Finance Act 2009

(1A) No order may be made under section 208(6), 209(7), 215(2A), 227(5A), 240(3A) or 242(5) unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons.

• (3) In subsection (2), after “Part” insert “ , if made without a draft having been approved by a resolution of the House of Commons, ”.

ITTOIA 2005

19

ITTOIA 2005 is amended as follows.

20

In section 640(6)(b) (grossing-up of deemed income)—

• (a) omit the “and” at the end of sub-paragraph (i), and

• (b) insert at the end

up to and including the year 2009-2010, and (iii) 50%, if the relevant tax year is the year 2010-2011 or any subsequent tax year.

21

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

In section 685A(3) (settlor-interested settlements), for “higher rate” substitute “ additional rate ”.

23

• (1) Part 2 of Schedule 4 (index of defined expressions) is amended as follows.

• (2) After the entry relating to “acquisition expenditure (in Chapter 9 of Part 2)” insert—

additional rate	section 6(2) of ITA 2007 (as applied by section 989 of that Act).

• (3) After the entry relating to “distribution” insert—

the dividend additional rate	section 8(3) of ITA 2007 (as applied by section 989 of that Act).

F(No.2)A 2005

24

In section 7(5) of F(No.2)A 2005 (charge to income tax on social security pension lump sum)—

• (a) in paragraph (d), after “basic rate limit for that year” insert “ but does not exceed the higher rate limit for that year ”, and

• (b) after that paragraph insert—

(e) if P's Step 3 income for that year of assessment exceeds the higher rate limit for that year, the additional rate for that year.

Part 3 — Commencement

25

• (1) The powers conferred by the amendments made by this Schedule may be exercised at any time on or after the day on which this Act is passed but not so as to make provision having effect before the tax year 2010-11.

• (2) Subject to that, the amendments made by this Schedule have effect for the tax year 2010-11 and subsequent tax years.

SCHEDULE 3

Part 1 — Supplementary charge to VAT

The charge

1

• (1) There is a supplementary charge on a supply of goods or services that is treated as taking place on or after 25 November 2008 if—

• (a) the supply spans the date of the VAT change,

• (b) it is subject to VAT at the rate in force under section 2 of VATA 1994,

• (c) the person to whom the supply is made is not entitled under VATA 1994 to credit for, or the repayment or refund of, all of the VAT on the supply, and

• (d) a relevant condition is met.

• (2) In this Schedule “the date of the VAT change” means 1 January 2010.

• (3) For the cases in which a supply, other than the grant of a right to goods or services, spans the date of the VAT change and the relevant conditions in relation to such a supply, see paragraph 2.

• (4) For the cases in which a supply consisting of the grant of a right to goods or services spans the date of the VAT change and the relevant conditions in relation to such a supply, see paragraph 3.

• (5) Sub-paragraph (1) has effect subject to the exceptions made by or under Part 2 of this Schedule.

• (6) In this Schedule—

• Part 3 contains provision about liability for, and the amount of, a supplementary charge under this Schedule,

• Part 4 contains special provision about listed supplies, and

• Part 5 contains provision about administration and interpretation.

• (7) A supplementary charge under this Schedule is to be treated for all purposes as if it were value added tax charged in accordance with VATA 1994.

Supply spanning the date of the VAT change

2

• (1) For the purposes of this Schedule a supply of goods or services spans the date of the VAT change where—

• (a) by virtue of the issue of a VAT invoice or the receipt of a payment by the person making the supply (“the supplier”), the supply is treated as taking place before the date of the VAT change, but

• (b) the basic time of supply (see paragraph 4) is on or after the date of the VAT change.

• (2) The relevant conditions are—

• (a) in relation to a supply that is within sub-paragraph (1)(a) by virtue of the issue of a VAT invoice, conditions A to D, and

• (b) in relation to a supply that is within sub-paragraph (1)(a) by virtue of the receipt of a payment, conditions A to C.

• (3) Condition A is that the supplier and the person to whom the supply is made are connected with each other at any time in the period—

• (a) beginning with the day on which the supply is treated as taking place, and

• (b) ending on the date of the VAT change.

• (4) Paragraph 5 modifies condition A in cases involving a series of supplies.

• (5) Condition B is that the aggregate of the following is more than £100,000—

• (a) the relevant consideration for the supply, and

• (b) the relevant consideration for every related supply of goods or services (including every related grant of a right to goods or services) that spans the date of the VAT change (see paragraph 6).

• (6) Condition C is that a prepayment in respect of the supply is financed by the supplier or a person connected with the supplier (see paragraph 7).

• (7) In sub-paragraph (6) “prepayment”, in respect of a supply, means a payment that is received by the supplier before the basic time of supply.

• (8) Condition D is that full payment of the amount shown on the VAT invoice referred to in sub-paragraph (1)(a) is not due before the end of the period of 6 months beginning with the date on which the invoice is issued.

• (9) This paragraph does not apply in relation to a supply consisting of the grant of a right to goods or services (see paragraph 3).

Grant of right spanning the date of the VAT change

3

• (1) For the purposes of this Schedule a supply consisting of the grant by a person (“the grantor”) of a right to goods or services spans the date of the VAT change where—

• (a) that supply is treated as taking place before the date of the VAT change,

• (b) the goods or services are to be supplied at a discount or free of charge, and

• (c) the basic time of supply for the supply of some or all of the goods or services (see paragraph 4) is on or after the date of the VAT change.

• (2) In relation to the grant of the right, the relevant conditions are conditions A to C.

• (3) Condition A is that the grantor and the person to whom the right is granted are connected with each other at any time in the period—

• (a) beginning with the day on which the supply consisting of the grant of the right is treated as taking place, and

• (b) ending on the date of the VAT change or, if the right is exercised (entirely or partly) on a later date, that date (or, if more than one, the first of those dates).

• (4) Paragraph 5 modifies condition A in cases involving a series of supplies.

• (5) Condition B is that the aggregate of the following is more than £100,000—

• (a) the relevant consideration for the grant of the right, and

• (b) the relevant consideration for every related supply of goods or services (including every related grant of a right to goods or services) that spans the date of the VAT change (see paragraph 6).

• (6) Condition C is that the payment made in respect of the grant of the right is financed by the grantor or a person connected with the grantor (see paragraph 7).

• (7) In this Schedule references to a right to goods or services include—

• (a) any right or option with respect to such goods or services, and

• (b) any interest deriving from such a right or option.

“Basic time of supply”

4

• (1) In this Schedule the “basic time of supply” is the time given by subsection (2) or (3) of section 6 of VATA 1994 (disregarding subsections (4) to (14) of that section).

• (2) Sub-paragraph (1) does not apply in relation to listed supplies (see Part 4 of this Schedule).

Series of supplies

5

• (1) This paragraph applies where—

• (a) the supply or grant of a right referred to in paragraph 2 or 3 (“the affected supply or grant”) is one of a series of supplies of, or grants of a right to, the same or substantially the same goods or services, and

• (b) each of the supplies, and the grants of a right, in the series was or will be made in the expectation that the affected supply or grant would or will take place.

• (2) In condition A in paragraphs 2 and 3 the references to the supplier and the grantor include any person who makes one of the supplies or grants one of the rights in the series.

“Relevant consideration” and “related” supplies

6

• (1) This paragraph applies for the purposes of condition B in paragraphs 2 and 3.

• (2) “Relevant consideration” means—

• (a) in relation to a supply that is within paragraph 2(1) by virtue of the issue of a VAT invoice, the amount shown on that invoice,

• (b) in relation to a supply that is within paragraph 2(1) by virtue of the receipt of a payment, the amount of that payment, and

• (c) in relation to a grant of a right to goods or services within paragraph 3(1), the consideration for the grant of the right,

but does not include any amount in respect of VAT.

• (3) A supply within paragraph 2(1), or a grant of a right within paragraph 3(1), is related to another such supply or grant if they are both made as part of the same scheme.

• (4) “Scheme” includes any arrangements, transaction or series of transactions.

Financing

7

• (1) This paragraph applies for the purposes of condition C in paragraphs 2 and 3.

• (2) A payment is financed by a person if, directly or indirectly, the person—

• (a) provides funds to enable the person to whom the supply is made to make the whole or part of the payment (whether the funds are provided before or after the payment is made),

• (b) procures the provision of such funds by another person,

• (c) provides funds for discharging (in whole or in part) any liability that has been or may be incurred by any person for or in connection with raising funds to enable the person to whom the supply is made to make the payment, or

• (d) procures that any such liability is or will be discharged (in whole or in part) by another person.

• (3) In sub-paragraph (2) the references to providing funds for a purpose are to—

• (a) making a loan of funds that are or are to be used for that purpose,

• (b) providing a guarantee or other security in relation to such a loan,

• (c) providing consideration for the issue of shares or other securities issued wholly or partly for raising those funds,

• (d) providing consideration for the acquisition by any person of any such shares or securities, or

• (e) any other transfer of assets or value as a consequence of which any of those funds are made available for that purpose.

Connected persons

8

Section 1122 of CTA 2010 (connected persons) applies for the purposes of this Schedule.

Receipt of payments

9

In this Schedule a reference to receipt of a payment by the person making a supply or granting a right (however expressed) includes a reference to receipt by a person to whom a right to receive it has been assigned.

Power to change relevant conditions

10

• (1) The Treasury may by order amend this Part of this Schedule by adding, modifying or omitting relevant conditions.

• (2) An order under this paragraph—

• (a) may make different provision for different cases, and

• (b) may make incidental or consequential amendments of this Schedule.

Supplies treated as taking place before 31 March 2009

11

In relation to supplies treated as taking place before 31 March 2009, this Schedule has effect as if—

• (a) paragraphs 2(5), 3(5) and 6 (condition B) and all references to condition B were omitted,

• (b) in paragraph 2(6) (condition C), the words “or a person connected with the supplier” were omitted, and

• (c) in paragraph 3(6) (condition C), the words “or a person connected with the grantor” were omitted.

Part 2 — Exceptions

Letting etc of assets

12

• (1) This paragraph applies in relation to a supply within paragraph 2 which arises from the letting, hiring or rental of assets.

• (2) There is no supplementary charge under this Schedule if—

• (a) the period to which the VAT invoice or payment referred to in paragraph 2(1) relates does not exceed 12 months, and

• (b) the VAT invoice is issued, or the payment is received, in accordance with normal commercial practice in relation to the letting, hiring or rental of such assets.

Condition B cases involving normal commercial practice

13

There is no supplementary charge under this Schedule on a supply of goods or services within paragraph 2 or a grant of a right to goods or services within paragraph 3 if—

• (a) the only relevant condition met is condition B, and

• (b) the supply is made, or the right is granted, in accordance with normal commercial practice in relation to the supply of, or the grant of a right to, such goods or services.

Normal commercial practice

14

In this Part of this Schedule “normal commercial practice” means normal commercial practice at a time when an increase in the rate of VAT in force under section 2 of VATA 1994 is not expected.

Further exceptions

15

• (1) The Treasury may by order provide that there is no supplementary charge under this Schedule on supplies (including grants of rights to goods or services) of a description specified in the order.

• (2) An order under this paragraph may make provision having effect in relation to supplies of goods or services that are treated as taking place on or after 25 November 2008 or a later date.

Part 3 — Liability and amount

Liability

16

• (1) A supplementary charge under this Schedule on a supply within paragraph 2—

• (a) is a liability of the supplier (subject to sub-paragraph (3)), and

• (b) becomes due on the date of the VAT change (rather than at the time of supply).

• (2) A supplementary charge under this Schedule on a supply consisting of the grant of a right to goods or services within paragraph 3—

• (a) is a liability of the grantor (subject to sub-paragraph (3)), and

• (b) becomes due on the first occasion on or after the date of the VAT change on which the right is exercised (rather than at the time the right is granted).

• (3) If, on the date on which the supplementary charge becomes due, the person who would be liable to pay the charge under sub-paragraph (1) or (2)—

• (a) is not a taxable person, but

• (b) is treated as a member of a group under sections 43A to 43D of VATA 1994,

the supplementary charge is a liability of the representative member of the group.

Amount

17

• (1) The amount of the supplementary charge on a supply within paragraph 2 is equal to the difference between—

• (a) the amount of VAT chargeable on the supply apart from this Schedule, and

• (b) the amount of VAT that would be chargeable on the supply if it were subject to VAT at the rate of 17.5%.

• (2) The amount of the supplementary charge on a grant of a right to goods or services within paragraph 3 is equal to the difference between—

• (a) the amount of VAT chargeable on the grant of the right apart from this Schedule, and

• (b) the amount of VAT that would be chargeable on the grant of the right if it were subject to VAT at the rate of 17.5%,

(but see sub-paragraph (3)).

• (3) If the basic time of supply for some of those goods and services is before the date of the VAT change, sub-paragraph (2) has effect as if the references to the amount of VAT chargeable and to the amount of VAT that would be chargeable were references to the relevant proportion of each of those amounts.

• (4) “The relevant proportion” is—

$$PW$where—P is so much of the consideration for the grant of the right as is attributable on a just and reasonable basis to a right to the goods and services for which the basic time of supply is on or after the date of the VAT change, andW is the whole of the consideration for the grant of the right.$

Part 4 — Listed supplies

“Listed supply”

18

• (1) In this Schedule “listed supply” means a supply falling within sub-paragraph (2)—

• (a) which is made for a consideration the whole or part of which is determined or payable periodically or from time to time, and

• (b) which is treated as taking place by virtue of the issue of a VAT invoice or the receipt of a payment by the person making the supply.

• (2) The following supplies fall within this sub-paragraph—

• (a) a supply of services,

• (b) a supply arising from the grant of a major interest in land,

• (c) a supply of water other than—

• (i) distilled water, deionised water or water of similar purity, or

• (ii) bottled water,

• (d) a supply of—

• (i) coal gas, water gas, producer gases or similar gases, or

• (ii) petroleum gases, or other gaseous hydrocarbons, in a gaseous state,

• (e) a supply of power, heat, refrigeration or ventilation, and

• (f) a supply of goods together with services in the course of the construction, alteration, demolition, repair or maintenance of a building or civil engineering work.

• (3) The Treasury may by order amend sub-paragraph (2) by—

• (a) adding or omitting any description of supply, or

• (b) varying any description of supply for the time being listed in that sub-paragraph.

“Basic time of supply”: listed supplies

19

• (1) For the purposes of this Schedule, in relation to a listed supply, “the basic time of supply” is the end of the period to which the VAT invoice or payment mentioned in paragraph 18(1) relates, except as provided in sub-paragraphs (2) and (4).

• (2) Where the person making the supply issues an invoice—

• (a) in respect of part of the listed supply to which the VAT invoice or payment mentioned in paragraph 18(1) relates, and

• (b) for a period (a “billing period”) ending before the end of the period to which that VAT invoice or payment relates,

“the basic time of supply”, in relation to that part of the supply, is the end of the billing period.

• (3) For the purposes of sub-paragraph (2) the listed supply (and the consideration for the supply) must be apportioned between periods on a just and reasonable basis.

• (4) Where a listed supply is treated as taking place by virtue of—

• (a) the issue by the person making the supply of a VAT invoice relating to a premium for the grant of a tenancy or lease, or

• (b) the receipt by the person making the supply of such a premium,

“the basic time of supply” is the date of the grant of the tenancy or lease.

Part 5 — Administration and interpretation

Person ceasing to be taxable person before supplementary charge due

20

• (1) This paragraph applies if, on the date on which a supplementary charge under this Schedule becomes due (“the due date”), the person who is liable to pay the charge under paragraph 16 is not a taxable person.

• (2) The supplementary charge must be accounted for by that person in accordance with VATA 1994 (and regulations made under that Act) as if it were VAT due in the last period for which the person was required to make a return by or under VATA 1994.

• (3) If an amount assessed as due by way of supplementary charge under this Schedule would (in the absence of this sub-paragraph) carry interest from a date earlier than the due date, it is to be treated as only carrying interest from the due date.

Adjustment of contracts following the VAT change

21

• (1) This paragraph applies where—

• (a) a contract for the supply of goods or services is made before the date of the VAT change, and

• (b) there is a supplementary charge under this Schedule on the supply.

• (2) The consideration for the supply is to be increased by an amount equal to the supplementary charge, unless the contract provides otherwise.

Invoices

22

Regulations under paragraph 2A of Schedule 11 to VATA 1994 (VAT invoices) may make provision about the provision, replacement or correction of invoices in connection with a supplementary charge under this Schedule.

Orders under this Schedule

23

• (1) An order under this Schedule is to be made by statutory instrument.

• (2) A statutory instrument containing an order under this Schedule is subject to annulment in pursuance of a resolution of the House of Commons, unless it is an instrument to which sub-paragraph (4) applies.

• (3) Sub-paragraph (4) applies to a statutory instrument containing an order made under paragraph 10 (or under that paragraph and under other provisions) which extends the supplies that are subject to a supplementary charge under this Schedule.

• (4) An instrument to which this sub-paragraph applies—

• (a) must be laid before the House of Commons, and

• (b) ceases to have effect at the end of the period of 28 days beginning with the day on which it was made unless it is approved during that period by a resolution of the House of Commons.

• (5) In reckoning the period of 28 days no account is to be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than 4 days.

• (6) The order ceasing to have effect does not affect—

• (a) anything previously done under it, or

• (b) the making of a new order.

Interpretation: general

24

• (1) Expressions used in this Schedule and in VATA 1994 have the same meaning in this Schedule as in that Act.

• (2) In this Schedule—

• (a) “treated as taking place” means treated as taking place for the purposes of the charge to VAT, and

• (b) references to the person by or to whom a supply is made (however expressed) are to the person by or to whom the supply is treated as being made for the purposes of VATA 1994.

Part 6 — Amendments of VATA 1994

25

• (1) VATA 1994 is amended as follows.

• (2) In section 2(2) (orders increasing or decreasing rate of VAT), after “such order” insert “ that has not previously expired or been revoked ”.

• (3) In section 97 (orders, rules and regulations), after subsection (4) insert—

(4A) Where an order under section 2(2) is in force, the reference in subsection (4)(c)(i) of this section to the rate of VAT in force under section 2 at the time of the making of an order is a reference to the rate which would be in force at that time if no such order had been made.

SCHEDULE 4

1

VERA 1994 is amended as follows.

2

• (1) Section 3 (duration of licences) is amended as follows.

• (2) In subsection (4)(b), for “a licence taken out on the first registration under this Act of” substitute “ the first vehicle licence for ”.

• (3) Insert at the end—

(7) Neither subsection (2) nor any order under subsection (3) permits the first vehicle licence for a vehicle to be taken out for a period of less than twelve months if the annual rate of vehicle excise duty chargeable on the licence would be lower if it were not the first vehicle licence for the vehicle.

3

• (1) Section 19 (rebates) is amended as follows.

• (2) In subsection (1), for “from the Secretary of State the amount specified in subsection (2)” substitute “ the relevant amount from the Secretary of State ”.

• (3) Omit subsection (2).

• (4) After subsection (3) insert—

(3A) Subject to subsection (3B), the relevant amount is an amount equal to one-twelfth of the annual rate of duty chargeable on the licence (at the time when it was taken out) in respect of each complete month of the period of the currency of the licence which is unexpired when the application is made. (3B) Where— (a) the licence is the first vehicle licence for the vehicle, (b) the application is made by virtue of paragraph (d), (e) or (f) of subsection (3), and (c) the annual rate of duty rate chargeable on the licence (at the time when it was taken out) would have been lower if it had not been the first vehicle licence for the vehicle, the relevant amount is an amount equal to one-twelfth of that lower annual rate of duty in respect of each such complete month.

4

• (1) Section 62 (definitions) is amended as follows.

• (2) In subsection (1), after the definition of “exempt vehicle” insert—

“first vehicle licence”, in relation to a vehicle, means (subject to subsections (1B) and (1C)) the vehicle licence for the vehicle on the issue of which the vehicle is first registered under this Act (so that, if the vehicle is first registered on the issue of a nil licence, there is no first vehicle licence in relation to it),

.

• (3) After subsection (1A) insert—

(1B) Where a vehicle is first registered under this Act on the issue of a temporary licence, the “first vehicle licence” in relation to the vehicle is the first vehicle licence subsequently issued for it. (1C) Where a vehicle— (a) has been registered under the law of a country or territory outside the United Kingdom, (b) is first registered under this Act more than 6 months after the time when it was first registered as mentioned in paragraph (a), and (c) has travelled more than 6,000 kilometres under its own power before it is first registered under this Act, there is no first vehicle licence in relation to the vehicle.

5

• (1) Schedule 1 (annual rates of duty) is amended as follows.

• (2) In paragraph 1A (vehicles to which Part 1A applies)—

• (a) in sub-paragraph (1)(a), after “registered”, and

• (b) in sub-paragraph (5), after “registration”,

insert “, under this Act or under the law of a country or territory outside the United Kingdom,”.

• (3) In paragraph 1C (the reduced rate)—

• (a) in sub-paragraph (3)(a), after “registration” insert “ , under this Act or under the law of a country or territory outside the United Kingdom, ”,

• (b) in sub-paragraph (3)(b), for “its” substitute “ that ”, and

• (c) in sub-paragraph (4), after “registration” insert “ under this Act ”.

• (4) In paragraph 1H (vehicles to which Part 1B applies)—

• (a) in sub-paragraph (1)(a), after “registered”, and

• (b) in sub-paragraph (3), after “registration”,

insert “, under this Act or under the law of a country or territory outside the United Kingdom,”.

• (5) In paragraph 1K(a) (pre-2007 lower-emission vans), after “registered” insert “ , under this Act or under the law of a country or territory outside the United Kingdom, ”.

• (6) In paragraph 1M(a) (post-2008 lower-emission vans), after “registered” insert “ , under this Act or under the law of a country or territory outside the United Kingdom, ”.

6

• (1) Paragraph 25 of Schedule 2 (exempt vehicles: light passenger vehicles with low CO₂ emissions) is re-numbered as sub-paragraph (1) of that paragraph.

• (2) After that sub-paragraph insert—

(2) A vehicle is an exempt vehicle for the appropriate period if— (a) it is a vehicle to which Part 1A of Schedule 1 applies, and (b) the applicable CO₂ emissions figure (as defined in paragraph 1A(3) and (4) of that Schedule) exceeds 100g/km but does not exceed 130g/km. (3) “The appropriate period” is the period for which (if the vehicle were not an exempt vehicle by virtue of sub-paragraph (2)) the first vehicle licence for the vehicle would (if taken out) have effect.

7

• (1) The amendments made by this Schedule have effect in relation to licences taken out on or after 1 April 2010.

• (2) But the amendments made by paragraph 5 do not have effect in relation to vehicles first registered under this Act before that date.

SCHEDULE 5

Amendments

1

Chapter 4 of Part 1 of FA 1994 (air passenger duty) is amended as follows.

2

• (1) Section 30 (rates of duty) is amended as follows.

• (2) After subsection (8) insert—

(8A) The Treasury may by order amend Schedule 5A.

• (3) Omit subsections (9) to (9B).

3

For section 39 substitute—

(39) (1) This section applies if the Commissioners consider that, having regard to difficulties encountered or expected to be encountered by any registered operator in obtaining and recording information about passengers and their journeys, it is appropriate for this Chapter to have effect in relation to the registered operator in accordance with a special accounting scheme. (2) The Commissioners may agree with the registered operator that this Chapter is to have effect in relation to the registered operator in accordance with a special accounting scheme agreed between the Commissioners and the registered operator (but subject to subsection (4)). (3) A special accounting scheme is a scheme which makes provision for methods of calculating— (a) how many persons are to be regarded for the purposes of this Chapter as chargeable passengers carried by chargeable aircraft operated by a registered operator, and (b) how many of those are to be so regarded as having been so carried on journeys in respect of which duty is chargeable at any particular rate. (4) The Commissioners may publish a notice specifying terms and conditions subject to which special accounting schemes are to have effect. (5) Where the Commissioners and a registered operator have agreed that this Chapter is to have effect in relation to the registered operator in accordance with a special accounting scheme, this Chapter has effect in relation to the registered operator in accordance with the scheme (and with any notice under subsection (4) which has been published by the Commissioners and not withdrawn) for the period agreed by the Commissioners and the registered operator. (6) The Commissioners and the registered operator may at any time agree to vary the special accounting scheme for the future. (7) The Commissioners may at any time terminate the operation of the special accounting scheme— (a) on the application of the registered operator, or (b) where they have reasonable grounds for doing so, by giving notice to the registered operator.

4

In section 42(4) (orders), after “chargeable passengers” insert “ , or to increase the rate of air passenger duty to be charged on the carriage of any chargeable passengers whose journeys end in any place, ”.

5

After Schedule 5 insert—

SCHEDULE 5A

Albania	Finland	Latvia	Portugal (including Madeira)
Algeria	France (including Corsica)	Libya	Romania
Andorra	Germany	Liechtenstein	Russian Federation, west of the Urals
Austria	Gibraltar	Lithuania	San Marino
Azores	Greece	Luxembourg	Serbia
Belarus	Greenland	Former Yugoslav Republic of Macedonia	Slovak Republic
Belgium	Guernsey	Malta	Slovenia
Bosnia and Herzegovina	Hungary	Moldova	Spain (including the Balearic Islands and the Canary Islands)
Bulgaria	Iceland	Monaco	Sweden
Croatia	Republic of Ireland	Montenegro	Switzerland
Cyprus	Isle of Man	Morocco	Tunisia
Czech Republic	Italy (including Sicily and Sardinia)	Netherlands	Turkey
Denmark (including the Faroe Islands)	Jersey	Norway (including Svalbard)	Ukraine
Estonia	Republic of Kosovo	Poland	Western Sahara
Afghanistan	Egypt	Kazakhstan	Saudi Arabia
---	---	---	---
Armenia	Equatorial Guinea	Kuwait	Senegal
Azerbaijan	Eritrea	Kyrgyzstan	Sierra Leone
Bahrain	Ethiopia	Lebanon	Sudan
Benin	Gabon	Liberia	Syria
Bermuda	Gambia	Mali	Tajikistan
Burkina Faso	Georgia	Mauritania	Togo
Cameroon	Ghana	Niger	Turkmenistan
Canada	Guinea	Nigeria	Uganda
Cape Verde	Guinea-Bissau	Oman	United Arab Emirates
Central African Republic	Iran	Pakistan	United States of America
Chad	Iraq	Qatar	Uzbekistan
Democratic Republic of Congo	Israel and the Occupied Palestinian Territories	Russian Federation, east of the Urals	Yemen
Republic of Congo	Ivory Coast	Saint Pierre and Miquelon
Djibouti	Jordan	Sao Tome and Principe
Angola	Cuba	Macao SAR	Saint Helena
---	---	---	---
Anguilla	Dominica	Madagascar	Saint Lucia
Antigua and Barbuda	Dominican Republic	Malawi	Saint Martin
Aruba	Ecuador	Maldives	Saint Vincent and the Grenadines
Ascension Island	El Salvador	Martinique	Seychelles
Bahamas	French Guiana	Mauritius	Somalia
Bangladesh	Grenada	Mayotte	South Africa
Barbados	Guadeloupe	Mexico	Sri Lanka
Belize	Guatemala	Mongolia	Suriname
Bhutan	Guyana	Montserrat	Swaziland
Botswana	Haiti	Mozambique	Tanzania
Brazil	Honduras	Namibia	Thailand
British Indian Ocean Territory	Hong Kong SAR	Nepal	Trinidad and Tobago
British Virgin Islands	India	Netherlands Antilles	Turks and Caicos Islands
Burma	Jamaica	Nicaragua	Venezuela
Burundi	Japan	Panama	Vietnam
Cayman Islands	Kenya	Puerto Rico	Virgin Islands
China	North Korea	Reunion	Zambia
Colombia	South Korea	Rwanda	Zimbabwe.
Comoros	Laos	Saint Barthelemy
Costa Rica	Lesotho	Saint Christopher and Nevis (St Kitts and Nevis)

Consequential repeals

6

In consequence of the amendments made by section 17 and this Schedule, omit—

• (a) in FA 1995, section 15,

• (b) in FA 2000, in section 18—

• (i) subsections (1) to (5), and

• (ii) subsection (7),

• (c) in FA 2002, section 121, and

• (d) in FA 2007, section 12.

Commencement etc

7

The amendments made by paragraphs 2(3) and 6(a), (b)(i), (c) and (d) have effect in relation to the carriage of passengers beginning on or after 1 November 2009.

8

• (1) No agreement for Chapter 4 of Part 1 of FA 1994 to have effect in relation to a registered operator in accordance with a special accounting scheme pursuant to section 39 of FA 1994 as substituted by paragraph 3 may be made so as to have effect as respects the carriage of passengers beginning before 1 November 2009.

• (2) Nothing in this Schedule affects the continuing operation of, or of schemes prepared under, that section as it has effect immediately before this Act is passed as respects the carriage of passengers beginning before 1 November 2009.

SCHEDULE 6

Income tax

1

• (1) A person who has made a loss in a trade in the tax year 2008-09 or 2009-10 may make a claim for relief under this paragraph if—

• (a) relief is available to the person under section 64 of ITA 2007 (trade loss relief against general income) in relation to an amount of the loss (“the section 64 amount”), and

• (b) condition A or B is met.

• (2) Condition A is that the person makes a claim under that section for relief in respect of the section 64 amount—

• (a) where it is a loss made in the tax year 2008-09, for either or both of the tax years 2007-08 and 2008-09, or

• (b) where it is a loss made in the tax year 2009-10, for either or both of the tax years 2008-09 and 2009-10.

• (3) Condition B is that—

• (a) where it is a loss made in the tax year 2008-09, for the tax years 2007-08 and 2008-09, or

• (b) where it is a loss made in the tax year 2009-10, for the tax years 2008-09 and 2009-10,

the person's total income is nil or does not include any income from which a deduction could be made in pursuance of a claim under that section for relief in respect of the section 64 amount.

• (4) The amount of the loss that may be relieved under this paragraph (“the deductible amount”) is—

• (a) in a case where condition A is met, so much of the section 64 amount as cannot be relieved pursuant to the claim under section 64 of ITA 2007, and

• (b) in a case where condition B is met, the whole of the section 64 amount,

(but see sub-paragraph (12)).

• (5) A claim for relief under this paragraph is for the deductible amount to be deducted (in accordance with sub-paragraph (6) and with whichever is applicable of sub-paragraphs (7), (8), (9) and (10))—

• (a) where it is a loss made in the tax year 2008-09, in either or both of the following ways—

• (i) in computing the person's total income for either or both of the tax years 2005-06 and 2006-07 in accordance with section 835 of ICTA, and

• (ii) in calculating the person's net income for the tax year 2007-08 in accordance with Step 2 of the calculation in section 23 of ITA 2007 (which applies as if this paragraph were a provision listed in section 24 of that Act), or

• (b) where it is a loss made in the tax year 2009-10, in either or both of the following ways—

• (i) in computing the person's total income for the tax year 2006-07 in accordance with section 835 of ICTA, and

• (ii) in calculating the person's net income for either or both of the tax years 2007-08 and 2008-09 in accordance with Step 2 of the calculation in section 23 of ITA 2007 (which applies as if this paragraph were a provision listed in section 24 of that Act).

• (6) A deduction is to be made only from profits of the trade (and accordingly, in relation to the tax years 2007-08 and 2008-09, subsection (2) of section 25 of ITA 2007 has effect as if this sub-paragraph were included in subsection (3) of that section).

• (7) This sub-paragraph explains how the deductions are to be made in a case where the loss is made in the tax year 2008-09 and the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for the tax year 2007-08.

Step 1

Deduct the deductible amount from the profits of the trade for the tax year 2006-07.

Step 2

Deduct from the profits of the trade for the tax year 2005-06 so much of the deductible amount as has not been deducted under Step 1.

• (8) This sub-paragraph explains how the deductions are to be made in any other case where the loss is made in the tax year 2008-09.

Step 1

Deduct the deductible amount from the profits of the trade for the tax year 2007-08.

Step 2

Deduct from the profits of the trade for the tax year 2006-07 so much of the deductible amount as has not been deducted under Step 1.

Step 3

Deduct from the profits of the trade for the tax year 2005-06 so much of the deductible amount as has not been deducted under Step 1 or 2.

• (9) This sub-paragraph explains how the deductions are to be made in a case where the loss is made in the tax year 2009-10 and the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for the tax year 2008-09.

Step 1

Deduct the deductible amount from the profits of the trade for the tax year 2007-08.

Step 2

Deduct from the profits of the trade for the tax year 2006-07 so much of the deductible amount as has not been deducted under Step 1.

• (10) This sub-paragraph explains how the deductions are to be made in any other case where the loss is made in the tax year 2009-10.

Step 1

Deduct the deductible amount from the profits of the trade for the tax year 2008-09.

Step 2

Deduct from the profits of the trade for the tax year 2007-08 so much of the deductible amount as has not been deducted under Step 1.

Step 3

Deduct from the profits of the trade for the tax year 2006-07 so much of the deductible amount as has not been deducted under Step 1 or 2.

• (11) The provision made by the preceding provisions means that the following sections of ITA 2007 apply in relation to relief under this paragraph as in relation to relief under section 64 of that Act—

• (a) section 66 to 70 (restrictions on relief under section 64),

• (b) sections 74ZA to 74D (general restrictions on relief),

• (c) sections 75 to 79 (restrictions on relief under section 64 and early trade losses relief in relation to capital allowances),and

• (d) section 80 (restrictions on those reliefs in relation to ring fence income), ...

• (e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (12) The total amount that may be deducted in accordance with sub-paragraph (7), or in accordance with Steps 2 and 3 in sub-paragraph (8), is limited to £50,000; and the total amount that may be deducted in accordance with sub-paragraph (9), or in accordance with Steps 2 and 3 in sub-paragraph (10), is also limited to £50,000.

2

• (1) A claim for relief under paragraph 1 must be made—

• (a) where the relief is in respect of a loss made in the tax year 2008-09, on or before the first anniversary of the normal self-assessment filing date for that tax year, and

• (b) where the relief is in respect of a loss made in the tax year 2009-10, on or before the first anniversary of the normal self-assessment filing date for that tax year.

• (2) Paragraph 1 applies to professions and vocations as it applies to trades.

• (3) Paragraph 1 is subject to paragraph 2 of Schedule 1B to TMA 1970 (claims for loss relief involving 2 or more years).

• (4) Sections 61 to 63 of ITA 2007 (meaning of “making a loss in a tax year” etc and prohibition against double counting) have effect as if paragraph 1 were included in Chapter 2 of Part 4 of that Act.

• (5) Subsections (1) to (3) of section 127 of that Act (UK furnished holiday lettings business treated as trade) have effect as if paragraph 1 were included in Part 4 of that Act.

• (6) The reference in paragraph 3(1) of Schedule 2 to the Social Security Contributions and Benefits Act 1992 and the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (levy of Class 4 contributions with income tax) to section 64 of ITA 2007 includes paragraph 1.

Corporation tax

3

• (1) Sections 37(3)(b) and 38(1) and (3) of CTA 2010 (trade loss relief against profits of same or earlier accounting period) have effect in relation to any loss to which this paragraph applies as if the references to 12 months were references to 3 years (but subject as follows).

• (2) This paragraph applies to any loss incurred by a company in a trade in a relevant accounting period (but subject to sub-paragraph (3)); and a relevant accounting period is one ending after 23 November 2008 and before 24 November 2010.

• (3) The maximum amount of loss to which this paragraph applies in the case of any company is—

• (a) £50,000 in relation to losses incurred in relevant accounting periods ending after 23 November 2008 and before 24 November 2009, and

• (b) £50,000 in relation to losses incurred in relevant accounting periods ending after 23 November 2009 and before 24 November 2010;

and the overall limit or limits apply whether a loss is incurred by the company in only one relevant accounting period or losses are so incurred in more than one such period.

• (4) Subject to that, if in the case of the company the length of a relevant accounting period is less than one year, the maximum amount of the loss incurred in that period that may be relieved under section 37 of CTA 2010 by virtue of this paragraph is the relevant proportion of £50,000.

• (5) “The relevant proportion” is—

$$RAPY$where—RAP is the number of days in the relevant accounting period, andY is 365.$

• (6) The reference in subsection (2) of section 40 of CTA 2010 to the loss mentioned in subsection (1)(a) of that section (so far as not a terminal loss and so far as not exceeding the allowance mentioned in subsection (1)(b) of that section) (“the section 40 loss”) has effect in relation to a relevant accounting period as a reference to so much of the section 40 loss as exceeds that which can be set off under section 37 by virtue of this paragraph.

SCHEDULE 7

Part 1 — Amendments of Part 14 of CTA 2009

1

Part 14 of CTA 2009 (remediation of contaminated land) is amended as follows.

2

In the heading of the Part, after “contaminated” insert “ or derelict ”.

3

• (1) Section 1143 (overview of Part) is amended as follows.

• (2) In subsection (1), after “contamination” insert “ or dereliction ”.

• (3) In subsection (7), after “contaminated” insert “ or derelict ”.

4

• (1) Section 1144 (“qualifying land remediation expenditure”) is amended as follows.

• (2) In subsection (1), for “E” substitute “ F ”.

• (3) In subsection (2), insert at the end “or a derelict state (see section 1145A)”.

• (4) In subsection (3), after “contaminated” insert “ or derelict ”.

• (5) For subsection (4) substitute—

(4) Condition C is that it is— (a) in the case of land in a contaminated state, expenditure on relevant contaminated land remediation undertaken by the company (see section 1146), or (b) in the case of land in a derelict state, expenditure on relevant derelict land remediation so undertaken (see section 1146A).

• (6) In subsection (5), for paragraph (c) (and the “or” before it) substitute—

(c) incurred in respect of relevant land remediation contracted out by the company to another person with whom the company is not connected, or (d) qualifying expenditure on connected sub-contracted land remediation (see section 1175).

• (7) After subsection (6) insert—

(6A) Condition F is that the expenditure is not incurred on landfill tax.

5

For section 1145 substitute—

(1145) (1) For the purposes of this Part land is in a contaminated state if (and only if), because of something in, on or under the land, the land is in a condition such that— (a) relevant harm is being caused, or (b) there is a serious possibility that relevant harm will be caused. (2) But land is not in a contaminated state by reason of the presence in, on or under it of— (a) living organisms or decaying matter deriving from living organisms, air or water, or (b) anything present otherwise than as a result of industrial activity. (3) The Treasury may by order specify circumstances in which subsection (2) is not to apply to the extent specified in the order; and an order under this subsection may contain incidental, supplemental, consequential and transitional provision and savings. (4) In this section “relevant harm” means— (a) death of living organisms or significant injury or damage to living organisms, (b) significant pollution of controlled waters, (c) a significant adverse impact on the ecosystem, or (d) structural or other significant damage to buildings or other structures or interference with buildings or other structures that significantly compromises their use. (1145A) For the purposes of this Part land is in a derelict state if (and only if) the land— (a) is not in productive use, and (b) cannot be put into productive use without the removal of buildings or other structures. (1145B) (1) A nuclear site is not land in a contaminated state or land in a derelict state for the purposes of this Part. (2) “Nuclear site” means— (a) any site in respect of which a nuclear site licence is for the time being in force, or (b) any site in respect of which, after the revocation or surrender of a nuclear site licence, the period of responsibility of the licensee has not yet come to an end. (3) In subsection (2) “nuclear site licence”, “licensee” and “period of responsibility” have the same meaning as in the Nuclear Installations Act 1965.

6

• (1) Section 1146 (“relevant land remediation”) is amended as follows.

• (2) In subsection (1)—

• (a) for “land remediation”, in relation to land” substitute “contaminated land remediation”, in relation to land which is in a contaminated state and in which a major interest has been”, and

• (b) for “and B” substitute “ to C ”.

• (3) In subsection (3)—

• (a) in paragraph (a), for “harm, or any pollution of controlled waters,” substitute “ relevant harm ”, and

• (b) omit paragraph (b) (and the “or” before it).

• (4) After that subsection insert—

(3A) Condition C is that the activities are not— (a) activities of a description specified by order made by the Treasury, or (b) activities required by or by virtue of any enactment specified by such an order. (3B) An order under subsection (3A) may contain incidental, supplemental, consequential and transitional provision and savings.

• (5) In subsection (5), for the words after “(and only if)” substitute

because of something in, on or under the land by virtue of which it is contaminated land, the land is in a condition such that— (a) significant pollution of those waters is being caused, or (b) there is a serious possibility that significant pollution of those waters will be caused.

• (6) In the heading, after “relevant” insert “ contaminated ”.

7

After that section insert—

(1146A) (1) For the purposes of this Part “relevant derelict land remediation”, in relation to land which is in a derelict state and in which a major interest has been acquired by a company, means— (a) activities in relation to which conditions A and B are met, and (b) if there are such activities, relevant preparatory activity. (2) Condition A is that the activities comprise the doing of any works, the carrying out of any operations or the taking of any steps in relation to the land in question. (3) Condition B is that the purpose of the activities is a purpose specified by order made by the Treasury. (4) An order under subsection (3) may contain incidental, supplemental, consequential and transitional provision and savings. (5) For the purposes of subsection (1)(b) “relevant preparatory activity” has the same meaning as for the purposes of subsection (1)(b) of section 1146 (see subsection (4) of that section, but reading the reference to subsection (1)(a) of that section as a reference to subsection (1)(a) of this section).

8

In the heading of Chapter 2, after “contaminated” insert “ or derelict ”.

9

• (1) Section 1147 (deduction for capital expenditure) is amended as follows.

• (2) In subsection (2), after “that” insert “ a major interest in ”.

• (3) For subsection (3) substitute—

(3) Condition B is that— (a) in the case of land in a contaminated state, the land was in a contaminated state at the time of the acquisition, and (b) in the case of land in a derelict state, the land was in a derelict state throughout the period beginning with the earlier of— (i) 1 April 1998, and (ii) the date on which a major interest in the land was first acquired by the company or a person who was connected with the company. (3A) The Treasury may by order— (a) specify circumstances in which the condition in paragraph (a) of subsection (3) need not be met, or (b) replace the date for the time being specified in paragraph (b)(i) of that subsection with a later date. (3B) An order under subsection (3A) may contain incidental, supplemental, consequential and transitional provision and savings.

10

• (1) Section 1149 (additional deduction for qualifying land remediation expenditure) is amended as follows.

• (2) In subsection (2), after “that” insert “ a major interest in ”.

• (3) For subsection (3) substitute—

(3) Condition B is that— (a) in the case of land in a contaminated state, the land was in a contaminated state at the time of the acquisition, and (b) in the case of land in a derelict state, the land was in a derelict state throughout the period beginning with the earlier of— (i) 1 April 1998, and (ii) the date on which a major interest in the land was first acquired by the company or a person who was connected with the company. (3A) The Treasury may by order— (a) specify circumstances in which the condition in paragraph (a) of subsection (3) need not be met, or (b) replace the date for the time being specified in paragraph (b)(i) of that subsection with a later date. (3B) An order under subsection (3A) may contain incidental, supplemental, consequential and transitional provision and savings.

11

• (1) Section 1150 (no relief if company responsible for contamination) is amended as follows.

• (2) The existing provision becomes subsection (1) of that section.

• (3) In that subsection, for “state if the land is in that” substitute “ or derelict state if the land is in a contaminated or derelict ”.

• (4) After that subsection insert—

(2) A company is not entitled to relief under this Chapter in respect of expenditure on land all or part of which is in a contaminated or derelict state if— (a) the land is in that state wholly or partly as a result of any thing done, or omitted to be done, by a person not within subsection (1), and (b) that person, or a person connected with that person, has a relevant interest in the land. (3) For the purposes of subsection (2) a person has a relevant interest in land if the person— (a) holds any interest in, right over or licence to occupy the land (including an option to acquire any such interest, right or licence in any circumstances), or (b) has disposed of any estate or interest in the land for a consideration that to any extent reflects the impact, or likely impact, on the value of the land of the remediation of its contamination or dereliction.

• (5) In the heading, insert at the end “or dereliction or polluter has interest”.

12

• (1) Section 1161 (relief in respect of I minus E basis: enhanced expenses payable) is amended as follows.

• (2) In subsection (2), after “that” insert “ a major interest in ”.

• (3) For subsection (3) substitute—

(3) Condition B is that— (a) in the case of land in a contaminated state, the land was in a contaminated state at the time of the acquisition by the company of a major interest in the land, and (b) in the case of land in a derelict state, the land was in a derelict state throughout the period beginning with the earlier of— (i) 1 April 1998, and (ii) the date on which a major interest in the land was first acquired by the company or a person who was connected with the company. (3A) The Treasury may by order— (a) specify circumstances in which the condition in paragraph (a) of subsection (3) need not be met, or (b) replace the date for the time being specified in paragraph (b)(i) of that subsection with a later date. (3B) An order under subsection (3A) may contain incidental, supplemental, consequential and transitional provision and savings.

• (4) In subsection (4)—

• (a) for “Chapter 4” substitute “ land remediation ”, and

• (b) omit “(see section 1162)”.

• (5) Omit subsection (5).

• (6) In subsection (6), omit “150% of”.

• (7) In the heading, omit “enhanced”.

• (8) In the heading before the section omit “for qualifying Chapter 4 expenditure”.

13

For section 1162 substitute—

(1162) (1) If a company is entitled to relief under section 1161 for an accounting period it is also entitled to relief under this section for the period. (2) For the company to obtain the relief it must make a claim. (3) The relief is that the company may treat 50% of the qualifying Chapter 4 expenditure as expenses payable which fall to be brought into account at Step 3 in section 76(7) of ICTA (deduction for expenses payable). (4) For the purposes of this Chapter “the qualifying Chapter 4 expenditure” means— (a) the company's qualifying land remediation expenditure for the accounting period, less (b) the amount (if any) which as a result of paragraph (a) of Step 1 in section 76(7) of ICTA is not to be brought into account at that step as expenses payable for the period.

14

• (1) Section 1163 (no relief if company responsible for contamination) is amended as follows.

• (2) The existing provision becomes subsection (1) of that section.

• (3) In that subsection—

• (a) after “1161” insert “ or 1162 ”, and

• (b) for “state if the land is in that” substitute “ or derelict state if the land is in a contaminated or derelict ”.

• (4) After that subsection insert—

(2) A company is not entitled to relief under this Chapter in respect of expenditure on land all or part of which is in a contaminated or derelict state if— (a) the land is in that state wholly or partly as a result of any thing done, or omitted to be done, by a person not within subsection (1), and (b) that person, or a person connected with that person, has a relevant interest in the land. (3) For the purposes of subsection (2) a person has a relevant interest in land if— (a) the person holds any interest in, right over or licence to occupy the land (including an option to acquire any such interest, right or licence in any circumstances), or (b) has disposed of any estate or interest in the land for a consideration that to any extent reflects the impact, or likely impact, on the value of the land of the remediation of its contamination or dereliction.

• (5) In the heading, insert at the end “or dereliction or polluter has interest”.

15

In section 1165(1)(a) (meaning of “qualifying life assurance business loss”), after “1161” insert “ or 1162 ”.

16

In section 1169(2)(c) and (3)(c) (artificially inflated claims for relief), after “1161” insert “ or 1162 ”.

17

• (1) Section 1173 (expenditure incurred because of contamination) is amended as follows.

• (2) In subsections (1) and (2), after “contaminated” insert “ or derelict ”.

• (3) For subsection (3) substitute—

(3) Subsection (4) applies— (a) in the case of land in a contaminated state, if the main purpose of any activities is any of those specified in section 1146(3), or (b) in the case of land in a derelict state, if the main purpose of any activities is any of those specified in section 1146A(3).

• (4) In the heading, insert at the end “or dereliction”.

18

Omit section 1174 (sub-contractor payments: introductory).

19

• (1) Section 1175 (“qualifying expenditure on sub-contracted land remediation”: connected persons) is amended as follows.

• (2) After subsection (1) insert—

(1A) In this section, a “sub-contractor payment” means a payment made by the company to the sub-contractor in respect of relevant land remediation contracted out by the company to the sub-contractor.

• (3) In subsection (2), for “sub-contracted land remediation” substitute “connected sub-contracted land remediation” for the purposes of section 1144(5)”.

• (4) In subsection (3)—

• (a) in paragraph (a), after “carrying on” insert “ or arranging for carrying on ”, and

• (b) in paragraph (c) for “incurred on” substitute “ in respect of ”.

• (5) For the heading substitute “Connected sub-contractors”.

20

Omit section 1176 (“qualifying expenditure on sub-contracted land remediation”: other cases).

21

In section 1178 (persons having a “relevant connection” to a company)—

• (a) after “contaminated” insert “ or derelict ”, and

• (b) in paragraph (b), after “when” insert “ a major interest in ”.

22

After section 1178 insert—

(1178A) (1) References in this Part to the acquisition of a major interest in land are to the acquisition of a freehold interest in the land or of a relevant leasehold interest in the land. (2) The reference in subsection (1) to the acquisition of a freehold interest in land is— (a) in relation to land in England and Wales, to the acquisition of an estate in fee simple absolute (whether subsisting at law or in equity), (b) in relation to land in Scotland, to the acquisition of the interest of an owner of land, and (c) in relation to land in Northern Ireland, to the acquisition of any freehold estate (whether subsisting at law or in equity). (3) The reference in subsection (1) to the acquisition of a relevant leasehold interest in land is to the acquisition by grant or assignment (or assignation) of— (a) in relation to land in England and Wales, a term of years absolute (whether subsisting at law or in equity), (b) in relation to land in Scotland, the tenant's right over or interest in a property subject to a lease, or (c) in relation to land in Northern Ireland, any leasehold estate (whether subsisting at law or in equity), in relation to which the condition in subsection (4) is met. (4) That condition is that— (a) in the case of a grant, the term of years or period of the lease is at least 7 years, and (b) in the case of an assignment (or assignation) the unexpired portion of the term or period is at least 7 years.

23

In section 1179 (definitions), omit the definitions of “harm” and “land” and the definition of “substance” (apart from the “and” at the end).

Part 2 — Amendments of other enactments

ICTA

24

In section 76(7) of ICTA (expenses of insurance companies), in step 3—

• (a) for “1161” substitute “ 1162 ”,

• (b) for “150%” substitute “ 50% additional ”, and

• (c) after “contaminated” insert “ or derelict ”.

FA 1998

25

In Schedule 18 to FA 1998 (company tax returns etc), in the heading of Part 9B, after “contaminated” insert “ or derelict ”.

CTA 2009

26

• (1) Schedule 4 to CTA 2009 (index of expressions) is amended as follows.

• (2) After the entry relating to “deposit back arrangements” insert—

derelict state (in relation to land) (in Part 14)	section 1145A.

• (3) Omit the entries relating to “harm (in Part 14)” and “land (in Part 14)”.

• (4) After the entry relating to “major interest (in Chapter 12 of Part 8)” insert—

major interest in land (in Part 14)	section 1178A.

• (5) After the entry relating to “relevant consortium creditor relationship (in Chapter 7 of Part 5)” insert—

relevant contaminated land remediation (in Part 14)	section 1146.

• (6) After the entry relating to “relevant debits (in Part 8)” insert—

relevant derelict land remediation (in Part 14)	section 1146A.

• (7) Omit the references relating to “relevant land remediation (in Part 14)”, “sub-contractor payment (and sub-contractor) (in Chapter 6 of Part 14)” and “substance (in Part 14)”.

Part 3 — Commencement

27

Any power to make orders which is conferred on the Treasury by virtue of an amendment of CTA 2009 made by this Schedule may be exercised at any time after this Act is passed; and any order made by virtue of any such amendment before 6 April 2010 may make provision having effect in relation to expenditure incurred on or after 1 April 2009.

28

Subject to that, the amendments made by this Schedule have effect in relation to expenditure incurred on or after 1 April 2009; and for this purpose no account is to be taken of section 61 of CTA 2009 (earlier expenditure treated as incurred when trade started).

SCHEDULE 8

Enterprise investment scheme

1

Schedule 5B to TCGA 1992 (enterprise investment scheme: re-investment) is amended as follows.

2

• (1) Paragraph 1(2) (application of Schedule) is amended as follows.

• (2) For paragraphs (g) and (h) substitute

and (g) all of the money raised by the issue of the shares (other than any of them which are bonus shares) is, no later than the time mentioned in section 175(3) of ITA 2007, employed wholly for the purpose of that activity,

.

• (3) In the words following the paragraphs, for “conditions in paragraphs (g) and (h) above do” substitute “ condition in paragraph (g) above does ”.

3

• (1) Paragraph 1A (failure of conditions of application) is amended as follows.

• (2) In sub-paragraph (4)—

• (a) omit “or (h)”, and

• (b) for “sub-paragraph (4A) below” substitute “ section 175(3) of ITA 2007 ”.

• (3) Omit sub-paragraph (4A).

4

• (1) Paragraph 9 (other reconstructions and amalgamations) is amended as follows.

• (2) For sub-paragraph (1) substitute—

(1) This paragraph applies if section 135 or 136 (company reconstructions) applies in relation to shares to which deferral relief, but not relief under Part 5 of ITA 2007 (or Chapter 3 of Part 7 of the Taxes Act), is attributable. (1A) Paragraphs 3 and 4 of this Schedule have effect as if section 135 or 136 did not apply in relation to the shares.

• (3) In sub-paragraph (2), for “Sub-paragraph (1) above shall not have effect to disapply section 135 or 136 where” substitute “ Sub-paragraph (1A) does not apply if ”.

• (4) For sub-paragraph (3) substitute—

(3) Sub-paragraph (1A) does not apply if paragraph 8 applies in relation to the shares.

5

In paragraph 16 (information), omit sub-paragraph (4A).

6

• (1) Section 158 of ITA 2007 (form and amount of EIS relief) is amended as follows.

• (2) In subsection (4), omit—

• (a) “Subject to subsection (5),”, and

• (b) “before 6 October”.

• (3) Omit subsection (5).

7

• (1) Section 175 of that Act (use of money raised requirement) is amended as follows.

• (2) For subsection (1) substitute—

(1) The requirement of this section is that all of the money raised by the issue of the relevant shares (other than any of them which are bonus shares) is, no later than the time mentioned in subsection (3), employed wholly for the purpose of the qualifying business activity for which it was raised.

• (3) In subsection (2), for “requirements in subsection (1)(a) and (b) do” substitute “ requirement in subsection (1) does ”.

• (4) In subsection (3)—

• (a) for “subsection (1)(a)” substitute “ subsection (1) ”, and

• (b) for “12 months” (in both places) substitute “ two years ”.

Corporate venturing scheme

8

• (1) Paragraph 36 of Schedule 15 to FA 2000 (corporate venturing scheme: requirement as to money raised) is amended as follows.

• (2) In sub-paragraph (1), for “At least 80%” substitute “ All ”.

• (3) Omit sub-paragraph (1A).

• (4) In sub-paragraph (1B), for “12 months” (in both places) substitute “ two years ”.

• (5) In sub-paragraph (1C), for “Sub-paragraphs (1) and (1A) are” substitute “ Sub-paragraph (1) is ”.

• (6) In sub-paragraph (5) omit “does not apply and the requirement of sub-paragraph (1A)”.

Venture Capital Trusts

9

• (1) Section 293 of ITA 2007 (use of money raised requirement) is amended as follows.

• (2) For subsection (1) substitute—

(1) The requirement of this section is that— (a) less than two years has passed since the trading time, or (b) at least two years has passed since the trading time and all of the money raised by the issue of the relevant holding has been employed wholly for the purposes of a relevant qualifying activity.

• (3) Omit subsections (2) to (4).

Consequential repeals

10

In consequence of the amendments made by paragraphs 2, 3 and 5, omit—

• (a) in FA 2001, in Schedule 15, paragraphs 26 to 28,

• (b) in FA 2004, in Schedule 18, paragraph 13(1)(f), and

• (c) in ITA 2007, in Schedule 1, paragraph 345(2)(b), (3)(a) and (13)(b).

Commencement

11

The amendments made by paragraphs 2, 3, 5, 7, 8 and 10 have effect in relation to shares issued on or after 22 April 2009.

12

The amendments made by paragraph 4 have effect in relation to—

• (a) any exchange of shares to which section 135 of TCGA 1992 applies, where the new holding is issued on or after 22 April 2009, and

• (b) any arrangement within section 136(1) of that Act entered into on or after that date.

13

• (1) The amendments made by paragraph 6 have effect as follows.

• (2) The amendments made by sub-paragraph (2) have effect in relation to shares issued in the tax year 2009-10 or a subsequent tax year.

• (3) The amendment made by sub-paragraph (3) has effect in relation to claims made under section 158(4) of ITA 2007 in respect of shares issued in the tax year 2009-10 or a subsequent tax year.

14

The amendments made by paragraph 9 have effect in relation to shares or securities issued on or after 22 April 2009.

SCHEDULE 9

Amendments of Schedule 18 to ICTA

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Commencement

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Election to opt out of changes in relation to pre-existing etc shares

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Paragraph 2(7) of Schedule 25 to ICTA

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 10

Introduction

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Paragraph 7

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Paragraph 13A

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Paragraph 17

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Paragraph 23

5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Paragraph 23A

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Paragraph 32

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Paragraph 39

8

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Commencement

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 11

Part 1 — Capital allowances

Plant and machinery allowances for cars and motor cycles

1

Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.

2

In section 38B (general exclusions from AIA qualifying expenditure), in general exclusion 2, for “81” substitute “ 268A ”.

3

In section 46(2) (general exclusions from first year allowances), in general exclusion 2, for “81” substitute “ 268A ”.

4

Omit sections 74 to 79 (cars above the cost threshold).

5

Omit section 81 (extended meaning of “car”) and section 82 (qualifying hire cars).

6

In section 84 (cases in which short-life asset treatment is ruled out), in the Table, in item 3, in the first column, for “81” substitute “ 268A ”.

7

• (1) Section 104A (special rate expenditure) is amended as follows.

• (2) In subsection (1)—

• (a) in paragraph (a), after “the” insert “ first ”,

• (b) omit “and” at the end of paragraph (c), and

• (c) insert at the end

, and (e) expenditure incurred on or after the second relevant date on the provision of a car that is not a main rate car.

• (3) In subsection (2), after “The” insert “ first ”.

• (4) After that subsection insert—

(3) The second relevant date is— (a) for corporation tax purposes, 1 April 2009, and (b) for income tax purposes, 6 April 2009. (4) In this section— - “car” has the meaning given in section 268A; - “main rate car” has the meaning given in section 104AA.

8

After that section insert—