Finance (No. 3) Act 2010
Finance (No. 3) Act 2010
2010 CHAPTER 33
An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance.
[16th December 2010]
Most Gracious Sovereign
WE, Your Majesty's most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty's public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:-
Part 1
Income tax, corporation tax and capital gains tax
Income tax and corporation tax
1 Shared lives care
Schedule 1 contains provision extending foster-care relief to other forms of care.
2 Payments to special guardians and those in receipt of residence orders
(1) Part 6 of ITTOIA 2005 (exempt income) is amended as follows.
(2) In section 744 (payments to adopters: England and Wales)-
(a) the existing provision becomes subsection (1),
(b) in that subsection, omit the "and" before paragraph (e) and after that paragraph insert-
"(f) payments made under regulations under section 14F of the Children Act 1989 (special guardianship support services) to a person appointed as a child's special guardian,
(g) payments made to a person under section 17 of that Act (provision of services for children in need, their families and others) by reason of that person being a person in whose favour a residence order with respect to a child is in force,
(h) payments made to a person, in respect of a child, under paragraph 15 of Schedule 1 to that Act (local authority contribution to child's maintenance to recipients in whose favour residence order is in force), and
(i) an order under that Schedule (orders for financial relief against parents etc), or
(ii) a maintenance agreement,
for the benefit of a child, to a person appointed as the child's special guardian or a person in whose favour a residence order with respect to the child is in force.",
(c) after that subsection insert-
(a) it is made to an excluded relative of the child,
(b) it is made to a person appointed as the child's special guardian and an excluded relative is also appointed as the child's special guardian, or
(c) it is made to a person in whose favour a residence order is in force with respect to the child and that order is also in favour of an excluded relative.
(a) a parent of the child, or
(b) a person who is, or has been, the husband or wife or civil partner of a parent of the child;
"maintenance agreement" has the meaning given by paragraph 10(1) of Schedule 1 to the Children Act 1989;
"residence order" has the meaning given by section 8 of that Act.", and
(d) in the heading, after " adopters " insert " , etc ".
(3) In section 745 (payments to adopters: Scotland)-
(a) the existing provision becomes subsection (1),
(b) in that subsection, omit the "and" before paragraph (d) and after that paragraph insert-
"(e) payments made to a person under section 50 of the Children Act 1975, or section 22 of the Children (Scotland) Act 1995, by reason of that person being a person with whom a child is to live by virtue of a residence order, and
(i) in accordance with an award of aliment under the Family Law (Scotland) Act 1985, or
(ii) under an agreement (within the meaning of section 7(5) of that Act),
for the benefit of a child, to a person in whose favour a residence order with respect to the child is in force.",
(c) after that subsection insert-
(a) it is made to an excluded relative of the child, or
(b) it is made to a person in whose favour a residence order is in force with respect to the child and that order is also in favour of an excluded relative.
(a) a parent of the child, or
(b) a person who is, or has been, the husband or wife or civil partner of a parent of the child;
"residence order" has the meaning given by section 11(2)(c) of the Children (Scotland) Act 1995.", and
(d) in the heading, after " adopters " insert " , etc ".
(4) In section 746 (payments to adopters: Northern Ireland)-
(a) the existing provision becomes subsection (1),
(b) in that subsection, omit the "and" before paragraph (c) and after that paragraph insert-
(e) payments made to a person, in respect of a child, under paragraph 17 of Schedule 1 to that Order (local authority contribution to child's maintenance to recipients in whose favour residence order is in force), and
(i) an order under that Schedule (orders for financial relief against parents etc), or
(ii) a maintenance agreement,
for the benefit of a child, to a person in whose favour a residence order with respect to the child is in force.",
(c) after that subsection insert-
(a) it is made to an excluded relative of the child, or
(b) it is made to a person in whose favour a residence order is in force with respect to the child and that order is also in favour of an excluded relative.
(a) a parent of the child, or
(b) a person who is, or has been, the husband or wife or civil partner of a parent of the child;
"maintenance agreement" has the meaning given by paragraph 12 of Schedule 1 to the Children (Northern Ireland) Order 1995;
"residence order" has the meaning given by Article 8 of that Order.", and
(d) in the heading, after " adopters " insert " , etc ".
(5) The amendments made by this section have effect in relation to the tax year 2010-11 and subsequent tax years.
3 Qualifying care relief: capital allowances
(1) Chapter 2 of Part 7 of ITTOIA 2005 (qualifying care relief) is amended as follows.
(2) In section 824 (capital allowances: introduction), after subsection (2) insert-
"(2A) In this group of sections, in relation to a relevant individual-
(a) "the care business" means the provision of qualifying care by the individual,
(b) "care business expenditure" means qualifying expenditure incurred on the provision of plant or machinery wholly or partly for the care business,
(c) "care business pool" means a pool of care business expenditure (even if the balance for the time being is nil), and
(d) a reference to "another activity" is to a qualifying activity carried on by the individual other than the care business.
(2B) In this group of sections, plant or machinery is referred to as being "in" a pool if qualifying expenditure incurred on its provision has been allocated at any time to that pool."
(3) For section 825 substitute-
"825 Unallocated capital expenditure
(1) This section applies if-
(a) at the beginning of a relevant chargeable period of a relevant individual, there is care business expenditure which has not been allocated to a care business pool,
(b) the individual is entitled under CAA 2001 to allocate the expenditure, or a part of it, to a care business pool for that period, and
(c) the previous chargeable period was not a relevant chargeable period.
(2) So much of the expenditure as the individual is entitled to allocate to a care business pool for that period is to be treated for the purposes of CAA 2001 as allocated to the appropriate kind of care business pool for that period (whether or not any of it is actually so allocated).
(3) For the different kinds of pool, see section 54 of CAA 2001.
825A Deemed disposal event
(1) Subsection (2) applies to a care business pool for a relevant chargeable period of a relevant individual if the previous chargeable period was not a relevant chargeable period.
(2) CAA 2001 is to apply as if-
(a) a disposal event occurs immediately after the beginning of the relevant chargeable period in respect of plant or machinery in the pool,
(b) disposal receipts fall to be brought into account in the pool for the period because of that event, and
(c) the total of the receipts equals the sum of amount A and amount B (or nil if there are no such amounts).
(3) Amount A is the amount of any expenditure treated as allocated to the pool for the period by virtue of section 825 (whether or not any of it is actually so allocated).
(4) Amount B is the amount of any unrelieved qualifying expenditure carried forward in the pool from the previous chargeable period.
825B Plant or machinery used for care business
(1) This section applies if-
(a) disposal receipts fall to be brought into account in a pool for a relevant chargeable period by virtue of section 825A, and
(b) on the re-start date, the relevant individual still owns any of the plant or machinery which was in that pool and is still using any of it for the purposes of the...
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