Finance Act 2013
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Miscellaneous amendments: civil partners. |
103.— (1) The Principal Act is amended— | |
(a) in section 1031J by inserting the following after subsection (1): | ||
“(1A) In this section a reference to a child of a civil partner includes a child in respect of whom the civil partner was at any time before the making of the maintenance arrangement concerned entitled to relief under section 465.”, | ||
(b) in section 1031J(2)(a) by inserting the following after “maintenance arrangement”: | ||
“relating to the civil partnership for the benefit of his or her child, or for the benefit of the other civil partner being payments— | ||
(i) which are made at a time when one civil partner is not living with the other, | ||
(ii) the making of which is legally enforceable, and | ||
(iii) which are annual or otherwise periodical.”, | ||
(c) in section 1031J(2) by substituting the following for paragraph (b): | ||
“(b) For the purposes of this section and section 1031K, but subject to paragraph (c), a payment, whether conditional or not, which is made directly or indirectly by a civil partner or former civil partner under or pursuant to a maintenance arrangement relating to the civil partnership concerned (other than a payment of which the amount, or the method of calculating the amount, is specified in the maintenance arrangement and from which, or from the consideration for which, neither a child of the civil partner making the payment nor the other civil partner derives any benefit) shall be deemed to be made for the benefit of his or her civil partner or former civil partner.”, | ||
(d) in section 1031J(2) by inserting the following after paragraph (b): | ||
“(c) Where the payment, in accordance with the maintenance arrangement, is made or directed to be made for the use and benefit of a child of the civil partner making the payment, or for the maintenance, support, education or other benefit of such a child, or in trust for such a child, and the amount or the method of calculating the amount of such payment so made or directed to be made is specified in the maintenance arrangement, that payment shall be deemed to be made for the benefit of such child, and not for the benefit of any other person.”, | ||
(e) in section 1031J by inserting the following after subsection (3): | ||
“(3A) Notwithstanding anything in the Income Tax Acts, as respects any payment to which this section applies made directly or indirectly by a civil partner to which the maintenance arrangement concerned relates for the benefit of his or her child— | ||
(a) the person making the payment shall not be entitled on making the payment to deduct and retain out of the payment any sum representing any amount of income tax on the payment, | ||
(b) the payment shall be deemed for the purposes of the Income Tax Acts not to be income of the child, | ||
(c) the total income for any year of assessment of the civil partner who makes the payment shall be computed for the purposes of the Income Tax Acts as if the payment had not been made, and | ||
(d) for the purposes of section 465(6), the payment shall be deemed to be an amount expended on the maintenance of the child by the civil partner who makes the payment and, notwithstanding that the payment is made to the other civil partner to be applied for or towards the maintenance of the child and is so applied, it shall be deemed for the purposes of that section not to be an amount expended by that other civil partner on the maintenance of the child.”, | ||
and | ||
(f) in section 1031O by substituting the following for subsection (1): | ||
“(1) Notwithstanding any other provision of the Capital Gains Tax Acts, where by virtue or in consequence of— | ||
(a) an order made under Part 12 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 , on or following the granting of a decree of dissolution or a dissolution deemed under section 5(4) of that Act to be a dissolution under section 110 of that Act, or | ||
(b) a deed of separation, agreement, arrangement or any other act giving rise to a legally enforceable obligation and made or done in consideration or in consequence of living separately in the circumstances referred to in section 1031A(2), | ||
either of the civil partners concerned disposes of an asset to the other civil partner, then, subject to subsection (3), both civil partners shall be treated for the purposes of the Capital Gains Tax Acts as if the asset was acquired from the civil partner making the disposal for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to the civil partner making the disposal.”. | ||
(2) The Capital Acquisitions Tax Consolidation Act 2003 is amended— | ||
(a) in section 5(4) by substituting the following for “under which a relative of the person, the civil partner of the person, or a child of the civil partner of the person, becomes”: | ||
“under which— | ||
(a) a relative of the person, | ||
(b) the civil partner of the person, | ||
(c) a child of the civil partner of the person, | ||
(d) any child of a child of the civil partner of the person, | ||
(e) the civil partner of a person who is by virtue of section 2(4)(b) or (c) a relative of the person, or | ||
(f) the civil partner of a child or the child of a child of the civil partner of a person, | ||
becomes”, | ||
(b) in section 27(1) by substituting the following for the definition of “group of shares”: | ||
“ ‘group of shares’, in relation to a private company, means the aggregate of the shares in the company of— | ||
(a) the donee or successor, | ||
(b) the relatives, civil partner, children, or children of the children of the civil partner, of the donee or successor, | ||
(c) the civil partners of persons who are by virtue of section 2(4)(b) or (c) relatives of the donee or successor, | ||
(d) the civil partners of any children or any children of the children of the civil partner of the donee or successor, | ||
(e) nominees of the donee or successor, | ||
(f) nominees of— | ||
(i) relatives of the donee or successor, | ||
(ii) the civil partner of the donee or successor, | ||
(iii) children or children of the children of the civil partner of the donee or successor, | ||
(iv) the civil partners of persons who are by virtue of section 2(4)(b) or (c) relatives of the donee or successor, or | ||
(v) the civil partners of any children or any children of the children of the civil partner of the donee or successor, | ||
and | ||
(g) the trustees of a settlement whose objects include— | ||
(i) the donee or successor, | ||
(ii) relatives of the donee or successor, | ||
(iii) the civil partner of the donee or successor, | ||
(iv) the children or children of the children of the civil partner of the donee or successor, | ||
(v) the civil partners of persons who are by virtue of section 2(4)(b) or (c) relatives of the donee or successor, or | ||
(vi) the civil partners of any children or any children of the children of the civil partner of the donee or successor;”, | ||
(c) in section 27(2)(b)(i) by substituting the following for clause (III): | ||
“(III) the— | ||
(A) relatives, civil partner, children or children of the children of the civil partner, | ||
(B) civil partners of persons who are by virtue of section 2(4)(b) or (c) relatives, or | ||
(C) civil partners of the children or the children of the children of the civil partner, | ||
of the donee or successor;”, | ||
(d) in section 27(2)(b)(i) by substituting the following for clause (V): | ||
“(V) any nominees of— | ||
(A) the relatives, the civil partner, children or children of the children of the civil partner, | ||
(B) the civil partners of persons who are by virtue of section 2(4)(b) or (c) relatives, or | ||
(C) the civil partners of the children or the children of the children of the civil partner, | ||
of the donee or successor;”, | ||
(e) in section 27(2)(b)(i)(VI) by substituting the following for subclause (B): | ||
“(B) any— | ||
(ai) relatives, civil partner, children or children of the children of the civil partner, | ||
(aii) civil partners of persons who are by virtue of section 2(4)(b) or (c) relatives, or | ||
(aiii) civil partners of children or children of the children of the civil partner, | ||
of the donee or successor,”, | ||
(f) in section 27(3) by substituting the following for paragraph (b): | ||
“(b) the— | ||
(i) relatives, civil partner, children or children of the children of the civil partner, | ||
(ii) civil partners of persons who are by virtue of section 2(4)(b) or (c) relatives, or | ||
(iii) civil partners of the children or the children of the children of the civil partner, | ||
of the donee or successor;”, | ||
(g) in section 27(3) by substituting the following for paragraph (d): | ||
“(d) nominees of— | ||
(i) the relatives, the civil partner, children or children of the children of the civil partner, | ||
(ii) the civil partners of persons who are by virtue of section 2(4)(b) or (c) relatives, or | ||
(iii) the civil partners of the children or the children of the children of the civil partner, | ||
of the donee or successor;”, | ||
(h) in section 27(3)(e) by substituting the following for subparagraph (ii): | ||
“(ii) the— | ||
(I) relatives, the civil partner, children or children of the children of the civil partner, | ||
(II) civil partners of persons who are by virtue of section 2(4)(b) or (c) relatives, or | ||
(III) civil partners of the children or the children of the children of the civil partner, | ||
of the donee or successor,”, | ||
and | ||
(i) in section 27(4)(a) by substituting the following for subparagraph (i): | ||
“(i) persons who are— | ||
(I) relatives of any other person, | ||
(II) the civil partner of any other person, | ||
(III) children or children of the children of the civil partner of any other person, | ||
(IV) the civil partners of persons who are by virtue of section 2(4)(b) or (c) relatives of any other person, or | ||
(V) the civil partners of the children or the children of the children of the civil partner of any other person, | ||
together with that other person,”. | ||
(3) (a) Subsection (1) shall have effect as if it had come into operation for the year of assessment (within the meaning of the Income Tax Acts and Capital Gains Tax Acts) 2011 and each subsequent year of assessment. | ||
(b) Subsection (2) shall have effect as if it had come into operation as respects a gift (within the meaning of the Capital Acquisitions Tax Consolidation Act 2003 ) or an inheritance (within that meaning) taken on or after 1 January 2011. |