Amendments proposed to the Finance Bill - continued House of Commons

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IHT and executors

   

Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff

NC33

To move the following Clause:—

    '.   In subsection (2) of section 226 of the Inheritance Tax Act 1984, at end add—

    "Personal representatives may pay the tax out of the estate remaining after death before probate has been granted.".'.


NEW SCHEDULE

   

Mr Michael Howard
Mr John Bercow
Mr Howard Flight
Mr Christopher Chope
Mr Peter Luff

NS1

To move the following Schedule:—

    'Chargeable gains: set off of losses treated as accruing to settlors    

Introduction

    1   The Taxation of Chargeable Gains Act 1992 (c. 12) is amended in accordance with paragraphs 2 to 6.

    Section 2

    2(1)   Section 2 (persons and gains chargeable to capital gains tax, and allowable losses) is amended as follows.

    (2)   In subsection (2) (computation of capital gains tax), for the word "and" at the end of paragraph (a) substitute—

"(aa) any attributed loss accruing to that person, and".

    (3)   After that subsection insert—

          "(2A)   Where on a disposal a loss accrues to trustees of a settlement in circumstances where, had it been a gain that gain would have been attributed to another person by virtue of sections 77 or 86, then that person may elect for that loss to be an attributed loss accruing to that person for the purposes of subsection (2) above for the year of assessment in which the disposal occurs.

          (2B)   Attributed losses must be deducted first from any gains accruing to a person by virtue of sections 77 and 86 chargeable for the year in question before they may be deducted from any other chargeable gain.".

    Section 77    

3   In section 77 (charge on settlor with interest in settlement), in subsection (1) at the end insert "No deduction of any loss shall be made by the trustees in respect of any disposal which gives rise to a loss which the settlor informs them is to be regarded as an attributed loss for the purposes of section 2(2).".

    Section 86

    4   In section 86 (attribution of gains to settlers with interest in non-resident or dual resident settlements), after subsection (1), insert—

          "(1A)   For the purposes of subsection (1)(e) above no account shall be taken of any disposal which gives rise to a loss which the settlor informs the trustees is to be regarded as an attributed loss for the purposes of section 2(2).".

    Section 86A

5   In section 86A (attribution of gains to settlor in section 10A cases), after subsection (8) insert—

          "(8A)   For the purposes of this section, no account shall be taken of any disposal which gives rise to a loss which the settlor informs the trustees is to be regarded as an attributed loss for the purpose of section 2(2).".

    Section 87

6   In section 87 (attribution of gains to beneficiaries), before subsection (4) insert—

          "(3Z)   In making any computations under this section, no account shall be taken of any disposal which gives rise to a loss which the settlor informs the trustees shall be regarded as an attributed loss for the purpose of section 2(2).".

    Commencement

    7   This Schedule applies to persons and gains chargeable to capital gains tax and allowable losses in the year 2003-04 and subsequent years of assessment.

    Election for Schedule to apply for years earlier than 2003-04    8(1)   This Schedule also applies, if the person so elects, in relation to chargeable gains and attributed losses accruing to a person in any of the years of assessment 2000-01, 2001-02 and 2002-03.

    (2)   An election under this paragraph—

(a) must be made by notice given to an officer of the Board no later than 31st January 2005;

(b) where attributed losses may be regarded as arising in respect of two or more settlements, may be restricted to those regarded as arising in respect of the settlement or settlements specified in the election.

    (3)   All such adjustments shall be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under this paragraph.

    (4)   Where—

(a) a person makes an election under this paragraph for any one or more of the years of assessment 2000-01, 2001-02 and 2002-03, and

(b) the effect of the election, or (as the case may be) both or all of them taken together, is to increase the total amount of tax that the person is entitled to recover from the trustees of a particular settlement for those three years under section 78(1)(a) of the Taxation of Chargeable Gains Act 1992 (c. 12) or paragraph 6 of Schedule 5 to that Act,


   

Mr Paul Boateng

222

Schedule     39,     page     479,     line     2,     leave out paragraph (c) and insert—

       '(c)     subsection (8).'.

   

Mr Paul Boateng

223

Schedule     39,     page     481,     line     6,     at end insert—

'( ) Computation of profits

Short title and chapterExtent of repeal
Income and Corporation Taxes Act 1988 (c.1)In section 473(2), the words, ", if the securities were not such as are mentioned in subsection (1)(b) above".
Finance Act 1998 (c.36)Section 44.
Schedule 6.
Capital Allowances Act 2001 (c.2)In Schedule 2, paragraph 102.

 The repeal in section 473(2) of the Taxes Act 1988 has effect in accordance with section 66(4)(a) of this Act.

 The other repeals have effect in accordance with section 63(6) of and paragraphs 16 and 17 of Schedule 22 to this Act.'.

   

Mr Andrew Smith

154

Schedule     39,     page     483,     line     47,     column 2, leave out '17(5)' and insert '17—

(a) in sub-paragraph (5),'.

   

Mr Andrew Smith

155

Schedule     39,     page     483,     line     51,     column 2, at end insert—

'(b) sub-paragraphs (6) and (7).'.

   

Mr Andrew Smith

156

Schedule     39,     page     483,     line     52,     column 2,     leave out '18(4),' and insert '18—

(a) in sub-paragraph (1), the word "and" immediately preceding paragraph (b);

(b) in sub-paragraph (4),'.


 
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