Finance Act 2013

JurisdictionUK Non-devolved
Citation2013 c. 29


Finance Act 2013

2013 CHAPTER 29

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.

[17th July 2013]

Most Gracious SovereignWE, 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:-

1 Income Tax, Corporation Tax and Capital Gains Tax

PART 1

Income Tax, Corporation Tax and Capital Gains Tax

CHAPTER 1

Charges, rates etc

Income tax

Income tax

S-1 Charge for 2013-14

1 Charge for 2013-14

Income tax is charged for the tax year 2013-14.

S-2 Personal allowance for 2013-14 for those born after 5 April 1948

2 Personal allowance for 2013-14 for those born after 5 April 1948

(1) For the tax year 2013-14 the amount specified in section 35(1) of ITA 2007 (personal allowance for those born after 5 April 1948) is replaced with "£9,440".

(2) Accordingly section 57 of that Act (indexation of allowances), so far as relating to the amount specified in section 35(1) of that Act, does not apply for that tax year.

S-3 Basic rate limit for 2013-14

3 Basic rate limit for 2013-14

(1) For the tax year 2013-14 the amount specified in section 10(5) of ITA 2007 (basic rate limit) is replaced with "£32,010".

(2) Accordingly section 21 of that Act (indexation of limits), so far as relating to the basic rate limit, does not apply for that tax year.

Corporation tax

Corporation tax

S-4 Charge and main rate for financial year 2014

4 Charge and main rate for financial year 2014

(1) Corporation tax is charged for the financial year 2014.

(2) For that year the rate of corporation tax is-

(a) 21% on profits of companies other than ring fence profits, and

(b) 30% on ring fence profits of companies.

(3) In subsection (2) "ring fence profits" has the same meaning as in Part 8 of CTA 2010 (see section 276 of that Act).

S-5 Small profits rate and fractions for financial year 2013

5 Small profits rate and fractions for financial year 2013

(1) For the financial year 2013 the small profits rate is-

(a) 20% on profits of companies other than ring fence profits, and

(b) 19% on ring fence profits of companies.

(2) For the purposes of Part 3 of CTA 2010, for that year-

(a) the standard fraction is 3/400ths, and

(b) the ring fence fraction is 11/400ths.

(3) In subsection (1) "ring fence profits" has the same meaning as in Part 8 of that Act (see section 276 of that Act).

S-6 Main rate for financial year 2015

6 Main rate for financial year 2015

(1) For the financial year 2015 the rate of corporation tax is 20% on profits of companies other than ring fence profits.

(2) In subsection (1) "ring fence profits" has the same meaning as in Part 8 of CTA 2010 (see section 276 of that Act).

Capital allowances

Capital allowances

S-7 Temporary increase in annual investment allowance

7 Temporary increase in annual investment allowance

(1) In relation to expenditure incurred during the period of two years beginning with 1 January 2013, section 51A of CAA 2001 (entitlement to annual investment allowance) has effect as if in subsection (5) for "£25,000" there were substituted "£250,000".

(2) Schedule 1 contains provision about chargeable periods which straddle 1 January 2013 or 1 January 2015.

CHAPTER 2

Income tax: general

Exemptions and reliefs

Exemptions and reliefs

S-8 London Anniversary Games

8 London Anniversary Games

(1) An accredited competitor who performs an Anniversary Games activity is not liable to income tax in respect of any income arising from the activity if the non-residence condition is met.

(2) The following are Anniversary Games activities-

(a) competing at the Anniversary Games, and

(b) any activity that is performed during the games period the main purpose of which is to support or promote the Anniversary Games.

(3) The non-residence condition is that-

(a) the accredited competitor is non-UK resident for the tax year 2013-14, or

(b) the accredited competitor is UK resident for the tax year 2013-14 but the year is a split year as respects the competitor and the activity is performed in the overseas part of the year.

(4) Section 966 of ITA 2007 (deduction of sums representing income tax) does not apply to any payment or transfer which gives rise to income benefiting from the exemption under subsection (1).

(5) In this section-

"accredited competitor" means a person to whom an accreditation card in the athletes' category has been issued by the company named UK Athletics Limited which was incorporated on 16 December 1998;

"the Anniversary Games" means the British Athletics London Anniversary Games held at the Olympic Stadium in London in July 2013;

"the games period" means the period-

(a) beginning with 21 July 2013, and

(b) ending with 29 July 2013;

"income" means employment income or profits of a trade, profession or vocation (including profits treated as arising as a result of section 13 of ITTOIA 2005).

(6) This section is treated as having come into force on 6 April 2013.

S-9 Glasgow Commonwealth Games

9 Glasgow Commonwealth Games

(1) An accredited competitor who performs a Commonwealth Games activity is not liable to income tax in respect of any income arising from the activity if the non-residence condition is met.

(2) The following are Commonwealth Games activities-

(a) competing at the Glasgow Commonwealth Games, and

(b) any activity that is performed during the games period the main purpose of which is to support or promote the Glasgow Commonwealth Games or any future Commonwealth Games.

(3) The non-residence condition is that-

(a) the accredited competitor is non-UK resident for the tax year in which the Commonwealth Games activity is performed, or

(b) the accredited competitor is UK resident for the tax year in which the activity is performed but the year is a split year as respects the competitor and the activity is performed in the overseas part of the year.

(4) Section 966 of ITA 2007 (deduction of sums representing income tax) does not apply to any payment or transfer which gives rise to income benefiting from the exemption under subsection (1).

(5) In this section-

"accredited competitor" means a person to whom a Glasgow 2014 accreditation card in the athletes' category has been issued by the company named Glasgow 2014 Limited which was incorporated on 11 June 2007;

"the games period" means the period-

(a) beginning with 4 March 2014, and

(b) ending with 3 September 2014;

"the Glasgow Commonwealth Games" means the Commonwealth Games held in Scotland in 2014;

"income" means employment income or profits of a trade, profession or vocation (including profits treated as arising as a result of section 13 of ITTOIA 2005).

S-10 Expenses of elected representatives

10 Expenses of elected representatives

(1) After section 293A of ITEPA 2003 insert-

"293B UK travel expenses of other elected representatives

(1) No liability to income tax arises in respect of a payment to which this section applies if it is expressed to be made in respect of relevant UK travel expenses.

(2) This section applies to payments-

(a) made to members of the Scottish Parliament under section 81(2) of the Scotland Act 1998,

(b) made to members of the National Assembly for Wales under section 20(2) of the Government of Wales Act 2006 or to a member of the Welsh Assembly Government under section 53(2) of that Act, or

(c) made to members of the Northern Ireland Assembly under section 47(2) of the Northern Ireland Act 1998.

(3) In this section "relevant UK travel expenses" means expenses necessarily incurred on journeys of the following kinds within the United Kingdom-

(a) journeys within subsection (4) made by the member that are necessary for the performance of his or her duties as a member;

(b) if the member shares caring responsibilities with a spouse or partner, journeys made by the spouse or partner between the constituency or region and the member's parliamentary home.

(4) The journeys referred to in subsection (3)(a) are those-

(a) between the constituency or region and the Parliament or Assembly to which the member belongs,

(b) between the constituency or region and the member's parliamentary home, or

(c) within the constituency or region, but not excluded by subsection (5).

(5) A journey is excluded if-

(a) in the case of a member who has only one local office, it is between the member's local home and that office, and

(b) in any other case, it is between the member's local home and the principal local office.

(6) In this section-

"constituency or region", in relation to a member, means the constituency or region which the member represents and the area within 20 miles of the boundary of that constituency or region;

"local office", in relation to a member, means an office which is situated in the constituency or region and occupied by the member for the purposes of performing duties as a member;

"the member's local home" means a residence of the member situated in the constituency or region;

"the member's parliamentary home" means the member's only or main residence in the area comprising-

(a) the main site of the Parliament or Assembly to which the member belongs, and

(b) the area within 20 miles of...

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