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Finance (No. 3) Act 2010

Type Public General Act
Publication 2010-12-16
State In force
Department Statute Law Database
Source legislation.gov.uk
Reform history JSON API

Part 1 — Income tax, corporation tax and capital gains tax

Income tax and corporation tax

Shared lives care

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Schedule 1 contains provision extending foster-care relief to other forms of care.

Payments to special guardians and those in receipt of residence orders

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(f) payments made under regulations under section 14F of the Children Act 1989 (special guardianship support services) to a person appointed as a child's special guardian, (g) payments made to a person under section 17 of that Act (provision of services for children in need, their families and others) by reason of that person being a person in whose favour a residence order with respect to a child is in force, (h) payments made to a person, in respect of a child, under paragraph 15 of Schedule 1 to that Act (local authority contribution to child's maintenance to recipients in whose favour residence order is in force), and (i) payments made in accordance with— (i) an order under that Schedule (orders for financial relief against parents etc), or (ii) a maintenance agreement, for the benefit of a child, to a person appointed as the child's special guardian or a person in whose favour a residence order with respect to the child is in force.

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(2) But a payment is not within subsection (1)(f), (g), (h) or (i) if— (a) it is made to an excluded relative of the child, (b) it is made to a person appointed as the child's special guardian and an excluded relative is also appointed as the child's special guardian, or (c) it is made to a person in whose favour a residence order is in force with respect to the child and that order is also in favour of an excluded relative. (3) In this section— - “excluded relative”, in relation to a child, means— 1. a parent of the child, or 2. a person who is, or has been, the husband or wife or civil partner of a parent of the child; - “maintenance agreement” has the meaning given by paragraph 10(1) of Schedule 1 to the Children Act 1989; - “residence order” has the meaning given by section 8 of that Act.

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(e) payments made to a person under section 50 of the Children Act 1975, or section 22 of the Children (Scotland) Act 1995, by reason of that person being a person with whom a child is to live by virtue of a residence order, and (f) payments of aliment made— (i) in accordance with an award of aliment under the Family Law (Scotland) Act 1985, or (ii) under an agreement (within the meaning of section 7(5) of that Act), for the benefit of a child, to a person in whose favour a residence order with respect to the child is in force.

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(2) A payment is not within subsection (1)(e) or (f) if— (a) it is made to an excluded relative of the child, or (b) it is made to a person in whose favour a residence order is in force with respect to the child and that order is also in favour of an excluded relative. (3) In this section— - “excluded relative”, in relation to a child, means— 1. a parent of the child, or 2. a person who is, or has been, the husband or wife or civil partner of a parent of the child; - “residence order” has the meaning given by section 11(2)(c) of the Children (Scotland) Act 1995.

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(d) payments made to a person under Article 18 of the Children (Northern Ireland) Order 1995 (S.I. 1995/755 (NI 2)) (general duty of authority to provide personal social services) by reason of that person being a person in whose favour a residence order with respect to a child is in force, (e) payments made to a person, in respect of a child, under paragraph 17 of Schedule 1 to that Order (local authority contribution to child's maintenance to recipients in whose favour residence order is in force), and (f) payments made in accordance with— (i) an order under that Schedule (orders for financial relief against parents etc), or (ii) a maintenance agreement, for the benefit of a child, to a person in whose favour a residence order with respect to the child is in force.

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(2) But a payment is not within subsection (1)(d), (e) or (f) if— (a) it is made to an excluded relative of the child, or (b) it is made to a person in whose favour a residence order is in force with respect to the child and that order is also in favour of an excluded relative. (3) In this section— - “excluded relative”, in relation to a child, means— 1. a parent of the child, or 2. a person who is, or has been, the husband or wife or civil partner of a parent of the child; - “maintenance agreement” has the meaning given by paragraph 12 of Schedule 1 to the Children (Northern Ireland) Order 1995; - “residence order” has the meaning given by Article 8 of that Order.

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Qualifying care relief: capital allowances

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(2A) In this group of sections, in relation to a relevant individual— (a) “the care business” means the provision of qualifying care by the individual, (b) “care business expenditure” means qualifying expenditure incurred on the provision of plant or machinery wholly or partly for the care business, (c) “care business pool” means a pool of care business expenditure (even if the balance for the time being is nil), and (d) a reference to “another activity” is to a qualifying activity carried on by the individual other than the care business. (2B) In this group of sections, plant or machinery is referred to as being “in” a pool if qualifying expenditure incurred on its provision has been allocated at any time to that pool.

(825) (1) This section applies if— (a) at the beginning of a relevant chargeable period of a relevant individual, there is care business expenditure which has not been allocated to a care business pool, (b) the individual is entitled under CAA 2001 to allocate the expenditure, or a part of it, to a care business pool for that period, and (c) the previous chargeable period was not a relevant chargeable period. (2) So much of the expenditure as the individual is entitled to allocate to a care business pool for that period is to be treated for the purposes of CAA 2001 as allocated to the appropriate kind of care business pool for that period (whether or not any of it is actually so allocated). (3) For the different kinds of pool, see section 54 of CAA 2001. (825A) (1) Subsection (2) applies to a care business pool for a relevant chargeable period of a relevant individual if the previous chargeable period was not a relevant chargeable period. (2) CAA 2001 is to apply as if— (a) a disposal event occurs immediately after the beginning of the relevant chargeable period in respect of plant or machinery in the pool, (b) disposal receipts fall to be brought into account in the pool for the period because of that event, and (c) the total of the receipts equals the sum of amount A and amount B (or nil if there are no such amounts). (3) Amount A is the amount of any expenditure treated as allocated to the pool for the period by virtue of section 825 (whether or not any of it is actually so allocated). (4) Amount B is the amount of any unrelieved qualifying expenditure carried forward in the pool from the previous chargeable period. (825B) (1) This section applies if— (a) disposal receipts fall to be brought into account in a pool for a relevant chargeable period by virtue of section 825A, and (b) on the re-start date, the relevant individual still owns any of the plant or machinery which was in that pool and is still using any of it for the purposes of the care business. (2) The re-start date is the first day of the first subsequent chargeable period which is not a relevant chargeable period. (3) A reference in this section to the retained plant or machinery is to so much of the plant or machinery in the pool as the relevant individual— (a) still owns on the re-start date, and (b) is still using on that date for the purposes of the care business. (4) The individual is to be treated under CAA 2001— (a) as having brought the retained plant or machinery into use on the re-start date for the purposes of the care business, (b) as having incurred capital expenditure on the provision of that plant or machinery for those purposes on that date, and (c) as owning that plant and machinery as a result of having incurred that expenditure. (5) The total amount of expenditure which the individual is to be treated as having incurred (for all of the retained plant or machinery) is the smaller of— (a) the total market value of the retained plant or machinery on the re-start date, and (b) an amount equal to the disposal receipts brought into account in the pool as described in subsection (1)(a). (6) If the individual is treated under section 13 of CAA 2001 as having incurred notional expenditure before the re-start date as a result of bringing plant or machinery in the pool into use for the purposes of another activity, the amount mentioned in subsection (5)(b) must be reduced by the total amount of that expenditure, as determined in accordance with section 825C(2). (7) But subsection (6) does not apply if the plant or machinery which was brought into use for the purposes of another activity is the retained plant or machinery (for example, where it was brought into use only partly for the purposes of that other activity). (8) The question whether the provision of the retained plant or machinery is to be treated as wholly or only partly for the purposes of the care business is to be determined according to whether the use referred to in subsection (3)(b) is wholly or only partly for those purposes. (825C) (1) This section applies if— (a) disposal receipts fall to be brought into account in a pool by virtue of section 825A because of a disposal event, and (b) after that disposal event, the relevant individual brings any of the plant or machinery in that pool into use for the purposes of another activity. (2) Section 13 of CAA 2001 has effect as if the total amount of the notional expenditure which the individual is treated under that section as having incurred, for all of the plant or machinery in that pool which is brought into use for the purposes of the other activity, were the smaller of— (a) the total market value of that plant or machinery on the day on which it is brought into use for the purposes of that other activity, and (b) an amount equal to the disposal receipts brought into account in the pool as mentioned in subsection (1)(a). (3) Subsection (2) does not apply to plant or machinery brought into use for the purposes of another activity if— (a) the individual is treated by virtue of section 825B as having already brought that plant or machinery into use for the purposes of the care business, or (b) this section has already applied to that plant or machinery since the disposal event. (4) The amount mentioned in subsection (2)(b) must be reduced by the appropriate sum if some plant or machinery in the pool is brought into use for the purposes of another activity after — (a) the individual is treated by virtue of section 825B as having brought other plant or machinery in that pool into use for the purposes of the care business, or (b) this section has applied to other plant or machinery in that pool since the disposal event. (5) The appropriate sum is— (a) in a case within paragraph (a) of subsection (4), the total amount of expenditure which the individual is treated by virtue of section 825B as having incurred on the provision of that other plant or machinery, and (b) in a case within paragraph (b) of that subsection, the total amount of the notional expenditure (as determined in accordance with subsection (2)) which the individual is treated under section 13 of CAA 2001 as having incurred on the provision of that other plant or machinery since the disposal event. (825D) (1) This section applies to an item of plant or machinery which a relevant individual— (a) is treated by virtue of section 825B as bringing into use, or (b) brings into use in circumstances where section 825C(2) applies. (2) The date (in either case) on which the item is brought or treated as brought into such use is referred to in this section as the applicable date. (3) The first disposal event to occur in respect of the item on or after the applicable date is to be regarded for the purposes of section 60(3) of CAA 2001 as the first such event. (4) That event requires a disposal value to be brought into account regardless of anything to the contrary in section 64(1) of that Act. (5) But a reference in section 62 of that Act to the amount of qualifying expenditure incurred by the individual on the provision of that item is a reference to the amount of qualifying expenditure originally incurred by the individual on its provision (and not to any proportion of the total amount treated by virtue of section 825B or 825C as having been incurred).

Seafarers’ earnings

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(6) In this section— - “EEA-resident earnings” means section 15 or 27 earnings for a period— 1. in which the employee is resident for tax purposes in an EEA state (other than the United Kingdom), and 2. which falls within a tax year in which the employee is not ordinarily UK resident, - “resident for tax purposes” means liable, under the law of the EEA state, to tax there by reason of domicile or residence, - “section 15 earnings” means general earnings to which section 15 applies, and - “section 27 earnings” means general earnings to which section 27 applies.

Venture capital schemes

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Schedule 2 contains provision about venture capital schemes.

Enterprise management incentives

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, and UK permanent establishment (see paragraph 14A).

(14A) (1) The UK permanent establishment requirement is met if condition A or B is met. (2) Condition A is that the company has a permanent establishment in the United Kingdom. (3) Condition B is that— (a) the company is a parent company, and (b) any other member of the group— (i) meets the conditions in paragraph 14(1)(a) (trading activities requirement), and (ii) has a permanent establishment in the United Kingdom.

Settlor to return excess repayment to trustees etc

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(4) Subsection (5) applies if a settlor chargeable to tax under section 624 or 629 obtains a repayment by reason of the payment of the tax by— (a) any trustee, or (b) any other person to whom the income is payable by virtue of or as a result of the settlement.

(6A) For the purpose of subsection (5), the settlor may require an officer of Revenue and Customs to provide the settlor with a certificate specifying— (a) that the settlor has obtained a repayment as mentioned in subsection (4), and (b) the amount of the repayment. (6B) A certificate provided under subsection (6A) is conclusive evidence of the facts stated in it.

Collection of income tax where sum deducted by payer

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In Chapter 16 of Part 15 of ITA 2007, after section 963 (collection of income tax on certain payments by other persons) insert—

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