in arriving at the amount on which tax is to be paid in the same way as for income from the Duchy of Lancaster.
9. Monies and facilities provided for The Queen out of public funds for Head of State duties are to be disregarded for income tax purposes.
10. The Queen has announced Her intention to make items from the Royal Collection of paintings and other works of art, and items from the Royal Archives, available to a new charitable trust, to be known as the Royal Collection Trust, which will assume responsibility for safeguarding, maintaining, and exhibiting them. The ownership of the Royal Collection and Archives will remain with the Crown. However, the Royal Collection Trust will become entitled to all the income arising from items from the Royal Collection and Archives made available to it from 1 April 1993, and all such income, and the corresponding expenses, will accordingly be disregarded for the purposes of these arrangements.
Transitional commencement provision
11. For the purpose of determining the appropriate income tax year for which income is to be taxed, sources of income in existence at 6 April 1993, which would normally be assessed by reference to the income of the preceding year, will be regarded as having commenced on 6 April 1993.
Arrangements for statements of taxable income, and payment of tax
12. A statement of income to be taxed, calculated in accordance with these arrangements, will be prepared and delivered on behalf of The Queen, not later than 30 September next following the end of any tax year to which the arrangements in this memorandum apply. The tax payable for any year under these arrangements will be paid not later than 1 December following the end of the year of assessment.
13. If the amount payable has not been agreed by that time, payment will be made then in accordance with the statement of taxable income, or the best estimate which can be made of the amount due; and any increase (or decrease) subsequently agreed will be paid (or repaid) within a month of agreement.
14. Where any tax for any year is paid, or repaid, after 1 December following the year of assessment to which it relates interest will run, at the appropriate rate, from 1 December to the date of payment or repayment.
Capital gains tax
15. Capital gains tax will be paid in respect of any chargeable gains arising from the disposal of private assets on or after 6 April 1993.
16. Any liability to capital gains tax will be calculated in accordance with ordinary capital gains tax rules for the year in question, subject to the provisions of paragraphs 17 and 18.
Definition of private assets for capital gains tax
17. Because the Privy Purse meets official and private expenditure, it is necessary to determine the proportion of the assets belonging to the Privy Purse which should be regarded as private for capital gains tax purposes. The proportion regarded as private in any year is to be calculated as set out in Appendix A; and that proportion of any capital gains or losses relating to disposals of Privy Purse assets will accordingly be taken into account in determining any capital gains tax liability.
Transitional commencement provision
18. Where there is a disposal of an asset acquired before 6 April 1993, any gain or loss shall be calculated as though the asset had been acquired on 5 April 1993 at its market value on that date. Alternatively, for assets other than shares and securities quoted on a recognised stock exchange, any gain or loss may be calculated in accordance with the normal rules by reference to the actual cost and date of acquisition (or, where appropriate, market value on 31 March 1982), but with the gain or loss time-apportioned so that regard is had only to the proportion relating to the period of ownership from 6 April 1993 to the date of disposal.
Arrangements for statements of chargeable gains, and payment of tax
19. The arrangements for a statement of chargeable gains and losses for any year, and the payment of any tax or interest in respect of capital gains, will be the same as the arrangements for income tax set out in paragraphs 12 to 14, subject to any instalment facilities available under the normal capital gains tax rules. Where tax is payable by instalments and an instalment is paid after its due date, interest will run, at the appropriate rate, from the due date.
8
No comments yet.
Private notes are available after approval.