(1)In section 70O of CAA 2001 (funding leases: the lease payments test)—
(a)in subsection (4)(b), for “1% above LIBOR” substitute “ the incremental borrowing rate ”;
(b)for subsection (5) substitute—
“(5)For this purpose, the incremental borrowing rate has the same meaning as it has for accounting purposes.
(6)The Treasury may by regulations amend this section for the purpose of replacing references to the incremental borrowing rate with references to another rate.”
(2)In section 228MB of CAA 2001 (plant or machinery leases: present value of asset)—
(a)in subsection (3), for “1% above LIBOR” substitute “ the incremental borrowing rate ”;
(b)for subsection (4) substitute—
“(4)For this purpose, the incremental borrowing rate has the same meaning as it has for accounting purposes.
(5)The Treasury may by regulations amend this section for the purpose of replacing references to the incremental borrowing rate with references to another rate.”
(3)In section 437C of CTA 2010 (plant or machinery lease: present value of lease)—
(a)in subsection (6), for “1% above LIBOR” substitute “ the incremental borrowing rate ”;
(b)for subsection (7) substitute—
“(7)For this purpose, the incremental borrowing rate has the same meaning as it has for accounting purposes.
(7A)The Treasury may by regulations amend this section for the purpose of replacing references to the incremental borrowing rate with references to another rate.”
(4)Subsection (1) has effect in relation to leases the inception of which (within the meaning of section 70YI of CAA 2001) is on or after 1 January 2022.
(5)Subsection (2) has effect in relation to leases entered into on or after 1 January 2022.
(6)Subsection (3) has effect in cases where the relevant time for the purposes of section 437C of CTA 2010 is on or after 1 January 2022.
(1)The Treasury may by regulations make provision about the tax consequences of things done in anticipation of or in connection with—
(a)the reform or discontinuance of LIBOR, or
(b)the reform or discontinuance of another reference rate.
(2)Regulations under this section may, for example, make provision—
(a)changing the tax treatment of transactions (including by disregarding a transaction or treating a transaction as taking place at a different time or to a different extent);
(b)changing the tax treatment of amounts (including by disregarding an amount or treating an amount as larger or smaller than it actually is).
(3)Regulations under this section may include retrospective provision.
(4)Where regulations under this section do so—
(a)they must include provision conferring power on a person to make an election for no provision of the regulations to have retrospective effect in the person's case;
(b)they may include provision conferring power on a person to make such other election limiting the retrospective effect of the regulations in the person's case as is specified in the regulations.
(5)Regulations that include provision for an election mentioned in subsection (4)—
(a)must include provision about how the election is to be made, and
(b)may include provision for a time limit within which the election is to be made.
(6)Regulations under this section may—
(a)apply an enactment (with or without modifications) or disapply an enactment, or
(b)amend, repeal or revoke an enactment.
(7)Regulations under this section may—
(a)make different provision for different cases or purposes, and
(b)include incidental, consequential, supplementary or transitional provision.
(8)Regulations under this section are to be made by statutory instrument.
(9)No regulations may be made under this section unless a draft of the statutory instrument containing them has been laid before and approved by a resolution of the House of Commons.
(10)In this section—
“enactment” includes an enactment contained in subordinate legislation (within the meaning of the Interpretation Act 1978);
“reference rate” means a published rate used to set interest rates for financial instruments;
“tax” includes stamp duty.
(11)The power conferred by this section is not exercisable after 31 December 2023, except for the purpose of revoking regulations made under it on or before that date.
(1)In section 133N of CTA 2009 (powers to amend provisions relating to banking companies), after subsection (3) insert—
“(3A)Regulations under this section made on or before 30 June 2022 may have retrospective effect in relation to any time on or after 1 January 2022.”
(2)Chapter 2 of Part 7A of CTA 2010 (banking companies: key definitions) is amended as follows.
(3)For the italic heading before section 269BE (power to make consequential changes) substitute “ Powers to amend ”.
(4)In section 269BE—
(a)for the heading substitute “ Powers to amend ”;
(b)after subsection (1) insert—
“(1A)The Treasury may by regulations—
(a)amend sections 269B to 269BD;
(b)amend other provisions of this Part in consequence of provision made under paragraph (a).
(1B)Regulations under this section may include transitional provision.
(1C)Regulations under this section made on or before 30 June 2022 may have retrospective effect in relation to any accounting period ending on or after 1 January 2022.
(1D)A statutory instrument containing (whether alone or with other provision) regulations under subsection (1A) may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.”
(5)Part 9 of Schedule 19 to FA 2011 (the bank levy: power to make consequential changes) is amended as follows.
(6)For the Part heading substitute “ Powers to amend ”.
(7)In paragraph 81—
(a)after sub-paragraph (1) insert—
“(1A)The Treasury may by regulations made by statutory instrument—
(a)amend Part 8 of this Schedule (definitions);
(b)amend other Parts of this Schedule in consequence of provision made under paragraph (a).”
(1B)An order under sub-paragraph (1) or regulations under sub-paragraph (1A) may include transitional provision.”;
(b)in sub-paragraph (2)—
(i)in the words before paragraph (a), for “this paragraph” substitute “ sub-paragraph (1) ”;
(ii)omit paragraph (b);
(iii)at the end insert—
“(c)in the case of an order made on or before 30 June 2022, in relation to any chargeable period ending on or after 1 January 2022.”;
(c)after sub-paragraph (2) insert—
“(2A)Regulations under sub-paragraph (1A) made on or before 30 June 2022 may have retrospective effect in relation to any chargeable period ending on or after 1 January 2022.”;
(d)in sub-paragraph (3), for “an order under this paragraph” substitute “ only an order under sub-paragraph (1) ”;
(e)after sub-paragraph (3) insert—
“(4)Any other statutory instrument containing provision made under this paragraph may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.”