Legalize / United Kingdom / Statutory-Instrument

The Taxes (Amendments) (EU Exit) Regulations 2019

Type Statutory-Instrument

Publication 2019-03-26

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

Reform history JSON API PDF

Made: 26th March 2019

Laid before the House of Commons: 27th March 2019

Coming into force in accordance with regulation 1

Further to section 90(7)(b) of that Act, the Prime Minister has notified the President of the European Council, in accordance with Article 50(3) of the Treaty on European Union[^f00002], of the United Kingdom’s request to extend the period in which the Treaties shall still apply to the United Kingdom.

PART 1 — Introduction

Citation and commencement

1

These Regulations may be cited as the Taxes (Amendments) (EU Exit) Regulations 2019 and come into force on exit day.

PART 2 — Amendments to primary legislation

Taxes Management Act 1970

2

(1) The Taxes Management Act 1970[^f00003] is amended as follows.

(2) In the italic cross-heading before section 12A, at the beginning insert “UK Economic Interest Groupings[^f00004] and”.

(3) In section 12A[^f00005]—

(a) in the heading, at the beginning insert “UK Economic Interest Groupings and”;

(b) for subsection (1) substitute—

(1) In this section “grouping” means— (a) a UK Economic Interest Grouping, or (b) a grouping registered in a member State and formed in pursuance of Council Regulation (EEC) No. 2137/85 of 25 July 1985 on the European Economic Interest Grouping[^f00006] as it has effect in EU law (a “European Economic Interest Grouping”).

(c) in subsection (3) for “grouping which is registered in Great Britain or Northern Ireland or” substitute “UK Economic Interest Grouping, or a European Economic Interest Grouping that”;

(d) in subsection (8) omit “in accordance with the Council Regulation”;

(e) after subsection (9) insert—

(10) The reference in subsection (8) to the individual or individuals designated as the representative of the manager is a reference— (a) in the case of a UK Economic Interest Grouping, to the individual or individuals designated in accordance with regulation 5(1) of the European Economic Interest Grouping Regulations 1989[^f00007], and (b) in the case of a European Economic Interest Grouping, to the individual or individuals designated in accordance with Council Regulation (EEC) No. 2137/85 of 25 July 1985 on the European Economic Interest Grouping as it has effect in EU law.

(4) In section 98B[^f00008]—

(a) in the heading, at the beginning insert “UK Economic Interest Groupings and”;

(b) for subsection (1) substitute—

(1) In this section “grouping” means— (a) a UK Economic Interest Grouping, or (b) a grouping registered in a member State and formed in pursuance of Council Regulation (EEC) No. 2137/85 of 25 July 1985 on the European Economic Interest Grouping as it has effect in EU law.

Inheritance Tax Act 1984

3

(1) The Inheritance Tax Act 1984[^f00009] is amended as follows.

(2) In section 59(3)(b)[^f00010] for the words from “is” to the end substitute—

— (i) is an insurance company (within the meaning of Part 2 of the Finance Act 2012)[^f00011], and (ii) has permission under Part 4A of the Financial Services and Markets Act 2000[^f00012] to effect or carry out contracts of long-term insurance.

(3) In section 115(5)(b)[^f00013] omit “, other than the United Kingdom,”.

(4) In section 125(1A)[^f00014] for “another” substitute “is in a”.

Finance Act 1986

4

(1) Part 4 of the Finance Act 1986[^f00015] (stamp duty reserve tax) is amended as follows.

(2) In section 99[^f00016]—

(a) in subsection (4)(d)—

(i) for “an SE” substitute “a UK Societas[^f00017]”;

(ii) omit the words from “and, at the time” to the end;

(b) in subsection (4A) omit paragraph (b) and the “and” at the end of paragraph (a).

Finance Act 1991

5

(1) Part 4 of the Finance Act 1991[^f00018] (stamp duty and stamp duty reserve tax) is amended as follows.

(2) In section 116[^f00019]—

(a) in subsection (4)—

(i) omit paragraph (aa);

(ii) for sub-paragraph (i) of paragraph (b) substitute—

(i) a UK regulated market (within the meaning given by Article 2.1(13A) of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments)[^f00020]; (ia) a UK multilateral trading facility (within the meaning given by Article 2.1(14A) of that Regulation); (ib) an EU regulated market (within the meaning given by Article 2.1(13B) of that Regulation); (ic) an EU multilateral trading facility (within the meaning given by Article 2.1 (14B) of that Regulation); (id) a regulated market (within the meaning given by Article 2.1(13) of that Regulation) which is authorised and functions regularly and in accordance with Part 3 of the Financial Services (Markets in Financial Instruments) Act 2018 of Gibraltar[^f00021]; (ie) a multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in financial instruments (in the system and in accordance with non-discretionary rules) in a way which results in a contract in accordance with Part 2 of the Financial Services (Markets in Financial Instruments) Act 2018 of Gibraltar;

(b) after subsection (4) insert—

(5) In subsection (4)(ie) “multilateral system”, “investment firm”, “market operator” and “financial instrument” have the meanings given by Articles 2.1(11), 2.1A, 2.1(10) and 2.1(9) respectively of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments.

Taxation of Chargeable Gains Act 1992

6

(1) The Taxation of Chargeable Gains Act 1992[^f00022] is amended as follows.

(2) In section 140A[^f00023]—

(a) in subsections (1) and (1A) for “member State”, in each place where the expression occurs, substitute “relevant state”;

(b) in subsection (1C) for “another” substitute “a”.

(3) In section 140C[^f00024]—

(a) in subsection (1)(a)—

(i) for “another” substitute “a”;

(ii) omit “other than the United Kingdom”;

(b) in subsection (1A) omit “other than the United Kingdom”, in both places where the expression occurs;

(4) In section 140DA(1)[^f00025]—

(a) in paragraph (b) for “member State” substitute “relevant state”;

(b) in paragraph (c) for “State” substitute “relevant state”.

(5) In section 140E[^f00026]—

(a) in subsection (2)—

(i) in paragraph (a) for “member State” substitute “relevant state”;

(ii) in paragraph (b) for “State” substitute “relevant state”;

(iii) in paragraph (d)(ii) for “another” substitute “a”;

(b) in subsection (9)(a) omit “other than the United Kingdom”.

(6) In section 140F(2)[^f00027]—

(a) in paragraph (a) for “member State” substitute “relevant state”;

(b) in paragraph (b) for “State” substitute “relevant state”;

(i) for “another” substitute “a”;

(ii) omit “other than the United Kingdom”;

(d) in paragraph (e)(ii) for “another” substitute “a”.

(7) In section 140G(2)[^f00028]—

(a) in paragraph (a) for “member State” substitute “relevant state”;

(b) in paragraph (b) for “State” substitute “relevant state”.

(8) In section 140GA[^f00029]—

(a) in paragraph (b) for “member State” substitute “relevant state”;

(b) in paragraph (c) for “State” substitute “relevant state”.

(9) In section 140H(3)[^f00030] omit “other than the United Kingdom”.

(10) In section 140I(3) omit “other than the United Kingdom”.

(11) In section 140J(3) omit “other than the United Kingdom”.

(12) In section 140L[^f00031]—

(a) in subsection (1)—

(i) at the end of paragraph (b) (but before the “and”) insert—

(ba) “relevant state” means the United Kingdom or a member State,

(ii) in paragraph (c) omit “other than the United Kingdom”;

(b) for subsection (2) substitute—

(2) For the purposes of those sections and subsection (1) above, a company is resident in a relevant state if— (a) it is within a charge to tax under the law of the relevant state as being resident for that purpose, and (b) it is not regarded, for the purposes of any double taxation relief arrangements to which the relevant state is a party, as resident in a territory not within a relevant state.

(13) In section 151N[^f00032]—

(a) in subsection (1)(h) for “an EEA-regulated” substitute “a regulated”;

(b) in subsection (2)—

(i) at the end of paragraph (h) insert “and”;

(ii) omit paragraphs (j) and (k);

(2A) In subsection (1)— - “regulated recognised stock exchange” means a recognised stock exchange that is regulated in the United Kingdom, the European Economic Area or Gibraltar; - “multilateral trading facility” means— a UK multilateral trading facility within the meaning given by Article 2.1(14A) of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, an EU multilateral trading facility within the meaning given by Article 2.1(14B) of that Regulation, and a multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in financial instruments (in the system and in accordance with non-discretionary rules) in a way which results in a contract in accordance with Part 2 of the Financial Services (Markets in Financial Instruments) Act 2018 of Gibraltar, and in paragraph (c) “multilateral system”, “investment firm”, “market operator” and “financial instrument” have the same meanings as given by Articles 2.1(11), 2.1A, 2.1(10) and 2.1(9) respectively of that Regulation.

(14) In section 241A(1) and (6)[^f00033] omit “other than the United Kingdom”.

(15) In section 285A[^f00034]—

(a) in the heading, at the beginning insert “UK Economic Interest Groupings[^f00035]”;

(b) in subsection (1) after “rules about” insert “UK Economic Interest Groupings and”;

(5) “European Economic Interest Grouping” means a grouping registered in a member State and formed in pursuance of Council Regulation (EEC) No. 2137/85 of 25 July 1985 on the European Economic Interest Grouping[^f00036] as it has effect in EU law.

Finance Act 1997

7

(1) Part 4 of the Finance Act 1997[^f00037] (indirect taxes: overpayments etc.) is amended by paragraph (3) and Part 7 of that Act (stamp duty and stamp duty reserve tax) is amended by paragraph (2).

(2) In section 96(8)[^f00038] in the definition of “general insurance company” omit the words from “or under paragraph 15” to “that Schedule)”.

(3) In Schedule 5, in paragraph 2(4)(a)[^f00039] for “, subordinate legislation or EU legislation” substitute “or subordinate legislation”.

Finance Act 1998

8

(1) Part 3 of the Finance Act 1998[^f00040] (corporation tax) is amended as follows.

(2) In Schedule 18—

(a) in the heading to paragraph 91, at the beginning insert “UK Economic Interest Groupings and”;

(b) in paragraph 91 before “European Economic Interest Groupings” insert “UK Economic Interest Groupings and”.

Finance Act 1999

9

(1) Part 6 of the Finance Act 1999[^f00041] (stamp duty) is amended as follows.

(2) In Schedule 15, in paragraph 11, in the definition of “UK company” for paragraph (b) substitute—

(b) a UK Societas[^f00042];

Capital Allowances Act 2001

10

(1) The Capital Allowances Act 2001[^f00043] is amended as follows.

(2) In section 51G(7)[^f00044], in the definition of “NACE classification” for the words “from time to time” substitute “in EU law”.

(3) In section 266(8) for “transfer of UK trade to a company in another member State” substitute “transfer or division of UK business”.

(4) In section 560(3) for “transfer of a UK trade to a company in another member State” substitute “transfer or division of UK business”.

(5) In section 561[^f00045]—

(a) in subsection (1)(a)—

(i) for “member State” substitute “relevant state”;

(ii) for “member States” substitute “relevant states”;

(b) in subsection (4) for “member State” substitute “relevant state”;

(4A) In this section “relevant state” means the United Kingdom or a member State.

(6) In section 564(4) for “transfer of a UK trade to a company in another member State” substitute “transfer or division of UK business”.

(7) In section 567(5) for “transfer of a UK trade to a company in another member State” substitute “transfer or division of UK business”.

(8) In section 573(4) for “transfer of a UK trade to a company resident in another member State” substitute “transfer or division of UK business”.

Finance Act 2003

11

(1) Part 4 of the Finance Act 2003[^f00046] (stamp duty land tax) is amended as follows.

(2) In section 63(7)[^f00047], in the definition of “general insurance company”, omit the words from “, or paragraph 15” to “that Schedule),”.

(3) In section 102A(7)[^f00048]—

(a) in paragraph (a) omit “other than the United Kingdom”;

(b) in paragraph (b) after “of” insert “any part of the United Kingdom or of”.

(4) In Schedule 7A[^f00049], in paragraph 2(5)(a) omit “other than the United Kingdom”.

Finance Act 2004

12

(1) Part 4 of the Finance Act 2004[^f00050] (pensions) is amended as follows.

(2) In section 244C[^f00051]—

(a) in the heading for “member and receiving scheme in EEA states” substitute “receiving scheme in EEA state, and member resident in UK or EEA state”;

(b) in subsections (2) to (5) for “an EEA state”, in each place where the expression occurs, substitute “a relevant territory”;

(d) after subsection (5) insert—

(6) In this section “relevant territory” means the United Kingdom or an EEA state.

(3) In section 275(1)—

(a) omit “, or” at the end of paragraph (a);

(b) omit paragraph (b).

Income Tax (Trading and Other Income) Act 2005

13

(1) The Income Tax (Trading and Other Income) Act 2005[^f00052] is amended as follows.

(2) In section 326(7)[^f00053] omit “other than the United Kingdom”.

(3) For section 381E(3)[^f00054] substitute—

(3) In subsection (2) “regulated market” means— (a) a UK regulated market within the meaning given by Article 2.1(13A) of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, (b) an EU regulated market within the meaning given by Article 2.1(13B) of that Regulation, and (c) a regulated market within the meaning given by Article 2.1(13) of that Regulation which is authorised and functions regularly and in accordance with Part 3 of the Financial Services (Markets in Financial Instruments) Act 2018 of Gibraltar.

(4) In section 697(2) omit paragraphs (a) and (b).

(5) In section 704—

(a) in subsection (3)—

(i) at the end of paragraph (a) insert “or”;

(ii) omit “, or” at the end of paragraph (b);

(iii) omit paragraph (c);

(b) omit subsection (6).

Finance Act 2006

14

(1) Part 9 of the Finance Act 2006[^f00055] (international tax enforcement arrangements) is amended as follows.

(2) For section 173(4) and (5) substitute—

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