text:
PART 1 Preliminary provisions and interpretation
Citation, commencement and effect
1
1
These Regulations may be cited as the Real Estate Investment Trusts (Joint Venture Groups) Regulations 2007 and shall come into force on 31st December 2007.
2
These Regulations shall have effect in relation to accounting periods that begin on or after 1st January 2007.
Structure of these Regulations
2
The structure of these Regulations is as follows —
this Part contains preliminary provisions and provides for interpretation;
Part 2 contains provisions which apply in the case of a single company to which Part 4 applies where the company carries on a joint venture with another person and the joint venture is conducted through a group of companies; and
Part 3 contains provisions which apply in the case of a company which is a member of a group to which Part 4 applies where the company has an interest in a joint venture carried on by another group of companies.
Interpretation: general
3
1
In these Regulations —
a
a reference to Part 4 is a reference to Part 4 of the Finance Act 2006,
b
a reference to a section (without more) is a reference to that section of the Finance Act 2006, and
c
a reference to Schedule 17 is a reference to Schedule 17 to the Finance Act 2006.
2
In these Regulations —
“equity holder” has the meaning it has in regulation 4(1);
“joint venture group” means —
a group of companies determined in accordance with section 134(2) to (4) carrying on a joint venture between a company to which Part 4 applies and another person, or
a group of companies determined in accordance with section 134(2) to (4) carrying on a joint venture in which a member of a group to which Part 4 applies has an interest;
“joint venture group look through notice” means —
in the case of a company to which Part 4 applies, a notice given under regulation 5, and
in the case of a group to which Part 4 applies, a notice given under regulation 17;
“JVG (property rental business)” has the meaning it has in regulation 4(3);
“JVG (residual)” has the meaning it has in regulation 4(3);
“principal company” in relation to a joint venture group means the principal company referred to in section 134(2);
“ UK business of a joint venture group” is to be construed in accordance with regulation 4(5);
“UK resident company” is to be construed in accordance with regulation 4(6);
“venturing company” means the company referred to in regulation 5(1); and
“venturing group” means the group referred to in regulation 17(1).
Interpretation: specific terms
4
1
“equity holder” in relation to a member of a joint venture group means a person who —
a
holds ordinary shares in the member, or
b
is a loan creditor of the member in respect of a loan which is not a normal commercial loan within the meaning of paragraph 1(5) of Schedule 18 to the Income and Corporation Taxes Act 1988 .
2
References to profits or assets available for distribution to equity holders in a member of a joint venture group do not include a reference to any profits or assets available for distribution to an equity holder other than as such.
3
In relation to a joint venture group —
a
“JVG (property rental business)” means the group while a notice under regulation 5 or regulation 17 applies to it in so far as it carries on property rental business which satisfies Conditions 1 and 2 of section 107, as that section is modified by paragraph 6 of Schedule 17 but with references to the group in that paragraph treated as references to the joint venture group, and
b
“JVG (residual)” means the group in so far as it carries on business that is not property rental business.
4
In relation to a member of a joint venture group, a reference to property rental business does not include property that is let by the member —
a
to a venturing company which gives notice under regulation 5 in respect of that member, or
b
to a member of a venturing group, where the principal company of the venturing group gives notice under regulation 17 in respect of that member.
5
A reference to the UK business of a joint venture group is a reference to —
a
the property rental business of the UK resident members of the group, and
b
the property rental business in the United Kingdom of other members.
6
A reference to a UK resident company is a reference to a company which —
a
is resident in the United Kingdom, and
b
is not resident in another place in accordance with the law of that place relating to taxation.
PART 2 Joint Venture Groups: Single Company Real Estate Investment Trusts
Notice
5
1
If the Conditions in regulation 6 are satisfied, a company to which Part 4 applies (“venturing company”) may give notice for these Regulations to apply.
2
The notice (a “joint venture group look through notice”) must specify —
a
the accounting period of the venturing company from the beginning of which these Regulations are to apply, and
b
the principal company of the joint venture group to which these Regulations are to apply.
3
The notice must be given in writing to the Commissioners for Her Majesty’s Revenue and Customs.
4
The notice must be signed by the company secretary or a director of —
a
the venturing company, and
b
the principal company of the joint venture group to which these Regulations are to apply.
5
A venturing company may give a joint venture group look through notice —
a
at the same time as it gives notice under section 109 (notice to enter the Real Estate Investment Trust regime) , or
b
at any time when Part 4 applies to it.
6
The notice must be given before the beginning of the specified accounting period.
This paragraph is subject to paragraphs (7) to (9).
7
A venturing company may give, within a period of 60 days beginning with the day on which these Regulations come into force, a joint venture group look through notice in respect of an accounting period that began on or after 1st January 2007 but before the date on which these Regulations come into force.
Conditions for giving notice
6
The Conditions referred to in regulation 5(1) are as follows.
Condition 1
The venturing company is carrying on a joint venture with another person.
Condition 2
The joint venture takes the form of a joint venture group.
Condition 3
At least one member of the joint venture group is carrying on a property rental business as defined in section 104 and as construed in accordance with regulation 4(4).
Condition 4
The venturing company is beneficially entitled to 40% or more of the profits available for distribution to equity holders in the principal company of the joint venture group.
Condition 5
The venturing company is beneficially entitled to 40% or more of the assets of the principal company of the joint venture group available to equity holders in the event of a winding up.
Duration and effect of notice
7
1
On giving notice in accordance with regulation 5 these Regulations shall apply to the venturing company and shall continue to apply unless and until —
a
the venturing company ceases to satisfy Condition 4 or 5 in regulation 6, or
b
Part 4 ceases to apply to the venturing company for any reason.
2
On giving notice in accordance with regulation 5 these Regulations shall apply to each company that is or becomes a member of the joint venture group and (other than regulation 16) shall continue to apply unless and until —
a
the venturing company ceases to satisfy Condition 4 or 5 in regulation 6,
b
Part 4 ceases to apply to the venturing company for any reason, or
c
the member ceases to be a member of the joint venture group.
3
Regulation 16 (early exit) shall continue to apply whether or not the circumstances are such that these Regulations otherwise cease to apply in accordance with this regulation.
4
A notice under regulation 5 has effect —
a
in relation to a venturing company, and
b
for an accounting period of the venturing company,
only if the Conditions referred to in regulation 8 are satisfied by the joint venture group in relation to that accounting period.
Joint venture group: conditions for balance of business
8
1
This regulation applies where a joint venture group look through notice has been given under regulation 5 in respect of a joint venture group.
2
The joint venture group, taken as a whole, must satisfy Condition 1 in section 108 (conditions for balance of business) , as modified by paragraph 7 of Schedule 17 —
a
in the accounting period specified in the joint venture group look through notice, and
b
in each subsequent accounting period.
3
The joint venture group, taken as a whole, must satisfy Condition 2 in section 108 (conditions for balance of business), as modified by paragraph 7 of Schedule 17 —
a
at the beginning of the accounting period specified in the joint venture group look through notice, and
b
at the beginning of each subsequent accounting period.
4
For the purposes of this regulation —
a
references in section 108 and in paragraph 7 of Schedule 17 to tax-exempt business shall be treated as references to the UK business of the joint venture group,
b
references in section 108 to the company shall be treated as references to the joint venture group,
c
references in paragraph 7 of Schedule 17 to G (property rental business) shall be treated as references to JVG (property rental business), and
d
references in paragraph 7 of Schedule 17 to G (residual) shall be treated as references to JVG (residual).
Joint venture group: financial statements
9
1
If a joint venture group look through notice has been given under regulation 5 in respect of a joint venture group, the principal company of that group shall prepare financial statements for each of its accounting periods in respect of the joint venture group.
2
Paragraph 31 of Schedule 17 shall apply to the financial statements required under paragraph (1) with the following modifications.
3
References in paragraph 31 shall be construed as follows —
a
references to the principal company shall be treated as references to the principal company of the joint venture group,
b
references in sub-paragraph (2) to G (property rental business) shall be treated as references to JVG (property rental business),
c
the reference in sub-paragraph (2) to G (residual) shall be treated as a reference to JVG (residual),
d
the reference in sub-paragraph (2) to UK business shall be treated as a reference to UK business of the joint venture group, and
e
references to a member of a group shall be treated as references to a member of the joint venture group.
4
For sub-paragraphs (5) and (6) there shall be treated as substituted —
5
The financial statements for JVG (property rental business) and JVG (residual) shall exclude that percentage of income, expenses, gains, losses, assets and liabilities of any member of the joint venture group equalling the percentage of beneficial interest in that member not held by the members of the joint venture group.
6
For this purpose, the percentage of beneficial interest shall be determined by reference to the beneficial entitlement of the members of the joint venture group to profits available for distribution to them as equity holders in the member.
.
Venturing company: conditions for tax-exempt business and balance of business
10
1
For the purposes of determining whether Condition 3 in section 107(8) is satisfied, a venturing company must include the profits of the UK business of the joint venture group to which it is beneficially entitled within the amount of the profits of its property rental business.
2
For the purposes of determining whether the venturing company has satisfied Condition 1 in section 108(2), a venturing company must include the profits of JVG (property rental business) to which it is beneficially entitled within the amount of profits arising from tax-exempt business.
3
For the purposes of determining whether the venturing company has satisfied Condition 1 in section 108(2), a venturing company must include the profits of JVG (residual) to which it is beneficially entitled within the amount of profits arising from non-tax-exempt business.
4
For the purposes of calculating whether the venturing company has satisfied Condition 2 in section 108(3), a venturing company must include the value of the assets of JVG (property rental business) to which it is beneficially entitled within the valuation of the assets involved in tax-exempt business.
5
For the purposes of calculating whether the venturing company has satisfied Condition 2 in section 108(3), a venturing company must include the value of the assets of JVG (residual) to which it is beneficially entitled within the valuation of the total value of assets held by the company.
6
For the purposes of this regulation —
a
the amount of the profits and the value of the assets of JVG (property rental business) is the amount shown in the financial statement for JVG (property rental business),
b
the amount of the profits and the value of the assets of JVG (residual) is the amount shown in the financial statement for JVG (residual), and
c
the profits or value of the assets of JVG (property rental business) or JVG (residual) to which the venturing company is beneficially entitled shall be determined by reference to the venturing company’s beneficial entitlement to profits of the principal company of the joint venture group available for distribution to equity holders.
In this paragraph the references to financial statements means the financial statements prepared by the principal company of the joint venture group in accordance with paragraph 31(2) of Schedule 17 as applied by regulation 9.
Venturing company: financial statements
11
1
Where a joint venture group look through notice has been given under regulation 5, a venturing company shall prepare financial statements, in accordance with the Real Estate Investment Trusts (Financial Statements of Group Real Estate Investment Trusts) Regulations 2006 , for each of its accounting periods in respect of the joint venture group in respect of which it has given a notice.
2
Paragraph 31 of Schedule 17 shall apply to the financial statements required under paragraph (1) with the following modifications.
3
References in paragraph 31 shall be construed as follows —
a
references to the principal company shall be treated as references to the venturing company,
b
references in sub-paragraph (2) to G (property rental business) shall be treated as references to the sum of C (tax exempt) and JVG (property rental business),
c
the reference in sub-paragraph (2) to G (residual) shall be treated as a reference to the sum of C (residual) and JVG (residual),
d
references to a member of a group shall be treated as references both to the venturing company and to each member of the joint venture group, and
e
for sub-paragraphs (5) and (6) there shall be treated as substituted —
5
The financial statements for JVG (property rental business) and JVG (residual) shall exclude that percentage of the income, expenses, gains, losses, assets and liabilities of each member of the joint venture group equalling the percentage of beneficial interest in the joint venture group that is not held by the venturing company.
6
For this purpose, the percentage of the beneficial interest shall be determined by reference to beneficial entitlement to profits available for distribution to equity holders.
.
Venturing company: profit:financing-cost ratio
12
Section 115 and the regulations made under it shall apply to a venturing company to which these Regulations apply as if for subsection (2) there were substituted —
2
That sum is —
Profits
Financing Costs (external)
where —
Profits means the aggregate of —
the profits of the tax-exempt business of the venturing company (before the offset of capital allowances, of losses from a previous accounting period and of amounts taken into account under section 120(3)), and
the proportion of the profits of the UK business of the joint venture group arising in the accounting period as set out in the financial statements under regulation 9 to which the venturing company is beneficially entitled (before the offset of capital allowances, of losses from a previous accounting period and of amounts taken into account under section 120(3));
Financing Costs (external) means the aggregate of the amount of the financing costs of the tax-exempt business of the venturing company and of the venturing company’s proportion of the amount of the financing costs of the UK business of the joint venture group but disregarding in both cases —
financing costs owed by the venturing company to any member of the joint venture group and vice versa, and
financing costs owed by one member of JVG (property rental business) to another member as set out in the financial statements under regulation 9; and
the venturing company’s proportion of the amount of the financing costs of the UK business of the joint venture group, as set out in the financial statements under regulation 9, shall be determined using the same proportion as the proportion of the profits of the principal company of the joint venture group available for distribution to equity holders to which the venturing company is beneficially entitled.
.
Tax charges and exemptions: single company real estate investment trusts
13
1
This regulation specifies charges to, and exemptions from, tax which apply in the case of a venturing company and the members of a joint venture group to which these Regulations apply.
2
Section 111 (effects of entry), as modified by paragraph 9 of Schedule 17, shall apply in relation to a member of a joint venture group with the following further modifications —
a
references in paragraph 9 of Schedule 17 to G (pre-entry) shall be treated as references to the joint venture group before these Regulations applied to the group,
b
references in paragraph 9 of Schedule 17 to G (property rental business) shall be treated as references to JVG (property rental business), and
c
section 111(1) to (4) shall be treated as applying to the assets and business of the member only to the extent of the percentage of the beneficial interest which the venturing company has in the principal company of the joint venture group.
3
Section 112 (entry charge), as modified by paragraph 11 of Schedule 17, shall apply in relation to a member of a joint venture group with the following further modifications —
a
a reference to each member of a group to which Part 4 applies shall be treated as a reference to each member of the joint venture group to which these Regulations apply,
b
references to G (residual) shall be treated as references to JVG (residual),
c
the reference in subsection (3)(a) to the aggregate market value of assets shall be treated as a reference to the amount of the aggregate market value of the assets of the property rental business of the member to the extent of the percentage of the beneficial interest which the venturing company has in the principal company of the joint venture group, and
d
the reference in paragraph 11(2) of Schedule 17 to a company which joins a group to which Part 4 applies shall be treated as a reference to a company which joins a joint venture group in respect of which a notice under regulation 5 has been given.
4
Section 117 (cancellation of tax advantage) , as modified by paragraph 15 of Schedule 17, shall apply to the members of a joint venture group as it applies to members of a group to which Part 4 applies.
5
Section 119(1) (profits exemption from corporation tax), as modified by paragraph 17 of Schedule 17, shall apply in relation to a UK resident member of a joint venture group with the following further modifications —
a
references to G (property rental business) shall be treated as references to JVG (property rental business),
b
references to G (residual) shall be treated as references to JVG (residual),
c
references to C (tax-exempt) shall be treated as references to the member if or in so far as it is a member of JVG (property rental business), and
d
the reference in section 119(1) to profits arising from the business of C (tax-exempt) shall be treated as a reference to the profits arising from the member’s property rental business to which the venturing company is beneficially entitled.
6
Section 120 (calculation of profits) shall apply in relation to a member of a joint venture group.
7
Section 124(1) and (2) (gains exempt from corporation tax), as modified by paragraph 21 of Schedule 17, shall apply in relation to a member of a joint venture group to the extent of the percentage of the beneficial interest which the venturing company has in the principal company of the joint venture group with the following further modifications —
a
references to G (property rental business) shall be treated as references to JVG (property rental business),
b
references to G (residual) shall be treated as references to JVG (residual), and
c
the reference in paragraph 21(2) of Schedule 17 to paragraph 31(5) shall be treated as a reference to that paragraph as substituted by regulation 9(4).
8
Section 125 (movement of assets out of ring-fence) and section 126 (movement of assets into ring-fence), as modified by paragraphs 21 and 22 of Schedule 17, shall apply in relation to a UK resident member of the joint venture group to the extent of the percentage of the beneficial interest which the venturing company has in the principal company of the joint venture group with the following further modifications —
a
references to G (property rental business) shall be treated as references to JVG (property rental business),
b
references to G (residual) shall be treated as references to JVG (residual), and
c
the reference in paragraph 21(2) of Schedule 17 to paragraph 31(5) shall be treated as a reference to that paragraph as substituted by regulation 9(4).
9
Section 131 (effects of cessation), as modified by paragraph 25 of Schedule 17, shall apply in relation to a member of a joint venture group with the following further modifications —
a
references in paragraph 25 of Schedule 17 to G (property rental business) shall be treated as references to JVG (property rental business),
b
the reference in paragraph 25 of Schedule 17 to G (residual) shall be treated as a reference to JVG (residual)
c
the reference in paragraph 25 of Schedule 17 to G (post-cessation) shall be treated as a reference to the joint venture group after these Regulations (other than regulation 16 (early exit)) cease to apply to the group, and
d
section 131(1) to (4) shall be treated as applying to the assets and business of the member only to the extent of the percentage of the beneficial interest which the venturing company has in the principal company of the joint venture group.
10
For the purposes of this regulation the percentage of the beneficial interest which a venturing company has in the principal company of the joint venture group is the percentage of the profits of the principal company available for distribution to equity holders to which the venturing company is beneficially entitled.
Changes in company shareholdings: entry charges
14
1
Paragraph (2) applies if a venturing company to which these Regulations apply —
a
becomes the principal company of a group to which Part 4 applies,
b
gives a joint venture group look through notice under regulation 17 in respect of that group and a joint venture group to which Part 2 of these Regulations applies, and
c
the venturing company’s shareholding in a member of the joint venture group remains the same.
2
Sections 111 and 112 shall not operate to impose on the member of the joint venture group a charge to corporation tax under section 112(1) —
a
if the member is UK resident, in respect of the assets involved in its property rental business, and
b
if the member is non-UK resident, in respect of the assets involved in its property rental business in the United Kingdom.
3
Paragraph (4) applies if a venturing company to which these Regulations apply —
a
becomes the principal company of a group to which Part 4 applies,
b
gives a joint venture group look through notice under regulation 17 in respect of that group and a joint venture group to which Part 2 of these Regulations applies, and
c
the venturing company’s shareholding in a member of the joint venture group increased in the period between the date on which the venturing company gave a joint venture group look through notice under regulation 5 in respect of the member (“the first notice”) and the date on which the notice under regulation 17 is given.
4
The notional income calculated under section 112, as modified by paragraph 11 of Schedule 17, and as further modified by regulation 23, shall be reduced by the amount of the notional income that was calculated as arising under section 112, as modified by paragraph 11 of Schedule 17 and as further modified by regulation 13 —
a
if the member is UK resident, in respect of the assets involved in its property rental business at the beginning of the accounting period specified in the first notice, and
b
if the member is non-UK resident, in respect of the assets involved in its property rental business in the United Kingdom at the beginning of the accounting period specified in the first notice.
5
Paragraphs (6) and (7) apply if a venturing company to which these Regulations apply —
a
becomes the principal company of a group to which Part 4 applies,
b
increases its shareholding to 75% or more in a member of a joint venture group to which Part 2 of these Regulations applies, and
c
gives a notice under section 109 (as modified by paragraph 8 of Schedule 17) making the member and the venturing company members of a group to which Part 4 applies.
6
Sections 111 and 112, as modified by paragraphs 9 to 11 of Schedule 17, shall continue to apply subject to paragraph (7).
7
The notional income shall be reduced by the amount of notional income that was calculated as arising under section 112, as modified by paragraph 11 of Schedule 17 and as further modified by regulation 13 —
a
if the member is UK resident, in respect of the assets involved in its property rental business at the beginning of the accounting period specified in the joint venture group look through notice given under regulation 5 in respect of the member, and
b
if the member is non-UK resident, in respect of the assets involved in its property rental business in the United Kingdom at the beginning of the accounting period specified in the joint venture group look through notice given under regulation 5 in respect of the member.
This is subject to paragraph (8).
8
If the member joined the joint venture group after the end of the accounting period specified in the notice under regulation 5 applying these regulations to the joint venture group, paragraph (7) shall apply with references to the accounting period specified in the joint venture group look through notice treated as references to the date the member joined the joint venture group.
Non-resident members of joint venture group: single company real estate investment trusts
15
1
This regulation applies if a notice under regulation 5 has been given applying these Regulations to a joint venture group which includes a non-UK resident member.
2
Paragraph 32 of Schedule 17 shall apply with the following modifications —
a
in sub-paragraph (1) the reference to a “non-UK resident company which is a member of a group to which Part 4 applies” shall be treated as a reference to a non-UK resident company which is a member of the joint venture group to which these Regulations apply,
b
in sub-paragraph (7) —
i
the reference to a “UK resident member of a group to which Part 4 applies” shall be treated as a reference to the venturing company to which these Regulations apply, and
ii
the reference to a “non-UK resident member of the group” shall be treated as a reference to a non-UK resident member of the joint venture group to which these Regulations apply, and
c
in sub-paragraph (8) the reference to “UK resident member of the group” shall be treated as a reference to a UK resident member of the joint venture group.
3
Section 112, as modified by paragraph 11 of Schedule 17, shall apply to the non-UK resident member of the joint venture group as if the reference in sub-paragraph (1)(d) of that paragraph to “non-UK resident members” were a reference to non-UK resident members of a joint venture group to which these Regulations apply.
Early exit
16
1
Paragraph (2) applies if a joint venture group look through notice has been given in accordance with regulation 5 applying these Regulations to a member of a joint venture group and —
a
these Regulations (other than this regulation) cease to apply in accordance with regulation 7, and
b
these Regulations had applied to the member for a continuous period, immediately before these Regulations (other than this regulation) ceased to have effect, of less than ten years.
2
Section 132(2) and (3), as modified by paragraph 27 of Schedule 17, shall apply with the following further modifications —
a
the reference in paragraph 27(a) to a member of the group shall be treated as a reference to the member of the joint venture group,
b
the reference in paragraph 27(b) to G (property rental business) shall be treated as a reference to JVG (property rental business),
c
the references in section 132(2) to sections 111(2), 125(2) and 131(3) shall be treated as references to each of those sections as applied by these Regulations, and
d
in section 132(3)(b) the date of cessation shall be treated as the date on which these Regulations (other than this regulation) ceased to apply.
3
Paragraph (4) applies if a UK resident member of a joint venture group in respect of which a joint venture group look through notice has been given in accordance with regulation 5 ceases to be a member of that group, and
a
the notice applied these Regulations to the member for a continuous period of less than ten years, or
b
the member had been a member of the joint venture group for a continuous period of less than ten years.
4
Section 132(2) and (3), as modified by paragraph 28(2) of Schedule 17, shall apply with the following further modifications —
a
the reference in paragraph 28(2)(a) to G (property rental business) shall be treated as a reference to JVG (property rental business),
b
the reference in paragraph 28(2)(b) to a member of the group shall be treated as a reference to a member of the joint venture group,
c
the reference in section 132(2) to a company shall be treated as a reference to the member of the joint venture group, and
d
the references in section 132(2) to sections 111(2), 125(2) and 131(3) shall be treated as references to each of those sections as applied by these Regulations.
PART 3 Joint Venture Groups: Group Real Estate Investment Trusts
Notice
17
1
If the Conditions in regulation 18 are satisfied, a group of companies to which Part 4 applies (“venturing group”) may give notice for these Regulations to apply.
2
The notice (a “joint venture group look through notice”) must specify —
a
the accounting period of the principal company of the venturing group from the beginning of which these Regulations are to apply, and
b
the principal company of the joint venture group to which these Regulations are to apply.
3
The notice must be given in writing by the principal company of the venturing group to the Commissioners for Her Majesty’s Revenue and Customs.
4
The notice must be signed by the company secretary or a director of —
a
the principal company of the venturing group, and
b
the principal company of the joint venture group to which these Regulations are to apply.
5
The principal company of a venturing group may give a joint venture group look through notice —
a
at the same time it gives notice under section 109 , as modified by paragraph 8 of Schedule 17, (notice to enter the Real Estate Investment Trust regime), or
b
any later time when Part 4 applies to it.
6
The notice must be given before the beginning of the specified accounting period.
This paragraph is subject to paragraphs (7) to (9).
7
The principal company of a venturing group may give, within a period of 60 days beginning with the day on which these Regulations come into force, a joint venture group look through notice in respect of an accounting period that began on or after 1st January 2007 but before the date on which these Regulations come into force.
Conditions for giving notice
18
The Conditions referred to in regulation 17 are as follows.
Condition 1
The venturing group is carrying on a joint venture with another person.
Condition 2
The joint venture takes the form of a joint venture group.
Condition 3
At least one member of the joint venture group is carrying on property rental business as defined in section 104 and as construed in accordance with regulation 4(4).
Condition 4
The members of the venturing group are, in aggregate, beneficially entitled to 40% or more of the profits available for distribution to equity holders in the principal company of the joint venture group.
Condition 5
The members of the venturing group are, in aggregate, beneficially entitled to 40% or more of the assets of the principal company of the joint venture group available to equity holders in the event of a winding up.
Duration and effect of notice
19
1
On giving notice in accordance with regulation 17 these Regulations shall apply to the venturing group and shall continue to apply unless and until —
a
the venturing group ceases to satisfy Condition 4 or 5 in regulation 18, or
b
Part 4 ceases to apply to the venturing group for any reason.
2
On giving notice in accordance with regulation 17 these Regulations shall apply to each company that is or becomes a member of the joint venture group and (other than regulation 26) shall continue to apply unless and until —
a
the venturing group ceases to satisfy Condition 4 or 5 in regulation 18,
b
Part 4 ceases to apply to the venturing group for any reason, or
c
the member ceases to be a member of the joint venture group.
3
Regulation 26 (early exit) shall continue to apply whether or not the circumstances are such that these Regulations otherwise cease to apply in accordance with this regulation.
4
A notice under regulation 17 has effect —
a
in relation to a venturing group, and
b
for an accounting period of the principal company of the venturing group,
only if the Conditions referred to in regulation 20 are satisfied by the joint venture group in relation to that accounting period.
Joint venture group: conditions for balance of business
20
1
This regulation applies if a joint venture group look through notice under regulation 17 has been given in respect of a joint venture group.
2
The joint venture group, taken as a whole, must satisfy Condition 1 in section 108 (conditions for balance of business) , as modified by paragraph 7 of Schedule 17 —
a
in the accounting period specified in the joint venture group look through notice, and
b
in each subsequent accounting period.
3
The joint venture group, taken as a whole, must satisfy Condition 2 in section 108 (conditions for balance of business), as modified by paragraph 7 of Schedule 17 —
a
at the beginning of the accounting period specified in the joint venture group look through notice, and
b
at the beginning of each subsequent accounting period.
4
For the purposes of this regulation —
a
references in section 108 and in paragraph 7 of Schedule 17 to tax-exempt business shall be treated as references to the UK business of the joint venture group,
b
references in section 108 to the company shall be treated as references to the joint venture group,
c
references in paragraph 7 of Schedule 17 to G (property rental business) shall be treated as references to JVG (property rental business), and
d
references in paragraph 7 of Schedule 17 to G (residual) shall be treated as references to JVG (residual).
Joint venture group: financial statements
21
1
If a joint venture group look through notice has been given under regulation 17 in respect of a joint venture group, the principal company of that group shall prepare financial statements for each of its accounting periods in respect of the joint venture group.
2
Paragraph 31 of Schedule 17 shall apply to the financial statements required under paragraph (1) with the following modifications.
3
References in paragraph 31 shall be construed as follows —
a
references to the principal company shall be treated as references to the principal company of the joint venture group,
b
references in sub-paragraph (2) to G (property rental business) shall be treated as references to JVG (property rental business),
c
the reference in sub-paragraph (2) to G (residual) shall be treated as a reference to JVG (residual),
d
the reference in sub-paragraph (2) to UK business shall be treated as a reference to UK business of the joint venture group, and
e
references to a member of a group shall be treated as references to a member of the joint venture group.
4
For sub-paragraphs (5) and (6) there shall be treated as substituted —
5
The financial statements for JVG (property rental business) and JVG (residual) shall exclude that percentage of income, expenses, gains, losses, assets and liabilities of any member of the joint venture group equalling the percentage of beneficial interest in that member not held by the members of the joint venture group.
6
For this purpose, the percentage of beneficial interest shall be determined by reference to the beneficial entitlement of the members of the joint venture group to profits available for distribution to them as equity holders in the member.
.
Venturing group: financial statements
22
1
If a joint venture group look through notice has been given under regulation 17 in respect of a joint venture group, the principal company of the venturing group shall include the information specified in paragraph (2) in the financial statements submitted in accordance with the provisions of paragraphs 5(2) and 31 of Schedule 17.
2
The information is the relevant percentage of income, expenses, profits and assets of the member of the joint venture group which represents interests of a member of the venturing group in that member of the joint venture group.
3
For the purposes of paragraph (2) “the relevant percentage” shall be determined by reference to the percentage of the member of the joint venture group’s profits available for distribution to equity holders to which the members of the venturing group are beneficially entitled.
4
In the application of paragraphs 5(2) and 31 of Schedule 17 for the purposes of this regulation —
a
references to each member are to be treated as references to each member of the joint venture group, and
b
references to a non-member are references to a person or body which is neither a member of the venturing group nor a member of the joint venture group.
Tax charges and exemptions: group real estate investment trusts
23
1
This regulation specifies charges to, and exemptions from, tax which apply in the case of a venturing group and the members of a joint venture group to which these Regulations apply.
2
Section 111 (effects of entry), as modified by paragraph 9 of Schedule 17, shall apply in relation to a member of a joint venture group with the following further modifications —
a
references in paragraph 9 of Schedule 17 to G (pre-entry) shall be treated as references to the joint venture group before these Regulations applied to the group,
b
references in paragraph 9 of Schedule 17 to G (property rental business) shall be treated as references to JVG (property rental business), and
c
section 111(1) to (4) shall be treated as applying to the assets and business of the member only to the extent of the percentage of the beneficial interest which the members of the venturing group in aggregate have in the principal company of the joint venture group.
3
Section 112 (entry charge), as modified by paragraph 11 of Schedule 17, shall apply in relation to a member of a joint venture group with the following further modifications —
a
a reference to each member of a group to which Part 4 applies shall be treated as a reference to each member of the joint venture group to which these Regulations apply,
b
references to G (residual) shall be treated as references to JVG (residual), and
c
the reference in subsection (3)(a) to the aggregate market value of assets shall be treated as a reference to the amount of the aggregate market value of the assets of the property rental business of the member to the extent of the percentage of the beneficial interest which the members of the venturing group in aggregate have in the principal company of the joint venture group, and
d
the reference in paragraph 11(2) of Schedule 17 to a company which joins a group to which Part 4 applies shall be treated as a reference to a company which joins a joint venture group in respect of which a notice under regulation 17 has been given.
4
Section 117 (cancellation of tax advantage) , as modified by paragraph 15 of Schedule 17, shall apply to the members of a joint venture group as it applies to members of a group to which Part 4 applies.
5
Sections 119(1) (profits exemption from corporation tax), as modified by paragraph 17 of Schedule 17, shall apply in relation to a UK resident member of a joint venture group with the following further modifications —
a
references to G (property rental business) shall be treated as references to JVG (property rental business),
b
references to G (residual) shall be treated as references to JVG (residual),
c
references to C (tax-exempt) shall be treated as references to the member if or in so far as it is a member of JVG (property rental business), and
d
the reference in section 119(1) to “profits arising from the business of C (tax-exempt)” shall be treated as a reference to the amount of profits arising from the member’s property rental business to which the members of the venturing group in aggregate are beneficially entitled.
6
Section 120 (calculation of profits) shall apply in relation to a member of a joint venture group.
7
Section 124(1) and (2) (corporation tax), as modified by paragraph 21 of Schedule 17, shall apply in relation to a member of a joint venture group to the extent of the percentage of the beneficial interest to which the members of the venturing group in aggregate have in the principal company of the joint venture group with the following further modifications —
a
references to G (property rental business) shall be treated as references to JVG (property rental business),
b
references to G (residual) shall be treated as references to JVG (residual), and
c
the reference in paragraph 21(2) of Schedule 17 to paragraph 31(5) shall be treated as a reference to that paragraph as substituted by regulation 21(4).
8
Section 125 (movement of assets out of ring-fence) and section 126 (movement of assets into ring-fence), as modified by paragraphs 21 and 22 of Schedule 17, shall apply in relation to a UK resident member of the joint venture group to the extent of the percentage of the beneficial interest which the members of the venturing group, in aggregate, have in the principal company of the joint venture group with the following further modifications —
a
references to G (property rental business) shall be treated as references to JVG (property rental business),
b
references to G (residual) shall be treated as references to JVG (residual), and
c
the reference in paragraph 21(2) of Schedule 17 to paragraph 31(5) shall be treated as a reference to that paragraph as substituted by regulation 21(4).
9
Section 131 (effects of cessation), as modified by paragraph 25 of Schedule 17, shall apply in relation to a member of a joint venture group with the following further modifications —
a
references in paragraph 25 of Schedule 17 to G (property rental business) shall be treated as references to JVG (property rental business),
b
the reference in paragraph 25 of Schedule 17 to G (residual) shall be treated as a reference to JVG (residual),
c
the reference in paragraph 25 of Schedule 17 to G (post-cessation) shall be treated as a reference to the joint venture group after these Regulations (other than regulation 26 (early exit)) cease to apply to the group, and
d
section 131(1) to (4) shall be treated as applying to the assets and business of the member only to the extent of the percentage of the beneficial interest to which the members of the venturing group in aggregate have in the principal company of the joint venture group.
10
For the purposes of this regulation the percentage of the beneficial interest which the members of the venturing group in aggregate have in the principal company of a joint venture group is the percentage of the profits of the principal company available for distribution to equity holders to which the members of the venturing group are in aggregate beneficially entitled.
Changes in company shareholdings: entry charges
24
1
Paragraphs (2) and (3) apply if a member of a venturing group to which these Regulations apply —
a
increases its shareholding to 75% or more in a member of a joint venture group to which Part 3 of these Regulations applies, and
b
the member of the joint venture group becomes a member of the group to which Part 4 applies.
2
Sections 111 and 112, as modified by paragraphs 9 to 11 of Schedule 17, shall continue to apply subject to paragraph (3).
3
The notional income shall be reduced by the amount of notional income that was calculated as arising under section 112, as modified by paragraph 11 of Schedule 17 and as further modified by regulation 23 —
a
if the member is UK resident, in respect of the assets involved in its property rental business at beginning of the accounting period specified in the joint venture group look through notice given under regulation 17 in respect of the member, and
b
if the member is non-UK resident, in respect of the assets involved in its property rental business in the United Kingdom at the beginning of the accounting period specified in the joint venture group look notice given under regulation 17 in respect of the member.
This is subject to paragraph (4).
4
If the member joined the joint venture group after the end of the accounting period specified in the notice under regulation 17 applying these regulations to the joint venture group, paragraph (3) shall apply with references to the accounting period specified in the joint venture group look through notice treated as references to the date the member joined the joint venture group.
Non-resident members of joint venture group: group real estate investment trusts
25
1
This regulation applies if a notice under regulation 17 has been given applying these Regulations to a joint venture group which includes a non-UK resident member.
2
Paragraph 32 of Schedule 17 shall apply with the following modifications —
a
in sub-paragraph (1) the reference to a “non-UK resident company which is a member of a group to which Part 4 applies” shall be treated as a reference to a non-UK resident company which is a member of the joint venture group to which these Regulations apply, and
b
in sub-paragraph (7) —
i
the reference to a “UK resident member of a group to which Part 4 applies” shall be treated as a reference to a UK resident member of a venturing group to which these Regulations apply, and
ii
the reference to a “non-UK resident member of the group” shall be treated as a reference to a non-UK resident member of a joint venture group to which these Regulations apply, and
c
in sub-paragraph (8) the reference to “UK resident member of the group” shall be treated as a reference to a UK resident member of the joint venture group.
3
Section 112, as modified by paragraph 11 of Schedule 17, shall apply to the non-UK resident member of the joint venture group as if the reference in sub-paragraph (1)(d) of that paragraph to “non-UK resident members” were a reference to non-UK resident members of a joint venture group to which these Regulations apply.
Early exit
26
1
Paragraph (2) applies if a joint venture group look through notice has been given in accordance with regulation 17 applying these Regulations to a member of a joint venture group and —
a
these Regulations (other than this regulation) cease to apply in accordance with regulation 19, and
b
these Regulations had applied to the member for a continuous period, immediately before these Regulations (other than this regulation) ceased to have effect, of less than ten years.
2
Section 132(2) and (3), as modified by paragraph 27 of Schedule 17, shall apply with the following further modifications —
a
the reference in paragraph 27(a) to a member of the group shall be treated as a reference to the member of the joint venture group,
b
the reference in paragraph 27(b) to G (property rental business) shall be treated as a reference to JVG (property rental business),
c
the references in section 132(2) to sections 111(2), 125(2) and 131(3) shall be treated as references to each of those sections as applied by these Regulations, and
d
in section 132(3)(b) the date of cessation shall be treated as the date on which these Regulations (other than this regulation) ceased to apply.
3
Paragraph (4) applies if a UK resident member of a joint venture group in respect of which a joint venture group look through notice has been given in accordance with regulation 17 ceases to be a member of that group, and
a
the notice applied these Regulations to the member for a continuous period of less than ten years, or
b
the member had been a member of the joint venture group for a continuous period of less than ten years.
4
Section 132(2) and (3), as modified by paragraph 28(2) of Schedule 17, shall apply with the following further modifications —
a
the reference in paragraph 28(2)(a) to G (property rental business) shall be treated as a reference to JVG (property rental business),
b
the reference in paragraph 28(2)(b) to a member of the group shall be treated as a reference to a member of the joint venture group,
c
the reference in section 132(2) to a company shall be treated as a reference to the member of the joint venture group, and
d
the references in section 132(2) to sections 111(2), 125(2) and 131(3) shall be treated as references to each of those sections as applied by these Regulations.
Dave Watts
Alan Campbell
Two of the Lords Commissioners of Her Majesty’s Treasury
4th December 2007


type: legislation

jurisdiction: UK

text:
1
These Regulations may be cited as the Value Added Tax (Amendment) (No.3) Regulations 2007 and come into force on 1st June 2007.
2
The Value Added Tax Regulations 1995 are amended as follows.
3
After Part 4 ( EC Sales Statements) insert —
PART 4A REVERSE CHARGE SALES STATEMENTS
Interpretation of Part 4A
23A
In this Part —
“relevant supply” means a supply of goods to which section 55A(6) of the Act applies (customers to account for tax on supplies of goods of a kind used in missing trader intra-community fraud);
“statement” means the statement which a taxable person is required to submit in accordance with this Part of these Regulations.
Notification of first relevant supply
23B
1
On the first occasion on which a person makes a relevant supply, he must notify the Commissioners of that fact within 30 days of the day on which the supply is made.
2
The notification referred to in paragraph (1) must be made on-line by using a portal provided by the Commissioners.
3
If the portal referred to in paragraph (2) is unavailable for any reason, the Commissioners may allow the notification to be made by email.
Submission of Statements
23C
1
Every taxable person who, in any prescribed accounting period, has made a relevant supply must, in relation to that period, submit to the Commissioners, no later than the day by which he is required to make a return for that period and in such a form and manner as may be determined by the Commissioners in a notice published by them (or otherwise), a statement containing the following prescribed particulars —
a
his registration number;
b
the registration number of each person to whom he has made a relevant supply; and
c
for each month falling within the prescribed accounting period, the total value of the relevant supplies made to each person mentioned in sub-paragraph (b).
2
If, in any prescribed accounting period, no relevant supplies are made, a statement to that effect must be submitted to the Commissioners in such form and manner as may be determined by them in a notice published by them (or otherwise).
3
Sub-paragraph (2) does not apply where a taxable person has notified the Commissioners that he has ceased making relevant supplies without intending subsequently to make such supplies.
4
A statement must contain a declaration made by the taxable person that it is true and complete.
.
4
In Part 5 (accounting, payment and records)–
a
in regulation 32(3)–
i
after sub-paragraph (b), insert —
ba
a total of the tax which the taxable person is required to account for and pay on behalf of the supplier,
;
ii
in sub-paragraph (c), for “or 38” substitute “,38 or 38A”.
b
in regulation 38 —
i
after paragraph (1B) insert —
1C
Where an increase or decrease in consideration relates to a supply in respect of which it is for the recipient, on the supplier’s behalf, to account for and pay the tax, the prescribed accounting period referred to in paragraph (1) is that of the recipient, and not the maker, of the supply.
But this paragraph does not apply to the circumstances referred to in regulation 38A.
.
ii
at the beginning of paragraph (3) insert “Subject to paragraph (3A) below,”;
iii
after paragraph (3) insert —
3A
Where an increase or decrease in consideration relates to a supply on which the VAT has been accounted for and paid by the recipient of the supply, any entry required to be made under paragraph (3) shall be made in the recipient’s VAT account and not that of the supplier.
;
c
after regulation 38 insert —
Adjustments where a supply becomes, or ceases to be, a supply to which section 55A(6) of the Act applies (customers to account for tax on supplies of goods of a kind used in missing trader intra-community fraud)
38A
1
Where regulation 38 applies and —
a
as a result of an increase in consideration for a supply it becomes one to which section 55A(6) of the Act applies; or
b
as a result of a decrease in consideration for a supply it ceases to be one to which that section applies,
both the maker, and the recipient, of the supply shall make such entries in the VAT payable portion of their VAT accounts as are necessary to account for that fact.
2
Paragraphs (5) and (6) of regulation 38 shall apply to any entry required by this regulation as they apply to any entry required by that regulation.
3
None of the circumstances to which this regulation applies is to be regarded as giving rise to any application of regulations 34 and 35.
.
d
in regulation 40(1), after sub-paragraph (a), insert —
aa
all VAT which he is required to pay on behalf of the supplier.
.
5
In Part 7A (flat rate scheme for small businesses), in regulation 55C —
a
in paragraph (1), for “and (5)” substitute “,(5) and (6)”;
b
in paragraph (3), for “paragraph (4)” substitute “paragraphs (4) and (6)”;
c
after paragraph (5) insert —
6
Where a supply of goods to which section 55A(6) of the Act applies (customers to account for tax on supplies of goods of a kind used in missing trader intra-community fraud) is made to, or made by, a flat rate trader, that supply is neither a relevant purchase nor a relevant supply of his.
.
6
In Part 8 (cash accounting), in regulation 58(2) omit “or” at the end of sub-paragraph (e) and, after sub-paragraph (f), insert —
; or
g
supplies of goods in respect of which it is for the recipient, on the supplier’s behalf, to account for and pay the VAT.
.
7
After Part 19B (Repayment of input tax where consideration not paid), insert —
PART 19C ADJUSTMENT OF OUTPUT TAX IN RESPECT OF SUPPLIES TO WHICH SECTION 55A (6) OF THE ACT APPLIES
172K
This Part applies where a person is entitled, by virtue of section 26AB(2) of the Act, to make an adjustment to the amount of VAT which he is required to account for and pay under section 55A(6) of the Act (“the adjustment”).
Adjustment of output tax
172L
1
The person must make the adjustment by making a negative entry in the VAT payable portion of that part of his VAT account which relates to the same prescribed accounting period of his as that in which he is required to make an entry in accordance with regulation 172H(2).
2
The amount of the negative entry referred to in paragraph (1) above must be equal to the amount of the entry that is required to be made in accordance with regulation 172H(2).
Readjustment of output tax
172M
1
Where a person —
a
has made an entry in his VAT account in accordance with regulation 172L; and
b
in relation to the same supply, he subsequently makes an entry in his VAT account in accordance with regulation 172I,
he must make an entry in his VAT account in accordance with paragraphs (2) and (3) below.
2
The person must make a positive entry in the VAT payable portion of that part of his VAT account which relates to the same prescribed accounting period of his as that in which he makes an entry in accordance with regulation 172I.
3
The amount of the positive entry referred to in paragraph (2) above must be equal to the amount of the entry he makes in accordance with regulation 172I.
172N
None of the circumstances to which this Part applies is to be regarded as giving rise to any application of regulations 34 and 35.
.
Paul Gray
Mike Eland
Two of the Commissioners for Her Majesty’s Revenue and Customs
9th May 2007


text:
Citation and commencement
1
These Regulations may be cited as the Merchant Shipping and Fishing Vessels (Control of Noise at Work) Regulations 2007 and shall come into force on 23rd February 2008, except that —
a
in relation to noise arising from the provision of music and entertainment on ships, these Regulations shall come into force on 6th April 2008; and
b
in relation to sea-going ships regulation 7(4) and (5) shall come into force on 6th April 2011 .
Interpretation
2
1
In these Regulations–
“ the Act ” means the Merchant Shipping Act 1995;
“daily noise exposure level” is the time weighted average of the noise exposure levels for a nominal eight hour working day as defined by international standard ISO 1999: 1990, point 3.6 and it covers all noise at work, including impulsive noise;
“employer” means a person by whom a worker is employed on a ship under a contract of employment;
“exposure limit value” means the level of daily or weekly exposure for any worker which must not be exceeded, save as set out in regulation 13;
“ General Duties Regulations ” means the Merchant Shipping and Fishing Vessels (Health and Safety at Work) Regulations 1997 ;
“Government ship” has the meaning given in section 308(4) of the Act;
“health and safety” includes the occupational health and safety of persons whilst on board a ship and whilst boarding or leaving the ship;
“health surveillance” means assessment of the state of health of a worker so as to provide early diagnosis of any loss of hearing due to noise and to preserve the hearing function;
“impulsive noise” means a noise event of short duration which occurs as an isolated event or as one of a series of events with a repetition rate of less than 15 per second.
“ MCA ” means the Maritime and Coastguard Agency, an executive agency of the Department for Transport;
“Merchant Shipping Notice” means a Notice described as such and issued by the MCA;
“noise” means any audible sound;
“the Provision and Use of Work Equipment Regulations ” means the Merchant Shipping and Fishing Vessels (Provision and Use of Work Equipment) Regulations 2006 ;
“peak sound pressure” is the maximum value of the “C” – frequency weighted instantaneous noise pressure;
“the risk assessment” means, except where the context otherwise requires, a risk assessment carried out in compliance with regulation 6 of these Regulations;
“surveyor of ships” has the meaning given by section 256(9) of the Act;
“United Kingdom ship” means a ship which —
is a United Kingdom ship within the meaning of section 85(2) of the Act; or
is a Government ship; or
is a hovercraft registered under the Hovercraft Act 1968;
“United Kingdom waters” means the sea or other waters within the seaward limits of the territorial sea of the United Kingdom;
“weekly noise exposure level” is the time-weighted average of the daily noise exposure levels of a nominal week of five eight hour working days as defined by international standard ISO 1999:1990, point 3.6 (note 2).
2
In these Regulations a reference to the provision of music and entertainment on ships is a reference to ships where live or recorded music is played or any other form of entertainment is provided where such music or entertainment is or is likely to expose workers on that ship to noise levels exceeding the lower exposure action values.
3
In these Regulations any reference to —
a
a particular Merchant Shipping Notice includes a reference to any document amending or replacing that Notice; and
b
an ISO standard includes a reference to any document amending that publication;
which is considered by the Secretary of State to be relevant from time to time and is specified in a Merchant Shipping Notice.
Meaning of “worker”
3
1
In these Regulations, “worker” means any person employed under a contract of employment, including a trainee or apprentice other than a person who is training in a vessel which is being used —
a
to provide instruction in the principles of responsibility, resourcefulness, loyalty and team endeavour and to advance education in the art of seamanship; or
b
to provide instruction in navigation and seamanship for yachtsmen,
and which is operating under a relevant code.
2
In paragraph (1) “relevant code” means —
a
the Large Commercial Yacht Code as set out in Merchant Shipping Notice No. 1792(M), issued by the MCA;
b
the Code of Practice for the Safety of Small Commercial Sailing Vessels ;
c
the Code of Practice for the Safety of Small Commercial Motor Vessels ; or
d
the Code of Practice for the Safety of Small Vessels in Commercial Use for Sport or Pleasure Operating from a Nominated Departure Point .
3
In paragraph (2) each reference to a Code includes a reference to any document containing an amendment or replacement of that Code which is considered by the Secretary of State to be relevant from time to time.
Application
4
1
Without prejudice to regulation 5 of the General Duties Regulations and subject to paragraphs (2) to (6) , these Regulations apply in relation to United Kingdom ships.
2
Where —
a
a ship is being used in the course of public service activities or activities for the purpose of civil protection services; and
b
characteristics peculiar to those activities inevitably conflict with a provision of these Regulations,
that provision does not apply in relation to that ship to the extent of that conflict.
3
To the extent that a provision of these Regulations does not apply in relation to a ship because of paragraph (2) there is in relation to that ship a duty on the employer to ensure, so far as is reasonably practicable, the health and safety of workers who are or who are likely to be exposed to risks from noise as a result of their work.
4
The provisions of the General Duties Regulations and the Provision and Use of Work Equipment Regulations 2006 shall continue to apply to activities to which these Regulations apply; where these Regulations contain more stringent or specific provisions then such provisions shall apply.
5
This regulation (other than paragraph (1)) and regulations 18 and 20 apply in relation to ships which are not United Kingdom ships, when they are in United Kingdom waters.
6
These regulations shall not apply to activities to which the Control of Noise at Work Regulations 2005 or the Control of Noise at Work (Northern Ireland) Regulations 2006 apply.
7
In paragraph (2) —
“civil protection services” includes the fire and rescue and ambulance services and search and rescue services provided by any other person;
“public service activities” includes the activities of the armed forces, HM Coastguard, HM Revenue and Customs, immigration officers, police, prison officers and the security and intelligence services.
Exposure limit values and exposure action values
5
1
The lower exposure action values are —
a
a daily or weekly personal noise exposure of 80 dBm/MHz (A-weighted); and
b
a peak sound pressure of 135 dBm/MHz (C-weighted).
2
The upper exposure action values are —
a
a daily or weekly personal noise exposure of 85 dBm/MHz (A-weighted); and
b
a peak sound pressure of 137 dBm/MHz (C-weighted).
3
The exposure limit values are —
a
a daily or weekly personal noise exposure of 87 dBm/MHz (A weighted); and
b
a peak sound pressure of 140 dBm/MHz (C-weighted).
4
Subject to paragraph (5), where, as a result of activities, the exposure of an employee to noise varies markedly from day to day, an employer may use weekly personal noise exposure in place of daily noise exposure for the purpose of compliance with these Regulations.
5
Where an employer uses weekly noise exposure levels in accordance with paragraph (4) appropriate measures must be taken in order to reduce the risk associated with the relevant activities to as low as is reasonably practicable.
6
In applying the lower and upper exposure action values, no account shall be taken of attenuation provided by individual hearing protectors provided by the employer to be worn by the worker.
7
In applying the exposure limit values, account shall be taken of attenuation provided by individual hearing protectors provided by the employer to be worn by the worker.
Assessment of risks
6
1
The employer shall assess the level of noise to which workers are exposed as part of the risk assessment required by regulation 7 of the General Duties Regulations.
2
The risk assessment —
a
shall use methods which are adapted to the prevailing conditions, including —
i
the characteristics of the noise to be measured;
ii
the length of exposure;
iii
ambient factors; and
iv
the characteristics of the measuring apparatus, including the accuracy of the measuring equipment determined in accordance with metrological practice;
b
shall determine, in accordance with paragraphs (6) and (7) respectively of regulation 5, whether the exposure action values and the exposure limit values are exceeded;
c
may use sampling which is representative of the personal exposure of workers as a method of determining risk; and
d
if necessary, shall be based on measurement of level of noise to which workers are likely to be exposed.
3
Without prejudice to the generality of regulation 7 of the General Duties Regulations, in carrying out the risk assessment the employer shall consider —
a
the level, type and duration of exposure to noise, including any exposure to impulsive noise;
b
the exposure limit values and the exposure action values specified in regulation 5 ;
c
the effects of noise on the health and safety of workers or groups of workers whose health is at particular risk from such exposure;
d
so far as practicable, the effects on health and safety of workers resulting from the interaction between noise and the use of ototoxic substances and between noise and vibration;
e
any indirect effects on workers’ health and safety resulting from interactions between noise and audible warning signals or other sounds that need to be observed in order to reduce risks;
f
any information on noise emissions provided by manufacturers of work equipment;
g
the availability of alternative work equipment designed to reduce the emission of noise;
h
the extension of exposure to noise beyond normal working hours;
i
appropriate information obtained following health surveillance, including, where possible, published information; and
j
the availability of personal hearing protectors with adequate attenuation characteristics.
4
The employer shall ensure that the risk assessment —
a
is planned and carried out by the persons appointed in accordance with regulation 14 of the General Duties Regulations;
b
records —
i
the significant findings of the risk assessment as soon as practicable after the risk assessment is made or changed; and
ii
the measures the employer has taken or intends to take to comply with regulations 7 , 8 and 9 of these Regulations;
so as to permit consultation as required by these Regulations;
c
is reviewed —
i
at suitable intervals;
ii
if there are any significant changes in working condition which affect its validity; or
iii
if the results of a health surveillance indicate that a further risk assessment is necessary; and
d
is retained by him.
Elimination or control of exposure to noise in the workplace
7
1
The employer shall ensure that the risks arising from exposure to noise which are identified by the risk assessment are either —
a
eliminated at their source; or
b
reduced to a level which is as low as is reasonably practicable.
2
If the risk assessment shows that the upper exposure action values are exceeded, the employer shall establish and implement a programme of technical or organisational measures (or both) which is appropriate to that activity to reduce the exposure of workers to noise..
3
Actions taken by an employer to comply with paragraphs (1) and (2) shall be based on the principles in regulation 5 of the General Duties Regulations; such actions shall take into consideration —
a
other working methods that reduce exposure to noise;
b
choice of appropriate work equipment emitting the least possible noise, taking account of the work to be done;
c
the design and layout of workplaces and workstations;
d
suitable and sufficient information and training for workers, such that work equipment may be used correctly, in order to reduce their exposure to noise to as low as is reasonably practicable;
e
reduction of noise by technical means such as;
i
reducing airborne noise by use of methods such as shields, enclosures or sound-absorbent coverings; and
ii
reducing structure-borne noise by damping or isolation;
f
appropriate maintenance programmes for work equipment, the workplace and workplace systems; and
g
organisation of work schedules so as to limit the duration and intensity of exposure to noise and provide adequate rest periods.
4
The employer shall ensure that workers are not exposed to noise exceeding the exposure limit values specified in regulation 5(3) .
5
Following implementation of the organisational and technical measures taken in accordance with paragraph (2) if exposures above the exposure limit value are detected, the employer shall —
a
take such action as is necessary to reduce exposure to noise below the exposure limit value;
b
identify the reasons why the limit has been exceeded; and
c
amend the measures taken in accordance with paragraph (2) to ensure that the limit is not exceeded again.
6
Noise in accommodation and rest spaces shall be reduced to a level compatible with their purpose and use.
7
The employer shall adapt measures which are taken in accordance with this regulation to workers who are particularly sensitive to noise.
8
The employers shall consult the workers concerned or their representatives on the measures to be taken to comply with this regulation.
Hearing protection
8
1
Without prejudice to the provisions in regulation 7, an employer shall make personal hearing protectors available to any worker who is or is likely to be exposed to noise above a lower exposure action value.
2
Without prejudice to the provisions in regulation 7, an employer shall ensure, so far as is reasonably practicable, that all workers who are exposed to noise which is at or above an upper exposure action value shall use personal hearing protectors.
3
If in any area of the ship under the control of the employer a worker is likely to be exposed to noise at or above an upper exposure action value for any reason, the employer shall ensure that —
a
the area is demarcated and identified by means of the sign specified for the purpose of indicating that ear protection must be worn in paragraph 3.3 of Annex II to Merchant Shipping Notice 1763; and
b
access to the area is restricted where this is practicable and the risk from exposure justifies it.
4
Any personal hearing protectors provided in accordance with this regulation shall be selected by the employer so as to eliminate the risk to hearing or to reduce the risk to as low a level as is reasonably practicable; such personal hearing protectors shall comply with the requirements of the Merchant Shipping and Fishing Vessels (Personal Protective Equipment) Regulations 1999 .
Worker information and training
9
1
If the risk assessment indicates that workers are exposed to noise at or above the lower exposure action value the employer shall provide those workers and their representatives with suitable and sufficient information, instruction and training.
2
Information, instruction and training provided in accordance with paragraph (1) shall include —
a
the nature of such risks;
b
the measures taken to implement these Regulations in order to eliminate or reduce to as low as is reasonably practicable the risks from noise, including the circumstances in which such measures apply;
c
the exposure limit values and the exposure action values;
d
the results of the risk assessment carried out in accordance with regulation 6 together with an explanation of the significance and potential of such risks;
e
the correct use of hearing protectors;
f
the circumstances in which workers are entitled to health surveillance under these Regulations;
g
safe working practices to minimise exposure to noise;
h
how to detect and report signs of hearing damage; and
i
the importance of detecting and reporting signs of hearing damage.
Health surveillance
10
1
If the risk assessment indicates that there is a risk to the health of his workers who are, or are likely to be, exposed to noise, the employer shall ensure that such workers are kept under health surveillance in accordance with paragraph (2).
2
Health surveillance shall be provided by the employer as follows —
a
where a worker is exposed to noise above the upper exposure action values, such worker shall be entitled to have his hearing examined by a doctor or by a suitably qualified person under the supervision of a doctor; and
b
where workers are exposed to noise above the lower exposure action values, where the risk assessment required by regulation 6 indicates a risk to health, such workers shall be entitled to preventative audiometric testing.
3
Where, as a result of health surveillance a worker is found to have identifiable hearing damage a doctor or such specialist as a doctor considers appropriate, shall assess whether the damage is likely to be the result of exposure to noise at work.
4
If it is found in accordance with paragraph (3) that hearing damage is likely to have been the result of exposure to noise at work the employer shall —
a
ensure that the worker is informed by a doctor or other suitably qualified person of the result of the health surveillance which relates to him personally;
b
review the risk assessment concerned;
c
review the measures taken to comply with regulations 7 and 8 taking into account any advice given by a doctor, occupational healthcare professional or the MCA;
d
consider assigning the worker to alternative work where there is no risk of further exposure to noise, when advised to do so by a doctor or an occupational health care professional;
e
ensure continued health surveillance and provide for a review of the health of any other employee who has been similarly exposed..
5
The employer shall ensure that a health record is made and maintained in respect of each worker who undergoes health surveillance in accordance with these Regulations, the record being in a suitable form and containing a summary of the results of the health surveillance carried out.
6
The employer shall —
a
on reasonable notice being given, allow a worker access to his personal health records;
b
keep the health records available in a suitable form;
c
at the request of a worker, make available the health records to any person specified by the worker; and
d
provide the Secretary of State with such copies of the health records as the Secretary of State may require.
7
The employer shall pay the costs of health surveillance carried out in order to comply with this regulation.
Consultation with workers
11
In consulting with workers in accordance with regulation 20 of the General Duties Regulations, workers or their representatives shall be consulted on matters covered by regulations 6 to 10 of these Regulations and in particular on —
a
the assessment of risk under the provisions of regulation 6 ;
b
measures taken to eliminate or reduce risks arising from exposure to noise in accordance with regulation 7 ; and
c
the choice of individual hearing protectors in accordance with regulation 8 .
Persons on whom duties are imposed
12
1
Where a person on whom a duty is imposed by any of the preceding provisions of these Regulations does not have control of the matter to which that provision relates because that person does not have responsibility for the operation of the ship, that duty also extends to any other person who has control of that matter.
2
It shall be the duty of every worker performing activities to which these Regulations apply to —
a
make full and proper use of all clothing and equipment with which he has been provided by the employer in pursuance of these Regulations; and
b
to give effect to all instructions and training with which he has been provided under regulation 9 .
Exemptions
13
1
The Secretary of State may grant an exemption from compliance with regulations 7(4) and (5) and 8(1) and (2) in respect of work on a particular ship where because of the nature of the work the full and proper use of personal hearing protectors would be likely to cause a greater risk to health or safety than not using such protectors.
2
The Secretary of State may not grant an exemption under paragraph (1) unless —
a
he has consulted with —
i
the employer or other person having control of the matter in question;
ii
such medical bodies as he considers appropriate; and
iii
the workers concerned or their representatives; and
b
health surveillance has been increased to a level considered appropriate by the Secretary of State.
3
Any exemption granted under this regulation shall–
a
be in writing;
b
be accompanied by conditions which guarantee, taking into account the special circumstances, that the resulting risks are reduced to as low as reasonably practicable;
c
be valid for a maximum period of four years; and
d
be withdrawn as soon as the Secretary of State is satisfied that it is no longer justified.
Offences and penalties
14
1
A person who fails to comply with regulation 6, 7 or 10 is guilty of an offence and liable –
a
on summary conviction to a fine not exceeding the statutory maximum, or
b
on conviction on indictment to imprisonment for a term not exceeding two years or a fine (or both).
2
A person who fails to comply with regulation 8 is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.
3
A person who fails to comply with regulation 11 is guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard scale.
4
A person who fails to comply with regulation 9 or contravenes regulation 22 is guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.
5
A worker who fails to comply with the obligations in regulation 12(2) shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 2 on the standard scale.
6
Section 146(1) of the Act (enforcement of fines) applies to any fine imposed for an offence under paragraphs (1) to (4) of this regulation as if the reference to proceedings against the owner or master of a ship for an offence under Chapter 2 were a reference to proceedings against any person for an offence under those paragraphs.
Offences by body corporate
15
1
Where a body corporate is guilty of an offence under these Regulations and that offence is proved to have been committed with the consent or connivance of, or to have been attributable to any neglect on the part of, any director, manager, secretary or other similar officer of the body corporate or a person who was purporting to act in such a capacity, he as well as the body corporate is guilty of that offence and shall be liable to be proceeded against and punished accordingly.
2
Where the affairs of a body corporate are managed by its members, the preceding paragraph shall apply in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.
3
Where an offence under these Regulations committed by a Scottish partnership is proved to have been committed with the consent or connivance of, or to have been attributable to any neglect on the part of, a partner, that partner as well as the partnership is guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Onus of proving what is reasonably practicable
16
In any proceedings for an offence under these Regulations consisting of a failure to comply with a duty or requirement to do something so far as is reasonably practicable, it shall be for the defendant to prove that it was not reasonably practicable to do more than was in fact done to satisfy the duty or requirement.
Detention of a United Kingdom ship
17
1
Where a surveyor of ships is satisfied that there is or has been a failure by an employer or other person referred to in regulation 12(1) to comply in relation to any United Kingdom ship with the preceding requirements of these Regulations, that ship is liable to be detained until a surveyor of ships is satisfied that those requirements are complied with.
2
A surveyor of ships may permit a ship which is liable to be detained under paragraph (1) to proceed to sea for the purposes of proceeding to the nearest appropriate repair yard.
3
A ship shall not be delayed or detained unreasonably under this regulation.
4
Where a ship is detained because in relation to it there has been a failure to comply with the requirements of these Regulations, and that failure has ceased, a person having power to detain the ship shall, at the request of the owner or master, immediately release the ship —
a
if no proceedings for an offence arising from the failure in question are instituted within the period of seven days beginning with the day on which the ship is detained;
b
if proceedings for an offence arising from the failure in question, having been instituted within that period, are concluded without the employer or other person having control of the matter in question being convicted;
c
if either —
i
the sum of £30,000 is paid to the Secretary of State by way of security, or
ii
security which, in the opinion of the Secretary of State, is satisfactory and is for an amount not less than £30,000 is given to the Secretary of State,
by or on behalf of the employer or other person having control of the matter in question;
d
where the employer or other person having control of the matter in question is convicted of an offence arising from the failure in question, if any costs or expenses ordered to be paid by him, and any fine imposed on him, have been paid; or
e
the release is ordered by a court or tribunal referred to in article 292 of the United Nations Convention on the Law of the Sea 1982 , and any bond or other financial security ordered by such court or tribunal is posted.
5
The Secretary of State shall repay any sum paid in pursuance of paragraph (4)(c) or release any security so given —
a
if no proceedings for an offence arising from the failure in question are instituted within the period of seven days beginning with the day on which the sum is paid; or
b
if proceedings for an offence arising from the failure in question, having been instituted within that period, are concluded without the employer or other person having control of the matter in question being convicted.
6
Where a sum has been paid, or security has been given, by any person in pursuance of paragraph (4)(c) above and the employer or other person having control of the matter in question is convicted of an offence arising from the failure in question, the sum so paid or the amount made available under the security shall be applied as follows —
a
first in payment of any costs or expenses ordered by the court to be paid by the employer or other person having control of the matter in question; and
b
next in payment of any fine imposed by the court,
and any balance shall be repaid to the first-mentioned person.
7
Section 145 of the Act (interpretation of section 144) applies for the purposes of paragraphs (4) to (6) as if –
a
references to the master or owner of the ship were references to the employer or other person having control of the matter in question; and
b
references to an offence under section 131 were references to an offence arising from the failure in question.
Inspection and other measures in respect of ships registered outside the United Kingdom
18
1
When a ship which is not a United Kingdom ship is in United Kingdom waters, a relevant inspector may inspect that ship to ascertain whether the standards required in relation to United Kingdom ships by these Regulations are met in relation to that ship.
2
Where a surveyor of ships is satisfied that the standards required in relation to United Kingdom ships by these Regulations are not met in relation to a ship which is not a United Kingdom ship but is in United Kingdom waters, that surveyor of ships may —
a
send a report to the government of the State whose flag the ship is entitled to fly, and a copy thereof to the Director General of the International Labour Office; and
b
where conditions on board are clearly hazardous to health or safety, take such measures as are necessary to ensure those conditions are rectified.
3
A ship to which paragraph (2)(b) applies is liable to be detained until a surveyor of ships is satisfied that those conditions are rectified.
4
A surveyor of ships may permit a ship which is liable to be detained under paragraph (3) to proceed to sea for the purposes of proceeding to the nearest appropriate repair yard.
5
If any of the measures specified in paragraph (2)(b) or (3) are taken, the surveyor of ships shall immediately notify the nearest maritime, consular or diplomatic representative of the State whose flag the ship is entitled to fly.
6
A ship shall not in the exercise of the power under this regulation be delayed or detained unreasonably.
7
In paragraph (1) , “relevant inspector” means a person mentioned in paragraph (a), (b) or (c) of section 258(1) of the Act .
Application of powers of inspectors in relation to Government ships
19
Sections 258 to 266 of the Act apply to these Regulations as if they were for all purposes made under section 85 of the Act and accordingly those sections apply in relation to Government ships.
Enforcement of detention
20
1
Section 284 of the Act applies where a ship is liable to be detained under these Regulations as if —
a
references to detention of a ship under the Act were references to detention of the ship in question under these Regulations; and
b
subsection (7) were omitted.
2
Where a ship is liable to be detained under these Regulations, the person detaining the ship shall serve on the master of the ship a detention notice which shall —
i
state that a surveyor of ships is of the opinion that in relation to that ship there is a failure to comply with the requirements of these Regulations;
ii
specify the matters which, in the opinion of the surveyor of ships, have the effect that in relation to that ship those requirements are not met; and
iii
require the terms of the notice to be complied with until the ship is released by any person mentioned in section 284(1) of the Act.
Right of appeal and compensation
21
Regulations 11 and 12 (right of appeal and compensation) of the Merchant Shipping (Port State Control) Regulations 1995 (which by virtue of regulation 19 of those Regulations apply in relation to the exercise of powers of detention contained in safety regulations) apply in relation to a detention notice served on a Government ship under these Regulations as if these Regulations were for all purposes made under section 85 of the Act.
Prohibition on Levy
22
No charge in respect of anything done or provided in pursuance of any specific requirement of these Regulations shall be levied or permitted to be levied on any worker.
Signed by authority of the Secretary of State for Transport
Jim Fitzpatrick
Parliamentary Under Secretary of State
Department for Transport
25th October 2007


text:
1
This scheme may be cited as the M62 Motorway (Junction 6 Improvements) (Connecting Roads) Scheme 2007 and shall come into force on 9th February 2007.
2
In this Scheme:
all measurements of distance are measured along the route of the relevant highway:
“connecting road” means a special road along a route described in the Schedule to this Scheme;
“the plan” means the deposited site plan marked “The M62 Motorway (Junction 6 Improvements) (Connecting Roads) Scheme 2007”, signed by authority of the Secretary of State for Transport and deposited at ODPM-DfT Records Management Branch, Floor 13 (IMD), Ashdown House, St Leonards on Sea, Hastings, East Sussex TN37 7GA; and
“the special roads” means each connecting road.
3
The Secretary of State is authorised to provide the special roads for the exclusive use of traffic of Classes I and II of the classes of traffic set out in Schedule 4 to the Highways Act 1980.
4
The centre line of each of the special roads is indicated by a heavy black line on the plan.
5
Each of the special roads shall become a trunk road on the date when this Scheme comes into force.
Signed by authority of the Secretary of State for Transport
John Bagley
Divisional Director Highways Agency
25th January 2007


text:
Citation, commencement and interpretation
1
1
This Order may be cited as the NHS Foundation Trusts (Trust Funds: Appointment of Trustees) Order 2007 and comes into force on 5 th July 2007.
2
In this Order —
“the Commission” means the Appointments Commission ;
“foundation trust” means an NHS foundation trust specified in the Schedule to this Order.
Appointment of trustees
2
1
The Commission must appoint trustees for each foundation trust to hold property on trust —
a
for the purposes of that foundation trust; or
b
for any purposes relating to the health service.
2
The appointment of any such trustee is to be for such period, not exceeding 4 years, as the Commission may specify on making the appointment.
Termination and suspension of appointment
3
Where the Commission is of the opinion that it is not in the interests of a foundation trust or the health service that a trustee for the foundation trust should continue to hold that office, the Commission may terminate the appointment and, pending its decision, may suspend any such trustee from such office.
Transitional
4
1
This paragraph applies to any person who, immediately before this Order comes into force, held office as a trustee for a foundation trust by virtue of an appointment made under any of the Orders mentioned in article 5 or 6 .
2
A person to whom paragraph (1) applies is to continue to hold office as a trustee for the foundation trust, and this Order is to apply to him, as if he had been appointed as a trustee for the foundation trust under this Order for the period specified on his appointment.
Revocation
5
The following orders are revoked —
a
the Cambridge University Hospitals National Health Service Foundation Trust (Trust Funds: Appointment of Trustees) Order 2004 ;
b
the Chelsea and Westminster Healthcare National Health Service Trust (Trust Funds: Appointment of Trustees) Order 2005 .
Amendment of Orders
6
The Schedule to the National Health Service Trusts (Trust Funds: Appointment of Trustees) Order 2000 is amended by omitting the following entries —
The Birmingham Children’s Hospital National Health Service Trust
The Guy’s and St Thomas’ National Health Service Trust
The King’s Healthcare National Health Service Trust
The Newcastle upon Tyne Hospitals National Health Service Trust
The Sheffield Children’s Hospital National Health Service Trust
The Sheffield Teaching Hospitals National Health Service Trust
The University College London Hospitals National Health Service Trust
The University Hospital Birmingham National Health Service Trust.
Signed by authority of the Secretary of State for Health
Andy Burnham
Minister of Health
Department of Health
20th June 2007