Finance Act 2013
|
Amendment of section 64 (capital goods scheme) of Principal Act. |
71.— Section 64 of the Principal Act is amended— | |
(a) in subsection (9)(b) by substituting the following for subparagraph (i): | ||
“(i) a connected supply occurs and the seller enters into a written agreement with the purchaser to the effect that the purchaser shall be responsible for all obligations under this Chapter in relation to the capital good from the date of the supply or transfer of that capital good, as if— | ||
(I) the purchaser had acquired or developed the capital good at the time it was acquired or developed by the seller, | ||
(II) the total tax incurred and the amount deducted by that seller in relation to that capital good were the total tax incurred and the amount deducted by the purchaser, and | ||
(III) any adjustments made in accordance with this Chapter by the seller were made by the purchaser,”, | ||
(b) in subsection (9) by substituting the following for paragraph (c): | ||
“(c) Where paragraph (b) applies— | ||
(i) the purchaser shall: | ||
(I) be responsible for the obligations referred to in paragraph (b)(i), and | ||
(II) use the information in the copy of the capital good record issued by the seller in accordance with paragraph (b)(ii) for the purposes of calculating any tax chargeable or deductible in accordance with this Chapter in respect of that capital good by that purchaser from the date on which the supply or transfer referred to in paragraph (b)(i) occurs, | ||
and | ||
(ii) the connected supply shall be deemed not to be a supply for the purposes of this Act.”, | ||
and | ||
(c) by inserting the following after subsection (12): | ||
“(12A) (a) In this subsection— | ||
‘end date’ means the date on which either the mortgagee ceases to have possession or the receiver’s appointment ends; | ||
‘mortgagee’ includes any person having the benefit of a charge or lien or any person deriving title to the mortgage under the original mortgagee; | ||
‘start date’ means the date on which either the mortgagee takes possession or the receiver is appointed. | ||
(b) Where a capital good is held as security or is subject to a charge or lien and either— | ||
(i) a mortgagee takes possession, or | ||
(ii) a receiver is appointed by or on the application of a mortgagee or under section 147 of the National Asset Management Agency Act 2009 or by any other means, | ||
then the capital goods owner (in this subsection referred to as the ‘defaulter’) shall furnish a copy of the capital goods record to that mortgagee or that receiver and on and from the start date, but subject to the subsequent provisions of this subsection, that mortgagee or that receiver shall be treated for the purposes of this Chapter as if that mortgagee or that receiver were the capital goods owner. | ||
(c) Where paragraph (b) applies the mortgagee or the receiver shall be responsible for all obligations of that defaulter under this Chapter as if— | ||
(i) the capital good were acquired or developed by that mortgagee or that receiver at the time it was acquired or developed by the defaulter, | ||
(ii) the total tax incurred and the amount deducted by the defaulter in relation to the good were the total tax incurred and the amount deducted by that mortgagee or that receiver, and | ||
(iii) any adjustments required to be made under this Chapter by the defaulter had been made, | ||
and that mortgagee or that receiver shall use the information in the copy of the capital good record issued by the defaulter, in accordance with paragraph (b), for the purposes of calculating any tax payable by that mortgagee or that receiver in accordance with this Chapter and section 76(2) for the remainder of the adjustment period applicable to that capital good. | ||
(d) Where paragraph (c) applies and if— | ||
(i) the mortgagee ceases to have possession (other than where paragraph (h) applies or on a disposal of the capital good), or | ||
(ii) the receiver’s appointment ends (other than where paragraph (h) applies) and the capital good has not been disposed of by the receiver, | ||
then that mortgagee or that receiver shall furnish a copy of the capital goods record to the defaulter and from the end date the defaulter shall be treated for the purposes of this Chapter as if that defaulter were the capital goods owner. | ||
(e) Where paragraph (d) applies the defaulter shall be responsible for all obligations of that mortgagee or that receiver under this Chapter as if— | ||
(i) the capital good were acquired or developed by the defaulter at the time it was deemed, in accordance with paragraph (c)(i), to have been acquired by the mortgagee or the receiver, | ||
(ii) the total tax deemed to be incurred and the amount deemed to be deducted by that mortgagee or that receiver, in accordance with paragraph (c)(ii), in relation to the good were the total tax incurred and the amount deducted by the defaulter, and | ||
(iii) any adjustments required to be made under this Chapter by that mortgagee or that receiver had been made, | ||
and the defaulter shall use the information in the copy of the capital good record issued by the mortgagee or the receiver, in accordance with paragraph (d), for the purposes of calculating any tax payable or deductible by that defaulter in accordance with this Chapter for the remainder of the adjustment period applicable to that capital good. | ||
(f) Where an amount of tax is payable in respect of an interval in accordance with subsection (2)(b)(i), (3)(b)(i) or (4)(b)(i), and where the start date or the end date or both occur during that interval, the amount of that tax that shall be payable by the mortgagee or the receiver shall be calculated in accordance with the following formula— | ||
J x K | ||
L | ||
where— | ||
J is the amount of the tax payable in accordance with subsection (2)(b)(i), (3)(b)(i) or (4)(b)(i), | ||
K is the number of days during the interval in which the mortgagee has possession or the receiver has been appointed, | ||
L is the number of days in the interval, | ||
and the defaulter shall pay the balance (if any). | ||
(g) Where there is an increase in the amount of tax deductible in respect of an interval in accordance with subsection (2)(b)(ii), (3)(b)(ii) or (4)(b)(ii), and where the start date or the end date or both occur during that interval, the amount of that increase in deductibility to which the mortgagee or the receiver shall be entitled shall be calculated using the following formula— | ||
M x K | ||
L | ||
where— | ||
M is the amount of the increase in deductibility in accordance with subsection (2)(b)(ii), (3)(b)(ii) or (4)(b)(ii), | ||
K is the number of days during the interval in which the mortgagee has possession or the receiver has been appointed, | ||
L is the number of days in the interval, | ||
and the defaulter shall be entitled to the balance (if any). | ||
(h) Where paragraph (c) applies and if— | ||
(i) a mortgagee ceases to have possession and another mortgagee takes possession, | ||
(ii) a mortgagee ceases to have possession and a receiver is appointed, | ||
(iii) a receiver’s appointment ends and a mortgagee takes possession, or | ||
(iv) a receiver’s appointment ends and another receiver is appointed, | ||
then, in each case, the person who ceases to have possession or whose appointment ends shall furnish a copy of the capital goods record to the mortgagee who takes possession or the receiver who is appointed and, from the start date, that mortgagee or that receiver shall be treated for the purposes of this Chapter as if that mortgagee or that receiver were the capital goods owner and shall be responsible for the obligations of the preceding mortgagee or receiver in accordance with paragraphs (c) and (d).”. |