Finance Bill - continued        House of Lords
PART III, INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX - continued
Pensions and insurance, etc. - continued

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Provisions supplementary to s. 82.     83. - (1) In section 82 above and this section, except where the context otherwise requires-
 
 
    "member" means an individual who is an underwriting member of Lloyd's;
 
    "members' agent", in relation to a member, means a person registered as a members' agent at Lloyd's who is acting as such an agent for the member;
 
    "members' agent pooling arrangement", in relation to a member, means an arrangement-
 
      (i) under which a members' agent arranges for the member's participation in syndicates; and
 
      (ii) which satisfies the conditions set out in subsection (2) below;
 
    "syndicate" has the same meaning as in Chapter III of Part II of the Finance Act 1993; and
 
    "syndicate rights", in relation to a member, means rights under a syndicate in which the member participates.
      (2) The conditions mentioned in paragraph (ii) of the above definition of "members' agent pooling arrangement" are that under the arrangement-
 
 
    (a) the member must participate in each of the syndicates to which the arrangement relates; and
 
    (b) the extent to which the member participates in each such syndicate is determined-
 
      (i) by the members' agent; or
 
      (ii) according to a formula provided for in the arrangement.
      (3) References in section 82 above to the payment of an amount are references to the payment of an amount in money or money's worth; and to the extent that an amount mentioned in subsection (4), (5) or (6) of that section is paid in money's worth, the amount of the consideration or expenditure there referred to shall be calculated by reference to the market value of the money's worth at the time of the payment mentioned in that subsection.
 
      (4) Section 82 above and this section have effect in relation to a Scottish partnership which is an underwriting member of Lloyd's as they have effect in relation to a member, but as if the reference in section 82(2) to any liability of the member's to capital gains tax that may arise from transactions effected in pursuance of the arrangement were a reference to any such liability of members of the partnership that may so arise.
 
Lloyd's: roll-over relief.     84. - (1) In section 155 of the Taxation of Chargeable Gains Act 1992 (classes of assets for the purposes of roll-over relief), after Class 7 there shall be inserted-
 
 
"CLASS 8 Assets within heads A and B below.
 
      Head A Rights of a member of Lloyd's under a syndicate within the meaning of Chapter III of Part II of the Finance Act 1993.
 
      Head B An asset which a member of Lloyd's is treated as having acquired by virtue of section 82 of the Finance Act 1999."
 
      (2) This section applies to-
 
 
    (a) assets (or interests in them) disposed of on or after 6th April 1999;
 
    (b) assets (or interests in them) acquired on or after that date.
 
Advance pricing agreements and CFCs
Advance pricing agreements etc.     85. - (1) This section applies in relation to any chargeable period where-
 
 
    (a) the Board have made a written agreement with any person ("the taxpayer");
 
    (b) the agreement relates to one or more of the matters mentioned in subsection (2) below and to that chargeable period;
 
    (c) the agreement is one made as a consequence of an application by the taxpayer to the Board for the clarification by agreement of the effect in the taxpayer's case of provisions by reference to which questions relating to any one or more of those matters fall, or might fall, to be determined; and
 
    (d) the agreement contains a declaration that it is an agreement made for the purposes of this section.
      (2) Those matters are-
 
 
    (a) the attribution of income to a branch or agency through which the taxpayer has been carrying on a trade in the United Kingdom, or is proposing so to carry on a trade;
 
    (b) the attribution of income to any permanent establishment of the taxpayer (wherever situated) through which he has been carrying on, or is proposing to carry on, any business;
 
    (c) the extent to which income which has arisen or may arise to the taxpayer is to be taken for any purpose to be income arising in a country or territory outside the United Kingdom;
 
    (d) the treatment for tax purposes of any provision made or imposed (whether before or after the date of the agreement) as between the taxpayer and any associate of his;
 
    (e) the treatment for tax purposes of any provision made or imposed (whether before or after the date of the agreement) as between a ring fence trade carried on by the taxpayer and any other activities so carried on.
      (3) Subject to the following provisions of this section and to section 86 below, the Tax Acts shall have effect in the taxpayer's case as if questions relating to the matters mentioned in subsection (2) above were, to the extent provided for in the agreement, to be determined in accordance with the agreement, and without reference to the provisions in accordance with which they would otherwise have fallen to be determined.
 
      (4) In the case of so much of any question as-
 
 
    (a) relates to any matter mentioned in paragraph (d) or (e) of subsection (2) above, and
 
    (b) is not comprised in a question falling within another paragraph of that subsection,
  the provisions reference to which is capable of being excluded under subsection (3) above by an agreement made for the purposes of this section shall be confined to those contained in Schedule 28AA to the Taxes Act 1988 (transfer pricing rules).
 
      (5) Any such application to the Board as is mentioned in subsection (1)(c) above must set out-
 
 
    (a) the taxpayer's understanding of what would, in his case, be the effect, in the absence of any agreement, of the provisions in relation to which clarification is sought;
 
    (b) the respects in which it appears to the taxpayer that clarification is required in relation to those provisions; and
 
    (c) how the taxpayer proposes that matters should be clarified in a manner consistent with the understanding mentioned in paragraph (a) above.
      (6) For the purposes of this section two persons are associates, in relation to provision made or imposed as between them if, within the meaning of Schedule 28AA to the Taxes Act 1988-
 
 
    (a) one of them is directly or indirectly participating, at the time of the making or imposition of the provision, in the management, control or capital of the other; or
 
    (b) the same person or persons is or are, at that time, directly or indirectly participating in the management, control or capital of each of the two persons;
  and, in the case of provision made or imposed by or in relation to the terms of any sale of oil (within the meaning of paragraph 9 of that Schedule), two persons shall also be treated as associates for the purposes of this section wherever sub-paragraph (2) of that paragraph would require them for the purposes of that Schedule to be treated in relation to that provision as falling within paragraph (b) above.
 
      (7) In this section "ring fence trade", in relation to the taxpayer, means any activities which-
 
 
    (a) are carried on by the taxpayer as, or as part of, a trade; and
 
    (b) in accordance with section 492(1) of the Taxes Act 1988 (tax treatment of oil extraction activities), either-
 
      (i) fall to be treated for tax purposes as a separate trade, distinct from all other activities carried on by the taxpayer; or
 
      (ii) would so fall if the taxpayer did carry on any other activities as part of that trade.
      (8) This section applies in relation to any chargeable period ending on or after the day on which this Act is passed but only if the agreement is one made on or after that day and in relation to that period.
 
 
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