset-backed arrangement for amounts arising on or before the completion day;
c
paragraph 27 above (if applicable).
3
No amount is to be included in amount B by virtue of sub-paragraph (2)(c) so far as it is reflected in an amount included in amount B by virtue of sub-paragraph (2)(a) or (b).
4
In sub-paragraph (1) “income deduction” means a deduction to which any person is entitled—
a
in calculating income for tax purposes, or
b
from total income or total profits.
5
Sub-paragraph (6) applies if the section which would have applied as mentioned in paragraph 18(1)(d) above is section 196B of FA 2004.
6
The payment referred to in sub-paragraph (1)(c) is the payment (if any) which the borrower, or a person connected with the borrower, makes to the lender, or a person connected with the lender, in order to acquire—
a
the security, or
b
any asset substituted for the security under the asset-backed arrangement.
7
Sub-paragraph (8) applies if the section which would have applied as mentioned in paragraph 18(1)(d) above is section 196D or 196F of FA 2004.
8
The payment referred to in sub-paragraph (1)(c) is the payment (if any) which E, or a person connected with E, makes to the lender, or a person connected with the lender, in order to reverse the relevant change in relation to the partnership.
9
Amount C is to be taken to be nil if—
a
on or before the completion day, a commitment (whether or not legally enforceable and whether or not subject to any conditions) is given (directly or indirectly) to a relevant person, and
b
the commitment—
i
is a commitment to secure that a person receives money or another asset, and
ii
is linked (directly or indirectly) to the making of the payment covered by amount C.
10
In sub-paragraph (9)(a) “relevant person” means—
a
E;
b
a person connected with E;
c
a person acting (directly or indirectly) at the direction or request, or with the agreement, of E or a person connected with E;
d
a person chosen (directly or indirectly) by E or a person connected with E;
e
a person within a class of person chosen (directly or indirectly) by E or a person connected with E;
f
a partnership.
11
But “relevant person” does not include—
a
the persons who from time to time are the trustees of the relevant scheme, or
b
the persons who from time to time are the persons controlling the management of the relevant scheme,
in their capacity as such.