Office of Public Sector Information
PART 2 continued CHAPTER 9 continued
(1) Section 803A of ICTA is amended as follows.
(2) After subsection (1) (company resident in territory outside the UK paying tax in respect of one or more other companies resident in that territory) insert—
“(1A) Where—
(a) a company is (within the meaning of section 801) an ADP controlled foreign company as respects any of its accounting periods, and
(b) the whole or any part of the profits or gains of that accounting period are included in the aggregate profits, or aggregate profits or gains, mentioned in subsection (1) above,
subsection (2) below shall have effect as if the companies mentioned in subsection (1) above did not include that company.”.
(3) The amendment made by this section has effect in relation to dividends paid on or after 16th March 2005.
(1) ICTA is amended as follows.
(2) In section 125 (annual payments for non-taxable consideration) in subsection (2) (payments to which the section applies) for paragraph (b) substitute—
“(b) is made under a liability incurred for consideration in money or money’s worth all or any of which—
(i) consists of, or of the right to receive, a dividend, or
(ii) is not required to be brought into account in computing for the purposes of income tax or corporation tax the income of the person making the payment.”.
(3) As from 2nd December 2004, the title of that section accordingly becomes “Annual payments for dividends or non-taxable consideration”.
(4) Section 801 (dividends paid between related companies: relief for UK and third country taxes) is amended as follows.
(5) In subsection (2) (case where overseas company has received a dividend from a third company) for “subject to subsections (4) to (4D)” substitute “subject to subsection (4)”.
(6) Subsections (4A) to (4D) (which relate to cases where the amount given by the formula in section 799(1) exceeds U in that formula) shall cease to have effect.
(7) The amendment made by subsection (2) has effect in relation to any annual payment made on or after 2nd December 2004 (whether the contract or other arrangement is one made before, on or after that date).
(8) The amendments made by subsections (4) to (6) have effect in relation to dividends paid on or after 2nd December 2004.
Schedule 6 (capital allowances in respect of expenditure on the conversion or renovation of qualifying business premises in disadvantaged areas) has effect in relation to expenditure incurred on or after such day as the Treasury may by order appoint.
Schedule 7 (which makes provision amending Schedule 22 to FA 2000) has effect.
Schedule 8 (which makes amendments of Part 4 of FA 2003 relating to alternative property finance) has effect.
(1) In subsection (2) of section 55 of FA 2003 (amount of stamp duty land tax chargeable: general), in Table A (bands and percentages for residential property) for “£60,000” in both places substitute “£120,000”.
(2) In paragraph 2(3) of Schedule 5 to that Act (amount of stamp duty land tax chargeable: rent), in Table A (bands and percentages for residential property) for “£60,000” in both places substitute “£120,000”.
(3) In Schedule 13 to FA 1999 (stamp duty: instruments chargeable and rates of duty), in paragraph 4 (bands and percentages for conveyance or transfer on sale of property other than stock or marketable securities), for “£60,000” in both places substitute “£120,000”.
(4) Subsections (1) and (2) apply in relation to any transaction of which the effective date (within the meaning of Part 4 of FA 2003) is after 16th March 2005.
(5) Subsection (3) applies in relation to instruments executed after 16th March 2005.
Schedule 9 (which provides for the removal, in relation to non-residential property, of relief from stamp duty land tax and stamp duty for land in disadvantaged areas) has effect.
(1) Section 90 of FA 1986 (other exceptions to the principal charge to stamp duty reserve tax under section 87 of that Act) is amended as follows.
(2) In subsection (1A) (section 87 not to apply to agreement to transfer unit under unit trust scheme if instrument giving effect to agreement would be exempt from stamp duty by virtue of provision in paragraph (a) or (b)) after paragraph (b) insert “, or
(c) section 96 of the Finance Act 1997 (demutualisation of insurance companies).”.
(3) Schedule 19 to FA 1999 (stamp duty and stamp duty reserve tax: unit trusts) is amended as follows.
(4) In paragraph 6 (exclusion, in certain cases of change of ownership, of charge to stamp duty reserve tax on surrender of unit to managers) in sub-paragraph (5) (provisions under which certain instruments would be exempt from stamp duty) after paragraph (b) insert “; and
(c) section 96 of the Finance Act 1997 (demutualisation of insurance companies).”.
(5) The amendment in subsection (2) applies where the relevant day for the purposes of section 87 of FA 1986 falls on or after the day on which this Act is passed.
(6) The amendment in subsection (4) applies in relation to surrenders (within the meaning of Part 2 of Schedule 19 to FA 1999) occurring on or after the day on which this Act is passed.
Finance Act 2005