The Taxes (Amendments) (EU Exit) Regulations 2019

JurisdictionUK Non-devolved
CitationSI 2019/689

2019 No. 689

Exiting The European Union

Landfill Tax, England

Landfill Tax, Northern Ireland

Recovery Of Taxes

Stamp Duty Land Tax, England

Stamp Duty Land Tax, Northern Ireland

Taxes

The Taxes (Amendments) (EU Exit) Regulations 2019

Made 26th March 2019

Laid before the House of Commons 27th March 2019

Coming into force in accordance with regulation 1

The Treasury make the following Regulations in exercise of the power conferred by section 90(1)(a), (b), (d) and (e), (2) and (6) of the Finance Act 20191.

Further to section 90(7)(b) of that Act, the Prime Minister has notified the President of the European Council, in accordance with Article 50(3) of the Treaty on European Union2, of the United Kingdom’s request to extend the period in which the Treaties shall still apply to the United Kingdom.

1 Introduction

PART 1

Introduction

Citation and commencement
S-1 Citation and commencement

Citation and commencement

1. These Regulations may be cited as the Taxes (Amendments) (EU Exit) Regulations 2019 and come into force on exit day.

2 Amendments to primary legislation

PART 2

Amendments to primary legislation

Taxes Management Act 1970
S-2 Taxes Management Act 1970

Taxes Management Act 1970

2.—(1) The Taxes Management Act 19703is amended as follows.

(2) In the italic cross-heading before section 12A, at the beginning insert “UK Economic Interest Groupings4and”.

(3) In section 12A5

(a)

(a) in the heading, at the beginning insert “UK Economic Interest Groupings and”;

(b)

(b) for subsection (1) substitute—

S-1

“1 In this section “grouping” means—

(a) a UK Economic Interest Grouping, or

(b) a grouping registered in a member State and formed in pursuance of Council Regulation (EEC) No. 2137/85of 25 July 1985 on the European Economic Interest Grouping6as it has effect in EU law (a “European Economic Interest Grouping”).”;

(c)

(c) in subsection (3) for “grouping which is registered in Great Britain or Northern Ireland or” substitute “UK Economic Interest Grouping, or a European Economic Interest Grouping that”;

(d)

(d) in subsection (8) omit “in accordance with the Council Regulation”;

(e)

(e) after subsection (9) insert—

S-10

“10 The reference in subsection (8) to the individual or individuals designated as the representative of the manager is a reference—

(a) in the case of a UK Economic Interest Grouping, to the individual or individuals designated in accordance with regulation 5(1) of the European Economic Interest Grouping Regulations 19897, and

(b) in the case of a European Economic Interest Grouping, to the individual or individuals designated in accordance with Council Regulation (EEC) No. 2137/85of 25 July 1985 on the European Economic Interest Grouping as it has effect in EU law.”.

(4) In section 98B8

(a)

(a) in the heading, at the beginning insert “UK Economic Interest Groupings and”;

(b)

(b) for subsection (1) substitute—

S-1

“1 In this section “grouping” means—

(a) a UK Economic Interest Grouping, or

(b) a grouping registered in a member State and formed in pursuance of Council Regulation (EEC) No. 2137/85of 25 July 1985 on the European Economic Interest Grouping as it has effect in EU law.” .

Inheritance Tax Act 1984
S-3 Inheritance Tax Act 1984

Inheritance Tax Act 1984

3.—(1) The Inheritance Tax Act 19849is amended as follows.

(2) In section 59(3)(b)10for the words from “is” to the end substitute—

“—

(i)

(i) is an insurance company (within the meaning of Part 2 of the Finance Act 2012)11, and

(ii)

(ii) has permission under Part 4A of the Financial Services and Markets Act 200012to effect or carry out contracts of long-term insurance.”.

(3) In section 115(5)(b)13omit “, other than the United Kingdom,”.

(4) In section 125(1A)14for “another” substitute “is in a”.

Finance Act 1986
S-4 Finance Act 1986

Finance Act 1986

4.—(1) Part 4 of the Finance Act 198615(stamp duty reserve tax) is amended as follows.

(2) In section 9916

(a)

(a) in subsection (4)(d)—

(i) for “an SE” substitute “a UK Societas17”;

(ii) omit the words from “and, at the time” to the end;

(b)

(b) in subsection (4A) omit paragraph (b) and the “and” at the end of paragraph (a).

Finance Act 1991
S-5 Finance Act 1991

Finance Act 1991

5.—(1) Part 4 of the Finance Act 199118(stamp duty and stamp duty reserve tax) is amended as follows.

(2) In section 11619

(a)

(a) in subsection (4)—

(i) omit paragraph (aa);

(ii) for sub-paragraph (i) of paragraph (b) substitute—

“(i)

“(i) a UK regulated market (within the meaning given by Article 2.1(13A) of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments)20;

(ia)

(ia) a UK multilateral trading facility (within the meaning given by Article 2.1(14A) of that Regulation);

(ib)

(ib) an EU regulated market (within the meaning given by Article 2.1(13B) of that Regulation);

(ic)

(ic) an EU multilateral trading facility (within the meaning given by Article 2.1 (14B) of that Regulation);

(id)

(id) a regulated market (within the meaning given by Article 2.1(13) of that Regulation) which is authorised and functions regularly and in accordance with Part 3 of the Financial Services (Markets in Financial Instruments) Act 2018 of Gibraltar21;

(ie)

(ie) a multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in financial instruments (in the system and in accordance with non-discretionary rules) in a way which results in a contract in accordance with Part 2 of the Financial Services (Markets in Financial Instruments) Act 2018 of Gibraltar;”;

(b)

(b) after subsection (4) insert—

S-5

“5 In subsection (4)(ie) “multilateral system”, “investment firm”, “market operator” and “financial instrument” have the meanings given by Articles 2.1(11), 2.1A, 2.1(10) and 2.1(9) respectively of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments.”.

Taxation of Chargeable Gains Act 1992
S-6 Taxation of Chargeable Gains Act 1992

Taxation of Chargeable Gains Act 1992

6.—(1) The Taxation of Chargeable Gains Act 199222is amended as follows.

(2) In section 140A23

(a)

(a) in subsections (1) and (1A) for “member State”, in each place where the expression occurs, substitute “relevant state”;

(b)

(b) in subsection (1C) for “another” substitute “a”.

(3) In section 140C24

(a)

(a) in subsection (1)(a)—

(i) for “another” substitute “a”;

(ii) omit “other than the United Kingdom”;

(b)

(b) in subsection (1A) omit “other than the United Kingdom”, in both places where the expression occurs;

(c)

(c) in subsection (1C) for “another” substitute “a”.

(4) In section 140DA(1)25

(a)

(a) in paragraph (b) for “member State” substitute “relevant state”;

(b)

(b) in paragraph (c) for “State” substitute “relevant state”.

(5) In section 140E26

(a)

(a) in subsection (2)—

(i) in paragraph (a) for “member State” substitute “relevant state”;

(ii) in paragraph (b) for “State” substitute “relevant state”;

(iii) in paragraph (d)(ii) for “another” substitute “a”;

(b)

(b) in subsection (9)(a) omit “other than the United Kingdom”.

(6) In section 140F(2)27

(a)

(a) in paragraph (a) for “member State” substitute “relevant state”;

(b)

(b) in paragraph (b) for “State” substitute “relevant state”;

(c)

(c) in paragraph (c)—

(i) for “another” substitute “a”;

(ii) omit “other than the United Kingdom”;

(d)

(d) in paragraph (e)(ii) for “another” substitute “a”.

(7) In section 140G(2)28

(a)

(a) in paragraph (a) for “member State” substitute “relevant state”;

(b)

(b) in paragraph (b) for “State” substitute “relevant state”.

(8) In section 140GA29

(a)

(a) in paragraph (b) for “member State” substitute “relevant state”;

(b)

(b) in paragraph (c) for “State” substitute “relevant state”.

(9) In section 140H(3)30omit “other than the United Kingdom”.

(10) In section 140I(3) omit “other than the United Kingdom”.

(11) In section 140J(3) omit “other than the United Kingdom”.

(12) In section 140L31

(a)

(a) in subsection (1)—

(i) at the end of paragraph (b) (but before the “and”) insert—

“(ba)

“(ba) “relevant state” means the United Kingdom or a member State,”;

(ii) in paragraph (c) omit “other than the United Kingdom”;

(b)

(b) for subsection (2) substitute—

S-2

“2 For the purposes of those sections and subsection (1) above, a company is resident in a relevant state if—

(a) it is within a charge to tax under the law of the relevant state as being resident for that purpose, and

(b) it is not regarded, for the purposes of any double taxation relief arrangements to which the relevant state is a party, as resident in a territory not within a relevant state.”.

(13) In section 151N32

(a)

(a) in subsection (1)(h) for “an EEA-regulated” substitute “a regulated”;

(b)

(b) in subsection (2)—

(i) at the end of paragraph (h) insert “and”;

(ii) omit paragraphs (j) and (k);

(c)

(c) after subsection (2) insert—

S-2A

“2A In subsection (1)—

“regulated recognised stock exchange” means a recognised stock exchange that is regulated in the United Kingdom, the European Economic Area or Gibraltar;

“multilateral trading facility” means—

(a) a UK multilateral trading facility within the meaning given by Article 2.1(14A) of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments,

(b) an EU multilateral trading facility within the meaning given by Article 2.1(14B) of that Regulation, and

(c) a multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in financial instruments (in the system and in accordance with non-discretionary rules) in a way which results in a contract in accordance with Part 2 of the Financial Services (Markets in Financial Instruments) Act 2018 of Gibraltar,

and in paragraph (c) “multilateral system”, “investment firm”, “market operator” and “financial instrument” have the same meanings as given by...

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