Finance Act 1977
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 10(1) of that Act (excise duty on beer) for "£15.8400" and "£0.5280" there shall be substituted " £17.4240 " and " £0.5808 " respectively.
For the provisions of Schedule 4 to that Act (rates of excise duty on wine) there shall be substituted the provisions of Schedule 1 to this Act.
For the provisions of Schedule 5 to that Act (rates of excise duty on made-wine) there shall be substituted the provisions of Schedule 2 to this Act.
In section 2(1) of the Finance Act 1976 (excise duty on cider) for " £0.22 " there shall be substituted " £0.242 ".
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 1(4) of the Finance Act 1973 (power to make orders before 1st July 1977 for giving effect to Community obligations in respect of tobacco duties) for the words " 1st July 1977 " there shall be substituted the words " 1st January 1978 " ; and subsection (6) above is without prejudice to the powers conferred by the said section 1(4).
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
This section shall be deemed to have come into force on 30th March 1977.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The power to make orders under subsection (4) above includes power to vary or revoke a previous order and shall be exercisable by statutory instrument.
Subject to subsection (7) below, any order under subsection (4) above shall be laid before the House of Commons after being made; and unless it is approved by that House before the expiration of twenty-eight days beginning with the date on which it was made, it shall cease to have effect on the expiration of that period, but without prejudice to anything previously done thereunder or to the making of a new order. In reckoning any such period no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than four days.
Subsection (6) above shall not apply to any order containing a statement by the Treasury that the order does not extend the incidence of the duty or involve a greater charge to duty or a reduction of any relief; and any such order shall be subject to annulment in pursuance of a resolution of the House of Commons.
Subsections (1) to (3) above shall be deemed to have come into force on 4th April 1977.
1. Cigarettes An amount equal to 30 per cent. of the retail price plus £9.00 per thousand cigarrettes. 2. Cigars £9.50 per pound. 3. Hand-rolling tobacco £9.20 per pound. 4. Other smoking tobacco and chewing tobacco £7.30 per pound.
If it is shown to the satisfaction of the Commissioners that any tobacco which has borne duty under section 4 of the said Act of 1964 on or after 10th May 1976 has been or will be used in the manufacture of tobacco products chargeable with duty under section 4 of the said Act of 1976 on or after the said 1st January, they shall make a repayment at the appropriate rate specified in Schedule 3 to this Act in respect of the duty borne by that tobacco as aforesaid; and the rate per pound at which drawback is allowable on tobacco in respect of which a repayment has been made under this subsection shall be reduced by an amount equal to the rate per pound at which the repayment was made.
Drawback in respect of any duty charged under section 4 of the said Act of 1964 shall not be allowed by virtue of any event occurring after 30th June 1978; but if it is shown to the satisfaction of the Commissioners after that date— the Commissioners shall repay the duty to the manufacturer, but any such repayment shall be conditional on the products being disposed of in such manner as the Commissioners may require.
that any tobacco which has borne duty under that section has been used in the manufacture of products which have become unmerchantable through natural causes; and
that no drawback or repayment in respect of the duty has been allowed or made under any other provision,
Part V of the Customs and Excise Act 1952 (which contains provisions for the collection and management of the duties charged by section 4 of the said Act of 1964 and for the protection of the revenue arising from them) shall cease to have effect on 1st January 1978 except as respects drawback by virtue of events occurring on or before the date mentioned in subsection (3) above.
In section 4(3) of the said Act of 1976 (regulations for the purposes of tobacco products duty) after paragraph (b) there shall be inserted—.
The rate of the duty of excise charged by section 11 of the Finance (No. 2) Act 1975 (hydrocarbon oil etc.) shall differ according to whether the oil is light oil or heavy oil; and accordingly—
in that section after the words " £0.3000 a gallon " there shall be inserted the words " in the case of light oil and £0.3500 a gallon in the case of heavy oil ";
in the following provisions (under which duty is charged by reference to the duty on hydrocarbon oil), that is to say— for the words " hydrocarbon oil" there shall be substituted the words " light oil "; and
section 6 of the Hydrocarbon Oil (Customs & Excise) Act 1971 (petrol substitutes and power methylated spirits);
section 3(3) and (4)(c) of the Finance Act 1971 and Article 3 of the Excise Duties (Gas as Road Fuel) Order 1972,
in section 92(2) of the Finance Act 1965 and section 14(2) of the Finance Act (Northern Ireland) 1966 (grants towards duty on bus fuel) for the words " hydrocarbon oil " there shall be substituted the words " heavy oil ".
In section 9 of the Hydrocarbon Oil (Customs & Excise) Act 1971 (rebate on heavy oil) for the words " at a rate of 1p a gallon less than the rate at which the duty is for the time being chargeable " there shall be substituted the words " at a rate—
in the case of kerosene other than aviation turbine fuel, of 1p a gallon less than the rate at which the duty is for the time being chargeable ;
in the case of aviation turbine fuel and heavy oil other than kerosene, of 2½ p a gallon less than the rate at which the duty is for the time being chargeable."
The provisions of the said section 9 as amended by subsection (2) above shall become subsection (1) of that section and after those provisions there shall be added—
In section 12(1) of the said Act of 1971 (rebate on light oil for use as furnace fuel at a rate of 1p a gallon less than the rate at which the duty is charged) for " 1p " there shall be substituted " 2 ½ p ".
This section shall be deemed to have come into force at 6 o'clock in the evening of 29th March 1977 ; but as respects the period beginning at that time and ending at 6 o'clock in the evening of 8th August 1977 the rate of the duty of excise charged by section 11 of the said Act of 1975 shall, notwithstanding subsection (1) above, be £0.3500 a gallon in the case of light oil as well as heavy oil and the provisions mentioned in paragraph (b) of that subsection shall have effect accordingly.
The Commissioners may make repayments of duty at the rate of 5p a gallon under arrangements made by them for avoiding dislocation in the supply of petrol to retailers and distributors at the end of the period mentioned in subsection (5) above.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In subsection (5) of section 16 (rates of duty for trade licences), including that subsection as set out in paragraph 12 of Part I of Schedule 7, for " £20 " and " £3.35 " there shall be substituted respectively " £25 " and " £5 ".
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Vehicles (Excise) Act (Northern Ireland) 1972 shall be amended as follows.
For the provisions of Part II of Schedules 1 to 5 (annual rates of duty) there shall be substituted the provisions set out in Schedule 5 to this Act.
In subsection (6) of section 16 (rates of duty for trade licences), including that subsection as set out in paragraph 12 of Part I of Schedule 9, for " £20 " and " £3.35 " there shall be substituted respectively " £25 " and " £5 ".
In section 2(1)(b) (four month licence for vehicles with annual rate exceeding £8) for " £8 " there shall be substituted " £18 ".
This section has effect in relation to licences taken out after 29th March 1977.
The Treasury may by order amend the customs and excise Acts for the purpose of—
replacing any unit of measurement by a metric unit;
replacing the proof system of ascertaining the alcoholic strength of spirits and other liquids by a system of measurement by reference to percentages of alcohol by volume;
replacing any temperature expressed in degrees Fahrenheit by a temperature expressed in degrees Celsius;
replacing any pressure expressed in atmospheres by a pressure expressed in millibars.
Any amendment of an enactment under this section shall be such as to preserve the effect of the enactment except to such extent as the Treasury consider necessary to enable a substituted unit or method of measurement to be applied in a convenient and suitable manner.
An order under this section may contain such transitional and other supplementary provisions as the Treasury think necessary.
The power to make orders under this section includes power to vary or revoke a previous order and shall be exercisable by statutory instrument.
Subject to subsection (6) below, any order under this section shall be laid before the House of Commons after being made; and unless it is approved by that House before the expiration of twenty-eight days beginning with the date on which it was made, it shall cease to have effect on the expiration of that period, but without prejudice to anything previously done thereunder or to the making of a new order. In reckoning any such period no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than four days.
Subsection (5) above shall not apply to any order containing a statement by the Treasury that the order does not involve a greater charge to duty or a reduction of any relief, drawback, rebate or allowance; and any such order shall be subject to annulment in pursuance of a resolution of the House of Commons.
The Commissioners may, in accordance with subsection (2) below, make regulations applying in cases where any question as to the duties of customs chargeable on any goods depends on the use to be made of them.
In cases in which a Community instrument makes provision for the purpose of securing that the relevant use is made of the goods, regulations under this section may make provision for any matter which under the instrument is required or authorised to be dealt with by the authorities of member States or which otherwise arises out of the instrument; and in other cases regulations under this section may make such provision for that purpose as appears to the Commissioners to be necessary or expedient.
Section 255A of the Customs and Excise Act 1952 (which makes provision for purposes including that mentioned in subsection (2) above) shall, with effect from such day as may be appointed by regulations under this section, be amended as follows—
for the words " on the use to be made of any goods or on any other matter " there shall be substituted the words " on any matter (other than the use to be made of the goods) ";
the words " for securing that the goods will be so used or otherwise " shall be omitted.
Section 257 of the Customs and Excise Act 1952 (forfeiture of goods relieved from duty) shall be amended in accordance with subsections (2) and (3) below.
For subsection (1) there shall be substituted—
In subsection (2) for the words "the observance of the condition " there shall be substituted the words " compliance with the condition or obligation ".
Section 10(2) of the Import Duties Act 1958 and paragraph 1(3)(b) of the Schedule to the Agriculture and Horticulture Act 1964 (which become unnecessary in consequence of the above amendments) shall cease to have effect.
In any case where— then, in such circumstances as may be prescribed, duties of customs or levies shall be charged on or in respect of the goods by virtue of this section.
goods which are not for the time being in free circulation in member States are imported into the United Kingdom from another member State, and
in accordance with the Treaties the goods either are allowed to be put on the market in the United Kingdom or to be destroyed or otherwise cease to be subject to special arrangements involving the suspension of, or the giving of relief from, duties or levies in another member State,
Any question whether goods are at any time in free circulation in member States shall be determined in accordance with the Treaties.
The amount of the duty of customs or levy which, in any particular prescribed circumstances, is charged on or in respect of any goods by virtue of this section shall be such as, in accordance with the Treaties, may either be prescribed or determined in a prescribed manner.
Duties of customs charged by virtue of this section shall be treated as EU customs duties charged under subsection (1) of section 5 of the European Communities Act 1972 and levies charged by virtue of this section shall be treated as agricultural levies, as defined in subsection (8) of section 6 of that Act; and the provisions of, and of the enactments referred to in, the said section 6 shall apply accordingly.
In this section “prescribed” means prescribed by regulations made by statutory instrument by the Commissioners which shall be subject to annulment in pursuance of a resolution of either House of Parliament.
This section and, except in so far as any such regulations otherwise provide, any regulations made under it shall have effect in relation to goods imported into the United Kingdom on or after 1st July 1977.
This section applies where, in accordance with the Directive of the Council of the European Communities dated 15th March 1976 No. 76/308/EEC, an authority in a member State makes a request for the recovery in the United Kingdom of any sum claimed by that authority in that State.
Subject to the following provisions, where this section applies the Commissioners or the Intervention Board for Agricultural Produce may recover the sum specified in the request as if it were a debt due to the Crown.
Proceedings for the recovery of any sum under this section shall be stayed if the defendant satisfies the court that proceedings relevant to his liability on the claim in relation to which the request has been made are pending, or are about to be instituted, before a court, tribunal or other competent body in the member State in question; but any such stay may be removed if the proceedings in the member State are not prosecuted or instituted with reasonable expedition.
It shall be a defence to proceedings under this section for the defendant to show that a final decision on the claim has been given in his favour by a court, tribunal or other competent body in the member State in question; and if he shows that such a decision has been given in respect of part of the claim it shall be a defence to the proceedings in so far as they relate to that part.
For the purposes of subsection (3) above proceedings shall be regarded as pending so long as an appeal may be brought against any decision in the proceedings; and for the purposes of subsection (4) above a final decision is one against which no appeal lies or against which an appeal lies within a period which has expired without an appeal having been brought.
In proceedings under this section any averment in the pleadings that a request has been made as mentioned in subsection (1) above for the recovery of the sum which is the subject of the proceedings shall be conclusive evidence of that fact; and except as provided in subsection (4) above no question shall be raised in any such proceedings as to the defendant's liability on the claim in relation to which the request has been made.
In relation to proceedings under this section in Scotland—
the reference in subsection (3) above—
to proceedings being stayed shall be construed as a reference to their being sisted ;
to a stay being removed shall be construed as a reference to a sist being recalled ; and
the references in subsections (3), (4) and (6) above to a defendant shall be construed as references to a defender.
This section shall not have effect in relation to a request for the recovery of any sum which became due before 15th March 1976.
The following provisions of the Import Duties Act 1958 shall cease to have effect, that is to say—
section 9 and Schedule 5 (drawback);
paragraphs 1, 2, 3, 6, 7, 9, 10 and 11 of Schedule 3 (goods eligible for conditional relief).
This section shall be deemed to have come into force on 1st July 1977.
As from 1st January 1978, Part I of the Finance Act 1972 (which imposes the charge to value added tax) shall be amended as shown in Part I of Schedule 6 to this Act (these being amendments mainly to give effect to new Community provisions relating to the incidence and operation of the tax).
As from that date, in consequence of subsection (1), that Part of the 1972 Act, and the other enactments and subordinate legislation mentioned in Part II of that Schedule, shall have effect subject to the amendments there specified; and Part III of the Schedule shall have effect for transitional purposes.
Paragraphs 1 and 2 of Schedule 1 to the Finance Act 1972 (liability to be registered) shall be amended as follows.
In paragraph 1, in the provisions before the Table, for " £5,000 " (in both places) there shall be substituted " £7,500 " and in the second column of the Table for " 1,750 ", " 3,000 ", "4,250" and "5,000" there shall be substituted respectively " 2,625 ", " 4,500 ", " 6,375 " and " 7,500 ".
In paragraph 2 for " £4,000 " (in both places) there shall be substituted " £6,000 ", and for "£1,250 " there shall be substituted " £1,875 ".
In section 20(1) of that Act (registration of local authorities) for "£5,000" (in both places) there shall be substituted " £7,500 ".
In Schedule 2 to that Act, at the end of paragraph 3 (deemed supply of business assets, where business proprietor de-registered, except in certain cases), there shall be added—or.
Subsection (5) above shall not come into force until 5th August 1977, and subsections (1) to (4) not until 1st October 1977.
Where, on or after 1st August 1977, goods are imported by a taxable person and— tax paid or payable by the taxable person on the importation of the goods shall not be regarded as input tax to be deducted or credited under section 3 of the Finance Act 1972 ; but he may make a separate claim to the Commissioners for it to be repaid.
at the time of importation they belong wholly or partly to another person ; and
the purposes for which they are to be used include private purposes either of himself or of the other,
The Commissioners shall allow the claim if they are satisfied that to disallow it would result, in effect, in a double charge to tax; and where they allow it they shall do so only to the extent necessary to avoid the double charge.
In considering a claim under this section, the Commissioners shall have regard to the circumstances of the importation and, so far as appearing to them to be relevant, things done with, or occurring in relation to, the goods at any subsequent time.
Any amount allowed by the Commissioners on the claim shall be paid by them to the taxable person.
In section 40(1) of the Finance Act 1972 (appeal to VAT Tribunal) after paragraph (j) there shall be inserted—.
The reference above to a person's private purposes is to purposes which are not those of any business carried on by him.
in respect of so much of an individual's total income as exceeds £6,000 at such higher rates as are specified in the Table below ; and
in respect of so much of the investment income included in an individual's total income as exceeds £1,500 at the additional rates of 10 per cent. for the first £500 of the excess and 15 per cent. for the remainder;
Corporation tax shall be charged for the financial year 1976 at the rate of 52 per cent.
The rate of advance corporation tax for the financial year 1977 shall be thirty-four sixty-sixths.
The small companies rate for the financial year 1976 shall be 42 per cent., and for that year the fraction mentioned in subsection (2) of section 95 of the Finance Act 1972 (marginal relief for small companies) shall be four twenty-fifths.
For the financial year 1976 and subsequent financial years subsection (3) of the said section 95 shall have effect with the substitution for any reference to £30,000 of a reference to £40,000 and with the substitution for any reference to £50,000 of a reference to £65,000.
Where by virtue of subsection (2) above the said section 95 has effect with different relevant amounts in relation to different parts of the same accounting period, those parts shall be treated for the purposes of that section as if they were separate accounting periods, and the profits and income of the company for that period (as defined in that section) shall be apportioned between those parts.
In paragraph 5(1) of Schedule 1 to the Finance Act 1974 (limit on relief for interest on certain loans for purchase or improvement of land used as an only or main residence) the references to £25,000 shall have effect for the year 1977-78 as well as for previous years of assessment.
In section 8 of the Taxes Act (personal reliefs)—
in subsection (1)(a) (married) for " £1,085 " there shall be substituted " £1,295 ";
in subsection (1)(b) (single) and (2) (wife's earned income relief) for " £735 " there shall be substituted " £845 ";
in subsection (1A) (age allowance) for " £1,555 " and "£1,010" there shall be substituted " £1,765 " and " £1,120 " respectively, and after the paragraphs in that subsection there shall be inserted the words " and for the purposes of this subsection a person who would have been of the age of sixty-five or upwards within the year of assessment if he had not died in the course of it shall be treated as having been of that age within that year. ";
in subsection (1B) for "£3,250" there shall be substituted " £3,500 ";
in subsection (2)(b) (Category A retirement pension eligible for wife's earned income relief) after the word " pension" there shall be inserted the words " or mobility allowance ".
In the year 1978-79 and subsequent years the personal reliefs allowed in this section shall be changed by not less than the same percentage as the increase in the retail price index for the previous calendar year : Provided that the Treasury may by order, subject to approval before coming into effect by resolution of the House of Commons, prescribe a lesser relief in respect of any financial year, so long as those reliefs are not less than the levels provided for in subsection (1) above.
In section 14(2) and (3) of that Act (additional relief for widows and others in respect of children) for " £350 " there shall be substituted " £450 " ; and in the year 1978-79 and subsequent years the additional relief allowed in this section shall be increased by not less than the same percentage as the increase in the retail price index for the previous calendar year : Provided that the Treasury may by order, subject to approval before coming into effect by resolution of the House of Commons, prescribe a lesser relief in respect of any financial year, so long as that lesser relief is not less than £420.
In section 219(2) of the Taxes Act (social security benefits exempt from tax) the word " and " shall be omitted and after " 1971 " there shall be inserted the words " and payments of child benefit ".
The amendments of the Income Tax Acts made by section 32(2), (3)(a) and (d), (4), (5) and (6) of the Finance Act 1976 shall not have effect.
Where for the year 1977-78 an individual is (or apart from this subsection would be) assessable to income tax in respect of payments in respect of a child, being payments to which this subsection applies, his income shall for the purposes of the Income Tax Acts be deemed to include only so much, if any, of the payments in respect of that child as exceeds £52 or, if the payments in question are payments for a part only of the year, a proportionate part of that amount.
Subsection (3) above applies to payments by way of—
child's special allowance or guardian's allowance under the Social Security Act 1975 or the Social Security (Northern Ireland) Act 1975 ; or
an allowance under section 70 of either of those Acts; or
an increase under Chapter III of Part II of either of those Acts of a widow's allowance, widowed mother's allowance, child's special allowance, retirement pension or invalid care allowance.
Subsections (1) and (2) above shall be deemed to have come into force on 4th April 1977.
Except in the case of a child to whom section 25 or 26 below applies, the appropriate amount to be deducted from the claimant's total income under subsection (1) of section 10 of the Taxes Act (children) for the year 1977-78 shall, instead of being determined in accordance with subsection (3) of that section, be determined in accordance with subsections (2) and (3) below; and in those subsections " first child " means a child shown by the claimant to be the only or eldest child in respect of whom he is entitled under that section to a deduction of an amount determined in accordance with those subsections.
The appropriate amount for the child shall vary according to the age of the child at the commencement of the year of assessment and according to whether or not he is a first child and, subject to subsection (5) of the said section 10—
for a child shown by the claimant to have been over the age of sixteen at the commencement of that year, shall be £261 in the case of a first child and £235 in the case of any other child:
for a child not so shown but shown by the claimant to have been then over the age of eleven, shall be £231 in the case of a first child and £205 in the case of any other child ;
for a child not falling within the foregoing paragraphs, shall be £196 in the case of a first child and £170 in the case of any other child.
Where the appropriate amount for a child is required to be apportioned under section 11 of the Taxes Act between two or more individuals and the child is the first child in relation to any but not each of them, that amount shall be determined as if he were the first child in relation to each of them.
If in the case of a child in respect of whom a claim is made under section 10 of the Taxes Act (children) the claimant proves that the conditions in subsection (2) below are fulfilled, the appropriate amount to be deducted from the claimant's income under subsection (1) of that section for the year 1977-78 shall be determined in accordance with subsection (3) of that section as amended for the year 1976-77 by section 29(2) of the Finance Act 1976.
The conditions referred to in subsection (1) above are—
that the child is outside the United Kingdom throughout the year of assessment (apart from any visit which does not exceed, or visits which together do not exceed, 30 days) and does not in that year normally live in a country or territory specified in subsection (3) below; and
that he is under the age of nineteen years at the end of that year ; and
that no child benefit is paid in respect of the child for any week (as defined in the child benefit legislation) beginning in that year; and
that no child benefit for any such week is (or if a claim were made would be) payable in respect of the child by virtue of Part II of the Child Benefit (Residence and Persons Abroad) Regulations 1976 or Part II of the Child Benefit (Residence and Persons Abroad) Regulations (Northern Ireland) 1976.
The countries and territories referred to in subsection (2)(a) above are Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany (Federal Republic), Gibraltar, the Irish Republic, the Isle of Man, Israel, Italy, Jersey, Luxembourg, the Netherlands, New Zealand, Norway, Spain and Sweden.
If in the case of a child in respect of whom a claim is made under section 10 of the Taxes Act (children) the claimant proves that the conditions in subsection (2) below are fulfilled, the appropriate amount to be deducted from the claimant's income under subsection (1) of that section for the year 1977-78 and the three following years of assessment shall be determined in accordance with subsection (3) of that section as amended for the year 1976-77 by section 29(2) of the Finance Act 1976.
The conditions referred to in subsection (1) above are—
that on 31st December 1976 the child was following a full-time course at a university, college, school or other educational establishment; and
that he was then over the age of nineteen years or that the course was an advanced course ; and
that he is following such a course as is mentioned in paragraph (a) above in an academic year beginning in the year of assessment and either—
is not in receipt of a grant from a government department or local authority or otherwise out of public funds in respect of that course for that academic year or any period determined by reference to it; or
is in receipt of such a grant as aforesaid, being a grant which is calculated in accordance with provisions for taking account of parental income but the amount of which does not fall to be reduced under those provisions.
In subsection (2)(b) above " advanced course " means— and if any question arises whether a course falls within the above definition, the Board may consult the Secretary of State for Education and Science.
a course in preparation for a degree, a diploma of higher education, a higher national diploma or a teaching qualification;
a course of post-graduate or post-diploma instruction; or
any other course, being a course of a standard above ordinary national diploma, general certificate of education (advanced level) or Scottish certificate of education (higher level);
In the application of subsection (3) above to Scotland and Northern Ireland the Secretary of State and the Department of Education for Northern Ireland shall respectively be substituted for the Secretary of State for Education and Science.
In its application to the year 1977-78 subsection (1) above shall have effect as if in subsection (2) above there were inserted after paragraph (c)(ii) the words or.
Sections 227 and 228 of the Taxes Act (which prescribe limits subject to which relief is available for premiums paid under approved retirement annuity contracts etc.) shall be amended as follows—
in subsections (1A) and (1C) of section 227 and subsections (1) and (4) of section 228 for "£2,250", wherever it occurs, there shall be substituted " £3,000 ";
in subsections (1B) and (1C) of section 227 for " £750 ", wherever it occurs, there shall be substituted " £1,000 "; and
Sum Percentage £3,600 18 £4,200 21 £4,800 24 £5,400 27 £6,000 30
This section does not affect relief for any year of assessment before the year 1977-78.
In section 15(1) of the Finance Act 1974 (maintenance payments up to £1,000 not to be investment income) for " £1,000 " there shall be substituted " £1,500 ".
Section 414(1) of the Taxes Act (relief from income tax on first £40 of certain savings bank interest) shall, for the year 1977-78 and subsequent years of assessment, have effect with the substitution of a reference to £70 for each reference to £40.
A payment on account of any allowance to which this section applies shall not be treated as income for any purposes of the Income Tax Acts.
This section applies to any allowance paid since the beginning of 1977 by the Secretary of State or the Department of Manpower Services for Northern Ireland under any scheme of the kind described in the Job Release Act 1977, being a scheme which provides for the payment of allowances for periods beginning not earlier than one year before the date on which the recipient attains pensionable age as defined in that Act.
Schedule 7 to this Act shall have effect for affording relief from tax under Case I of Schedule E where the duties of an office or employment are performed wholly or partly outside the United Kingdom.
A deduction shall not be allowed in respect of the same emoluments both under Schedule 7 to this Act and paragraph 3 of Schedule 2 to the Finance Act 1974 (foreign emoluments); and paragraph 4 of Schedule 7 to this Act shall, with the necessary modifications, have effect in relation to the amount of emoluments to be excepted under paragraph 4 of the said Schedule 2 as it has effect in relation to the amount of emoluments in respect of which a deduction is allowed under paragraph 1 of the said Schedule 7.
In consequence of the foregoing provisions, the Income Tax Acts shall be amended as follows—
in Case I in paragraph 1 of Schedule E as set out in section 181(1) of the Taxes Act for the words from " subject, however, to the deduction or exception" onwards there shall be substituted the words " subject, however, to the deduction or exception provided for in Schedule 2 to the Finance Act 1974 if the emoluments are foreign emoluments and to the deduction proveded for in Schedule 7 to the Finance Act 1977 if in the chargeable period he performs the duties of the office or employment wholly or partly outside the United Kingdom ";
in section 184(3) of the Taxes Act after the words "For the purposes of Cases I and II of Schedule E " there shall be inserted the words " , but subject to paragraph 7 of Schedule 7 to the Finance Act 1977, ";
in paragraph 16 of Schedule 8 to the Taxes Act after the words "the Finance Act 1974" there shall be inserted the words " or paragraph 1 of Schedule 7 to the Finance Act 1977 ";
section 21(2) of the Finance Act 1974 and paragraphs 1 and 2 of Schedule 2 to that Act shall cease to have effect.
This section has effect for the year 1977-78 and subsequent years of assessment but without prejudice to any deduction—
under paragraph 1 of Schedule 7 to this Act for that or a subsequent year by virtue of a period falling partly in a year before the year 1977-78 ; or
under paragraph 1 of Schedule 2 to the said Act of 1974 for a year before the year 1977-78 by virtue of a period falling partly in that or a subsequent year.
Subsections (2) and (3) below apply where a person (" the employee ") who is resident and ordinarily resident in the United Kingdom holds an office or employment (" the overseas employment") the duties of which are performed wholly outside the United Kingdom and the emoluments from which are not foreign emoluments within the meaning of paragraph 1 of Schedule E.
For the purposes of section 189(1) of the Taxes Act (deduction for certain expenses) there shall be treated as having been necessarily incurred in the performance of the duties of the overseas employment expenses of the employee in travelling from the United Kingdom to take up the overseas employment and in returning to the United Kingdom on its termination; and if travel is partly for a purpose mentioned in this subsection and partly for another purpose this subsection applies only to such part of the expenses as is properly attributable to the former purpose.
Where, for the purpose of enabling the employee to perform the duties of the overseas employment,— there shall be allowed, in charging tax under Case I of Schedule E on the emoluments from that employment, a deduction of an amount equal to so much of that cost or, as the case may be, those expenses as falls to be included in those emoluments. Where board and lodging is partly for the purpose mentioned in this subsection and partly for another purpose, this subsection applies only to such part of the cost or expenses as is properly attributable to the former purpose.
board and lodging outside the United Kingdom is provided for him and the cost of it is borne by or on behalf of his employer ; or
he incurs expenses out of the emoluments of the employment on such board and lodging for himself and those expenses are reimbursed by or on behalf of his employer,
Subsection (5) below applies where a person resident and ordinarily resident in the United Kingdom— and either or both of those places is outside the United Kingdom.
holds two or more offices or employments the duties of one or more of which are performed wholly or partly outside the United Kingdom ; and
travels from one place having performed there duties of one office or employment to another place for the purpose of performing duties of another office or employment (the emoluments from which are not foreign emoluments within the meaning of paragraph 1 of Schedule E),
For the purposes of section 189(1) of the Taxes Act (deduction for certain expenses) expenses incurred by such a person on such travel shall be treated as having been necessarily incurred in the performance of the duties which he is to perform at his destination ; and if travel is partly for the purpose of performing those duties and partly for another purpose this subsection applies only to such part of the expenses as is properly attributable to the former purpose.
Subsection (7) below applies where a person is absent from the United Kingdom for a continuous period of 60 days or more for the purpose of performing the duties of one or more offices or employments and applies to travel of the following descriptions between the United Kingdom and the place of performance of those duties, that is to say— but that subsection does not extend to more than two journeys in each direction by the same person in any year of assessment. For the purposes of this subsection " child " includes a stepchild, an adopted child and an illegitimate child but does not include a person who is aged 18 or over at the beginning of the outward journey.
any journey by his spouse or any child of his—
accompanying him at the beginning of the period of absence ; or
to visit him during that period ;
any journey by him at the end of that period to visit his spouse or any child of his ;
any return journey following a journey of a kind described in paragraph (a) or (b) above ;
Where— there shall be allowed, in charging tax under Case I of Schedule E on the emoluments from that office or employment, a deduction of an amount equal to so much of that cost or, as the case may be, those expenses as falls to be included in those emoluments.
travel facilities are provided for any such journey and the cost of them is borne by or on behalf of the employer; or
expenses are incurred out of the emoluments of any such office or employment on any such journey and those expenses are reimbursed by or on behalf of the employer,
References in the Income Tax Acts to section 189 of the Taxes Act and to deductions allowable under Chapter I of Part VIII of that Act shall be construed as including a reference to subsections (3) and (7) above and to deductions allowable under those subsections.
This section has effect for the year 1977-78 and subsequent years of assessment.
Subject to the provisions of this section, where living accommodation is provided for a person in any period by reason of his employment, and is not otherwise made the subject of any charge to him by way of income tax, he is to be treated for Schedule E purposes as being in receipt of emoluments of an amount equal to the value to him of the accommodation for the period, less so much as is properly attributable to that provision of any sum made good by him to those at whose cost the accommodation is provided.
The value of the accommodation to the employee in any period is the rent which would have been payable for the period if the premises had been let to him at an annual rent equal to their annual value as ascertained under section 531 of the Taxes Act; but for a period in which those at whose cost the accommodation is provided pay rent at an annual rate greater than the annual value as so ascertained, the value of the accommodation to the employee is an amount equal to the rent payable by them for the period.
From any amount to be treated as emoluments under subsection (1) above there are deductible under section 189 or 194(3) of the Taxes Act (necessary expenses etc.) such amounts (if any) as would have been so deductible if the accommodation had been paid for by the employee out of his emoluments.
Subject to subsection (5), subsection (1) does not apply to accommodation provided for the employee in any of the following cases— and in any such case there is no charge to tax under Schedule E (either by virtue of this section or under section 183 of the Taxes Act or otherwise) in respect of a liability for rates on the premises being discharged for or on behalf of the employee or the employee being reimbursed for the discharge of that liability.
where it is necessary for the proper performance of the employee's duties that he should reside in the accommodation;
where the accommodation is provided for the better performance of the duties of his employment, and his is one of the kinds of employment in the case of which it is customary for employers to provide living accommodation for employees;
where, there being a special threat to his security, special security arrangements are in force and he resides in the accommodation as part of those arrangements;
If the accommodation is provided by a company and the employee is a director of the company or of an associated company, then, except in a case where paragraph (c) of subsection (4) applies, no exemption is given by virtue of that subsection unless, for each employment of his which is employment as director of the company or an associated company, the following conditions are fulfilled, that is—
he has no material interest in the company, and
either his employment is as a full-time working director or the company is non-profit-making (meaning that neither does it carry on a trade, nor do its functions consist wholly or mainly in the holding of investments or other property) or is established for charitable purposes only.
If by reason of a person's employment accommodation is provided for others being members of his family or household, he is to be treated under subsections (1) to (3) as if it were accommodation provided for him.
For the purposes of this section, living accommodation provided for an employee, or for members of his family or household, by his employer is deemed to be provided by reason of his employment unless—
the employer is an individual, and it can be shown that he makes the provision in the normal course of his domestic, family or personal relationships ; or
the accommodation is provided by a local authority for an employee of theirs, and it can be shown that the terms on which it is provided are no more favourable than those on which similar accommodation is provided by the authority for persons who are not their employees but are otherwise similarly circumstanced.
For the purposes of this section—
a company is an associated company of another if one of them has control of the other or both are under the control of the same person ; and
the following interpretative provisions of section 72 of the Finance Act 1976, that is to say, subsection (2) (" employment "), subsection (4) (" family or household "), subsections (8) to (10) (" director ", " full-time working director" and " material interest") and subsection (11) (" control ", in relation to body corporate) apply as if this section were included in sections 60 to 71 of that Act.
This section has effect for the year 1977-78 and subsequent years of assessment.
After section 63 of the Finance Act 1976 (cash equivalent of benefits charged under section 61) there shall be inserted the following section:—.
This section has effect for the year 1977-78 and subsequent years of assessment.
For section 69 of the Finance Act 1976 (employments to be treated as " director's or higher-paid ") the following section shall be substituted—.
In consequence of sections 33 and 34 above and of this section, the Tax Acts shall be amended as shown in Part I of Schedule 8 to this Act.
Subsections (1) and (2) above have effect for the year 1977-78 and subsequent years of assessment; and, for the year 1978-79 and subsequent years of assessment, " £7,500" shall be substituted for " £5,000 " in subsections (1)(b) and (3)(a) of section 69 of the Finance Act 1976.
In Schedule 9 to the Finance Act 1976 (consequential amendments of enactments in connection with revised provisions relating to taxation of directors' benefits etc.), paragraph 15 (substitution of new proviso to section 284(2) of the Taxes Act, about close company distributions) shall be deemed to have been so enacted that in paragraph (b) of the substituted proviso, after the word " annuity " there were inserted the words " lump sum, gratuity or other like benefit to be given ".
In Part II of Schedule 1 to the Finance Act 1974 (conditions of allowance of interest relief on loans for purchase or improvement of land), after paragraph 4 there shall be inserted—.
In consequence of subsection (1) above, other provisions of Part II of Schedule 1 to the Finance Act 1974 shall be amended as shown in Part II of Schedule 8 to this Act.
No charge to Schedule E tax shall arise in respect of travel facilities provided for members of the naval, military or air forces of the Crown going on, or returning from, leave.
This applies whether the charge would otherwise have arisen under— and applies not only to travel vouchers and warrants for particular journeys but also to allowances and other payments for and in respect of leave travel, whether or not a warrant was available.
section 36 of the Finance (No. 2) Act 1975 (certain vouchers treated as benefits in kind);
section 61 of the Finance Act 1976 (benefits in kind for the higher-paid); or
Chapter I of Part VIII of the Taxes Act (charge to Schedule E tax);
This section has effect for the year 1976-77 and subsequent years of assessment.
This section applies to any settlement in relation to which the Treasury have given a direction under section 84 of the Finance Act 1976 (maintenance funds for historic buildings).
The trustees of the settlement may elect that this subsection shall have effect in relation to any year of assessment, and if they do so—
any income arising in that year from the property comprised in the settlement which, apart from this subsection, would be treated by virtue of Part XVI of the Taxes Act (settlements) as income of the settlor shall not be so treated; and
no sum applied in that year out of the property for the purposes mentioned in subsection (3)(a)(i) of the said section 84 (maintenance etc. of a building or land) shall be treated for any purposes of the Income Tax Acts as the income of any person—
by virtue of any interest of that person in, or his occupation of, the building or land in question; or
by virtue of section 451 of the Taxes Act (sums paid to settlor otherwise than as income).
Where income arising from the property comprised in the settlement in a year of assessment for which no election is made under subsection (2) above is treated by virtue of the said Part XVI as income of the settlor, paragraph (b) of that subsection shall have effect in relation to any sums in excess of that income which are applied in that year as mentioned in that paragraph.
Any election under subsection (2) above shall be by notice in writing to the Board in such form as the Board may require and shall be made within two years of the end of the year of assessment to which it relates.
Where— the foregoing provisions of this section shall apply as if each of those parts were a separate year of assessment and separate elections may be made accordingly.
circumstances obtain for part of a year of assessment by virtue of which income arising from property comprised in the settlement is treated as income of a settlor under the said Part XVI; and
no such circumstances obtain for the remainder of that year,
Subsection (4) of section 69 of the Finance (No. 2) Act 1975 (which requires deductions to be made from payments to certain sub-contractors in the construction industry) shall have effect in relation to payments made on or after 6th November 1977 with the substitution for " 35 per cent. " of " 34 per cent."
In this paragraph ' ordinary share capital' has the meaning given in section 526(5) of the Income and Corporation Taxes Act 1970.
Subject to subsection (3) below, neither the said paragraph 6 nor paragraph 7 of the said Schedule 7 (reconstructions and amalgamations) shall apply to any issue by a company of shares in or debentures of that company in exchange for or in respect of shares in or debentures of another company unless the exchange, reconstruction or amalgamation in question is effected for bona fide commercial reasons and does not form part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoidance of liability to capital gains tax or corporation tax.
Subsection (2) above shall not affect the operation of paragraph 6 or 7—
in any case where the person to whom the shares or debentures are issued does not hold more than 5 per cent. of, or of any class of, the shares in or debentures of the second company mentioned in that subsection; or
in any case where, before the issue is made, the Board have, on the application of either company mentioned in that subsection, notified the company that the Board are satisfied that the exchange, reconstruction or amalgamation will be effected for bona fide commercial reasons and will not form part of any such scheme or arrangements as are there mentioned.
Any application under subsection (3)(b) above shall be in writing and shall contain particulars of the operations that are to be effected and the Board may, within thirty days of the receipt of the application or of any further particulars previously required under this subsection, by notice require the applicant to furnish further particulars for the purpose of enabling the Board to make their decision; and if any such notice is not complied with within thirty days or such longer period as the Board may allow, the Board need not proceed further on the application.
The Board shall notify their decision to the applicant within thirty days of receiving the application or, if they give a notice under subsection (4) above, within thirty days of the notice being complied with.
If the Board notify the applicant that they are not satisfied as mentioned in subsection (3)(b) above or do not notify their decision to the applicant within the time required by subsection (5) above, the applicant may within thirty days of the notification or of that time require the Board to transmit the application, together with any notice given and further particulars furnished under subsection (4) above, to the Special Commissioners ; and in that event any notification by the Special Commissioners shall have effect for the purposes of subsection (3)(b) above as if it were a notification by the Board.
If any particulars furnished under this section do not fully and accurately disclose all facts and considerations material for the decision of the Board or the Special Commissioners, any resulting notification that the Board or Commissioners are satisfied as mentioned in subsection (3)(b) above shall be void.
If any tax assessed on a person (the chargeable person) by virtue of subsection (2) above is not paid within six months from the date when it is payable, any other person who— may, at any time within two years from the time when the tax became payable, be assessed and charged (in the name of the chargeable person) to all or, as the case may be, a corresponding part of the unpaid tax ; and a person paying any amount of tax under this subsection shall be entitled to recover a sum of that amount from the chargeable person.
holds all or any part of the shares or debentures that were issued to the chargeable person; and
has acquired them without there having been, since their acquisition by the chargeable person, any disposal of them not falling within paragraph 20 of Schedule 7 to the Finance Act 1965 or section 273 of the Taxes Act (disposals between spouses or members of a group of companies),
In this section references to shares or debentures include references to any interests or options to which the provisions mentioned in subsection (2) above apply by virtue of paragraph 15 of Schedule 12 to the Finance Act 1968 or section 58(4) of the Finance Act 1971; and for the purposes of subsection (3)(a) above shares or debentures held by persons connected with the person there mentioned shall be treated as held by him.
This section applies where the shares or debentures are issued after 19th April 1977 and section 279 of the Taxes Act shall apply only if the earlier occasion mentioned in that section fell on or before that date.
In section 267 of the Taxes Act (relief where reconstruction or amalgamation involves transfer of business assets) after subsection (3) there shall be inserted—.
This section applies where the transfer takes effect after 19th April 1977.
For section 268 of the Taxes Act (postponement of charge on transfer of assets to non-resident company) there shall be substituted—
This section shall be deemed to have come into force on 29th March 1977.
This section has effect as respects the disposal of an asset if a scheme has been effected or arrangements have been made (whether before or after the disposal) whereby—
the value of the asset has been materially reduced ; and
a tax-free benefit has been or will be conferred—
on the person making the disposal or a person with whom he is connected; or
subject to subsection (3) below, on any other person.
For the purposes of subsection (1)(b) above a benefit is conferred on a person if he becomes entitled to any money or money's worth or the value of any asset in which he has an interest is increased or he is wholly or partly relieved from any liability to which he is subject; and a benefit is tax-free unless it is required, on the occasion on which it is conferred on the person in question, to be brought into account in computing his income, profits or gains for the purposes of income tax, capital gains tax or corporation tax.
This section shall not apply by virtue of subsection (1)(b)(ii) above if it is shown that avoidance of tax was not the main purpose or one of the main purposes of the scheme or arrangements in question.
Where this section has effect in relation to any disposal, any allowable loss or chargeable gain accruing on the disposal shall be calculated as if the consideration for the disposal were increased by such amount as appears to the inspector, or on appeal the Commissioners concerned, to be just and reasonable having regard to the scheme or arrangements and the tax-free benefit in question.
Where— any allowable loss or chargeable gain accruing on the first disposal of the other asset after the increase in its value shall be calculated as if the consideration for that disposal were reduced by such amount as appears to the inspector, or on appeal the Commissioners concerned, to be just and reasonable having regard to the scheme or arrangements in question and the increase made in relation to the disposal mentioned in paragraph (a) above.
by virtue of subsection (4) above the consideration for the disposal of an asset has been treated as increased ; and
the benefit taken into account under subsection (1)(b) above was an increase in the value of another asset,
References in this section to a disposal do not include references to any disposal falling within—
section 24(7) of the Finance Act 1965 (disposals by personal representatives to legatees); or
paragraph 20(1) of Schedule 7 to that Act (disposals between husband and wife); or
section 273(1) of the Taxes Act (disposals within a group of companies).
In relation to the disposal by a company of an asset consisting of shares in another company the reference in subsection (1)(a) above to a reduction in the value of the asset does not include a reference to any reduction attributable to—
the payment of a dividend by the second company at a time when it and the first company are members of the same group of companies within the meaning of section 272 of the Taxes Act; or
the disposal of any asset by the second company at such a time, being a disposal falling within section 273(1) of that Act.
In relation to a case in which the disposal of an asset precedes its acquisition the reference in subsection (1)(a) above to a reduction shall be read as including a reference to an increase.
This section applies where the disposal and reduction in value mentioned in subsection (1) above (or, in a case within subsection (8) above, the disposal and reduction or increase in value) are after 29th March 1977.
In relation to gains accruing on disposals after 5th April 1977 section 112 of the Finance Act 1972 (reduction of tax liability on certain disposals of shares in unit trusts, investment trusts and funds in court) shall have effect as if for the references in paragraphs (b) and (c) of subsection (3) to 17 ½ per cent. there were substituted references to 17 per cent.
Section 113 of that Act (reduced rate of capital gains tax for certain unit trusts and funds in court) shall have effect for the year 1977-78 and subsequent years of assessment as if the rate specified in it were 17 per cent. instead of 17 ½ per cent.
Subsections (2) and (3) below apply where a company resident in the United Kingdom carries on insurance business outside the United Kingdom through a branch or agency and—
that business, or part of it, together with the whole assets of the company used for the purposes of that business or part (or together with the whole of those assets other than cash), is transferred to a company not resident in the United Kingdom ;
the business or part is so transferred wholly or partly in exchange for shares, or for shares and loan stock, issued by the transferee company to the transferor company; and
the shares so issued, either alone or taken together with any other shares in the transferee company already held by the transferor company, amount in all to not less than one quarter of the ordinary share capital of the transferee company.
In making any computation in accordance with the provisions of the Taxes Act applicable to Case I of Schedule D of the profits or losses of the transferor company for the accounting period in which the transfer occurs there shall be disregarded any profit or loss in respect of any asset transferred which, apart from this subsection, would fall to be taken into account in making that computation.
Where by virtue of subsection (2) above any profit or loss is disregarded in making any computation otherwise than for the purposes of section 305(2) of the Taxes Act (restriction on relief for expenses of management) the profit or loss shall be treated for the purposes of Part III of the Finance Act 1965 as a chargeable gain or allowable loss accruing to the transferor company on the transfer.
Where at any time a company resident in the United Kingdom— ceases to be resident in the United Kingdom, the profits or losses of the company in respect of that business for the accounting period ending at that time shall be computed for tax purposes without regard to the whole or, as the case may be, a corresponding part of any profit or loss in respect of any asset which, apart from this subsection, would fall to be calculated in accordance with section 137(1)(b) of the Taxes Act (valuation of trading stock on discontinuance of trade) and taken into account in making that computation.
which carries on insurance business wholly outside the United Kingdom; and
the whole or part of whose ordinary share capital is beneficially owned by one or more companies resident in the United Kingdom,
Subsections (1) to (3) above apply where the transfer is on or after 29th March 1977 and subsection (4) above applies where the company ceases to be resident in the United Kingdom on or after that date.
Subsections (3) and (4) below shall have effect where a transaction to which this section applies occurs in relation to any securities (" the original holding ")—
to which a person carrying on a banking business, an insurance business or a business consisting wholly or partly in dealing in securities is beneficially entitled; and
which are such that a profit on their sale would form part of the trading profits of that business.
This section applies to any transaction which, if the securities were not such as is mentioned in subsection (1)(b) above— but does not apply to any transaction in relation to which section 326 (exchange of securities in connection with conversion operations, nationalisation etc.) of the Taxes Act applies or would apply if the person concerned had not given a notice under that section.
would result in the original holding being equated with a new holding by virtue of paragraph 4, 5, 6 or 7 of Schedule 7 to the Finance Act 1965 (capital gains tax roll-over relief in cases of conversions etc.); or
would be treated by virtue of section 53 of the Finance Act 1976 (compensation stock) as an exchange for a new holding which does not involve a disposal of the original holding,
Subject to subsection (4) below, in making any computation in accordance with the provisions of the Taxes Act applicable to Case I of Schedule D of the profits or losses of the business—
the transaction shall be treated as not involving any disposal of the original holding ; and
the new holding shall be treated as the same asset as the original holding.
Where under the transaction the person concerned receives or becomes entitled to receive any consideration in addition to the new holding, subsection (3) above shall have effect as if references to the original holding were references to the proportion of it which the market value of the new holding at the time of the transaction bears to the aggregate of that value and the market value at that time (or, if it is cash, the amount) of the consideration.
Subsections (3) and (4) above shall have effect with the necessary modifications in relation to any computation made for the purposes of section 305(2) of the Taxes Act (restriction on relief for expenses of management) in a case where securities held by the company concerned are equated with a new holding by virtue of any of the provisions mentioned in paragraph (a) of subsection (2) above or are treated as not disposed of by virtue of the provision mentioned in paragraph (b) of that subsection.
In this section " securities " includes shares, any security within the meaning of paragraph 5 of Schedule 7 to the said Act of 1965 and any rights, interests or options which by virtue of section 45(8) of that Act, paragraph 15 of Schedule 12 to the Finance Act 1968 or section 58(4) of the Finance Act 1971 are treated as shares for the purposes of the provisions mentioned in subsection (2) above.
In determining for the purposes of subsection (2)(a) above whether a transaction would result in the original holding being equated with a new holding by virtue of paragraph 6 or 7 of Schedule 7 to the said Act of 1965 the reference in section 40(2) above to capital gains tax shall be construed as a reference to income tax.
This section applies where the securities comprised in the new holding are issued after 19th April 1977.
In section 338 of the Taxes Act (exemption of income and gains of certain trade unions if applicable and applied for purpose of provident benefits) references to a registered trade union shall be construed as including references to the Police Federation for England and Wales, the Police Federation for Scotland, the Police Federation for Northern Ireland and any other organisation of persons in police service which has similar functions.
This section shall have effect in relation to income or gains which are applicable and applied as mentioned in subsection (1) of the said section 338 after 30th September 1971.
Any payment to which this subsection applies shall be made without deduction of income tax, shall not be allowed as a deduction in computing the income or total income of the person by whom it is made and shall not be a charge on income for the purposes of corporation tax.
Subject to the following provisions of this section, subsection (1) above applies to any payment which—
is an annuity or other annual payment charged with tax under Case III of Schedule D, not being interest; and
is made under a liability incurred for consideration in money or money's worth all or any of which is not required to be brought into account in computing for the purposes of income tax or corporation tax the income of the person making the payment.
Subsection (1) above does not apply to—
any payment which in the hands of the recipient is income falling within section 457(1)(a) or (c) or (2) of the Taxes Act (partnership agreements, transfers of businesses and maintenance agreements);
any payment made to an individual under a liability incurred in consideration of his surrendering, assigning or releasing an interest in settled property to or in favour of a person having a subsequent interest;
any annuity granted in the ordinary course of a business of granting annuities ; or
any annuity charged on an interest in settled property and granted at any time before 30th March 1977 by an individual to a company whose business at that time consisted wholly or mainly in the acquisition of interests in settled property or which was at that time carrying on life assurance business in the United Kingdom.
In the application of this section to Scotland the references in subsection (3) above to settled property shall be construed as references to property held in trust.
Subsection (1) above does not apply to any payment made on or before 29th March 1977 but applies to a payment made after that date irrespective of when the liability to make it was incurred.
In section 45 of the Finance Act 1975 (which in subsection (1)(c) provides that certain persons domiciled in the Channel Islands or the Isle of Man are to be treated as domiciled in the United Kingdom) after subsection (2) there shall be inserted—.
Subject to the following provisions of this section, property situated outside the United Kingdom is excluded property for the purposes of Part III of the said Act of 1975 if—
the person beneficially entitled to it is domiciled in the United Kingdom by virtue only of subsection (1)(c) of the said section 45 ; and
it is shown that the property directly or indirectly represents—
emoluments resulting from the carrying on by him of an office or employment in the Islands at a time when (disregarding that section) he was domiciled there; or
profits resulting from the carrying on of a business there at such a time either by him or by a company of which he then had control.
Paragraph (b)(i) of subsection (2) above does not apply to a person's emoluments from an office or employment in a business of the kind mentioned in subsection (4) below which is carried on by a person with whom he is connected; and paragraph (b)(ii) of subsection (2) above does not apply to profits from the carrying on of a business of the kind mentioned in subsection (4) below.
The business referred to above is any business which consists wholly or mainly of one or more of the following, that is to say—
dealing in securities, stocks or shares or in land or buildings situated outside the Islands ; or
making or holding investments, being, in the case of investments consisting of land or buildings, land or buildings situated outside the Islands.
Subsection (2) above does not apply in relation to settled property; but where at the time when a settlement was made the settlor was domiciled in the United Kingdom by virtue only of section 45(1)(c) of the said Act of 1975 any property comprised in the settlement is excluded property for the purposes of Part III of that Act if—
it is situated outside the United Kingdom ; and
it is, or directly or indirectly represents, property that was excluded property by virtue of that subsection at the time when it was settled.
In this section—
" business " includes a business carried on in the exercise of a profession or vocation;
" the Islands " means the Channel Islands and the Isle of Man; and paragraph 13(7) of Schedule 4 to the said Act of 1975 (control of company) applies for the purposes of subsection (2) above.
Where the acquisition mentioned in paragraph (b) of sub-paragraph (10) above was before 14th March 1975—
This section shall be deemed to have come into force on 29th March 1977.
Paragraph 19 of Schedule 5 to the Finance Act 1975 (trusts for mentally disabled persons) shall be amended as follows.
In sub-paragraph (1) after the words “a mentally disabled person" there shall be inserted the words “ or of a person in receipt of an attendance allowance".
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In sub-paragraph (2)(b) after the words "for the benefit of the mentally disabled person" there shall be inserted the words " or, as the case may be, for the care or maintenance of the person in receipt of the attendance allowance ".
At the end of Sub-paragragh (4) there shall be added the words “and“ attendance allowance" means an allowance under section 35 of the Social Security Act 1975 or the Social Security (Northern Ireland) Act 1975"
In sections 32(2) and 34(4) of the Finance Act 1975 and section 78(3) of the Finance Act 1976 (liability of person for whose benefit conditionally exempt property is disposed of) for the words "person for whose benefit" there shall be substituted the words " person by whom or for whose benefit ".
This section applies where the event by reason of which tax is chargeable under the provisions mentioned in subsection (1) above occurs after 19th April 1977.
After paragraph 6 of Schedule 3 to the Oil Taxation Act 1975 there shall be inserted—.
In the said paragraph 6, in sub-paragraph (1), for the words “another person (in this paragraph referred to as “the owner")" there shall be substituted the words “a person (in this paragraph referred to as “the owner") who is not a participator and".
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
No charity within the meaning of section 360 of the Taxes Act shall be liable to pay the surcharge imposed by the National Insurance Surcharge Act 1976.
This section shall be deemed to have come into force on 6th April 1977.
In subsection (3) of section 30 of the Exchange Control Act 1947 (which restricts the making of loans of money or securities to bodies corporate which are resident in the scheduled territories but controlled by persons not so resident) for the words " any money, securities " there shall be substituted the words " any money or securities or any instrument to which subsection (3 A) of this section applies ".
After subsection (3) of the said section 30 there shall be inserted—
In section 42(1) of the said Act of 1947 (interpretation) for the definition of " securities " there shall be substituted the following definition (which incorporates the effect of section 55(1) of the Finance Act 1968)— and there shall be inserted at the appropriate points in alphabetical order the definitions of " certificate of deposit " and " Government bill" set out in section 55(3) of the said Act of 1968.
In sections 21(1)(c) and 22(1)(b) of the said Act of 1947 (which restrict the import and export of certain instruments) after the words " Treasury bills " there shall be inserted the words (which reproduce the effect of section 55(2) of the said Act of 1968) ", Government bills, certificates of deposit or any description of promissory notes which is for the time being prescribed under paragraph (d) of the definition of ' securities' in section 42(1) of this Act ".
Any amendment by this section of a provision which extends to the Channel Islands by virtue of any Order in Council under section 43(3) of the said Act of 1947 extends similarly; and, without prejudice to any further provision made by any such Order, section 30(3A) shall so extend with the substitution for references to the United Kingdom of references to the Channel Islands as defined in any such Order.
Subsections (1) and (2) above, and so much of subsection (5) above as relates to those subsections, shall not come into force until such day as the Treasury may appoint by order made by statutory instrument.
This Act may be cited as the Finance Act 1977.
In this Act “the Taxes Act” means the Income and Corporation Taxes Act 1970.
In this Act—
Part I (except sections 5 and 6) shall be construed as one with such of the Customs and Excise Acts 1979 as the provision in question requires.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part III, so far as it relates to income tax, shall be construed as one with the Income Tax Acts, so far as it relates to corporation tax shall be construed as one with the Corporation Tax Acts . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Except so far as the context otherwise requires, any reference in this Act to any enactment shall be construed as a reference to that enactment as amended, and as including a reference to that enactment as applied, by or under any other enactment, including this Act.
The enactments mentioned in Schedule 9 to this Act (which include spent enactments) are hereby repealed to the extent specified in the third column of that Schedule, but subject to any provision at the end of any Part of that Schedule.
Section 1(4). Description of made-wine (in strengths measured by reference to the following percentages of alcohol by volume at a temperature of 20°C.) Rates of duty (per gallon) £ Made-wine of an alcoholic strength— not exceeding 10 per cent. 2.1100 exceeding 10 but not exceeding 15 per cent. 3.1600 exceeding 15 but not exceeding 18 per cent. 3.4750 exceeding 18 per cent. 3.4750 plus £0.4700 for every 1 per cent. or part of 1 per cent. in excess of 18 per cent.; each of the above rates of duty being, in the case of sparkling made-wine, increased by £0.3300 per gallon.
Section 3. Unmanufactured tobacco Period in which duty paid (all dates inclusive) Containing 10 per cent. or more by weight of moisture Containing less than 10 per cent. by weight of moisture Manufactured tobacco £ per pound £ per pound £ per pound 10th May 1976 to 15th December 1976 5·8150 5·8560 5·9000 16th December 1976 to 29th March 1977 6·3965 6·4416 6·4900 30th March 1977 to 31st December 1977 6·4000 6·4410 6·4850
Section 5.
Description of vehicle Rate of duty £ 1. Bicycles and tricycles of which the cylinder capacity of the engine does not exceed 150 cubic centimetres; electrically propelled bicycles; electrically propelled tricycles which do not exceed 165 pounds in weight unladen 5.00 2. Bicycles of which the cylinder capacity of the engine exceeds 150 cubic centimetres but does not exceed 250 cubic centimetres; tricycles (other than those in the foregoing paragraph) and vehicles (other than mowing machines) with more than three wheels, being tricycles and vehicles neither constructed nor adapted for use nor used for the carriage of a driver or passenger 10.00 3. Bicycles and tricycles not in the foregoing paragraphs 20.00
Description of vehicle Rate of duty £ Hackney carriages 25.00 with an additional 50p for each person above 20 (excluding the driver) for which the vehicle has seating capacity.
Weight unladen of vehicle Rate of duty 1. 2. 3. 4. 5. Description of vehicle Exceeding Not exceeding Initial Additional for each ton or part of a ton in excess of the weight in column 2 £ £ 1. Agricultural machines; digging machines; mobile cranes; works trucks; mowing machines; fishermen's tractors. — — 8.50 — 2. Haulage vehicles, being showmen's vehicles. — 7 ¼ tons 84 00 — 7 ¼ tons 8 tons 101.00 — 8 tons 10 tons 118.00 — 10 tons — 118.00 18.00 3. Haulage vehicles, not being showmen's vehicles. — 2 tons 100.00 — 2 tons 4 tons 180.00 — 4 tons 6 tons 260.00 — 6 tons 7 ¼ ons 340.00 — 7 ¼ tons 8 tons 415.00 — 8 tons 10 tons 415.00 70.00 10 tons — 555.00 80.00
Weight unladen of vehicle Rate of duty 1. 2. 3. 4. 5. Description of vehicle Exceeding Not exceeding Initial Additional for each ¼ ton or part of a ¼ ton in excess of the weight in column 2 £ £ 1. Farmers' goods vehicles — 12 cwt 30.00 — 12cwt 16 cwt 32.00 — 16 cwt 1 ton 35.00 — 1 ton 3 tons 35.00 4.00 3 tons 6 tons 67.00 3.00 6 tons 10 tons 103.00 2.00 10 tons — 135.00 4.00 2. Showmen's goods vehicles — 12 cwt 30 00 — 12 cwt 16 cwt 32.00 — 16 cwt 1 ton 35.00 — 1 ton 3 tons 35.00 4.00 3 tons 6 tons 67.00 3.00 6 tons 10 tons 103.00 4.00 10 tons — 167.00 6.00 3. Electrically propelled goods vehicles (other than farmers' goods vehicles or showmen's goods vehicles); tower wagons. — 12 cwt 40.00 — 12 cwt 16 cwt 44.00 — 16 cwt 1 ton 50.00 — 1 ton 4 tons 50.00 5.00 4 tons 6 tons 110.00 6.00 6 tons 10 tons 158.00 5.00 10 tons — 238.00 8.00 4. Goods vehicles not included in any of the foregoing provisions of this Part of this Schedule. — 16 cwt 50.00 — 16 cwt 1 ton 56.00 — 1 ton 4 tons 56.00 14.00 4 tons 10 tons 224.00 25.00 10 tons — 824.00 30 00 Weight unladen of vehicle 1. 2. 3. 4. Description of vehicle Exceeding Not exceeding Rate of duty £ 1. Showmen's goods vehicles — — 30.00 2. Other goods vehicles — 1 ½ tons 30.00 1 ½ tons 3 tons 40.00 3 tons 4 tons 67.00 4 tons 6 tons 90.00 6 tons — 112.00
Description of vehicle Rate of duty £ 1. Electrically propelled vehicles; vehicles not exceeding seven horse-power, if registered under the Roads Act 1920 for the first time before 1st January 1947 36.00 2. Vehicles not included above 50.00
Description of vehicle Rate of duty £ 1. Bicycles and tricycles of which the cylinder capacity of the engine does not exceed 150 cubic centimetres; electrically propelled bicycles; electrically propelled tricycles which do not exceed 165 pounds in weight unladen 5.00 2. Bicycles of which the cylinder capacity of the engine exceeds 150 cubic centimetres but does not exceed 250 cubic centimetres; tricycles (other than those in the foregoing paragraph) and vehicles (other than mowing machines) with more than three wheels, being tricycles and vehicles neither constructed nor adapted for use nor used for the carriage of a driver or passenger 10.00 3. Bicycles and tricycles not in the foregoing paragraphs 20.00
Description of vehicle Rate of duty £ Hackney carriages 25.00 with an additional 50p for each person above 20 (excluding the driver) for which the vehicle has seating capacity.
Weight unladen of vehicle Rate of duty 1. 2. 3. 4. 5. Description of vehicle Exceeding Not exceeding Initial Additional for each ton or part of a ton in excess of the weight in column 2 £ £ 1. Agricultural machines; digging machines; mobile cranes; works trucks; mowing machines; fishermen's tractors. — — 8.50 — 2. Haulage vehicles, being showmen's vehicles. — 7 ¼ tons 84.00 — 7 ¼ tons 8 tons 101.00 — 8 tons 10 tons 118.00 — 10 tons — 118.00 18.00 3. Haulage vehicles, not being showmen's vehicles. — 2 tons 90.00 — 2 tons 4 tons 160.00 — 4 tons 6 tons 230.00 — 6 tons 7 ¼ tons 300.00 — 7 ¼ tons 8 tons 370.00 — 8 tons — 370.00 80.00
Weight unladen of vehicle Rate of duty 1. 2. 3. 4. 5. Description of vehicle Exceeding Not exceeding Initial Additional for each ¼ ton or part of a ¼ ton in excess of the weight in column 2 £ £ 1. Farmers' goods vehicles — 12 cwt 30.00 — 12 cwt 16 cwt 32.00 — 16 cwt 1 ton 35.00 — 1 ton 3 tons 35.00 4.00 3 tons 6 tons 67.00 2.00 6 tons 8 tons 91.00 1.00 8 tons — 99.00 2.00 2. Showmen's goods vehicles; electrically propelled goods vehicles (other than farmers' goods vehicles); tower wagons. — 12 cwt 38.00 — 12 cwt 16 cwt 40.00 — 16 cwt 1 ton 43.00 — 1 ton 6 tons 43.00 3.00 6 tons 10 tons 103.00 4.00 10 tons — 167.00 5.00 3. Goods vehicles not included in any of the foregoing provisions of this Part. — 16 cwt 50.00 — 16 cwt 1 ton 56.00 — 1 ton 3 tons 56.00 10.00 3 tons 4 tons 136.00 16.00 4 tons 6 tons 200.00 21.00 6 tons 10 tons 368.00 24.00 10 tons — 752.00 28.00 Weight unladen of vehicle 1. 2. 3. 4. Description of vehicle Exceeding Not exceeding Rate of duty £ £ 1. Showmen's goods vehicles — — 30.00 2. Other goods vehicles — 1 ½ tons 30.00 1 ½ tons 3 tons 40.00 3 tons 4 tons 67.00 4 tons 6 tons 90.00 6 tons — 112.00
Description of vehicle Rate of duty £ 1. Electrically propelled 36.00 2. Not electrically propelled— (a) if first registered under the Roads Act 1920 before 1st January 1947, or which, if its first registration for taxation purposes had been effected in Northern Ireland would have been so first registered as aforesaid under the Act as in force in Northern Ireland— (i) not exceeding 6 horse-power 30.00 (ii) exceeding 6 horse-power, but not exceeding 9 horse-power—for each unit or part of a unit of horse-power 5.00 (b) other vehicles 50.00
For sections 2 to 6 of the 1972 Act (scope of tax, deduction of input tax, taxable persons, supply and self-supply) the following sections shall be substituted—
In section 7 of the 1972 Act (time of supply) the following shall be substituted for subsections (7) and (8)—
In section 8 of the 1972 Act (place of supply) the words " or services" in subsection (1), and subsections (4) to (7), shall be omitted ; and after that section there shall be inserted—
For section 11 of the 1972 Act (valuation of imported goods) the following shall be substituted—
In section 12 of the 1972 Act (zero-rating), after subsection (7) there shall be inserted—.
and the Schedule may be varied so as to describe a supply of goods by reference to the use which has been made of them or to other matters unrelated to the characteristics of the goods themselves
In section 16(3) of the 1972 Act (power to remit or repay tax on importation of goods) the words from " to the tax chargeable " to the end shall become paragraph (a), and at the end there shall be added—
In section 17 of the 1972 Act (application of customs enactments for the purposes of VAT)—
in subsection (2) (certain provisions of Customs and Excise Act 1952 not to apply), after paragraph (d), there shall be inserted—; and
subsection (3) shall be omitted.
In section 30 of the 1972 Act (accounting for, and payment of, tax), subsection (1) shall be omitted and after subsection (2) there shall be inserted—.
In section 33 of the 1972 Act (recovery of tax) the following shall be substituted for subsection (2)—.
In section 40(1) of the 1972 Act (appeal to VAT Tribunal), for paragraph (h) the following paragraph shall be substituted—.
In section 43 of the 1972 Act (orders, rules and regulations), in subsection (4) before the words " shall be laid " there shall be inserted " and an order under section 6(4) of this Act ".
For section 45 of the 1972 Act (meaning of "business" etc.) the following section shall be substituted—.
For Schedules 2 and 3 to the 1972 Act there shall be substituted the following Schedules—
At the following places in the 1972 Act for the words "in the course of a business " there shall be substituted the words " in the course or furtherance of any business " — section 15A(i), 18,19(2) (twice), 31(3), 35(2) and (4); and Schedule 4, Group 8, Note (2)(c).
At the places in that Act specified in the first column of the following Table, the words shown in the second column are replaced by those shown in the third column— Section/subsection/ Schedule reference Existing words Substituted words Section 12(8) " the preceding subsection " " subsection (7) or (7A) above " Section 14(5) " section 3(6)" " section 3(9)" Section 15(2) " section 3 " " section 4 " Section 15A(1)(b) " within the meaning of section 5(6) of this Act he would be entitled to deduct" " he would be entitled to credit for " Section 21(2) " section 6 " " section 6(5) or (6) " Section 23(2) " club or association " " club, association or organisation " Section 28(1) " deducted " " credited " Section 29 " paragraph 5 " " paragraph 6 ". Section 30(6) " paragraph 2 " " paragraph 6 " Section 30(7) " section 3(2)" " section 3(5)" Section 32(1) " section 3(2)" " section 3(5)" Section 40(1)(d) " deducted by " " credited to " Section 40(4)(b) " section 3(2)" section 3(5)" Section 46(1)— (a) in the definition of "prescribed accounting period " " section 30(1)" " section 3(1)" (b) in the definition of " taxable person " " section 4 " " section 2(2)"
In section 15 of that Act, the following shall be substituted for subsection (5)—
In section 43(4) of that Act, for paragraph (b) there shall be substituted—.
In section 46(1) of that Act the following amendments shall be made—
after the definition of " input tax " there shall be inserted—;
after the definition of "money" there shall be inserted—;
after the definition of " quarter " there shall be inserted—
for the definition of "taxable supply" there shall be substituted—.
In Schedule 1 to that Act, at the end of paragraph 14 there shall be added " and references in this Schedule to supplies are references to supplies made in the course or furtherance of a business ".
and to section 11 of the Finance Act 1972 (as substituted by section 14 of, and Part I of Schedule 6 to, the Finance Act 1977)
In section 4(1) of the Finance Act 1973, for "deducted" there shall be substituted " credited ".
In section 6 of that Act, an additional subsection shall be inserted as follows—.
In section 18(6) of the Finance (No. 2) Act 1975, for the words " section 5(3) of " there shall be substituted " paragraph 2 of Schedule 2 to ".
In section 23(3) of the Finance Act 1976, for the words " deducted as input tax under section 3(1) " there shall be substituted " credited as input tax under section 3 ".
In the Value Added Tax (Self-Supply) (No. 2) Order 1972, in Article 3 for the words " in the course of " there shall be substituted " in the course or furtherance of ".
In the Value Added Tax (Cars) Order 1972, in Article 5(1), for the words " in the course of a business " there shall be substituted " in the course or furtherance of any business ".
In any Treasury order or Commissioners' regulations made before the passing of this Act under Part I of the 1972 Act, for any reference to a provision of that Act specified in column 1 of the following Table there shall be substituted the provision of that Act specified against it in column 2. Old reference New reference Section 3(3). Sections 3 and 4. Section 3(6). Section 3(9). Section 5(7). Section 6(3). Schedule 2, paragraph 2. Schedule 2, paragraph 6.
In this Part of this Schedule " the operative date" means 1st January 1978.
Anything begun before the operative date under any provision of Part I of the 1972 Act may be continued under that Part of that Act as amended, if and in so far as that provision remains in force (whether or not in the same section or subsection of the Act).
Any reference in Part I of the 1972 Act as amended to things done, suffered or occurring in the past shall, so far as the context requires for the purpose of continuity of operation between provisions of the Act as in force before the operative date and the same or corresponding provisions in force on or after that date, be construed as including a reference to things done, suffered or occurring before that date.
Any Treasury order or Commissioners' regulations made before the operative date under powers conferred by a provision of Part I of the 1972 Act shall continue in force and have effect, as from that date, as if made under the corresponding power conferred by Part I of the Act as amended, subject however to the exercise of any power in that Part of that Act to vary or revoke the orders or regulations.
References in any documents to provisions of Part I of the 1972 Act as in force before the operative date shall (if and so far as the context admits) be construed on or after that date as references to the corresponding provisions of that Part as amended.
The provisions of this Part of this Schedule shall not be taken as prejudicing the operation of section 38 of the Interpretation Act 1889 (effect of repeals).
Section 31.
Where in any year of assessment— then, in charging tax under Case I of Schedule E on the amount of the emoluments from that employment attributable to that period, or to so much of it as falls in that year of assessment, there shall be allowed a deduction equal to the whole of that amount. For the purposes of this paragraph a qualifying period is a period of consecutive days which either— Where, in the case of any person, a period consisting entirely of days of absence from the United Kingdom (" the relevant period ") comes to an end and there have previously been one or more qualifying periods, the relevant period and the (or, if more than one, the last) qualifying period together with the intervening days between those periods shall be treated as a single qualifying period provided that— For the purposes of sub-paragraph (1) above the emoluments from an employment attributable to a qualifying period include any emoluments from that employment for a period of leave immediately following that period but not so as to make any emoluments for one year of assessment emoluments for another. In relation to the year 1977-78 references in sub-paragraphs (1) and (4) above to a qualifying period include references to any period beginning before and ending after the commencement of that year which—
Where in any year of assessment— then, in charging tax under Case I of Schedule E on the amount of the emoluments from the employment attributable to duties performed outside the United Kingdom in that year, there shall be allowed a deduction equal to one-quarter of that amount. For the purposes of this paragraph a qualifying day in relation to an employment is a day of absence from the United Kingdom—
Where in any year of assessment— then, in charging tax under Case I of Schedule E on the amount of the emoluments from the employment for that year, there shall be allowed a deduction equal to one-quarter of that amount.
the duties of an employment are performed wholly outside the United Kingdom ; and
the employment is with a person, body of persons or partnership resident outside, and not resident in, the United Kingdom,
This paragraph has effect where a deduction falls to be allowed under the foregoing provisions of this Schedule in respect of the emoluments from an employment (" the relevant employment") for a year of assessment in which the duties of— are not performed wholly outside the United Kingdom. The amount of the emoluments from the relevant employment in respect of which a deduction is allowed under paragraph 1 above for the year of assessment shall not exceed such proportion of the emoluments for that year from the relevant employment and the other employment or employments (if any) as is shown to be reasonable having regard to the nature of and time devoted to the duties performed outside and in the United Kingdom respectively and to all other relevant circumstances. The amount of the emoluments from the relevant employment in respect of which a deduction is allowed under paragraph 2 or 3 above for the year of assessment shall not exceed— In sub-paragraph (3)(a) above "the prescribed proportion" means the proportion which— and where a day is a qualifying day in relation both to the relevant employment and one or more other employments that day shall, for the purposes of paragraph (a) above, count in relation to the relevant employment as the fraction arrived at by dividing the day equally between the different employments. For the purposes of this paragraph an employment is associated with another if they are with the same person or with persons associated with each other and— but paragraph (b) above shall not be construed as requiring an individual to be treated in any circumstances as under the control of another person.
Paragraph 5 of Schedule 2 to the Finance Act 1974 (deductions from emoluments eligible for relief under that Schedule) shall apply also for the purposes of this Schedule.
For the purposes of this Schedule a person shall not be regarded as absent from the United Kingdom on any day unless he is so absent at the end of it.
Notwithstanding section 184(3)(b) of the Taxes Act (duties performed on vessels and aircraft), there shall be treated for the purposes of this Schedule as performed outside the United Kingdom any duties which a person performs on a vessel or aircraft engaged on— and for the purposes of this paragraph any area designated under section 1(7) of the Continental Shelf Act 1964 shall be treated as part of the United Kingdom.
a voyage or journey beginning or ending outside the United Kingdom (but exclusive of any part of it which begins and ends in the United Kingdom); or
any part beginning or ending outside the United Kingdom of a voyage or journey which begins and ends in the United Kingdom ;
Where an employment is in substance one the duties of which fall in the year of assessment to be performed in the United Kingdom, then, for the purposes of paragraph 1 above, there shall be treated as so performed any duties performed outside the United Kingdom the performance of which is merely incidental to the performance of the other duties in the United Kingdom.
Section 184(2) of the Taxes Act (performance in the United Kingdom of duties incidental to duties performed abroad) shall not be construed as affecting any question under paragraph 1 or 2 above where any duties are performed or whether a person is absent from the United Kingdom.
The same day may be taken into account for the purposes of both paragraphs 1 and 2 above but a deduction shall not be allowed in respect of the same emoluments under both those paragraphs or under either of them as well as paragraph 3 above.
In this Schedule references to an employment include references to an office.
Sections 35 and 36.
In section 15(7) of the Taxes Management Act 1970 (employers required to state whether employees have received benefits) for the words " or sections 61 to 68 of the Finance Act 1976 " there shall be substituted the words " sections 61 to 68 of the Finance Act 1976 or section 33 of the Finance Act 1977 ".
Section 185 of the Taxes Act (accommodation occupied by holder of office or employment) is repealed.
Section 194 of that Act (expenditure and houses of ministers of religion) shall be amended as follows. For subsection (1) (occupation by clergymen treated as representative occupation) there shall be substituted the following subsection—. In subsection (2) (exemptions for expenditure connected with such occupation), for the words from the beginning to " then " there shall be substituted the words " In the case of such a clergyman or minister "; and at the beginning of paragraph (c) there shall be inserted the words " unless he is in director's or higher paid employment (as denned in Chapter II of Part III of the Finance Act 1976). "
In section 43 of the Finance Act 1973 (occupation of Chevening House), for the words " section 185 of the Taxes Act" there shall be substituted the words " section 33 of the Finance Act 1977 ".
In section 61 of the Finance Act 1976, at the beginning of subsection (1) (provision charging benefits) there shall be inserted " Subject to section 63A " ; and in subsection (2) (benefits subject to charge under the section), for the words "living or other accommodation " there shall be substituted " accommodation (other than living accommodation) ".
In section 62 of that Act, for subsections (4) and (5) (exclusion of certain representative living accommodation from treatment as taxable benefit) there shall be substituted the following subsection:—.
In section 63 of that Act (cash equivalent of benefits charged under section 61), subsection (7) shall be omitted.
Paragraph 5 of the Schedule shall be amended as follows. In sub-paragraph (1) and sub-paragraph (2)(a), after "paragraph 4(1)(a)" there shall be inserted " or paragraph 4A(1) ". In sub-paragraph (3), after paragraph (c) there shall be inserted " or if that other person falls within paragraphs (b) and (c) above and is by virtue of paragraph 4A above entitled to claim relief under section 75 of the Finance Act 1972 in respect of that part of the interest ".
In paragraph 7 of the Schedule, after " where " there shall be inserted " it is eligible only because ".
For paragraph 8 of the Schedule there shall be substituted the following—.
Section 59.
Chapter Short title Extent of repeal 15 & 16 Geo. 6 & 1 Eliz. 2. c. 44. The Customs and Excise Act 1952. In section 255A the words “for securing that the goods will be so used or otherwise". 6 & 7 Eliz. 2. c. 6. The Import Duties Act 1958. Section 9. Section 10(2). In section 11(5) the words “and nine". In section 15(1) the definition of “registered shipbuilding yard". In Schedule 3, paragraphs 1, 2, 3, 6, 7, 9, 10 and 11. Schedule 5. 7 & 8 Eliz. 2. c. 58. The Finance Act 1959. Section 9. 1964 c. 28. The Agriculture and Horticulture Act 1964. In the Schedule, paragraph 1(3)(b). 1965 c. 25. The Finance Act 1965. Section 2(5). 1971 c. 68. The Finance Act 1971. Section 1(4). Section 2. 1975 c. 45. The Finance (No. 2) Act 1975. Section 5(2) and (3). Section 6(2) and (3). Schedules 1 and 2. 1976 c. 40. The Finance Act 1976. Section 1. Section 14(3). Section 16. Schedules 1 and 2.
The repeal in section 255A of the Customs and Excise Act 1952 takes effect on such day as may be appointed by regulations under section 8 of this Act.
The repeals in the Import Duties Act 1958 (except section 10(2)), the Finance Act 1959, the Finance Act 1965 and the Finance Act 1971 take effect on 1st July 1977.
The repeals in the Finance (No. 2) Act 1975 and of section 14(3) of the Finance Act 1976 take effect on 30th March 1977.
Chapter Short title Extent of repeal 15 & 16 Geo. 6 & 1 Eliz. 2 c. 44. The Customs and Excise Act 1952. Part V. 1964 c. 49. The Finance Act 1964. Section 4. Section 8(2)(a). Schedule 5. 1966 c. 18. The Finance Act 1966. Section 3. In Schedule 2, in paragraph 1 the words “section 173(1)(b) (importation of tobacco)" and in paragraph 2 the words “and 173(3)" and “and tobacco". 1967 c. 54. The Finance Act 1967. In section 4, in subsection (1), paragraph (d) and the word “or" before it and the words “and 175" and in subsection (2) the words “or (d)" and the words following the semi-colon. 1970 c. 24. The Finance Act 1970. Section 4. Section 5(a). In Schedule 2, paragraphs 1 to 4. 1973 c. 51. The Finance Act 1973. Section 1 so far as unrepealed. Schedule 5. 1974 c. 30. The Finance Act 1974. Section 1(6). 1975 c. 45. The Finance (No. 2) Act 1975. Section 1(6). 1976 c. 40. The Finance Act 1976. Section 8. 1977 c. 36. The Finance Act 1977. Section 1(6) and (7). Section 2(1) and (3). The above repeals take effect on 1st January 1978 but do not affect drawback by virtue of events occurring on or before 30th June 1978.
Chapter Short title Extent of repeal 1972 c. 41. The Finance Act 1972. In section 8, in subsection (1) the words “or services"; and subsections (4) to (7). Section 17(3). Section 30(1). In Schedule 4, Group 8, Note (3). 1974 c. 30. The Finance Act 1974. Section 5. 1976 c. 40. The Finance Act 1976. Section 18. In section 19, the words “11(b) and". Section 20. The above repeals take effect on 1st January 1978.
Chapter Short title Extent of repeal 1970 c. 10. The Income and Corporation Taxes Act 1970. In section 8(2)(b) the words before “except". Section 24(1), (3) and (4). In section 219(1), paragraph (b) together with the word “and" immediately preceding it. In section 530(2)(c) the words “family allowances and other". 1971 c. 68. The Finance Act 1971. Section 15(7). Section 33(4). In Schedule 4, in paragraph (1)(b) the words before “any payment or benefit". 1974 c. 30. The Finance Act 1974. Section 14(6). 1975 c. 18. The Social Security (Consequential Provisions) Act 1975. In Schedule 2, paragraph 37. 1976 c. 40. The Finance Act 1976. Section 32(1), (2), (3)(a), (c) and (d), (4), (5) and (6).
The repeal of section 32(2), (3)(a) and (d), (4), (5) and (6) of the Finance Act 1976 shall be deemed to have come into force on 4th April 1977.
The repeal of the other provisions mentioned above does not affect their operation in relation to any allowance or benefit payable in respect of a period before 4th April 1977.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Chapter Short title Extent of repeal 1965 c. 25. The Finance Act 1965. In Schedule 7, in paragraph 5, in sub-paragraph (1) the words “Subject to sub-paragraph (2) below" and sub-paragraph (2). 1968 c. 44. The Finance Act 1968. In section 55, in subsection (1) the words “securities and" and “in section 42(1) of the Exchange Control Act 1947 and" and (in paragraph (c)) the words “of the Exchange Control Act 1947, or" and “or both" ; subsection (2); in subsection (3), in the definition of “prescribed" the words from “(a)" to “1964"; in subsection (4) the words “securities and"; in subsection (5) the words from “(a)" to “1964"; and in subsection (6) the words before “this section shall apply" and the words “that Act, or as the case may be". In Schedule 12 paragraph 9. 1969 c. 32. The Finance Act 1969. Section 41(7). 1970 c. 10. The Income and Corporation Taxes Act 1970. Section 185. In section 270(4)(a) the words “(and Schedule 9 to the Finance Act 1965)". Section 271(4). 1971 c. 68. The Finance Act 1971. In Schedule 10— paragraph 3. in paragraph 4(1) the words from “section 27(3)" to “(conversion of such stock)". in paragraph 5 the words from “or to securities" to “paragraph 4 above". in paragraph 7(1) the words from “and for determining" to the end of paragraph 7(1). paragraph 13. 1973 c. 51. The Finance Act 1973. Section 13. In Schedule 16, in paragraph 7, the words from “securities of any" to “1965 or of". 1974 c. 30. The Finance Act 1974. Section 21(2). In Schedule 2, paragraphs 1 and 2. 1975 c. 7. The Finance Act 1975. In Schedule 9, in paragraph 5, in sub-paragraph (1) the words from “and, subject" onwards, and sub-paragraph (2). 1975 c. 45. The Finance (No. 2) Act 1975. Section 29. 1976 c. 40. The Finance Act 1976. Section 28. Section 29(1) and (4). Section 30(1). Section 63(7).
The repeal of section 185 of the Income and Corporation Taxes Act 1970 has effect for the year of assessment 1977-78 and subsequent years of assessment.
The repeal of section 13 of the Finance Act 1973 does not affect relief for any year of assessment before the year 1977-78.
The repeals in the Finance Act 1974 have effect for the year of assessment 1977-78 and subsequent years of assessment.
The repeal of section 30(1) of the Finance Act 1976 does not affect relief for any year of assessment before the year 1977-78.
The repeal of section 63(7) of the Finance Act 1976 has effect for the year of assessment 1977-78 and subsequent years of assessment.