|
|
|
|
|
|
|
Navigation
News
|
 |
Finance Act 2000 (c. 17)(The document as of February, 2008) Page 40 Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15 | P.16 | P.17 | P.18 | P.19 | P.20 | P.21 | P.22 | P.23 | P.24 | P.25 | P.26 | P.27 | P.28 | P.29 | P.30 | P.31 | P.32 | P.33 | P.34 | P.35 | P.36 | P.37 | P.38 | P.39 | P.40 | P.41 | P.42 | P.43 | P.44 | P.45 | P.46 | P.47 | P.48 | P.49 | P.50 | P.51 | P.52 | P.53 | P.54 | P.55 | P.56 | P.57 | P.58 | P.59 (a) it is deemed, under any provision of the 1992 Act, to have disposed of and immediately reacquired the shares at any time during the period, or (b) it is treated as having disposed of the shares at any such time, by virtue of paragraph 96(2) (on reconstruction or amalgamation company treated as disposing of shares continuously held by it to which investment relief is attributable). Meaning of "issue of shares"98 In this Schedule-- (a) references (however expressed) to an issue of shares in any company are to such of the shares in the company as are of the same class and issued on the same day; and (b) references (however expressed) to an issue of shares in a company to a person are references to such of the shares in an issue of shares in that company as are issued to that person in one capacity. Meaning of "associate"99 (1) In this Schedule "associate", in relation to a person, means-- (a) any relative or partner of that person, (b) the trustee or trustees of any settlement in relation to which that person, or any relative of his (living or dead), is or was a settlor, and (c) where that person is interested in any shares or obligations of a company which are subject to any trust, or are part of the estate of a deceased person-- (i) the trustee or trustees of the settlement concerned or, as the case may be, the personal representatives of the deceased, and (ii) if that person is a company, any other company interested in those shares or obligations. (2) In sub-paragraph (1)(a) and (b) "relative" means husband or wife, parent or remoter forebear or child or remoter issue. (3) In sub-paragraph (1)(b) "settlor" and "settlement" have the same meaning as in Chapter IA of Part XV of the Taxes Act 1988 (see section 660G(1) and (2)). "The Board" and "the Inland Revenue"100 In this Schedule-- (a) "the Board" means the Commissioners of Inland Revenue; and (b) references to "the Inland Revenue" are to any officer of the Board. Power to amend by Treasury order101 The Treasury may by order amend this Schedule-- (a) to make such amendments of-- (i) paragraphs 10 to 12 (the non-financial activities requirement), or (ii) paragraphs 23 to 33 (the trading activities requirement), as they consider expedient; (b) to substitute different sums of money for those for the time being specified in paragraph 22 (gross assets requirement). Minor definitions etc.102 (1) In this Schedule--
(2) For the purposes of this Schedule shares in or securities of a company shall not be treated as being of the same class unless they would be so treated if dealt with on the Stock Exchange. (3) Section 839 of the Taxes Act 1988 (connected persons) applies for the purposes of this Schedule. (4) References in this Schedule to a company being in administration or receivership shall be construed as follows-- (a) references to a company being "in administration" are to there being in force in relation to it-- (i) an administration order under Part II of the [1986 c. 45.] Insolvency Act 1986 or Part III of the [S.I. 1989/2405 (N.I.19).] Insolvency (Northern Ireland) Order 1989, or (ii) any corresponding order under the law of a country or territory outside the United Kingdom; (b) references to a company being "in receivership" are to there being in force in relation to it-- (i) an order for the appointment of an administrative receiver, a receiver and manager or a receiver under Chapter I or II of Part III of the [1986 c. 45.] Insolvency Act 1986 or Part IV of the [S.I. 1989/2405 (N.I.19).] Insolvency (Northern Ireland) Order 1989, or (ii) any corresponding order under the law of a country or territory outside the United Kingdom. (5) For the purposes of this Schedule the market value at any time of any asset is the price which it might reasonably be expected to fetch on a sale at that time in the open market free from any interest or right which exists by way of security in or over it. (6) In this Schedule-- (a) references to investment relief obtained by a company in respect of any shares include references to investment relief obtained by it in respect of those shares at any time after it has disposed of them, and (b) references to the withdrawal or reduction of investment relief obtained by a company in respect of any shares include references to the withdrawal or reduction of investment relief obtained in respect of those shares at any such time. (7) In the case of a requirement that cannot be met until a future date-- (a) references in this Schedule to a requirement being met for the time being are to nothing having occurred to prevent its being met, and (b) references to its continuing to be met are to nothing occurring to prevent its being met. Index of defined expressions103 In this Schedule the following expressions are defined or otherwise explained by the provisions indicated:
Section 63(2). SCHEDULE 16 Corporate venturing scheme: consequential amendmentsPenalties in connection with returns etc.1 (1) In section 98 of the [1970 c. 9.] Taxes Management Act 1970, the Table is amended as follows. (2) In the second column after the final entry insert-- " paragraph 64 or 65 of Schedule 15 to the Finance Act 2000 " . (3) In the first column after the final entry insert-- " paragraph 66 of Schedule 15 to the Finance Act 2000 " . Enterprise investment scheme2 (1) Chapter III of Part VII of the Taxes Act 1988 is amended as follows. (2) In section 303 of the Taxes Act 1988 (value received by persons other than claimants)-- (a) after subsection (1A) insert-- " (1AA) This section is subject to section 303A. " ; and (b) in subsection (1B) (receipts which result in withdrawal of person's EIS relief or EIS deferral relief not relevant), after paragraph (b) insert " ; or (c) causes any investment relief (within the meaning of Schedule 15 to the Finance Act 2000) to be withdrawn or reduced by virtue of paragraph 46 (disposal of shares) or 49(1)(a) (repayment etc. of share capital or securities) of that Schedule. " (3) After that section insert-- " 303A Restriction on withdrawal of relief under section 303(1) Subsections (4) and (7) below apply where, by reason of a repayment, any investment relief which is attributable under Schedule 15 to the Finance Act 2000 to any shares is withdrawn under paragraph 56(2) of that Schedule. (2) For the purposes of this section "repayment" means a repayment, redemption, repurchase or payment mentioned in paragraph 56(1) of that Schedule (repayments etc. which cause withdrawal of investment relief). (3) For the purposes of this section "the relevant amount" is the amount determined by the formula-- XВ -В 5Y Where--
(4) Where the relevant amount does not exceed £1,000 the repayment shall be disregarded for the purposes of section 303(1), unless repayment arrangements are in existence at any time in the period-- (a) beginning one year before the shares mentioned in subsection (1) above are issued, and (b) expiring at the end of the issue date of those shares. (5) For this purpose "repayment arrangements" means arrangements which provide-- (a) for a repayment by the company that issued the shares ("the issuing company") or any subsidiary of that company, or (b) for anyone to be entitled to such a repayment, at any time. (6) Subsection (5)(a) above applies in relation to a subsidiary of the issuing company whether or not it is such a subsidiary-- (a) at the time of the repayment mentioned in subsection (1) above, or (b) when the arrangements were made. (7) Where the repayment is not disregarded by virtue of subsection (4) above, the amount receivable by reason of the repayment shall be treated for the purposes of section 303(1C)(a) as an amount equal to the relevant amount. (8) Where, but for the existence of paragraph 57(1) of Schedule 15 to the Finance Act 2000 (repayments causing insignificant changes to share capital to be disregarded), any investment relief would be withdrawn by reason of a repayment, the repayment shall be disregarded for the purposes of section 303(1). (9) In this section-- (a) "investment relief" has the same meaning as in that Schedule; and (b) references to the withdrawal of investment relief include its reduction. " Loss relief3 (1) Chapter VI of Part XIII of the Taxes Act 1988 (relief on losses on shares in trading companies etc.) is amended as follows. (2) In section 573 (relief for losses incurred by investment companies on disposals of shares in qualifying trading companies)-- (a) in subsection (4)-- (i) for "Relief under subsection (2) above shall be given before any deduction for" substitute "Where relief is claimed under subsection (2) above, it must be claimed before any deduction is made for"; (ii) for "is given" substitute "is obtained"; (iii) for "in respect of the amount" substitute "for an amount"; and (iv) at the end insert-- " This subsection is subject to subsection (4A) below. " ; and (b) after that subsection insert-- " (4A) Paragraph 70 of Schedule 15 to the Finance Act 2000 (priority of loss relief) provides that where relief under Part VII of that Schedule (relief for losses on disposals of shares to which investment relief is attributable) is claimed it must be claimed in priority to relief under subsection (2) above. " (3) In section 575(1) (which restricts the disposals in respect of which relief for losses can be obtained), after paragraph (b) insert-- " (ba) a disposal within section 24(1) of the 1992 Act (entire loss, destruction, dissipation or extinction of asset); or " . (4) In section 576-- (a) in subsection (1) for "and (1B)" substitute "to (1C)"; and (b) after subsection (1B) insert-- " (1C) Where the holding mentioned in subsection (1) above comprises any shares-- (a) to which investment relief is attributable under Schedule 15 to the Finance Act 2000 (corporate venturing scheme), and (b) which have been held continuously (within the meaning of paragraph 97 of that Schedule) from the time they were issued until the disposal, any such question as is mentioned in that subsection shall not be determined as provided by that subsection, but shall be determined instead as provided by paragraph 93 of that Schedule (identification of shares on a disposal of part of a holding where investment relief is attributable to any shares in the holding held continuously by the disposing company). For this purpose paragraph 93 of that Schedule shall have effect as if the references in it to a disposal had the same meaning as in subsection (1) above. " EIS: deferral relief4 (1) The Taxation of Chargeable Gains Act 1992 is amended as follows. (2) In paragraph 14 of Schedule 5B (value received by persons other than claimants)-- (a) in sub-paragraph (1) (repayments etc. which cause revival of a deferred gain under EIS), in paragraph (a) for "an individual" substitute "a person"; (b) at the end of that sub-paragraph insert-- " This is subject to paragraph 14A below. " ; (c) in sub-paragraph (3) (exception where repayment etc. causes withdrawal of income tax relief or revival of a deferred gain under the EIS), for "An individual" substitute "A person"; and (d) in that sub-paragraph, after paragraph (b) insert " ; or (c) causes any investment relief (within the meaning of Schedule 15 to the Finance Act 2000) to be withdrawn or reduced by virtue of paragraph 46 (disposal of shares) or 49(1)(a) (repayment etc. of share capital or securities) of that Schedule. " (3) After that paragraph insert-- " Certain receipts to be disregarded for purposes of paragraph 1414A (1) Sub-paragraph (4) below applies where, by reason of a repayment, any investment relief which is attributable under Schedule 15 to the Finance Act 2000 to any shares is withdrawn under paragraph 56(2) of that Schedule. (2) For the purposes of this paragraph "repayment" means a repayment, redemption, repurchase or payment mentioned in paragraph 56(1) of that Schedule (repayments etc. which cause withdrawal of investment relief). (3) For the purposes of sub-paragraph (4) below "the relevant amount" is the amount determined by the formula-- XВ -В 5Y Where--
(4) Where the relevant amount does not exceed £1,000, the repayment shall be disregarded for the purposes of paragraph 14 above, unless repayment arrangements are in existence at any time in the period-- (a) beginning one year before the shares mentioned in sub-paragraph (1) above are issued, and (b) expiring at the end of the issue date of those shares. (5) For this purpose "repayment arrangements" means arrangements which provide-- (a) for a repayment by the company that issued the shares ("the issuing company") or any subsidiary of that company, or (b) for anyone to be entitled to such a repayment, at any time. (6) Sub-paragraph (5)(a) above applies in relation to a subsidiary of the issuing company whether or not it was such a subsidiary-- (a) at the time of the repayment mentioned in sub-paragraph (1) above, or (b) when the arrangements were made. (7) Where, but for the existence of paragraph 57(1) of Schedule 15 to the Finance Act 2000 (receipts causing insignificant changes to share capital to be disregarded), any investment relief would be withdrawn by reason of a repayment, the repayment shall be disregarded for the purposes of paragraph 14 above. (8) In this paragraph-- (a) "investment relief" has the same meaning as in that Schedule; and (b) references to the withdrawal of investment relief include its reduction. " Company tax returns, assessments etc.5 (1) Schedule 18 to the [1998 c. 36.] Finance Act 1998 is amended as follows. (2) In paragraph 8 (calculation of tax payable), in sub-paragraph (1) after paragraph number 1 of the second step insert-- " 1A Any relief under Part V of Schedule 15 to the Finance Act 2000 (corporate venturing scheme: investment relief). " (3) In paragraph 9 (claims that cannot be made without a return), after sub-paragraph (3) insert-- " (4) This paragraph applies to a claim by a company for relief under Part V of Schedule 15 to the Finance Act 2000 (corporate venturing scheme: investment relief). " Section 64. SCHEDULE 17 Enterprise investment scheme: amendmentsPart I Reduction of applicable periodsMeaning of "eligible shares"1 In section 289 of the Taxes Act 1988 (eligibility for relief), in subsection (7) (definition of "eligible shares") for the words "the period of five years beginning with the date on which they are issued," substitute " the period-- (a) beginning with the issue of the shares, and (b) ending immediately before the termination date relating to those shares, " . Conditions relating to individuals2 In section 291 of the Taxes Act 1988 (individuals qualifying for relief)-- (a) in subsection (1)(b) for "seven year" substitute "designated", and (b) for subsection (6) (definition of "the seven year period") substitute-- " (6) In this Chapter "the designated period", in relation to any eligible shares issued by a company, means the period-- (a) beginning two years before the issue of the shares, and (b) ending immediately before the termination date relating to those shares. " . Conditions relating to further investment by connected person3 (1) Section 291A of the Taxes Act 1988 (connected persons: directors) is amended as follows. (2) In subsection (1)(a) for "seven year" substitute "designated". (3) In subsection (5)(c) (period during which connected person can make a further investment attracting relief)-- (a) for "of five years" substitute "(i)", and (b) after "paragraph," insert " and (ii) ending immediately before the termination date relating to those eligible shares, " . Value received from company4 In section 300(1) of the Taxes Act 1988 (period during which receipt of value by investor may trigger charge) for "seven year" substitute "designated". Value received by persons other than claimants5 (1) Section 303 of the Taxes Act 1988 (value received by persons other than claimants) is amended as follows. (2) In subsection (1) for "seven year" substitute "designated". (3) In subsection (2) for "the seven year periods" substitute "the applicable periods". (4) After that subsection insert-- " (2A) For the purposes of subsection (2) above "the applicable period" for an issue of eligible shares is-- (a) if the shares were issued before 6th April 2000, the period beginning two years before the issue of the shares and ending immediately before the fifth anniversary of the issue date, (b) in any other case, the designated period for the issue. " . (5) In subsection (3) for "seven year" substitute "designated". Meaning of "termination date" and "relevant period"6 (1) Section 312 of the Taxes Act 1988 (interpretation of Chapter III) is amended as follows. (2) In subsection (1) after the definition of "debenture" insert-- " "the designated period" has the meaning given by section 291(6); " . (3) In that subsection, for "and" at the end of the definition of "51 per cent subsidiary" substitute-- " "termination date" in relation to any eligible shares issued by a company, means the third anniversary of the issue date or if-- (a) the shares were issued wholly or mainly in order to raise money for the purpose of a qualifying business activity falling within section 289(2)(a) (company meeting trading activities requirement by reason of the company or a subsidiary carrying on or preparing to carry on a qualifying trade), and (b) the company or subsidiary concerned had not begun to carry on the trade in question on the issue date, the third anniversary of the date on which it begins to carry on that trade; and " . (4) For subsection (1A) (definition of "relevant period") substitute-- " (1A) In any provision of this Chapter "relevant period", in relation to any eligible shares issued by a company, means whichever of the following periods is applied for the purposes of that provision-- (a) the period beginning either-- (i) with the incorporation of the company, or (ii) if the company was incorporated more than two years before the date on which the shares were issued, two years before that date, and ending immediately before the termination date relating to the shares, and (b) the period beginning with the issue of the shares and ending immediately before the termination date relating to them. " . Postponement of chargeable gains on reinvestment7 (1) Schedule 5B to the [1992 c. 12.] Taxation of Chargeable Gains Act 1992 (enterprise investment scheme: reinvestment) is amended as follows. (2) In paragraph 19(1), after the definition of "associate" insert-- " "the designated period", in the case of any shares, means the period found by applying section 291(6) of that Act by reference to the company that issued the shares and by reference to the shares; " . (3) In the following provisions for "five year" substitute "designated"-- paragraph 3(1)(c) and (d) (chargeable events); paragraph 16(1)(a) (information). (4) In the following provisions for "seven year" substitute "designated"-- paragraph 13(1) (period during which receipt of value by investor may trigger charge); paragraph 14(1) (period during which value received by other persons may trigger charge). Commencement8 The amendments in this Part of this Schedule have effect in relation to shares issued on or after 6th April 2000. Part II Qualifying companiesCompany in administration or receivership9 (1) In section 293 of the Taxes Act 1988 (qualifying companies), before subsection (5) insert-- " (4A) A company which is in administration or receivership shall not be regarded as ceasing to comply with subsection (2) above by reason of anything done as a consequence of its being in administration or receivership. This subsection has effect subject to subsection (4B) and subsection (5) below. (4B) Subsection (4A) applies only if-- (a) the making of the order in question, and (b) everything done as a consequence of the company being in administration or receivership, is for bona fide commercial reasons and is not part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax. " . (2) In section 289(1D) of the Taxes Act 1988 for "Subsection (6)" substitute "Subsections (4A) and (6)" and for "it applies" substitute "they apply". (3) In section 289A of the Taxes Act 1988, after subsection (8) insert-- " (8A) Where the company or subsidiary concerned, by reason of anything done as a consequence of its being in administration or receivership, carries on a trade for a period shorter than four months, subsection (7)(a) above shall have effect as if it referred to that shorter period. This applies only if-- (a) the making of the order in question, and (b) everything done as a consequence of the company being in administration or receivership, is for bona fide commercial reasons and is not part of a scheme or arrangement the main purpose or one of the main purposes of which is the avoidance of tax. " . (4) In section 312 of the Taxes Act 1988 (interpretation), after subsection (2) insert-- Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15 | P.16 | P.17 | P.18 | P.19 | P.20 | P.21 | P.22 | P.23 | P.24 | P.25 | P.26 | P.27 | P.28 | P.29 | P.30 | P.31 | P.32 | P.33 | P.34 | P.35 | P.36 | P.37 | P.38 | P.39 | P.40 | P.41 | P.42 | P.43 | P.44 | P.45 | P.46 | P.47 | P.48 | P.49 | P.50 | P.51 | P.52 | P.53 | P.54 | P.55 | P.56 | P.57 | P.58 | P.59 -- Back --
Stat
| |
Other
|