Royal Assent — Budget Resolutions and Economic Situation — 27 Mar 2007 at 23:36

Question accordingly agreed to.

22. Managed service companies (other provision)

Resolved,

That further provision may be made in connection with managed service companies.

23. Restrictions on trade loss relief for partners

Resolved,

That provision (including provision having retrospective effect) may be made restricting reliefs for losses made by individuals carrying on trades in partnership.

24. Chargeable gains

Resolved,

That provision (including provision having retrospective effect) may be made amending, or making amendments connected with, the Taxation of Chargeable Gains Act 1992.

25. Life policies etc (effect of rebated or reinvested commission)

Resolved,

That provision may be made amending-

(a) Chapter 2 of Part 13 of the Income and Corporation Taxes Act 1988, and

(b) Chapter 9 of Part 4 of the Income Tax (Trading and Other Income) Act 2005.

26. Avoidance involving financial arrangements

Resolved,

That provision (including provision having retrospective effect) may be made in relation to-

(a) section 347A of the Income and Corporation Taxes Act 1988 (annual payments),

(b) section 660C of that Act (income of settlor),

(c) sections 774A to 774G of that Act (structured finance arrangements),

(d) Schedule 23A to that Act (manufactured payments),

(e) Chapter 2 of Part 4 of the Finance Act 1996 (loan relationships),

(f) section 228F of the Capital Allowances Act 2001 (lease and finance leaseback), and

(g) Schedule 26 to the Finance Act 2002 (derivative contracts).

27. Companies carrying on business of leasing plant or machinery

Resolved,

That provision (including provision having retrospective effect) may be made in relation to-

(a) section 343 of the Income and Corporation Taxes Act 1988, and

(b) Schedule 10 to the Finance Act 2006.

28. Lloyd's corporate members

Resolved,

That provision may be made in relation to corporate members of Lloyd's.

29. Employee benefit contributions

Resolved,

That provision may be made in relation to employee benefit contributions.

30. Schemes etc designed to increase double taxation relief

Resolved,

That provision (including provision having retrospective effect) may be made amending and extending the effect of sections 804ZA to 804ZC of, and Schedule 28AB to, the Income and Corporation Taxes Act 1988.

31. Industrial and agricultural buildings allowances

Resolved,

That provision may be made for the purposes of the Capital Allowances Act 2001 in relation to industrial buildings allowances and agricultural buildings allowances.

32. Insurance companies

Resolved,

That provision (including provision having retrospective effect) may be made about insurance companies, including companies which have ceased to be insurance companies after a transfer of business.

33. Technical provisions made by general insurers

Resolved,

That provision may be made in relation to technical provisions made by general insurers.

34. Friendly societies

Resolved,

That provision may be made amending section 464 of the Income and Corporation Taxes Act 1988.

35. Sale and repurchase of securities

Resolved,

That provision may be made in relation to arrangements for the sale and repurchase of securities.

36. Controlled foreign companies

Resolved,

That provision (including provision having retrospective effect) may be made in relation to controlled foreign companies.

37. Expenditure on research and development

Resolved,

That provision may be made about tax relief for expenditure on research and development.

38. Venture capital schemes

Resolved,

That provision may be made about the corporate venturing scheme, the enterprise investment scheme and venture capital trusts.

39. Loss relief on disposal of shares

Resolved,

That provision may be made about loss relief on disposal of shares.

40. Real Estate Investment Trusts

Resolved,

That provision (including provision having retrospective effect) may be made amending Part 4 of the Finance Act 2006.

41. Alternative finance

Resolved,

That amendments may be made of and in relation to Chapter 5 of Part 2 of the Finance Act 2005.

42. Trust gains on contracts for life insurance

Resolved,

That provision may be made amending section 498 of the Income Tax Act 2007.

43. Offshore funds

Resolved,

That provision (including provision having retrospective effect) may be made in relation to offshore funds and investors in them.

44. Securitisation companies

Resolved,

That provision may be made amending sections 83 and 84 of the Finance Act 2005.

45. Enterprise management incentives

Resolved,

That provision may be made amending Schedule 5 to the Income Tax (Earnings and Pensions) Act 2003.

46. Unpaid remuneration and employee benefit contributions

Resolved,

That provision may be made amending sections 31 and 274 of the Income Tax (Trading and Other Income) Act 2005.

47. Abolition of contributions relief for life assurance premium contributions

Motion made, and Question put forthwith, pursuant to Standing Order No. 51(3) (Ways and means motions),

That-

(1) Part 4 of the Finance Act 2004 (pension schemes etc) is amended as follows.

(2) In section 188(3) (relief for members' contributions: contributions which are not relievable pension contributions), after paragraph (a) insert-

"(aa) any contributions which are life assurance premium contributions (see section 195 A),".

(3 After section 195 insert-

"195A Life assurance premium contributions

(1) Contributions paid by or on behalf of an individual under a registered pension scheme are life assurance premium contributions for the purposes of section 188(3)(aa) if-

(a) rights under a non-group life policy (see subsection (2)) are (or later become) held for the purposes of the pension scheme, and

(b) the contributions are treated by this section as paid in respect of premiums under the non-group life policy (see subsections (3) to (5)).

(2) For the purposes of this section a "non-group life policy" is a policy of insurance under which the only benefits which may become payable are benefits payable in consequence, or in anticipation, of-

(a) the death of the individual or one of a group of individuals which includes the individual, or

(b) the deaths of more than one of a group of individuals-

(i) which includes the individual, and

(ii) the other members of which are connected with the individual.

(3) Contributions paid by or on behalf of the individual under the pension scheme are treated as paid in respect of premiums under the non-group life policy if-

(a) the payment of the contributions constitutes the payment of premiums under the policy, or

(b) the person by whom the contributions are paid intends the contributions (or an amount equivalent to them) to be applied towards paying premiums under the policy.

(4) Where the amount of the premiums under the policy in a tax year exceeds the amount of any contributions treated as paid in respect of the premiums by subsection (3), other contributions paid by or on behalf of the individual under the pension scheme in the tax year are treated as paid in respect of premiums under the policy to the extent that their amount does not exceed the difference between the amount of the premiums and the amount of any contributions treated as paid in respect of the premiums by subsection (3).

(5) But where-

(a) the benefits under the policy relate to the death of one or more of a group of individuals, and

(b) contributions are also paid under the pension scheme in the tax year by or on behalf of another member or other members of the group, the amount of the contributions paid by or on behalf of the individual which are treated as paid in respect of premiums under the policy by subsection (4) does not exceed what is just and reasonable having regard to the operation of section 188(3)(aa) in relation to the contributions paid by or on behalf of another member or other members of the group.

(6) For the purposes of this section an individual ("A") is connected with another individual ("B") if-

(a) A is B's spouse or civil partner,

(b) A is a relative of B,

(c) A is the spouse or civil partner of a relative of B,

(d) A is a relative of B's spouse or civil partner, or

(e) A is the spouse or civil partner of a relative of B's spouse or civil partner;

and for the purposes of this subsection "relative" means brother, sister, ancestor or lineal descendant."

(4) The amendments made by this Resolution have effect in relation to contributions under any pension scheme that is not an occupational pension scheme which are paid on or after 6th April 2007.

(5) But they do not have effect in relation to contributions paid at any time if the contributions are treated as paid in respect of premiums under a policy of insurance which at that time is a protected policy (see paragraphs (6) to (10)).

(6) A policy of insurance within paragraph (7) or (8) is a protected policy but only until a relevant event occurs (see paragraphs (9) and (10)).

(7) A policy of insurance is within this paragraph if-

(a) it is issued in respect of insurances made before 6th December 2006,

(b) the pension scheme became a registered pension scheme before that date, and

(c) rights under the policy became held for the purposes of the pension scheme before that date.

(8) A policy of insurance is within this paragraph if-

(a) it is issued in respect of insurances made before 6th April 2007,

(b) the pension scheme became a registered pension scheme before that date,

(c) rights under the policy became held for the purposes of the pension scheme before that date,

(d) the policy was issued in pursuance of a proposal made in writing (by whatever means) and received by or on behalf of the insurer on or before 13th December 2006,

(e) the amount of the benefits payable under the policy (at the latest of the time when the insurances were made, the pension scheme was registered or rights under the policy became held for the purposes of the pension scheme) is no more than the amount applied for in the proposal,

(f) the period for which benefits are so payable (at the latest of those times) is no longer than the period specified in the proposal, and

(g) the policy is not a protected policy by virtue of paragraph (7).

(9) For the purposes of paragraph (6) a "relevant event" occurs if, after the relevant time, the terms of the policy are varied so as to-

(a) increase the benefits payable under the policy, or

(b) extend the period during which benefits are so payable.

(10) 'The relevant time"-

(a) in the case of a policy of insurance within paragraph (7) which is issued in respect of insurances made before 6th April 2006, is 20th March 2007,

(b) in the case of any other policy of insurance within paragraph (7), is 5th December 2006, and

(c) in the case of a policy of insurance within paragraph (8), is the time when it became a protected policy.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

The House divided: Ayes 292, Noes 232.

Debate in Parliament | Source |