Statement by the Delegation of the Russian Federation in response to the report by the Head of the OSCE Presence in Albania, Ambassador Bernd Borchardt
In section 62(1A)(a) of the Alcoholic Liquor Duties Act 1979 (rate of duty per hectolitre on sparkling cider of a strength exceeding 5.5 per cent.), for “£45.05” there shall be substituted “£161.20”.
This section shall be deemed to have come into force at 6 o'clock in the evening of 9th March 1999.
In section 6(1A) of the Hydrocarbon Oil Duties Act 1979 (rates of duty on hydrocarbon oil)—
in paragraph (a) (light oil), for “£0.4926” there shall be substituted “£0.5288”;
in paragraph (b) (ultra low sulphur diesel), for “£0.4299” there shall be substituted “£0.4721”; and
in paragraph (c) (heavy oil which is not ultra low sulphur diesel), for “£0.4499” there shall be substituted “£0.5021”.
In section 8(3) of that Act (road fuel gas), for “£0.2113” there shall be substituted “£0.1500”.
In section 11(1) of that Act (rebate on heavy oil)—
in paragraph (a) (fuel oil), for “£0.0218” there shall be substituted “£0.0265”; and
in each of paragraphs (b) and (ba) (gas oil which is not ultra low sulphur diesel and ultra low sulphur diesel), for “£0.0282” there shall be substituted “£0.0303”.
In section 13A(1A) of that Act (rebate on unleaded petrol)—
in paragraph (a) (higher octane unleaded petrol), for “£0.0050” there shall be substituted “£0.0055”; and
in paragraph (b) (other unleaded petrol), for “£0.0527” there shall be substituted “£0.0567”.
In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for “£0.0218” there shall be substituted “£0.0265”.
This section shall be deemed to have come into force at 6 o'clock in the evening of 9th March 1999.
In section 13A(1A)(a) of the Hydrocarbon Oil Duties Act 1979 (rebate on higher octane unleaded petrol), for “£0.0055” there shall be substituted “£0.0367”.
This section comes into force on 1st October 1999.
In section 15(1) of the Hydrocarbon Oil Duties Act 1979 (drawback of duty on exportation, shipment as stores or warehousing of hydrocarbon oil and related articles), the word “exportation,” shall be omitted.
This section has effect in relation to any exportation on or after the day on which this Act is passed.
For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 there shall be substituted— 1. Cigarettes An amount equal to 22 per cent. of the retail price plus £82.59 per thousand cigarettes. 2. Cigars £122.06 per kilogram. 3. Hand-rolling tobacco £87.74 per kilogram. 4. Other smoking tobacco and chewing tobacco £53.66 per kilogram.
This section shall be deemed to have come into force at 6 o'clock in the evening of 9th March 1999.
In section 7(1) of the Betting and Gaming Duties Act 1981 (rate of pool betting duty), for “26.50 per cent.” there shall be substituted “17.50 per cent.”
This section has effect in relation to bets the stake money on which is or has been paid on or after 28th March 1999.
Part of gross gaming yield Rate The first £462,500 2½ per cent. The next £1,027,500 12½ per cent. The next £1,027,500 20 per cent. The next £1,798,500 30 per cent. The remainder 40 per cent.
This section has effect in relation to accounting periods beginning on or after 1st April 1999.
In sub-paragraph (2) of paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (the general rate), for “£150” there shall be substituted “£155”.
For the word “The” at the beginning of that sub-paragraph there shall be substituted “Except in the case of a vehicle having an engine with a cylinder capacity not exceeding 1,100 cubic centimetres, the”.
In the case of a vehicle having an engine with a cylinder capacity not exceeding 1,100 cubic centimetres, the general rate is £100.
In sections 13(3)(b), 35A(5)(b) and 36(3)(b) of that Act, and in section 13(4)(b) of that Act as substituted under paragraph 8 of Schedule 4 to that Act, (which refer to the rate of duty applicable under paragraph 1 of Schedule 1), for the words “paragraph 1 of Schedule 1”, in each place where they occur, there shall be substituted “paragraph 1(2) of Schedule 1”.
Subsection (1) above has effect in relation to any licence issued after 9th March 1999; and subsections (2) to (4) above have effect in relation to any licence taken out for a period beginning on or after 1st June 1999.
Schedule 1 to this Act (which makes provision for new rates of vehicle excise duty for goods vehicles etc.) shall have effect.
For subsection (4) of section 1 of the Customs and Excise Management Act 1979 (goods for sale on board ships or aircraft to be treated as stores) there shall be substituted the following subsections—
This section shall be deemed to have come into force on 1st July 1999 but shall not have effect in relation to any shipment of goods before that date.
In section 2 of the Finance (No. 2) Act 1992 (power to provide for drawback of excise duty), in subsection (1), after “provision” there shall be inserted “(a)”, and after “Kingdom” there shall be inserted ; and.
In subsection (5) of that section, for ““goods” has the same meaning” there shall be substituted ““excise warehouse”, “goods”, “shipment”, “stores” and “warehousing” have the same meanings”.
Section 132 of the Customs and Excise Management Act 1979 (extension of drawback to shipment, and warehousing for use, as stores) shall cease to have effect.
Subsection (3) above shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.
In subsection (4) of section 21 of the Value Added Tax Act 1994 (which treats as reduced for VAT purposes the value of goods falling within subsection (5) of that section and imported from outside the EU)—
at the beginning there shall be inserted “Subject to subsection (6D) below,”; and
for “14.29 per cent.” there shall be substituted “28.58 per cent.”
For subsections (5) and (6) of that section there shall be substituted the following subsections—
This section has effect in relation to goods imported at any time on or after the day on which this Act is passed.
Notwithstanding the words preceding paragraph (a) in section 26(3) of the Value Added Tax Act 1994 (input tax allowable against output tax), regulations which— may provide that input tax is allowable, as being attributable to the supplies, only in relation to specified matters.
are made under section 26(3), and
have effect in respect of exempt supplies which relate to gold,
An order under section 31(2) of that Act (exempt supplies and acquisitions) which provides for certain supplies which relate to gold to be exempt supplies may—
provide that a supply which would be an exempt supply by virtue of the order shall, if the supplier so chooses, be a taxable supply;
make provision by reference to notices to be published by the Commissioners.
An order under section 37(1) of that Act (relief on importation of goods) which gives relief from VAT on certain importations of gold may make provision by reference to notices to be published by the Commissioners.
Provision made by virtue of subsection (2) or (3) above may be expressed—
to apply only in specified circumstances;
to apply subject to compliance with specified conditions (which may include conditions relating to general or specific approval of the Commissioners).
Regulations may—
require specified persons to keep specified records in relation to specified transactions concerning gold;
require specified persons to give specified information to the Commissioners about specified transactions concerning gold;
provide for paragraph 10(2) of Schedule 11 to that Act (entry and inspection of premises) to apply in relation to specified transactions concerning gold as it applies in relation to the supply of goods under taxable supplies.
The provisions of that Act (including, in particular, section 97 and paragraph 6(2) to (6) of Schedule 11) shall apply in relation to regulations under subsection (5) above as they apply in relation to regulations under paragraph 6(1) of Schedule 11 to that Act.
In this section “the Commissioners” means the Commissioners of Customs and Excise.
Schedule 8 to the Value Added Tax Act 1994 (zero-rating) shall have effect, and be deemed always to have had effect, as if in Group 1 (food), in Note (6) (which provides that certain items which override the exceptions listed in that Group relate only to item 4 of the excepted items (non-alcoholic beverages)) for “Items 4 to 6” there were substituted “Items 4 to 7”.
In section 36 of the Value Added Tax Act 1994 (bad debts), for subsection (3) there shall be substituted—
In subsection (5)(e) of that section, for the words from “where” to the end of the paragraph there shall be substituted “where any part (or further part) of the consideration written off in the claimant’s accounts as a bad debt is subsequently received either by the claimant or, except in such circumstances as may be prescribed, by a person to whom has been assigned a right to receive the whole or any part of that consideration;”.
For the purposes of this paragraph a person to whom has been assigned a right to receive the whole or any part of the consideration for a supply of goods or services shall be treated as a person concerned in the supply.
Until such day as the Commissioners may specify in regulations made under section 36 of that Act, Part XIX of the Value Added Tax Regulations 1995 (bad debt relief), except regulation 171, shall be read as if a reference to a payment being received by the claimant were a reference to a payment being received either by the claimant or by a person to whom a right to receive it has been assigned.
Subsections (1) and (4) above have effect for the purposes of the making of any refund or repayment after 9th March 1999, but do not have effect in relation to anything received on or before that day.
Schedule 2 to this Act (which makes changes to provisions about the treatment of bodies corporate as members of a group) shall have effect.
For subsections (1) and (2) of section 62 of the Value Added Tax Act 1994 (incorrect certificates as to zero-rating etc.) there shall be substituted the following subsections—
Subsection (1) above has effect in relation to certificates given or, as the case may be, prepared on or after the day on which this Act is passed.
For section 77(2) of the Value Added Tax Act 1994 (time limits for assessments under section 76) there shall be substituted the following subsections—
Subsection (1) above has effect in relation to any amount by way of penalty, interest or surcharge which becomes due on or after the day on which this Act is passed.
Section 79 of the Value Added Tax Act 1994 (repayment supplement) shall be amended as follows.
In subsection (2)(b), for “the period of 30 days beginning on the date of the receipt by the Commissioners of that return or claim” there shall be substituted “the relevant period”.
After subsection (2) there shall be inserted—
In subsections (3) and (7), for “subsection (2)(b)” there shall be substituted “subsection (2A)”; and regulations under subsection (3) shall be construed accordingly.
This section has effect in relation to returns and claims received by the Commissioners on or after 9th March 1999.
Section 94(3) of the Value Added Tax Act 1994 (meaning of “business”: public organisations) shall cease to have effect.
This section shall come into force in accordance with such provision as the Commissioners of Customs and Excise may make by order made by statutory instrument.
Where— the receipts of the department to be paid into the Consolidated Fund shall be confined to the amounts remaining after deducting, from the amounts otherwise falling to be paid into that Fund, all such amounts in respect of the department’s liabilities to pay value added tax to the Commissioners of Customs and Excise as the department may be authorised to deduct in accordance with arrangements made by the Treasury.
a Government department makes supplies of goods or services that are taxable supplies for the purposes of the Value Added Tax Act 1994, and
its receipts include amounts paid to it in respect of the making of those supplies,
Arrangements made by the Treasury for the purposes of this section shall apply only to such Government departments and in such cases, and shall have effect subject to such conditions and to the compliance by the department with such accounting and other requirements, as may be provided for in the arrangements.
In this section “Government department” includes any person or body of persons carrying out functions on behalf of the Crown or of any Minister of the Crown and any part of a Government department (as so defined) which is designated for the purposes of section 41 of the Value Added Tax Act 1994.
This section has effect in relation to the financial year beginning with 1st April 1999 and subsequent financial years and shall be deemed to have had effect in relation to earlier financial years.
For the purposes of applying this section in relation to the financial year beginning with 1st April 1999 or in relation to any earlier financial year, any arrangements applying to a Government department which— shall be deemed to have been made by the Treasury for the purposes of this section.
were made or approved before the passing of this Act, and
allowed that department to deduct amounts in respect of value added tax liabilities before making payments into the Consolidated Fund,
The following shall be substituted for section 1(2)(aa) of the Taxes Act 1988 (the charge to income tax: lower rate)—.
The following shall be substituted for section 1(2A) of that Act (lower rate limit)—
In section 1(3) of that Act (basic rate limit), for “lower rate” there shall be substituted “starting rate”.
In section 1(4) of that Act (indexation), for the words from “and, if the result is not a multiple of £100” to the end there shall be substituted and—
Section 1(4) of that Act (indexation), so far as it relates to section 1(2)(aa), shall not apply for the year 1999-00.
In section 1(6A) of that Act (repayment), for “lower rate” there shall be substituted “starting rate”.
In section 1A of that Act (application of lower rate to income from savings and distributions)—
the following shall be inserted before subsection (2)—, and
the following shall be inserted after subsection (6)—
In the following provisions of that Act, for “lower rate” there shall be substituted “starting rate”—
section 547(5)(c) (life policies, etc.: method of charging gain to tax);
section 550(3) (life policies, etc.: relief where gain charged at a higher rate).
In the following provisions of that Act, for “at the lower rate by virtue of section 1(2)(aa)” there shall be substituted “at the starting rate”—
section 549(2) (life policies, etc.: deficiencies allowable as deductions);
section 699(2) (relief from higher rate for inheritance tax on accrued income);
section 819(2) (old references to standard rate tax).
In section 832(1) of that Act (interpretation of the Tax Acts)—
“lower rate”, in relation to the charging of income tax for any year of assessment, means the rate of income tax specified in or determined in pursuance of section 1A(1B);
“starting rate”, in relation to the charging of income tax for any year of assessment, means the rate of income tax determined in pursuance of section 1(2)(aa), and any reference to the starting rate limit shall be construed in accordance with section 1(2A);
In the following provisions of the Taxes Management Act 1970, for “or the lower rate” there shall be substituted “, the lower rate or the starting rate”—
section 7(6) (notice of liability to income tax and capital gains tax);
section 91(3)(c) (effect of reliefs on tax charged on income subject to deduction).
Subsections (1) to (3) and (6) to (11) above apply for the year 1999-00 and subsequent years of assessment; and subsection (4) above applies for the year 2000-01 and subsequent years of assessment.
Income tax shall be charged for the year 1999-00, and for that year—
the starting rate shall be 10 per cent.;
the basic rate shall be 23 per cent.; and
the higher rate shall be 40 per cent.
For the year 1999-00 the amounts specified in subsections (2) and (3) of section 257 of the Taxes Act 1988 (personal allowances for those aged at least 65 but less than 75 and for those aged 75 or more) shall be taken to be £5,720 and £5,980, respectively.
Accordingly, section 257C(1) of the Taxes Act 1988 (indexation), so far as it relates to the amounts so specified, shall not apply for the year 1999-00.
The Taxes Act 1988 shall be amended in accordance with subsections (2) and (3) below.
In section 1 (charge to income tax), after subsection (4) there shall be inserted—
In section 257C (indexation of allowances), after subsection (1) there shall be inserted—
This section has effect for the year 1999-00 and subsequent years of assessment.
Section 4 of the Taxation of Chargeable Gains Act 1992 (rates of capital gains tax) shall be amended as follows.
In subsection (1) (link between rate of capital gains tax and rate of income tax), for “basic rate” there shall be substituted “lower rate”.
In subsection (1AA) (rate for trusts etc.), for “applicable to trusts under section 686(1) of the Taxes Act” there shall be substituted “the rate applicable to trusts under section 686 of the Taxes Act”.
Subsections (1A), (1B), (3A) and (3B) (charge at income tax lower rate in certain cases) shall cease to have effect.
In subsection (4) (definition of “unused part of an individual’s basic rate band”), the words “(disregarding subsection (3B)(a) above)” shall cease to have effect.
This section applies for the year 1999-00 and subsequent years of assessment.
Corporation tax shall be charged for the financial year 2000 at the rate of 30 per cent.
After section 13 of the Taxes Act 1988 there shall be inserted the following section—
In section 13A(1) of the Taxes Act 1988 (close investment-holding companies), after “section 13(1)” there shall be inserted “or 13AA(8)”.
In section 468(1A) of that Act (taxation of authorised unit trusts), at the end there shall be inserted “and sections 13 and 13AA shall not apply”.
In paragraph 1(a) of Schedule 12 to the Finance Act 1989 (provision of information for the purposes of close companies provisions), for “13A” there shall be substituted “13 to 13A”.
In paragraph 8(1) of Schedule 18 to the Finance Act 1998 (tax calculation in company tax return), after “section 13(2)” there shall be inserted “or 13AA(2)”.
Subsections (1) to (5) above have effect, subject to subsection (7) below, in relation to corporation tax for the financial year 2000 or any subsequent financial year.
In the case of an accounting period beginning before 1st April 2000 and ending on or after that date—
section 13AA of the Taxes Act 1988 shall apply as if the different parts of that accounting period falling in the different financial years were separate accounting periods;
where a claim is made under section 13AA in relation to the part of that period beginning with 1st April 2000, section 13 of that Act shall also so apply; and
for the purposes of treating different parts of an accounting period as separate accounting periods in accordance with paragraphs (a) and (b) above, the profits and basic profits of the company for that period shall be attributed to the different parts of it according to the financial year in which, for the purposes of section 8 of that Act, they are taken to arise.
For the financial year 2000—
the corporation tax starting rate shall be 10 per cent.; and
the fraction mentioned in section 13AA(3) of the Taxes Act 1988 shall be one fortieth.
The following section shall be inserted after section 257 of the Taxes Act 1988—
The Schedule set out in Schedule 3 to this Act shall be inserted after Schedule 13A to the Taxes Act 1988.
In section 257C(1) and (3) of the Taxes Act 1988 (indexation), for the words “sections 257 and 257A” there shall be substituted “sections 257, 257AA(2) and 257A”.
The Taxes Management Act 1970 shall be amended as follows—
in section 36(3A) (fraudulent or negligent conduct), there shall be inserted at the end “or under Schedule 13B to that Act (elections as to transfer of children’s tax credit)”,
in section 37A (effect of assessment where allowances transferred)—
after “spouse” there shall be inserted “or partner”, and
after “Act” there shall be inserted “or paragraph 4 of Schedule 13B to that Act”,
in section 43A(2A) (further assessments), there shall be inserted at the end “or under Schedule 13B to that Act (elections as to transfer of children’s tax credit)”, and
in section 58(3)(b) (proceedings in Northern Ireland), after “repealed by that Act)” there shall be inserted “, paragraph 6 of Schedule 13B to that Act”.
Subsections (1), (2) and (4) above have effect for the year 2001-02 and subsequent years of assessment.
Subsection (3) above has effect for the purposes of the application of section 257AA of the Taxes Act 1988 for the year 2002-03 and subsequent years of assessment.
Section 257A of the Taxes Act 1988 (income tax reduction for married couples) shall be amended as follows.
Subsection (1) (reduction where neither spouse is aged 65 or over) shall cease to have effect.
In subsection (2) (reduction where either spouse is aged 65 or over)—
for “is at any time within that year of the age of 65 or upwards” there shall be substituted “was born before 6th April 1935”;
the words from “(instead of” to the end shall be omitted.
In subsection (3) (reduction where either spouse is aged 75 or over)—
after “either of them” there shall be inserted “(a)”;
after “75 or upwards,” there shall be inserted and;
the words “(1) or” shall be omitted.
In subsection (4) (rule where person dies in year of assessment)—
for “subsections (2) and (3)” there shall be substituted “subsection (3)”;
for “a specified age” there shall be substituted “the age of 75”.
In subsection (5) (tapering of reduction where claimant’s total income exceeds specified amount), the words from “(but not” to the end shall be omitted.
After that subsection there shall be inserted the following subsection—
In subsection (6) (rule where claimant marries in year of assessment, etc.), for “subsections (1) to (3)” there shall be substituted “subsections (2) and (3)”.
After subsection (6) there shall be inserted the following subsections—
Subsections (2) to (5) and (8) above have effect for the year 2000-01 and subsequent years of assessment.
Subject to section 32(5) below, subsections (6) and (7) above have effect for the year 1999-00 and subsequent years of assessment.
Subsection (9) above has effect for the year 2001-02 and subsequent years of assessment.
In section 257BA of the Taxes Act 1988 (elections as to transfer of relief under section 257A)—
in subsections (1)(a), (2)(a), (3)(a) and (6), for “section 257A(1)” there shall be substituted “section 257A(5A)”;
in subsection (2), the words from “(to nil” to the end shall be omitted;
in subsection (9), for “deduction” there shall be substituted “income tax reduction”.
Sections 257D to 257F of that Act (transitional relief in connection with married couple’s allowance) shall cease to have effect.
Subsection (1)(a) and (c) above has effect for the year 1999-00 and subsequent years of assessment.
Subsections (1)(b) and (2) above have effect for the year 2000-01 and subsequent years of assessment.
Section 257C of the Taxes Act 1988 (indexation) shall apply in relation to subsection (5A) of section 257A of that Act, but only for the year 2000-01 and subsequent years of assessment.
Sections 259 to 261A of the Taxes Act 1988 (additional relief in respect of children) shall cease to have effect.
This section has effect for the year 2000-01 and subsequent years of assessment.
Section 262 of the Taxes Act 1988 (income tax reduction for widow in year of bereavement and following year) shall cease to have effect.
Subsection (1) above has effect in relation to deaths occurring on or after 6th April 2000.
Where a woman is entitled to an income tax reduction for the year 2000-01 by virtue of paragraph (b) of section 262(1) of the Taxes Act 1988, the reference in that paragraph to the amount specified in section 257A(1) for that year shall be read as a reference to the amount specified in section 257A(5A) for that year.
In section 256(3) of the Taxes Act 1988 (order of income tax reductions etc.)—
in paragraph (a), for “section 259 or 261A” there shall be substituted “section 257AA”;
paragraph (b) shall cease to have effect;
the words after paragraph (c) shall be omitted.
Subsection (1)(a) and (b) above has effect for the year 2001-02 and subsequent years of assessment.
Subsection (1)(c) above has effect for the year 2000-01 and subsequent years of assessment.
For the year 2000-01, section 256(3) of the Taxes Act 1988 shall have effect with the omission of paragraph (a) and, in paragraph (b), of the words “except section 259 or 261A”.
In subsection (1) of section 347B of the Taxes Act 1988 (income tax reduction in respect of qualifying maintenance payments), at the beginning there shall be inserted “Subject to subsection (1A) below”.
After that subsection there shall be inserted the following subsection—
In subsection (2) of that section, for “subsections (3) and (4)” there shall be substituted “subsection (3)”.
In subsection (3) of that section, for “section 257A(1)” there shall be substituted “section 257A(5A)”.
In subsection (5A) of that section, for “subsections (2) to (5)” there shall be substituted “subsections (2) and (3)”.
In subsection (8) of that section, for “subsections (1)(a) and (5)(a)” there shall be substituted “subsection (1)(a)”.
Sections 347A and 347B of the Taxes Act 1988 shall have effect, notwithstanding anything in subsection (3) of section 36 of the Finance Act 1988 (which provides for the application of those sections), in relation to a payment made in pursuance of an existing obligation (within the meaning of that subsection) as they have effect in relation to a payment made otherwise than in pursuance of such an obligation.
This section has effect in relation to any payment falling due on or after 6th April 2000.
For the year 1999-00 the qualifying maximum defined in section 367(5) of the Taxes Act 1988 (limit on relief for interest on certain loans) shall be £30,000.
A payment of interest falling within subsection (3) or (4) below shall not be eligible for relief under section 353 of the Taxes Act 1988 by virtue of section 354 of that Act (interest on loans to buy land etc.).
Section 369(1) of that Act (mortgage interest payable under deduction of tax) shall not apply to any payment of interest falling within subsection (3) or (4) below which (apart from section 353(2) of that Act and subsection (1) above) would be eligible for relief under section 353 of that Act by virtue of section 354 of that Act.
A payment of interest falls within this subsection if it is—
a payment made on or after 6th April 2000 (whenever falling due); or
a payment made before that date, but not before 9th March 1999, of any interest that was not due until on or after 6th April 2000.
A payment of interest falls within this subsection if it is—
made before 6th April 2000 but not before 9th March 1999; and
made under or in accordance with any scheme made for a tax-avoidance purpose on or after 9th March 1999 (whether or not before the making of the payment).
For the purposes of subsection (4) above, a scheme is made for a tax-avoidance purpose if its main purpose, or one of its main purposes, is to secure that a payment of one or more of the following descriptions is a relievable payment, that is to say—
a payment discharging an obligation to make a payment which (but for the scheme) might have been expected to be a non-relievable payment;
a payment made in pursuance of any obligation which has effect, directly or indirectly, in place of an obligation under which a payment which might have been expected to be a non-relievable payment would have become due;
a payment made in pursuance of an obligation which (apart from the purpose of securing that it is a relievable payment) might have been expected to take the form of an obligation—
to make a non-relievable payment, or
to make two or more payments at least one of which would have been a non-relievable payment.
In subsection (5) above—
Section 9.
Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of vehicle excise duty) shall be amended as follows.
In sub-paragraph (2A)(b) of paragraph 6 (vehicles which are used for exceptional loads and satisfy the reduced pollution requirements), for “£4,670” there shall be substituted “£4,170”. In sub-paragraph (3) of that paragraph (weight by reference to which vehicles classified as vehicles used for exceptional loads), for “38,000 kilograms” there shall be substituted “41,000 kilograms”.
For the Table in paragraph 9(1) (rigid goods vehicles not satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) there shall be substituted— Revenue weight of vehicle Rate (1) Exceeding (2) Not Exceeding (3) Two axle vehicle (4) Three axle vehicle (5) Four or more axle vehicle kgs kgs £ £ £ 3,500 7,500 160 160 160 7,500 12,000 300 300 300 12,000 13,000 470 490 350 13,000 14,000 650 490 350 14,000 15,000 840 490 350 15,000 17,000 1,320 490 350 17,000 19,000 1,600 850 350 19,000 21,000 1,600 1,020 350 21,000 23,000 1,600 1,470 510 23,000 25,000 1,600 2,230 830 25,000 27,000 1,600 2,340 1,470 27,000 29,000 1,600 2,340 2,320 29,000 31,000 1,600 2,340 3,360 31,000 44,000 1,600 2,340 4,400
In paragraph 9A(3) (rigid goods vehicles satisfying reduced pollution requirements and with a revenue weight exceeding 44,000 kilograms), for “£4,670” there shall be substituted “£4,170”.
Revenue weight of vehicle Rate (1) Exceeding (2) Not Exceeding (3) Two axle vehicle (4) Three axle vehicle (5) Four or more axle vehicle kgs kgs £ £ £ 3,500 7,500 155 155 155 7,500 12,000 155 155 155 12,000 13,000 155 155 155 13,000 14,000 155 155 155 14,000 15,000 155 155 155 15,000 17,000 320 155 155 17,000 19,000 600 155 155 19,000 21,000 600 155 155 21,000 23,000 600 470 155 23,000 25,000 600 1,230 155 25,000 27,000 600 1,340 470 27,000 29,000 600 1,340 1,320 29,000 31,000 600 1,340 2,360 31,000 44,000 600 1,340 3,400
Revenue weight of tractive unit Rate for tractive unit with two axles Rate for tractive unit with three or more axles (1) Exceeding (2) Not exceeding (3) Any no. of semi- trailer axles (4) 2 or more semi- trailer axles (5) 3 or more semi- trailer axles (6) Any no. of semi- trailer axles (7) 2 or more semi- trailer axles (8) 3 or more semi- trailer axles kgs kgs £ £ £ £ £ £ 3,500 7,500 160 160 160 160 160 160 7,500 12,000 300 300 300 300 300 300 12,000 16,000 460 460 460 460 460 460 16,000 20,000 520 460 460 460 460 460 20,000 23,000 810 460 460 460 460 460 23,000 26,000 1,190 590 460 590 460 460 26,000 28,000 1,190 1,130 460 1,130 460 460 28,000 31,000 1,740 1,740 1,090 1,740 660 460 31,000 33,000 2,530 2,530 1,740 2,530 1,000 460 33,000 34,000 5,170 5,170 1,740 2,530 1,470 570 34,000 35,000 5,170 5,170 2,840 2,530 2,100 860 35,000 36,000 6,750 6,750 2,840 2,530 2,100 860 36,000 38,000 9,250 9,250 3,210 2,820 2,820 1,280 38,000 41,000 9,250 9,250 5,750 4,250 4,250 2,500 41,000 44,000 9,250 9,250 5,750 7,250 7,250 1,280
In paragraph 11A(3) (tractive units satisfying reduced pollution requirements and with a revenue weight exceeding 44,000 kilograms), for “£4,670” there shall be substituted “£4,170”.
Revenue weight of tractive unit Rate for tractive unit with two axles Rate for tractive unit with three or more axles (1) Exceeding (2) Not exceeding (3) Any no. of semi- trailer axles (4) 2 or more semi- trailer axles (5) 3 or more semi- trailer axles (6) Any no. of semi- trailer axles (7) 2 or more semi- trailer axles (8) 3 or more semi- trailer axles kgs kgs £ £ £ £ £ £ 3,500 7,500 155 155 155 155 155 155 7,500 12,000 155 155 155 155 155 155 12,000 16,000 155 155 155 155 155 155 16,000 20,000 155 155 155 155 155 155 20,000 23,000 155 155 155 155 155 155 23,000 26,000 190 155 155 155 155 155 26,000 28,000 190 155 155 155 155 155 28,000 31,000 740 740 155 740 155 155 31,000 33,000 1,530 1,530 740 1,530 155 155 33,000 34,000 4,170 4,170 740 1,530 470 155 34,000 35,000 4,170 4,170 1,840 1,530 1,100 155 35,000 36,000 5,750 5,750 1,840 1,530 1,100 155 36,000 38,000 8,250 8,250 2,210 1,820 1,820 280 38,000 41,000 8,250 8,250 4,750 3,250 3,250 1,500 41,000 44,000 8,250 8,250 4,750 6,250 6,250 280
Subject to the following provisions of this paragraph, the preceding provisions of this Schedule apply in relation to licences taken out after 9th March 1999. Sub-paragraph (3) below applies where— For the purposes of section 15 of the Vehicle Excise and Registration Act 1994 (vehicles becoming chargeable at a higher rate) any use of the vehicle on a public road at a time on or after 17th April 1999 when its revenue weight is or was within sub-paragraph (2)(b) above shall be treated as a use of the vehicle so as to subject it to a rate of duty higher than that at which the pre-commencement licence was taken out. Sub-paragraph (5) below applies where— For the purposes of section 15 of the Vehicle Excise and Registration Act 1994 (vehicles becoming chargeable at a higher rate) any use of the vehicle on a public road after the increase in its revenue weight shall be treated (if it would not otherwise be so treated by virtue of sub-paragraph (3) above) as a use of the vehicle so as to subject it to a rate of duty higher than that at which the pre-commencement licence was taken out. In this paragraph—
Section 16.
Section 43 of the Value Added Tax Act 1994 (groups of companies) shall be amended as follows. In subsection (1), for the words “the following provisions of this section” there shall be substituted the words “sections 43A to 43C”. Subsections (3) to (8) shall cease to have effect.
The following shall be inserted after section 43 of the Value Added Tax Act 1994—
For section 83(k) of the Value Added Tax Act 1994 (appeals) there shall be substituted—.
After section 84(4) of the Value Added Tax Act 1994 (appeals: supplementary) there shall be inserted—
Schedule 9A to the Value Added Tax Act 1994 (groups: anti-avoidance) shall be amended as follows. This paragraph shall not apply where the relevant event is the termination of a body corporate’s treatment as a member of a group by a notice under section 43C(1) or (3). In paragraph 3(8), for the words “under section 43” there shall be substituted “such as is mentioned in section 43B”. In paragraph 7(1), for the words “section 43” there shall be substituted “sections 43 to 43C”.
In this paragraph— Where, immediately before this Schedule comes into force, two or more bodies corporate are treated as members of a group by virtue of the old law— Where an application under section 43 of the Value Added Tax Act 1994 is received by the Commissioners, and has neither taken effect nor been refused before the day on which this Act is passed, the old law shall apply to determine whether the application is to take effect; but where it is determined under this sub-paragraph that an application is to take effect— In a case to which sub-paragraph (2) or (3) above applies, the power under section 43C(3) shall not be used to terminate the treatment of a body corporate as a member of a group— Where an application which purports to be an application under the old law is received by the Commissioners after the day on which this Act is passed—
Section 30. The Schedule inserted after Schedule 13A to the Taxes Act 1988 is as follows—
Section 38.
Section 353 of the Taxes Act 1988 (general provision for relief for interest payments) is amended as follows. In subsection (1), for “sections 354”, in each place, substitute “sections 359”. In subsections (1A) and (1B), omit the words “354 or”. For subsection (1G) substitute—
Sections 354 to 358 of the Taxes Act 1988 (loans to buy land etc.) shall cease to have effect.
Section 367 of the Taxes Act 1988 (supplementary provisions) is amended as follows. Omit subsection (1) and, in subsection (2), the words “354(1) and”. In subsections (3) and (4), for “sections 354”, in each place, substitute “sections 359”. In subsection (5), for “sections 356A to 357 and” substitute “section”.
In section 369 of the Taxes Act 1988 (mortgage interest payable under deduction of tax), for subsection (1A) substitute—
Section 370 of the Taxes Act 1988 (meaning of “relevant loan interest”) is amended as follows. In subsection (1)— In subsection (2), omit the words “354(1) or”, “356A, 357 or”, and paragraph (c) and the word “and” immediately before it. Omit subsections (3), (4), (6) and (7). In subsection (5), for the words from “sections” to “each” substitute “section 365 shall”.
Section 372 of the Taxes Act 1988 (home improvement loans) shall cease to have effect.
Section 373 of the Taxes Act 1988 (loans in excess of the qualifying maximum, and joint borrowers) is amended as follows. Omit— In subsection (6), for “sections 370 to 372” substitute “section 370”.
In section 374 of the Taxes Act 1988 (conditions for application of section 369), omit subsection (1)(c) and, in subsection (2), the words “(c) or”.
In section 375 of the Taxes Act 1988 (interest ceasing to be relevant loan interest, etc.), after subsection (8A) insert— Omit subsections (9) and (10) of that section.
Section 375A of the Taxes Act 1988 (option to deduct interest for Schedule A purposes) shall cease to have effect.
In section 376 of the Taxes Act 1988 (meaning of qualifying borrowers and qualifying lenders), omit—
in subsection (3), the words from “and” to the end; and
subsection (6).
Section 377 of the Taxes Act 1988 (variation of repayment terms of certain loans) shall cease to have effect.
In section 378 of the Taxes Act 1988 (supplementary regulations)—
omit subsections (1), (2) and (4); and
in subsection (3), for “377”, wherever occurring, substitute “376A”.
In section 379 of the Taxes Act 1988 (interpretation of sections 369 to 378)—
in the definition of “qualifying lender”, omit the words “to (6)”;
in the definition of “regulations”, omit the words “except in sections 378(1) and (2)”; and
“separated” means separated under an order of a court of competent jurisdiction or by deed of separation or in such circumstances that the separation is likely to be permanent.
Section 488 of the Taxes Act 1988 (tax liability of co-operative housing associations) is amended as follows. In subsection (1)— In subsection (2), omit paragraph (b) and the word “and” immediately preceding it. In subsection (4), omit the words “a member or of”. In subsection (11A), for “all persons concerned” substitute “the association”. Omit subsection (12).
In section 548(3) of the Taxes Act 1988 (cases where deemed surrender and payment in relation to certain loans does not apply), for paragraph (a) substitute—.
Section 222 of the Taxation of Chargeable Gains Act 1992 (relief on disposal of private residence) is amended as follows. In subsection (8), in paragraph (a), omit the words from “within” to “Act”. After subsection (8) insert— In subsection (9)—
Paragraph 9(2) above has effect in relation to any loan the only payments under which are payments falling within subsection (3) or (4) of section 38 of this Act. Paragraph 15 above has effect in relation to any claim for (or for part of) the year 2000-01 or any subsequent year of assessment. Paragraph 16 above has effect in relation to loans made on or after 6th April 2000. Paragraph 17 above has effect for the year 2000-01 and subsequent years of assessment. The other provisions of this Schedule have effect in relation to any payment of interest falling within subsection (3) or (4) of section 38 of this Act.
Section 52.
For section 190 of the Taxes Act 1988 (exemption from charge as emoluments of certain payments made to members of Parliament and others) substitute—
After section 200 of the Taxes Act 1988 insert— For section 198(4) of that Act (exclusion of deduction in respect of expenditure for which parliamentary allowance may be given) substitute— For section 74 of the Capital Allowances Act 1990 (exclusion of capital allowances in respect of expenditure for which parliamentary allowance may be given) substitute—
, and
In section 613(4) of the Taxes Act 1988 (Parliamentary pension funds: exemption from tax on income derived from funds), after paragraph (b) insert—; and in the closing words for “Funds” (twice) substitute “funds”.
In section 611A of the Taxes Act 1988 (definition of relevant statutory scheme), for subsection (1) substitute— At the end of that section add—
Sub-paragraph (2) below applies if provision under the Scotland Act 1998 is made for the salary paid to members of the Scottish Parliament who are also members of the Scottish Executive to be lower than that of other members of the Scottish Parliament. In that case, sections 629 and 654 of the Taxes Act 1988 (under which part of the salary of the holder of certain offices is treated as remuneration as a member of the House of Commons) apply in relation to the salary of a member of the Scottish Executive who is also a member of the Scottish Parliament as they apply in relation to the salary of the holder of a qualifying office within the meaning of those sections who is also a member of the House of Commons, with such modifications as the Treasury may specify by order. In this paragraph references to a member of the Scottish Executive include a junior Scottish Minister.
Section 54.
This Schedule applies where— The payment or other benefit is referred to in this Schedule as a “reverse premium”.
A reverse premium shall be regarded for the purposes of the Tax Acts as a receipt of a revenue nature. Where the relevant transaction is entered into— the reverse premium shall be taken into account in computing the profits of that trade, profession or vocation under Case I or II of Schedule D. If sub-paragraph (2) does not apply, the person receiving the reverse premium is chargeable to tax as if it were a receipt of a transaction entered into by him for the exploitation, as a source of rents or other receipts, of an estate, interest or right in or over the land in question.
Where— the whole amount or value of the reverse premium shall be brought into account under paragraph 2(2) or (3) in the first relevant period of account. The “first relevant period of account” means the period of account in which the relevant transaction is entered into, subject to sub-paragraph (3). If the relevant transaction is entered into— the first relevant period of account is the first period of account in which he carries on the trade, profession or vocation. The condition in sub-paragraph (1)(b) is met if the terms differ to a significant extent from the terms which at the time the arrangements were entered into would be regarded as normal and reasonable in the market conditions then prevailing between persons dealing with each other at arm’s length in the open market. In this paragraph “period of account” means a period for which accounts of the trade, profession, vocation or business in question are drawn up.
Paragraphs 2 and 3 have effect subject to the provisions of this paragraph. Nothing in paragraph 2 or 3 shall prevent any amount from being brought into account in accordance with section 83 of the Finance Act 1989 (receipts to be brought into account in Case I computation of profits in respect of life assurance). Where a reverse premium is received by an insurance company carrying on life assurance business in respect of which it is chargeable to tax otherwise than in accordance with the rules applicable to Case I of Schedule D, there shall be deducted from the amount treated as the company’s expenses of management for the accounting period in which the reverse premium is received such part of the reverse premium as is attributable— In this paragraph “insurance company”, “life assurance business” and “basic life assurance and general annuity business” have the same meaning as in Chapter I of Part XII of the Taxes Act 1988.
This Schedule does not apply to a payment or benefit if or to the extent that it is taken into account under section 153 of the Capital Allowances Act 1990 (subsidies, contributions, etc.) to reduce the recipient’s expenditure qualifying for capital allowances.
This Schedule does not apply to a payment or benefit received in connection with a relevant transaction where the person entering into the transaction is an individual and the transaction relates to premises occupied or to be occupied by him as his only or main residence.
This Schedule does not apply to a payment or benefit to the extent that it is consideration for the transfer of an estate or interest in land which constitutes the sale in a sale and lease-back arrangement. A “sale and lease-back arrangement” means any such arrangement as is described in section 779(1) or (2) or section 780(1) of the Taxes Act 1988.
For the purposes of this Schedule persons are connected with each other if they are connected within the meaning of section 839 of the Taxes Act 1988 at any time during the period when the relevant arrangements are entered into. In this Schedule “the relevant arrangements” means the relevant transaction and any arrangements entered into in connection with it, whether before, at the same time or after it.
Section 72. After Schedule 5B to the Taxation of Chargeable Gains Act 1992 (EIS re-investment) insert— .
Section 73.
Schedule 5B to the Taxation of Chargeable Gains Act 1992 (relief in respect of re-investment under the enterprise investment scheme) is amended as follows.
In paragraph 4(1) (amount of gain accruing on chargeable event), for paragraph (b) substitute— For paragraph 4(5)(a) (amount of gain where shares represented by other assets) substitute—. In order to determine, for the purposes of this paragraph, the amount of the deferred gain attributable to any shares, a proportionate part of the amount of the gain shall be attributed to each of the relevant shares held, immediately before the occurrence of the chargeable event in question, by the investor or a person who has acquired any of the relevant shares from the investor on a disposal within marriage. In this paragraph “the deferred gain” means—
In paragraph 19(1) (interpretation) omit the definition of “relevant shares”. For the purposes of this Schedule, “the relevant shares”, in relation to a case to which this Schedule applies, means the shares which— This is subject to sub-paragraphs (1B) and (1D) below. If any corresponding bonus shares in the same company are issued to the investor or any person who has acquired any of the relevant shares from the investor on a disposal within marriage, this Schedule shall apply as if references to the relevant shares were to all the shares comprising the relevant shares and the bonus shares so issued. In sub-paragraph (1B) above “corresponding bonus shares” means bonus shares which— If, in circumstances in which paragraph 8 above applies, new shares are issued in exchange for old shares, references in this Schedule to the relevant shares, so far as they relate to the old shares, shall be construed as references to the new shares and not to the old shares. In sub-paragraph (1D) above “new shares” and “old shares” have the same meaning as in paragraph 8 above.
In consequence of paragraph 3 above—
in paragraph 2 (postponement of original gain), in sub-paragraphs (1) and (4), for “relevant shares” substitute “the relevant shares”;
in paragraph 2(2) and (3), for “any relevant shares” substitute “the relevant shares”;
in paragraph 2(2)(b), for “those relevant shares” substitute “the relevant shares”;
in paragraph 3 (chargeable events), in sub-paragraph (1) and paragraphs (a) and (b) of sub-paragraph (5), for “any relevant shares” substitute “any of the relevant shares”;
in paragraph 4 (gain accruing on chargeable event), in sub-paragraphs (1) and (5), for “any relevant shares” substitute “any of the relevant shares”;
in paragraph 4(5)(b), for “the same relevant shares” substitute “the same shares”;
in paragraph 5(1) (person to whom gain accrues), for “any relevant shares” substitute “any of the relevant shares”;
in paragraph 6(1) (deferral claims), for “relevant shares” substitute “the relevant shares”;
in paragraph 16(1) and (2) (information about chargeable events), for “any relevant shares” substitute “any of the relevant shares”; and
in paragraph 19(1) (interpretation), in the definition of “the five year period”, for “any relevant shares” substitute “any of the relevant shares”.
Section 74.
The Taxation of Chargeable Gains Act 1992 shall be amended as follows.
The following section shall be inserted after section 31 (value shifting: tax-free benefits from distributions within groups)—
Section 33 (provisions supplementary to sections 30 to 32) shall be amended as follows. After subsection (1) there shall be substituted— In subsection (2), for “and 31(7)” there shall be substituted “, 31(7) and 31A(6)”. In subsection (3) there shall be inserted at the beginning “For the purposes of sections 30(2) and 31(7) to (9),” After subsection (3) there shall be inserted— In subsection (4)— After subsection (8) there shall be inserted—
Section 34 (transactions treated as a reorganisation of share capital) shall be amended as follows. After subsection (1) there shall be inserted— In subsection (2)—
This Schedule has effect in relation to any disposal of an asset which occurs on or after 9th March 1999.
Section 79.
Section 431B of the Taxes Act 1988 (meaning of “pension business”) shall be amended as follows. In subsection (2)— After that subsection there shall be inserted the following subsection— In subsection (3) (meaning of “relevant benefits”)—
In subsection (2) of section 590 of the Taxes Act 1988 (conditions for approval of scheme), for paragraph (a) there shall be substituted—. After that paragraph there shall be inserted the following paragraph—. In subsection (3) of that section (conditions for automatic approval), for paragraph (c) there shall be substituted the following paragraphs—. After that paragraph there shall be inserted the following paragraph—. After subsection (3) of that section there shall be inserted the following subsection— In subsection (4) of that section (conditions that are referred to as “the prescribed conditions”), for “subsections (2) and (3)” there shall be substituted “subsections (2) to (3A)”. After subsection (4A) of that section there shall be inserted the following subsections—
In section 591(2) of the Taxes Act 1988—
in paragraph (b) (discretion to approve schemes providing benefits for widows on the death in service of an employee), after “widows” there shall be inserted “and widowers”; and
after that paragraph there shall be inserted the following paragraph—.
In subsection (5) of section 595 of the Taxes Act 1988 (charge to tax in respect of certain sums paid by employer etc.), after “wife” there shall be inserted “or husband,” and after “widow” there shall be inserted “or widower or”.
In section 596 of the Taxes Act 1988, after subsection (3) (relief where a taxed contribution does not result in the payment of benefits) there shall be inserted the following subsection—
In section 596A(8)(c) (lump sums provided under non-approved schemes), after the word “employee,”, in the first place where it occurs, there shall be inserted “an ex-spouse of the employee,”.
In section 599 of the Taxes Act 1988 (charge to tax where pension commuted in special circumstances), the words “Subject to subsection (1A) below,” shall be inserted at the beginning of subsection (1); and the following subsections shall be inserted after that subsection— In subsection (6) of that section, after “subsection (1) above” there shall be inserted “, or in applying subsection (1B) above”.
In subsection (1) of section 600 of the Taxes Act 1988 (charge on unauthorised payments to employees), after “an employee” there shall be inserted “or an ex-spouse”. In subsection (2) of that section (person charged), for the words from “the employee” to “shall” there shall be substituted “the employee or, as the case may be, the ex-spouse shall (whether or not he is the recipient of the payment)”.
In subsections (3) and (4)(b) of section 611 of the Taxes Act 1988 (definition of “retirement benefits scheme”), for the words “employees” and “employee”, wherever occurring, there shall be substituted, respectively, the words “scheme members” and “scheme member”. After subsection (5) of that section there shall be inserted the following subsection—
In subsection (1) of section 612 of the Taxes Act 1988 (interpretation of Chapter I of Part XIV), in the definition of “relevant benefits”, after the word “death”, in the first place where it occurs, there shall be inserted “, or by virtue of a pension sharing order or provision”. In subsection (2) of that section (references to the provision of relevant benefits to include the provision of benefits under contracts with third parties)— After that subsection there shall be inserted the following subsection—
In section 615(6)(b) of the Taxes Act 1988 (funds annuities from which are paid without deduction of tax to non-UK residents), after “purpose” there shall be inserted “(subject to any enactment or Northern Ireland legislation requiring or allowing provision for the value of any rights to be transferred between schemes or between members of the same scheme)”.
In section 634(6) of the Taxes Act 1988 (restriction on assignment or surrender of annuities), for “except that” there shall be substituted except that—. In section 634A(6) of that Act (restriction on assignment or surrender of right to income withdrawals), after “surrender” there shall be inserted “, except for the purpose of giving effect to a pension sharing order or provision”. In section 635(5) of that Act (restriction on assignment or surrender of right to payment of lump sum), after “surrender” there shall be inserted “, except for the purpose of giving effect to a pension sharing order or provision”.
In section 636 of the Taxes Act 1988 (annuity payable after death of member to spouse or dependants), after subsection (3) there shall be inserted the following subsection— In subsection (10) of that section (restriction on assignment or surrender of annuities payable after death of member), for “except that” there shall be substituted except that—.
In section 636A(7) of the Taxes Act 1988 (restriction on assignment or surrender of right to income withdrawals after death of member), after “surrender” there shall be inserted “, except for the purpose of giving effect to a pension sharing order or provision”.
In section 644 of the Taxes Act 1988 (which for the purposes of references to relevant earnings contains provisions in subsections (6A) to (6F) for excluding the income of controlling directors), after subsection (6E) there shall be inserted the following subsection— In subsection (6F) of that section (construction of subsections (6A) to (6E))—
In section 657(2) of the Taxes Act 1988 (annuities not treated as purchased life annuities within section 656), after paragraph (e) there shall be inserted ; or
In Chapter VI of Part XIV of the Taxes Act 1988 (interpretation of Part XIV), the following section shall be inserted after section 659C—
In this paragraph— The power of the Treasury to appoint a day as the second appointed day for the purposes of this paragraph shall include power so to appoint different days for different purposes. Subject to sub-paragraph (4) below, paragraphs 2 and 3(b) above apply for the purposes of the grant or withdrawal at any time on or after the first appointed day of any approval of a retirement benefits scheme (whenever made or approved). Section 590(3)(bb) and (da) of the Taxes Act 1988 shall be disregarded for the purposes of determining whether any retirement benefits scheme approved before the first appointed day satisfies the prescribed conditions at any time before the second appointed day. Every retirement benefits scheme which— shall have effect, so long as it continues to be approved on and after the second appointed day and notwithstanding anything in the rules of the scheme, as if (so far as it does not already do so) it contained provision satisfying the conditions set out in section 590(3)(bb) and (da) of the Taxes Act 1988. Paragraph 6 above applies to any lump sum provided on or after the second appointed day. Paragraph 8 above applies to any payment on or after the second appointed day. Subject to sub-paragraph (9) below, paragraphs 12 to 14 above apply for the purposes of— Section 636(3A) of the Taxes Act 1988 shall be disregarded for the purposes of determining whether any personal pension scheme approved before the first appointed day, or any of the arrangements made by an individual in accordance with such a scheme, satisfies the prescribed conditions at any time before the second appointed day. The Board may by regulations provide that, in such circumstances as may be prescribed by the regulations, this Schedule shall apply in the case of retirement benefits schemes approved before the first appointed day with such exceptions, exclusions and modifications as may be so prescribed. Regulations under sub-paragraph (10) above may include such incidental, supplemental, consequential and transitional provision as the Board think appropriate.
Section 93.
Section 411A of the Taxes Act 1988 (group relief in substitution for loss relief) shall cease to have effect.
In section 588(5) of the Taxes Act 1988 (tax treatment of training courses provided for employees), after “Management Act” insert “, or paragraph 41 of Schedule 18 to the Finance Act 1998,”.
In section 102(6) of the Finance Act 1989 (surrender of company tax refund within group), for “section 94(6) of the Taxes Management Act 1970” substitute “paragraph 18 of Schedule 18 to the Finance Act 1998”.
In section 17(3) of the Capital Allowances Act 1990 (carry back of balancing allowances for mining structures etc.), at the end insert “made for the purposes of income tax”.
In section 33F(1) of the Capital Allowances Act 1990 (procedure for claims for deferment of balancing charge), for “Schedule A1 to this Act” substitute “Part IX of Schedule 18 to the Finance Act 1998”.
In section 59C of the Capital Allowances Act 1990 (supplemental provisions about elections under section 59B), for subsection (7) substitute—
In section 145(3) of the Capital Allowances Act 1990 (claim to give effect to corporation tax allowances against profits of any description), omit “to which section 42 of the Taxes Management Act 1970 applies”.
In section 118 of the Finance Act 1994 (notification requirement for expenditure on machinery or plant), for subsection (7) substitute—
In paragraph 94 of Schedule 18 to the Finance Act 1998 (company tax returns etc: election to take appeal to Special Commissioners)—
in sub-paragraph (4) for “merits or the appeal” substitute “merits of the appeal”; and
in sub-paragraph (5) for “before the giving” substitute “after the giving”.
Section 109(3).
For section 12 of the Stamp Act 1891 (assessment of duty by Commissioners) substitute—.
For section 13 of the Stamp Act 1891 (appeal against assessment of duty) substitute—.
Section 14 of the Stamp Act 1891 (terms upon which instruments not duly stamped may be received in evidence) is amended as follows. In subsection (1)— In subsection (2) for “the duty and penalty” (three times) substitute “the duty and any interest or penalty”. In subsection (3)— In subsection (4) for “first executed” substitute “executed”.
For section 240 of the Finance Act 1994 (time for presenting agreements for leases) substitute—
Section 112(3).
Stamp duty is chargeable on a conveyance or transfer on sale. For this purpose “conveyance on sale” includes every instrument, and every decree or order of a court or commissioners, by which any property, or any estate or interest in property, is, on being sold, transferred to or vested in the purchaser or another person on behalf of or at the direction of the purchaser.
Duty under this Part is chargeable by reference to the amount or value of the consideration for the sale.
In the case of a conveyance or transfer of stock or marketable securities the rate is 0.5%.
In the case of any other conveyance or transfer on sale the rates of duty are as follows— 1. Where the amount or value of the consideration is £60,000 or under and the instrument is certified at £60,000 Nil 2. Where the amount or value of the consideration is £250,000 or under and the instrument is certified at £250,000 1% 3. Where the amount or value of the consideration is £500,000 or under and the instrument is certified at £500,000 2.5% 4. Any other case 3.5%
The above provisions are subject to any enactment setting a different rate or setting an upper limit on the amount of duty chargeable.
The references in paragraph 4 above to an instrument being certified at a particular amount mean that it contains a statement that the transaction effected by the instrument does not form part of a larger transaction or series of transactions in respect of which the amount or value, or aggregate amount or value, of the consideration exceeds that amount. For this purpose a sale or contract or agreement for the sale of goods, wares or merchandise shall be disregarded— and any statement as mentioned in sub-paragraph (1) shall be construed as leaving out of account any matter which is to be so disregarded.
A contract or agreement for the sale of— Where the purchaser has paid ad valorem duty and before having obtained a conveyance or transfer of the property enters into a contract or agreement for the sale of the same, the contract or agreement is chargeable, if the consideration for that sale is in excess of the consideration for the original sale, with the ad valorem duty payable in respect of the excess consideration but is not otherwise chargeable. Where duty has been paid in conformity with sub-paragraphs (1) and (2), the conveyance or transfer to the purchaser or sub-purchaser, or any other person on his behalf or by his direction, is not chargeable with any duty. In that case, upon application and upon production of the contract or agreement (or contracts or agreements) duly stamped, the Commissioners shall either—
Where a contract or agreement would apart from paragraph 7 not be chargeable with any duty and a conveyance or transfer made in conformity with the contract or agreement is presented to the Commissioners for stamping with the ad valorem duty chargeable on it— the conveyance or transfer shall be stamped accordingly, and both it and the contract or agreement shall be deemed to be duly stamped. Nothing in this paragraph affects the provisions as to the stamping of a conveyance or transfer after execution.
The ad valorem duty paid upon a contract or agreement by virtue of paragraph 7 shall be repaid by the Commissioners if the contract or agreement is afterwards rescinded or annulled or is for any other reason not substantially performed or carried into effect so as to operate as or be followed by a conveyance or transfer.
Stamp duty is chargeable on a lease.
In the case of a lease for a definite term less than a year the duty is as follows— 1. Lease of furnished dwelling-house or apartments where the rent for the term exceeds £500 £5 2. Any other lease of land The same duty as for a lease for a year at the rent reserved for the definite term
In the case of a lease of land for any other definite term, or for an indefinite term, the duty is determined as follows. If the consideration or part of the consideration moving to the lessor or to any other person consists of any money, stock, security or other property, the duty in respect of that consideration is the same as that on a conveyance on a sale for the same consideration. But if— part of the consideration is rent, and that rent exceeds £600 a year, the duty is calculated as if paragraph 1 of the Table in paragraph 4 of this Schedule were omitted. If the consideration or part of the consideration is rent, the duty in respect of that consideration is determined by reference to the rate or average rate of the rent (whether reserved as a yearly rent or not), as follows. 1. Term less than 7 years or indefinite— if the rent is £500 or less Nil if the rent is more than £500 1% 2. Term more than 7 years but not more than 35 years 2% 3. Term more than 35 years but not more than 100 years 12% 4. Term more than 100 years 24%
Stamp duty of £5 is chargeable on a lease not within paragraph 11 or 12 above.
An agreement for a lease is chargeable with the same duty as if it were an actual lease made for the term and consideration mentioned in the agreement. Where duty has been duly paid on an agreement for a lease and subsequent to that agreement a lease is granted which either— the duty which would otherwise be charged on the lease is reduced by the amount of the duty paid on the agreement. Sub-paragraph (1) does not apply to missives of let in Scotland that constitute an actual lease. Subject to that, references in this paragraph to an agreement for a lease include missives of let in Scotland.
For the purposes of this Part a lease granted for a fixed term and thereafter until determined is treated as a lease for a definite term equal to the fixed term together with such further period as must elapse before the earliest date at which the lease can be determined. Paragraph 14 (agreement for a lease charged as a lease) shall be construed accordingly.
Stamp duty of £5 is chargeable on a conveyance or transfer of property otherwise than on sale. In sub-paragraph (1) “conveyance or transfer” includes every instrument, and every decree or order of a court or commissioners, by which any property is transferred to or vested in any person.
Stamp duty of £5 is chargeable on a declaration of any use or trust of or concerning property unless the instrument constitutes a conveyance or transfer on sale. This does not apply to a will.
The following are chargeable with duty as a conveyance on sale— A disposition in Scotland of any property, or any right or interest in property, that is not so chargeable is chargeable with stamp duty of £5.
A duplicate or counterpart of an instrument chargeable with duty is chargeable with duty of £5. The duplicate or counterpart of an instrument chargeable with duty is not duly stamped unless— Sub-paragraph (2) does not apply to the counterpart of an instrument chargeable as a lease, if that counterpart is not executed by or on behalf of any lessor or grantor.
An instrument (not itself a lease)— is chargeable with the same duty as if it were a lease in consideration of the additional rent made payable by it. Sub-paragraph (1) does not apply to an instrument giving effect to provision in the lease for periodic review of the rent reserved by it.
Where on the partition or division of an estate or interest in land consideration exceeding £100 in amount or value is paid or given, or agreed to be paid or given, for equality, the principal or only instrument by which the partition or division is effected is chargeable with the same ad valorem duty as a conveyance on sale for the consideration, and with that duty only. Where there are several instruments for completing the title of either party, the principal instrument is to be ascertained, and the other instruments shall be charged with duty, as provided by sections 58(3) and 61 of the Stamp Act 1891 in the case of several instruments of conveyance. Stamp duty of £5 is chargeable on an instrument effecting a partition or division to which the above provisions do not apply.
Stamp duty of £5 is chargeable on a release or renunciation of property unless the instrument constitutes a conveyance or transfer on sale.
Stamp duty of £5 is chargeable on a surrender of property unless the instrument constitutes a conveyance or transfer on sale.
The following are exempt from stamp duty under this Schedule—
transfers of shares in the government or parliamentary stocks or funds or strips (within the meaning of section 47 of the Finance Act 1942) of such stocks or funds;
instruments for the sale, transfer, or other disposition (absolutely or otherwise) of any ship or vessel, or any part, interest, share or property of or in a ship or vessel;
testaments, testamentary instruments and dispositions mortis causa in Scotland;
renounceable letters of allotment, letters of rights or other similar instruments where the rights under the letter or other instrument are renounceable not later than six months after its issue.
Stamp duty is not chargeable under this Schedule on any description of instrument in respect of which duty was abolished by—
section 64 of the Finance Act 1971 or section 5 of the Finance Act (Northern Ireland) 1971 (abolition of duty on mortgages, bonds, debentures etc.), or
section 173 of the Finance Act 1989 (life insurance policies and superannuation annuities).
Nothing in this Schedule affects any other enactment conferring exemption or relief from stamp duty.
Section 112(4).
Any reference (express or implied) in any enactment, instrument or other document to any of the headings in Schedule 1 to the Stamp Act 1891 (other than the heading “Bearer Instrument”) shall be construed, so far as is required for continuing its effect, as being or, as the case may require, including a reference to the corresponding provision of Schedule 13 to this Act. Sub-paragraph (1)—
In the enactments relating to stamp duty for “lease or tack”, wherever occurring, substitute “lease”.
In section 42(1) of the Finance Act 1930 (relief from transfer duty in case of transfer between associated companies) for “the heading “Conveyance or Transfer on Sale” in the First Schedule to the Stamp Act 1891” substitute “Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)”.
In section 11(1) of the Finance Act (Northern Ireland) 1954 (relief from transfer duty in case of transfer between associated companies) for “the heading “Conveyance or Transfer on sale” in the First Schedule to the Stamp Act 1891” substitute “Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)”.
In section 33(1) of the Finance Act 1970 (composition by stock exchange in respect of transfer duty), for the words from “the heading” to “1891” substitute “Part I or paragraph 16 of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale or otherwise)”.
In section 97(1) of the Finance Act 1980 (shared ownership transactions)—
for “the heading “Lease or Tack” in Schedule 1 to the Stamp Act 1891” substitute “Part II of Schedule 13 to the Finance Act 1999 (lease)”; and
for “the heading “Conveyance or Transfer on Sale” in that Schedule” substitute “Part I of that Schedule (conveyance or transfer on sale)”.
In section 129(1) of the Finance Act 1982 (exemption from duty on grants, transfers to charities, etc.) for the words from “by virtue of any of the following headings” to ““Lease or Tack”,” substitute “under Part I or II, or paragraph 16, of Schedule 13 to the Finance Act 1999”.
Section 81 of the Finance Act 1985 (renounceable letters of allotment, etc.) is amended as follows. For subsection (2) substitute—. In subsection (3) for the words from “section 126(1)” to “126(2) or (3)” substitute “section 79(4) of the Finance Act 1986 does not apply by virtue of section 79(5) or (6)”.
In section 82(5) of the Finance Act 1985 for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)”.
In section 83 of the Finance Act 1985 (duty on transfers in connection with divorce etc.)—
in subsection (1) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)”;
in subsection (2) for “50p” substitute “£5”.
In section 84 of the Finance Act 1985 (duty on instruments varying dispositions on death etc.)—
in subsection (1) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)”;
in subsection (8) for “50p” substitute “£5”.
Section 67 of the Finance Act 1986 (depositary receipts) is amended as follows. For subsections (2) and (3) substitute—. In subsection (9) (duty on transfers between one depositary company and another) for “maximum stamp duty chargeable on the instrument shall be 50p” substitute “stamp duty chargeable on the instrument is £5”.
Section 70 of the Finance Act 1986 (clearance services) is amended as follows. For subsections (2) and (3) substitute—. In subsection (9) (duty on transfers between one clearance service company and another) for “maximum stamp duty chargeable on the instrument shall be 50p” substitute “stamp duty chargeable on the instrument is £5”.
In section 75(2) of the Finance Act 1986 (acquisitions: further provisions about reliefs) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)”.
Section 76 of the Finance Act 1986 (relief from stamp duty on company acquisition) is amended as follows. In subsection (2) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)”. In subsection (4) (limit on rate of duty), for “the rate of 50p for every £100 or part of £100” substitute “0.5”.
In section 77(1) of the Finance Act 1986 (acquisition of target company’s share capital) for “the heading `Conveyance or Transfer on Sale' in Schedule 1 to the Stamp Act 1891” substitute “Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)”.
In section 79 of the Finance Act 1986 (loan capital: new provisions), for subsection (8) substitute—.
In section 80B(7) of the Finance Act 1986 (intermediaries: power of Treasury to specify rate of duty), for “10p for every £100 or part of £100” substitute “0.1”.
In section 80C(8) of the Finance Act 1986 (repos and stock lending: power of Treasury to specify rate of duty), for “10p for every £100 or part of £100” substitute “0.1”.
Section 88 of the Finance Act 1986 (stamp duty reserve tax: special cases) is amended as follows. In subsection (1) for paragraphs (aa) and (ab) substitute—. In subsection (1A)(b) for “50p” substitute “£5”.
In section 50(1) of the Finance Act 1987 (warrants to purchase government stock etc.), for the words from “either of the following headings” to the end substitute “Part I, or paragraph 16, of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale or otherwise)”.
In section 55(1) of the Finance Act 1987 (Crown exemption), for the words from “by virtue of any of the following headings” to ““Lease or Tack”,” substitute “under Part I or II, or paragraph 16, of Schedule 13 to the Finance Act 1999”.
In section 175(1) of the Finance Act 1989 (stock exchange nominees: power to exclude double charge), in paragraph (a) (circumstances in which power exercisable) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)”.
In section 61(3) of the National Health Service and Community Care Act 1990 for the words from “by virtue of any of the following headings” to ““Lease or Tack”,” substitute “under Part I or II, or paragraph 16, of Schedule 13 to the Finance Act 1999”.
In section 110 of the Finance Act 1991 (stamp duty to be abolished in certain cases), for subsections (1) to (4) substitute—.
In section 111(1) of the Finance Act 1991 (stamp duty to be reduced in certain cases) for “the heading “conveyance or transfer on sale” in Schedule 1 to the Stamp Act 1891” substitute “Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)”.
In section 113 of the Finance Act 1991 (certification of instruments for stamp duty purposes), for subsections (1) to (3) substitute—.
Section 202 of the Finance Act 1993 (rent to mortgage: England and Wales) is amended as follows. In subsection (2) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)”. In subsection (4)(a)— In subsection (4)(b) for “the heading ‘Conveyance or Transfer on Sale’” substitute “Part I of that Schedule”.
In section 203(2) of the Finance Act 1993 (rent to loan: Scotland), for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)”.
In section 241(1) of the Finance Act 1994 (consideration consisting of property)—
in paragraph (a) for “lease or tack” substitute “lease”;
in paragraph (b) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)”.
Section 242 of the Finance Act 1994 (consideration not ascertainable from conveyance or lease) is amended as follows. In subsections (1) (twice), (2) and (3) (twice) for “lease or tack” substitute “lease”. In the opening words of subsection (1) for “the heading “Conveyance or Transfer on Sale” in Schedule 1 to the Stamp Act 1891” substitute “Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale)”. In subsection (2) for “paragraph (3) of the heading “Lease or Tack” in Schedule 1 to that Act” substitute “paragraph 12 of Schedule 13 to the Finance Act 1999”.
In section 243 of the Finance Act 1994 (agreements to surrender leases) for “any duty chargeable under the Stamp Act 1891” substitute “stamp duty”.
In section 151 of the Finance Act 1995 (lease or tack: associated bodies)—
in subsection (1) for “the heading “Lease or Tack” in Schedule 1 to the Stamp Act 1891” substitute “Part II of Schedule 13 to the Finance Act 1999 (lease)”;
in subsections (1) (twice), (2), (3) and (6) (four times) for “lease or tack” substitute “lease”.
Section 113(1).
Stamp duty is chargeable— This is subject to the exemptions in Part II of this Schedule.
Stamp duty is chargeable on the transfer in the United Kingdom of the stock constituted by or transferable by means of a bearer instrument if duty was not chargeable under paragraph 1 on the issue of the instrument and—
duty would be chargeable under Part I of Schedule 13 (conveyance or transfer on sale) if the transfer were effected by an instrument other than a bearer instrument, or
the stock constituted by or transferable by means of a bearer instrument consists of units under a unit trust scheme.
In this Schedule “bearer instrument” means—
a marketable security transferable by delivery;
a share warrant or stock certificate to bearer or instrument to bearer (by whatever name called) having the like effect as such a warrant or certificate;
a deposit certificate to bearer;
any other instrument to bearer by means of which stock can be transferred; or
an instrument issued by a non-UK company that is a bearer instrument by usage.
The duty chargeable under this Schedule is 1.5 of the market value of the stock constituted by or transferable by means of the instrument, unless paragraph 5 or 6 applies.
In the case of— the duty is 0.2 of the market value of the stock constituted by or transferable by means of the instrument.
a deposit certificate in respect of stock of a single non-UK company, or
an instrument issued by a non-UK company that is a bearer instrument by usage (and is not otherwise within the definition of “bearer instrument” in paragraph 3),
In the case of an instrument given in substitution for a like instrument stamped ad valorem (whether under this Schedule or not) the duty is £5.
For the purposes of duty under paragraph 1 (charge on issue of instrument) the market value of the stock constituted by or transferable by means of the instrument is ascertained as follows. If the stock was offered for public subscription (whether in registered or in bearer form) within twelve months before the issue of the instrument, the market value shall be taken to be the amount subscribed for the stock. In any other case the market value shall be taken to be—
For the purposes of duty under paragraph 2 (charge on transfer of stock by means of instrument) the market value of the stock constituted by or transferable by means of the instrument is ascertained as follows. In the case of a transfer pursuant to a contract of sale, the market value shall be taken to be the value of the stock on the date when the contract is made. In any other case, the market value shall be taken to be the value of the stock on the day preceding that on which the instrument is presented to the Commissioners for stamping, or, if it is not so presented, on the date of the transfer.
In this Schedule a “deposit certificate” means an instrument acknowledging the deposit of stock and entitling the bearer to rights (whether expressed as units or otherwise) in or in relation to the stock deposited or equivalent stock.
In this Schedule a “bearer instrument by usage” means an instrument — A bearer instrument by usage is treated—
In this Schedule—
“UK company” means a company that is formed or established in the United Kingdom; and
In this Schedule “stock” includes securities. References in this Schedule to stock include any interest in, or in any fraction of, stock or in any dividends or other rights arising out of stock and any right to an allotment of or to subscribe for stock. In this Schedule “transfer” includes negotiation, and “transferable”, “transferred” and “transferring” shall be construed accordingly.
Stamp duty is not chargeable on a bearer instrument issued outside the United Kingdom in respect of a loan which is expressed in a currency other than sterling and which is not—
offered for subscription in the United Kingdom, or
offered for subscription with a view to an offer for sale in the United Kingdom of securities in respect of the loan.
Stamp duty is not chargeable under this Schedule on an instrument constituting, or used for transferring, stock (other than units in a unit trust) that is exempt from all stamp duties on transfer.
Stamp duty is not chargeable under this Schedule on any description of instrument in respect of which duty was abolished by—
section 64 of the Finance Act 1971 or section 5 of the Finance Act (Northern Ireland) 1971 (abolition of duty on mortgages, bonds, debentures etc.), or
section 173 of the Finance Act 1989 (life insurance policies and superannuation annuities).
Stamp duty is not chargeable under this Schedule on renounceable letters of allotment, letters of rights or other similar instruments where the rights under the letter or other instrument are renounceable not later than six months after its issue.
Stamp duty is not chargeable under this Schedule on the issue of an instrument which relates to stock expressed— or on the transfer of the stock constituted by or transferable by means of any such instrument. Where the stock to which the instrument relates consists of a loan for the repayment of which there is an option between sterling and one or more other currencies, sub-paragraph (1) applies if the option is exercisable only by the holder of the stock and does not apply in any other case.
Where the capital stock of a company is not expressed in terms of any currency, it shall be treated for the purposes of paragraph 17 as expressed in the currency of the territory under the law of which the company is formed or established.
A unit under a unit trust scheme or a share in a foreign mutual fund shall be treated for the purposes of paragraph 17 as capital stock of a company formed or established in the territory by the law of which the scheme or fund is governed. A “foreign mutual fund” means a fund administered under arrangements governed by the law of a territory outside the United Kingdom under which subscribers to the fund are entitled to participate in, or receive payments by reference to, profits or income arising to the fund from the acquisition, holding, management or disposal of investments. In relation to a foreign mutual fund “share” means the right of a subscriber, or of another in his right, to participate in or receive payments by reference to profits or income so arising.
Where a bearer instrument issued by or on behalf of a non-UK company in respect of a loan expressed in sterling— duty is not chargeable under this Schedule by reason only that the instrument is amended on its face pursuant to an agreement for the variation of any of its original terms or conditions.
has been stamped ad valorem, or
has been stamped with duty under paragraph 6 above (fixed duty on instrument given in substitution for another instrument stamped ad valorem), or
has been stamped with the denoting stamp referred to in paragraph 21(2)(b) below,
This paragraph applies where duty is chargeable under paragraph 1 of this Schedule. The instrument— Within six weeks of the date on which the instrument is issued, or such longer time as the Commissioners may allow, a statement in writing containing the date of the issue and such further particulars as the Commissioners may require in respect of the instrument shall be delivered to the Commissioners. The duty chargeable in respect of the instrument shall be paid to the Commissioners on delivery of that statement or within such longer time as the Commissioners may allow.
If default is made in complying with paragraph 21— are each liable to a penalty not exceeding the aggregate of £300 and the duty chargeable. Those persons are also jointly and severally liable to pay to Her Majesty—
This paragraph applies where duty is chargeable under paragraph 2 of this Schedule. Where the instrument is presented to the Commissioners for stamping— shall furnish to the Commissioners such particulars in writing as the Commissioners may require for determining the amount of duty chargeable. If the instrument is not duly stamped each person who in the United Kingdom— is liable to a penalty not exceeding the aggregate of £300 and the amount of duty chargeable. Those persons are also jointly and severally liable to pay to Her Majesty—
The following provisions apply to interest under paragraph 22(2) or 23(4). If an amount is lodged with the Commissioners in respect of the duty, the amount on which interest is payable is reduced by that amount. Interest is payable at the rate prescribed under section 178 of the Finance Act 1989 for the purposes of section 15A of the Stamp Act 1891 (interest on late stamping). The amount of interest shall be rounded down (if necessary) to the nearest multiple of £5. No interest is payable if the amount is less than £25. The interest shall be paid without any deduction of income tax and shall not be taken into account in computing income or profits for any tax purposes.
A person who in furnishing particulars under this Part of this Schedule wilfully or negligently furnishes particulars that are false in any material respect is liable to a penalty not exceeding the aggregate of £300 and twice the amount by which the stamp duty chargeable exceeds that paid.
An instrument in respect of which duty is chargeable under paragraph 2 of this Schedule which— shall be treated as duly stamped for all purposes other than paragraph 25.
has been stamped ad valorem, or
has been stamped with a stamp indicating that it is chargeable with a fixed duty under paragraph 6 (instrument in substitution for one stamped ad valorem) and has been stamped under that paragraph,
Section 113(3).
Any reference (express or implied) in any enactment, instrument or other document to the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891 shall be construed, so far as is required for continuing its effect, as being or, as the case may require, including a reference to Schedule 15 to this Act. Sub-paragraph (1)—
In section 67 of the Finance Act 1963 (prohibition of circulation of blank transfers) for subsection (4) substitute—.
In section 131(3) of the Finance Act 1976 (exemption for instruments issued by Inter-American Development Bank) for “the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “Schedule 15 to the Finance Act 1999 (bearer instruments)”.
In section 126(3)(c) and (5) of the Finance Act 1984 (exemption for bearer instruments issued by designated international organisations) for “the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “Schedule 15 to the Finance Act 1999 (bearer instruments)”.
In section 79(2) of the Finance Act 1986 (exemption for instruments relating to loan capital), for “the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “Schedule 15 to the Finance Act 1999 (bearer instruments)”.
Section 90 of the Finance Act 1986 (exceptions from general charge to stamp duty reserve tax) is amended as follows. In subsection (3) for paragraph (a) substitute—. In subsection (3A) for “an inland bearer instrument within the meaning of the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “a UK bearer instrument”. In subsection (3B) for “exemption 3 in the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “the exemption conferred by paragraph 16 of Schedule 15 to the Finance Act 1999 (renounceable letters of allotment etc.)”. In subsection (3C) for paragraph (b) substitute—. In subsection (3E) for paragraph (b) substitute—.
In section 95 of the Finance Act 1986 (exceptions from charge to stamp duty reserve tax on entry into depositary receipt system), for subsection (2) substitute—. There shall be no charge to tax under section 93 of that Act by virtue of paragraph (b) of subsection (2) of section 95 as substituted by sub-paragraph (1) above in the case of an instrument which gives effect to an agreement for a company merger or takeover entered into in writing by the companies involved before 30th January 1999.
In section 97 of the Finance Act 1986 (exceptions from charge to stamp duty reserve tax on entry into clearance system), for subsection (3) substitute—. There shall be no charge to tax under section 96 of that Act by virtue of paragraph (b) of subsection (3) of section 97 as substituted by sub-paragraph (1) above in the case of an instrument which gives effect to an agreement for a company merger or takeover entered into in writing by the companies involved before 30th January 1999.
In section 99 of the Finance Act 1986 (interpretation of Part IV), after subsection (1) insert—.
Section 50 of the Finance Act 1987 (warrants to purchase government stock etc.: exempt securities) is amended as follows. In subsection (2) for “the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” substitute “Schedule 15 to the Finance Act 1999 (bearer instruments)”. In subsection (3)(b) for the words from “by virtue of section 30” to “1891” substitute “exempt from stamp duty under paragraph 1 of Schedule 15 to the Finance Act 1999 (issue of bearer instrument) by virtue of paragraph 17 of that Schedule (certain non-sterling instruments)”. In subsection (3)(c) for the words from “by virtue of section 30” to “that heading” substitute “exempt from stamp duty under that Schedule by virtue of paragraph 17 of that Schedule or section 79(2) of the Finance Act 1986”.
Section 143 of the Finance Act 1988 (paired shares) is amended as follows. For subsection (2) substitute—. In subsection (3) for “This subsection applies” substitute “Subsection (2) above applies”. For subsection (4) substitute—. In subsection (5) for “This subsection applies” substitute “Subsection (4) above applies”.
For section 107 of the Finance Act 1990 (bearers: abolition of stamp duty) substitute—.
Section 114.
The amendments in this Part of this Schedule—
replace administrative fines by penalties;
amend provisions imposing a fine or penalty of a specified amount so as to impose a penalty not exceeding a specified amount;
increase or modernise in certain cases the maximum penalty.
The Stamp Duties Management Act 1891 is amended as follows. In section 12A (lost or spoiled instruments), in subsection (2)(b) for “, fine or penalty” (twice) substitute “or penalty”. In section 21 (penalty for frauds in relation to duties), for “a fine of fifty pounds” substitute “a penalty not exceeding £3,000”.
The Stamp Act 1891 is amended as follows. In section 5 (failure to set out in instrument facts and circumstances affecting duty), for “a fine of ten pounds” substitute “a penalty not exceeding £3,000”. In section 9(1) (penalty for frauds in relation to instrument bearing adhesive stamp), for the words from “he shall” to the end substitute “he is liable to a penalty not exceeding £3,000”. In section 16 (rolls, books, etc. to be open to inspection), for “a fine of ten pounds” substitute “a penalty not exceeding £300”. In section 17 (penalty for enrolling, etc. instrument not duly stamped), for “a fine of ten pounds” substitute “a penalty not exceeding £300”. In section 83 (penalty on issuing etc. foreign etc. security not duly stamped), for “a fine of twenty pounds” substitute “a penalty not exceeding £300”.
In section 56(3) of the Finance Act 1946 (unit trust schemes: failure to keep records), for “a fine of ten pounds” substitute “a penalty not exceeding £300”.
In section 27(3) of the Finance (No. 2) Act (Northern Ireland) 1946 (unit trust schemes: failure to keep records), for “a fine of ten pounds” substitute “a penalty not exceeding £300”.
In section 67(1) of the Finance Act 1963 (prohibition of circulation of blank transfers), for “fine” substitute “penalty” and for “£50” substitute “£300”.
In section 16(1) of the Finance Act (Northern Ireland) 1963 (prohibition of circulation of blank transfers), for “fine” substitute “penalty” and for “fifty pounds” substitute “£300”.
In section 68(4) and (5) and section 71(4) and (5) of the Finance Act 1986 (depositary receipts and clearance services: failure to comply with requirements as to notification), for “fine” substitute “penalty”.
This Part of this Schedule applies to penalties under the enactments relating to stamp duty, other than penalties under section 15B of the Stamp Act 1891 (penalty on late stamping). Nothing in this Part of this Schedule affects criminal proceedings for an offence.
An officer of the Commissioners authorised by the Commissioners for the purposes of this paragraph may make a determination— Notice of the determination must be served on the person liable to the penalty. The notice must also state— the date on which the notice is issued, and the time within which an appeal against the determination may be made. After notice of the determination has been served, the determination cannot be altered except— If it is discovered by an officer of the Commissioners authorised by the Commissioners for the purposes of this paragraph that the amount of a penalty determined under this paragraph is or has become insufficient, the officer may make a determination in a further amount so that the penalty is set at the amount which in the officer’s opinion is correct or appropriate. If a person liable to a penalty has died— A penalty determined under this paragraph is due and payable at the end of the period of 30 days beginning with the date of the issue of the notice of determination.
An appeal lies to the Special Commissioners against a determination under paragraph 10. Notice of appeal must be given in writing to the officer of the Commissioners by whom the determination was made within 30 days of the date of the notice of the determination. An appeal may be brought out of time with the consent of the Commissioners or the Special Commissioners. The Commissioners— shall give that consent if satisfied, on an application for that purpose, that there was a reasonable excuse for not bringing the appeal within the time limit, and if not so satisfied, shall refer the matter for determination by the Special Commissioners. The notice of appeal must specify the grounds of appeal, but on the hearing of the appeal the Special Commissioners may allow the appellant to put forward a ground not specified in the notice of appeal, and take it into consideration, if satisfied that the omission was not wilful or unreasonable. The powers conferred by section 46A(1)(c) and (2) to (4) and sections 56B to 56D of the Taxes Management Act 1970 (power of Lord Chancellor to make regulations as to jurisdiction, practice and procedure in relation to appeals to Special Commissioners) apply in relation to appeals under this paragraph. On an appeal under this paragraph the Special Commissioners may—
Section 56A of the Taxes Management Act 1970 (general right of appeal on point of law) applies in relation to a decision of the Special Commissioners under paragraph 11. Without prejudice to that right of appeal, an appeal lies against the amount of a penalty determined by the Special Commissioners under paragraph 11, at the instance of the person liable to the penalty— On an appeal under sub-paragraph (2) the court has the same powers as are conferred on the Special Commissioners by paragraph 11(6) above.
Where in the opinion of the Commissioners the liability of a person for a penalty arises by reason of his fraud or the fraud of another person, proceedings for the penalty may be brought— Proceedings under this paragraph in England and Wales shall be brought— Any such proceedings shall be deemed to be civil proceedings by the Crown within the meaning of Part II of the Crown Proceedings Act 1947. Proceedings under this paragraph in Scotland shall be brought in the name of the Advocate General for Scotland. Proceedings under this paragraph in Northern Ireland shall be brought— Any such proceedings shall be deemed to be civil proceedings within the meaning of Part II of the Crown Proceedings Act 1947 as for the time being in force in Northern Ireland. If in proceedings under this paragraph the court does not find that fraud is proved but considers that the person concerned is nevertheless liable to a penalty, the court may determine a penalty notwithstanding that, but for the opinion of the Commissioners as to fraud, the penalty would not have been a matter for the court. Paragraph 10 above (determination of penalty by officer of Commissioners) does not apply where proceedings are brought under this paragraph.
The Commissioners may in their discretion mitigate any penalty, or stay or compound any proceedings for the recovery of a penalty. They may also, after judgment, further mitigate or entirely remit the penalty.
A penalty may be determined under paragraph 10, or proceedings for a penalty brought under paragraph 13, at any time within six years after the date on which the penalty was incurred.
The Treasury may make regulations applying in relation to penalties to which Part II of this Schedule applies such provisions of the Taxes Management Act 1970 as they think fit. The regulations may apply the provisions of that Act with such modifications as the Treasury think fit. Regulations under this paragraph shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.
Without prejudice to the generality of the power conferred by paragraph 16, regulations under that paragraph may apply—
any of the provisions of Part VI of the Taxes Management Act 1970 (collection and recovery), and
such of the provisions of Part XI of that Act (miscellaneous and supplemental provisions) as appear to the Treasury to be appropriate.
Sections 21, 22 and 35 of the Inland Revenue Regulation Act 1890 (proceedings for fines, etc.) do not apply in relation to penalties to which Part II of this Schedule applies.
Section 115.
The provisions of this Part of this Schedule have effect for the purposes of the enactments relating to stamp duty.
Where— the payment is treated as made on the day on which the cheque was first received by the Commissioners. Sub-paragraph (1) applies where the cheque was first received by the Commissioners on or after 1st October 1999.
Statements made or documents produced by or on behalf of a person are not inadmissible in any such proceedings as are mentioned in sub-paragraph (2) by reason only that it has been drawn to that person’s attention— and that he was or may have been induced thereby to make the statements or produce the documents. The proceedings mentioned in sub-paragraph (1) are—
In relation to Scotland, the expression “term”, where referring to the duration of a lease, means “period”.
Section 13 of the Stamp Duties Management Act 1891 (certain offences in relation to dies and stamps provided by the Commissioners to be felonies) is amended as follows. For the sidenote substitute “Offences in relation to dies and stamps.”. Make the existing provision subsection (1) and at the beginning, for “Every person who” substitute “A person commits an offence who”. Omit the words from “shall be guilty of felony” to the end. After subsection (1) insert—. This paragraph has effect in relation to things done or omitted on or after 1st October 1999.
The following provisions of the Stamp Duties Management Act 1891 shall cease to have effect— in section 2 (recovery of money received for duty), subsections (2) and (3); section 3 (power to grant licences to deal in stamps); section 4 (penalty for unauthorised dealing in stamps etc.); section 5 (provisions as to determination of a licence); section 6 (penalty for hawking stamps); section 8 (discount on sale of stamps); section 9(2) and (3) (cases in which allowance may be made for spoiled adhesive stamps); in section 11 (how allowance to be made), the words from “deducting therefrom” to the end; section 12 (repurchase of stamps by Commissioners); section 17 (proceedings for detection of stamps stolen or fraudulently obtained); section 18 (licensed person in possession of forged stamps to be presumed guilty); section 19 (mode of proceeding when stamps are seized); section 20 (defacement of adhesive stamps); section 25 (mode of granting licences). This paragraph comes into force on 1st October 1999.
Section 122(4).
No stamp duty is chargeable on a transfer or other instrument relating to a unit under a unit trust scheme. Sub-paragraph (1) does not affect any charge to stamp duty— This paragraph has effect in relation to instruments executed on or after 6th February 2000.
There is a charge to stamp duty reserve tax where— and the unit is a chargeable security. Those events are referred to in this Part of this Schedule as a “surrender” of the unit to the managers. The tax is chargeable— The persons liable for the tax are the trustees of the unit trust. This paragraph is subject to the exclusions provided for in paragraphs 6 and 7.
Tax under this Part of this Schedule is chargeable at the rate of 0.5 of the market value of the unit. This is subject to any reduction under paragraph 4 or 5. The market value of a unit means whichever is higher of—
The amount of tax chargeable shall be proportionately reduced if the number of units of the same class as the unit in question that are surrendered to the managers in the relevant two-week period exceeds the number of units of that class issued by the managers in that period. The “relevant two-week period” in relation to a surrender is the period from the beginning of the week in which the surrender occurs to the end of the following week. For this purpose a week means a period of seven days beginning with a Sunday. The reduction is made by applying the following fraction to the amount otherwise chargeable— Where: I is the number of units of the class issued by the managers in the relevant two-week period, and S is the number of units of the class surrendered to the managers in that period. If a consolidation or sub-division of units affects the comparison of the number of units surrendered and the number of units issued, the numbers shall be determined as if the consolidation or sub-division had not taken place. This paragraph does not apply if on the surrender of the unit the unit holder receives anything other than money; and for the purposes of this paragraph no account shall be taken of a surrender or issue that is not entirely for money.
The amount of tax chargeable after any reduction under paragraph 4 shall be further reduced if in the relevant two-week period the trust property is invested in both exempt and non-exempt investments. The reduction is made by applying the following fraction to that amount— Where: N is the average market value of the non-exempt investments over the relevant two-week period, and E is the average market value of the exempt investments over that period. In this paragraph “exempt investment” has the same meaning as in section 99(5A)(b) of the Finance Act 1986; and “non-exempt investment” means any investment that is not an exempt investment.
This paragraph applies where in pursuance of arrangements between the person entitled to a unit and another person (“the new owner”)— There is no charge to tax under this Part of this Schedule if no consideration in money or money’s worth is given in connection with the surrender of the unit or the new owner’s becoming entitled to it. There is no charge to tax under this Part of this Schedule if the new owner is— There is no charge to tax under this Part of this Schedule if an instrument executed at the time of the surrender— would be exempt from stamp duty (if stamp duty were otherwise chargeable) by virtue of any of the provisions mentioned in sub-paragraph (5). The provisions referred to in sub-paragraph (4) are— Where by virtue of sub-paragraph (2), (3) or (4) there is no charge to tax, both the surrender and the related issue shall be left out of account for the purposes of paragraph 4.
There is no charge to tax under this Part of this Schedule if on the surrender of the unit the unit holder receives only such part of each description of asset in the trust property as is proportionate to, or as nearly as practicable proportionate to, the unit holder’s share.
For the purposes of this Part of this Schedule “issue” in the context of the issue of a unit by the managers under a unit trust scheme includes their transferring an existing unit or authorising or requiring the trustees to treat a person as entitled to a unit under the scheme. References in this Part of this Schedule to the surrender or issue of a unit under a unit trust scheme do not include a surrender or issue effected by means of, or consisting of the issue of, a certificate to bearer.
This Part of this Schedule applies where the surrender of the unit to the managers occurs on or after 6th February 2000.
, or
Section 90 of the Finance Act 1986 (exceptions from general charge to stamp duty reserve tax) is amended as follows. In subsection (1) (transfer of unit to managers of unit trust scheme) for “to the managers” substitute “to or from the managers”. After that subsection insert—. After the subsection inserted by sub-paragraph (3) insert—. The amendments in sub-paragraphs (2) and (3) apply where the relevant day for the purposes of section 87 of the Finance Act 1986 falls on or after 6th February 2000. The amendment in sub-paragraph (4) applies where the surrender (within the meaning of Part II of Schedule 19 to the Finance Act 1999) occurs on or after 6th February 2000.
Section 99 of the Finance Act 1986 (general interpretation provisions) is amended as follows. In subsection (5) (securities excepted from being chargeable securities), in paragraph (a), after “securities” insert “falling within paragraph (a), (b) or (c) of subsection (3) above”. After that subsection insert—. For subsection (9) (meaning of “unit” and “unit trust scheme”) substitute—.
Section 152 of the Finance Act 1995 (power to apply tax legislation to open-ended investment companies) is amended as follows. In subsection (2)(b) for “Part IV of the Finance Act 1986 (stamp duty reserve tax)” substitute “stamp duty reserve tax”. In subsection (3)(c)— “the enactments relating to stamp duty reserve tax” means Part IV of the Finance Act 1986 and any enactment which amends or is required to be construed as one with that Part;
The following definitions apply for the purposes of the enactments relating to stamp duty and the enactments relating to stamp duty reserve tax. “Unit trust scheme” has the same meaning as in the Financial Services Act 1986, subject to paragraphs 15 to 18. In relation to a unit trust scheme—
References in the enactments relating to stamp duty and the enactments relating to stamp duty reserve tax to a unit trust scheme do not include—
a common investment scheme under section 22 of the Charities Act 1960, section 25 of the Charities Act (Northern Ireland) 1964, or section 24 of the Charities Act 1993,
a common deposit scheme under section 22A of the Charities Act 1960 or section 25 of the Charities Act 1993, or
a unit trust scheme the units in which are under the terms of the trust instrument required to be held only by bodies of persons established for charitable purposes only or trustees of trusts so established.
References in the enactments relating to stamp duty and the enactments relating to stamp duty reserve tax to a unit trust scheme do not include common investment arrangements made by trustees of exempt approved schemes (within the meaning of section 592(1) of the Taxes Act 1988) solely for the purposes of the schemes.
The Treasury may by regulations provide that any scheme of a description specified in the regulations shall be treated as not being a unit trust scheme for the purposes of the enactments relating to stamp duty and the enactments relating to stamp duty reserve tax. Regulations under this paragraph— This paragraph replaces section 57(1A) and (1B) of the Finance Act 1946 and section 28(1A) and (1B) of the Finance (No.2) Act (Northern Ireland) 1946. Any regulations having effect under those provisions for the purposes of Part VII of the Finance Act 1946 or Part III of the Finance (No.2) Act (Northern Ireland) 1946 which are in force immediately before the commencement of this Schedule shall have effect as if made under this paragraph.
For the purposes of the enactments relating to stamp duty and the enactments relating to stamp duty reserve tax each of the parts of an umbrella scheme is regarded as a unit trust scheme and the scheme as a whole is not so regarded. An “umbrella scheme” means a unit trust scheme— and a “part of an umbrella scheme” means such of the arrangements as relate to a separate pool. In relation to a part of an umbrella scheme—
“records” includes records in electronic form;
“cycle” has the meaning given by section 192(1) of that Act.
is a payment to which section 369(1) of that Act applies.
The references in this section to a scheme are references to any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable.
Schedule 4 to this Act (which contains amendments consequential on the preceding provisions of this section) shall have effect.
In section 365 of the Taxes Act 1988 (relief for interest on loans to buy life annuities), in subsection (1), before paragraph (a) insert—.
After subsection (1) of that section insert—
This section has effect for the year 1998-99 and subsequent years of assessment.
Section 365 of the Taxes Act 1988 (relief for interest on loans to buy life annuities) is amended as follows.
In subsection (1)(d) (residence requirement for land on which loan is secured), for “uses the land on which it was secured as his only or main residence at the time the interest is paid” substitute “used the land on which it was secured as his only or main residence immediately before 9th March 1999”.
After subsection (1AA) (inserted by section 39 of this Act) insert—
For subsection (1A) substitute—
This section has effect in relation to any payment of interest (whenever falling due) made on or after the day on which this Act is passed.
Section 824 of the Taxes Act 1988 (repayment supplements for individuals) shall have effect, and be deemed always to have had effect, with the following amendments.
Before subsection (3) insert—
In subsection (3), before paragraph (a) insert—.
This section shall be deemed to have had effect in relation to provisions corresponding to section 824 of the Taxes Act 1988 directly or indirectly re-enacted in that section as it has effect in relation to that section, subject to subsections (5) and (6) below.
For the purposes of subsection (4) above the references in the amendments of section 824 of the Taxes Act 1988 made by this section to provisions of that Act shall be taken to include references to any corresponding provision contained in the enactments directly or indirectly re-enacted in those provisions.
Subsection (4) above applies only if the payments corresponding to payments under section 375(8) of the Taxes Act 1988 were made in the year 1984-85 or a subsequent year of assessment.
Section 140A of the Taxes Act 1988 (conditional acquisition of shares) is amended as follows.
Omit subsection (2).
In subsection (3), for “In any other case” substitute “If the terms on which the employee acquires the employee’s interest are such that his interest in the shares in question will cease to be only conditional within five years after his acquisition of the interest”.
In subsection (4), for “, in a case falling within subsection (2) or (3) above” substitute “(whether or not subsection (3) above applies)”.
This section applies in relation to shares acquired on or after the day on which this Act is passed.
Section 140C of the Taxes Act 1988 (which describes the cases in which an interest in shares is, or is not, to be treated as only conditional) is amended as follows.
After subsection (1) insert—
In subsections (2), (3) and (4) for the words from the beginning to “by reason only that” substitute “This subsection applies in relation to a person if”.
In subsection (3)—
after “offer the shares for sale” insert “or transfer them”; and
for the words from “if he ceases” to the end substitute “if he ceases to be an officer or employee of the company or of one or more group companies or of any group company.”
After that subsection insert—
After subsection (5) add—
The amendments made by this section shall be deemed always to have had effect.
The following section shall be inserted after section 155 of the Taxes Act 1988 (exception of certain benefits in kind from the general charge to tax)—
Section 159A of that Act (charge on mobile telephones) shall cease to have effect.
In section 154 of that Act (general charging provision for benefits in kind), in subsection (2)—
in paragraph (b), “159A,” shall be omitted; and
after “sections 155” there shall be inserted “, 155AA”.
In section 168A of that Act (price of a car as regards a year), in subsection (11), for “section 159A(8)(a)” there shall be substituted “section 155AA(2)”.
In section 200AA of that Act (incidental benefits for holders of certain offices etc.), subsection (3) shall cease to have effect.
This section has effect for the year 1999-00 and subsequent years of assessment.
After section 156 of the Taxes Act 1988 there shall be inserted the following section—
In section 154(2) of that Act, for “and 155A” there shall be substituted “, 155A and 156A”.
This section applies for the year 1999-00 and subsequent years of assessment.
An application made at any time on or after 28th July 1998 for the registration of a profit-related pay scheme shall not be required to contain, or to have contained, any such undertaking as is mentioned in section 175(1)(c) of the Taxes Act 1988 (undertaking to satisfy minimum wage legislation without taking account of profit-related pay).
In section 178(1) of the Taxes Act 1988, paragraph (d) (cancellation on grounds of non-compliance with a section 175(1)(c) undertaking) shall be omitted.
Subsection (2) above has effect in relation only to failures to comply taking place on or after 28th July 1998; but it shall be deemed so to have had effect at all times on or after that date.
Schedule 6 to the Taxes Act 1988 (cars available for private use: cash equivalent of car) shall be amended as follows.
In paragraph 2(1) (reduction for business travel: 18,000 miles and above)—
for “in the year concerned” substitute “in a year”, and
for “the amount ascertained under paragraph 1 above, reduced by two thirds” substitute “15 per cent. of the price of the car as regards the year”.
In paragraph 2(2) (reduction for business travel: 2,500 to 18,000 miles)—
for “in the year concerned” substitute “in a year”, and
for “the amount ascertained under paragraph 1 above, reduced by one third” substitute “25 per cent. of the price of the car as regards the year”.
For paragraph 4(a) (two or more cars) substitute—
In paragraph 5 (reduction for age of car), for “one third” substitute “one quarter”.
This section has effect for the year 1999-00 and subsequent years of assessment.
In Chapter IV of Part V of the Taxes Act 1988 (provisions relating to the Schedule E charge: exemptions and deductions), after section 197A insert—
This section has effect for the year 1999-00 and subsequent years of assessment.
The provisions listed below (which provide for exemption from tax in relation to the provision of car parking spaces) apply in relation to— as they apply in relation to car parking spaces.
motor cycle parking spaces, and
facilities for parking cycles,
The provisions referred to above are— section 141(6A) of the Taxes Act 1988 (use of non-cash voucher to obtain use of parking space); section 142(3A) of that Act (use of credit-token to obtain use of parking space); section 155(1A) of that Act (taxable benefits: general charge excluded in relation to provision of parking space); and section 197A of that Act (charge on emoluments excluded in relation to expenditure in connection with provision of parking space).
In subsection (1) above—
“the Commissioners” means the Commissioners of Customs and Excise;
The provisions of this section have effect for the year 1999-00 and subsequent years of assessment.
In Chapter IV of Part V of the Taxes Act 1988 (provisions relating to the Schedule E charge: exemptions and deductions), after section 197AB (inserted by section 48 above) insert—
In section 27(2B) of the Capital Allowances Act 1990 (cases in which expenditure on machinery or plant qualifies for allowances although not “necessarily” provided for use in performance of duties of employment)—
in paragraph (a) after “mechanically propelled road vehicle” insert “or a cycle”; and
after paragraph (b) insert—.
The provisions of this section have effect for the year 1999-00 and subsequent years of assessment.
In section 200 of the Taxes Act 1988 (expenses of Members of Parliament), in subsection (2), for the words from “the cost of” to “Strasbourg” substitute “EU travel expenses” and after that subsection insert—.
This section has effect in relation to sums paid on or after 1st April 1999.
Schedule 5 to this Act, which makes amendments the effect of which is— shall have effect.
to treat members of the Scottish Parliament, the National Assembly for Wales and the Northern Ireland Assembly in the same way, for tax purposes, as members of Parliament, and
to treat certain office holders under the Scotland Act 1998, the Government of Wales Act 1998 and the Northern Ireland Act 1998 in the same way, for tax purposes, as holders of ministerial and other offices,
The amendments made by that Schedule have effect for the year 1999-00 and subsequent years of assessment.
Sections 562 to 565 of the Taxes Act 1988 (exemption certificates for the scheme for sub-contractors in the construction industry) shall have effect in relation to any application to which this section applies, and shall be deemed always to have had effect in relation to such an application—
with the substitution of the subsection set out in subsection (2) below for the subsection (2B) inserted in section 562 by paragraph 4(3) of Schedule 27 to the Finance Act 1995 (which defined the payments to be taken into account in assessing turnover for the purposes of exemption); and
as if paragraphs 3 to 5 of Schedule 8 to the Finance Act 1998 (which extended the description of payments for certain cases) had not been enacted.
That subsection is as follows—
This section applies to any application for the issue or renewal of a certificate under section 561 of the Taxes Act 1988 which is or has been made with respect to any period beginning on or after 1st August 1999.
Schedule 6 to this Act (tax treatment of receipts by way of reverse premium) has effect.
The provisions of that Schedule apply in relation to a reverse premium (within the meaning of that Schedule) received on or after 9th March 1999, unless it is a payment or other benefit to which the recipient was entitled immediately before that date.
In determining whether a payment or benefit was one to which the recipient was entitled immediately before 9th March 1999, no account shall be taken of any arrangements made on or after that date.
The following section shall be inserted after section 83 of the Taxes Act 1988—
Section 47 of the Finance Act 1998 (gifts in kind for relief in poor countries) shall cease to have effect.
Subsections (1) and (2) above have effect in relation to gifts made on or after the day on which this Act is passed.
Section 48 of the Finance Act 1998 (gifts of money made for relief in poor countries) shall be amended in accordance with subsections (2) to (4) below.
In subsection (1)—
in paragraph (a), for “the first designation date” there shall be substituted “31st July 1998”;
in paragraph (b), for “one or both” there shall be substituted “one or more”.
In subsection (2)—
in paragraphs (a) and (b) for “designated countries or territories” there shall be substituted “countries or territories designated for the purposes of this paragraph,”; and
at the end of paragraph (b) there shall be inserted , and
In subsection (9), for “this section” there shall be substituted “paragraph (a), (b) or (c) of subsection (2) above”.
Any order made before the passing of this Act under subsection (9) of that section (designation of countries or territories in respect of which section 48 has effect) shall have effect as if made for the purposes only of subsection (2)(a) and (b) of that section.
Any notification given for the purposes of that section, in relation to a charity, before the passing of this Act shall be treated as a notification given for the purposes of that section as amended by this section.
This section has effect in relation to gifts made on or after 6th April 1999.
An order made under subsection (9) of that section for the purposes of subsection (2)(c) (as inserted by subsection (3)(b) above) may have effect retrospectively in relation to such times falling on or after that date as may be specified in the order.
Section 48 of the Finance Act 1998 (gifts of money made for relief in poor countries) shall have effect, and be deemed always to have had effect, with the following amendments.
In subsection (4) (aggregated small gifts to be treated as a single payment made at the time of the last of them), after “that section” there shall be inserted “(but subject to subsection (4A) below)”.
After that subsection there shall be inserted the following subsection—
Section 86 of the Taxes Act 1988 (employees seconded to charities and educational establishments) shall be amended as follows.
In subsection (3) (relief for expenditure attributable to the employment before 1st April 1997 of employees seconded to educational establishments), the words “and before 1st April 1997” shall be omitted.
In that subsection, for paragraphs (a) to (c) there shall be substituted—.
After subsection (3) there shall be inserted—
The amendment made by subsection (2) above shall be deemed always to have had effect.
The amendments made by subsections (3) and (4) above have effect for the year 1999-00 and subsequent years of assessment.
For subsection (2) of section 32 of the Finance Act 1991 (vocational training relief) there shall be substituted—
That section and section 33 of that Act (provisions supplementary to section 32) shall cease to have effect.
In this section—
subsection (1) has effect in relation to payments made on or after 6th April 1999; and
subsection (2) shall have effect in relation to payments made on or after such date after 6th April 2000 as the Treasury may by order appoint.
The following section shall be inserted after section 331 of the Taxes Act 1988—
In section 617 of the Taxes Act 1988 (social security benefits and contributions), in subsection (4), for “or Class 1A contribution” there shall be substituted “, a Class 1A contribution or a Class 1B contribution”.
Subsection (1) above has effect in relation to contributions paid on or after 6th April 1999.
In subsection (2)(a) of section 48 of the Finance (No. 2) Act 1997 (which provides for favourable tax treatment for certain expenditure on film production and acquisition incurred on or after 2nd July 1997 and before 2nd July 2000), for “2nd July 2000” there shall be substituted “2nd July 2002”.
Subject to subsection (2) below, where— nothing in the standard shall be taken to affect the manner in which any fee required to be paid by the club under the contract may be taken into account in computing the club’s profits to be charged under Case I of Schedule D.
a contract is or has been entered into by a football or other sports club to secure the services of a player; and
the contract is or was entered into before the beginning of the first accounting period of the club in relation to which a relevant financial reporting standard has effect (whether by virtue of the adoption of the standard by the club or otherwise),
Subsection (1) above shall not apply if the club so elects by a notice given to an officer of the Board within the period of two years beginning immediately after the accounting period described in subsection (1)(b) above.
The relevant financial reporting standards are—
Financial Reporting Standard 10 issued by the Accounting Standards Board on 4th December 1997; and
Financial Reporting Standard for Smaller Entities issued by that Board on 10th December 1998.
All such adjustments shall be made (whether by way of assessment, amendment of an assessment, repayment of tax or otherwise) as may be necessary to give effect to the provisions of this section.
Subsection (4) above has effect notwithstanding any time limits relating to the making or amendment of an assessment for any accounting period.
In section 660B(1) of the Taxes Act 1988 (circumstances in which income arising under settlement treated as that of settlor), before “is paid to or for the benefit of an unmarried minor child of the settlor” insert “(a)” and after those words insert—, or.
In subsection (3) of that section (meaning of available retained or accumulated income), for paragraphs (a) and (b) substitute—.
After that subsection insert—.
For subsection (5) of that section substitute—.
The amendment in subsection (1) above has effect in relation to— and the amendment in subsection (4) above has effect accordingly. Any apportionment required for the purposes of paragraph (b) shall be made on a just and reasonable basis.
income arising under a settlement made or entered into on or after 9th March 1999, and
income arising under a settlement made or entered into before that date so far as it arises directly or indirectly from funds provided on or after that date;
The amendments in subsections (2) and (3) above have effect in relation to any payment within subsection (2) of section 660B of the Taxes Act 1988 made on or after 9th March 1999. In relation to such a payment those amendments apply whenever the facts mentioned in subsection (3) of that section occurred.
In section 660E of the Taxes Act 1988 (application of provisions to settlements by two or more settlors), in subsection (3) (which refers to section 660B) for the words from “in relation to” to “child of the settlor” substitute “in relation to a child of the settlor”.
Subject to the following provisions of this paragraph and paragraph 14(1) below, in this Schedule “relevant discounted security” means any security which (whenever issued) is such that, taking the security as at the time of its issue, the amount payable on redemption— is or would be an amount involving a deep gain, or might be an amount which would involve a deep gain. The occasions that are to be taken into account for the purpose of determining whether a security is a relevant discounted security by virtue of sub-paragraph (1)(b) above shall not include any of the following occasions on which it may be redeemed, that is to say— but nothing in this sub-paragraph shall require an occasion on which a security may be redeemed to be disregarded by reason only that it is or may be an occasion that coincides with an occasion mentioned in this sub-paragraph. In sub-paragraph (1A) above “event adversely affecting the holder”, in relation to a security, means an event which (judged as at the time of the security’s issue) is such that, if it occurred and there were no provision for redemption, the interests of the person holding the security at the time of the event would be likely to be adversely affected. An occasion on which there may be a redemption of a security falls within this sub-paragraph if— In sub-paragraph (1C) above “tax advantage” has the meaning given by section 709(1) of the Taxes Act 1988. Subject to sub-paragraph (1F) below, where a security which is not a relevant discounted security but which would have been such a security if it had been issued to a person connected with the issuer— this Schedule shall have effect, in relation to times falling at or after the time of the acquisition or, as the case may be, the time when that person became so connected, as if the security were a relevant discounted security. Where a security which— is acquired by a person who is not connected with the issuer, this Schedule shall have effect, in relation to that person, as if the security ceased to be a relevant discounted security at the time of the acquisition.
Nothing in sub-paragraph (2)(c) above shall prevent a security that would have been a relevant discounted security if it had been issued to a person connected with the issuer from being treated as a relevant discounted security by virtue of sub-paragraph (1E) above. Nothing in sub-paragraph (2)(f) above shall prevent a security from being treated as a relevant discounted security by virtue of sub-paragraph (1C)(a) or (1E) above.
Sub-paragraph (5) of that paragraph shall cease to have effect.
Section 839 of the Taxes Act 1988 (connected persons) applies for the purposes of this paragraph. In determining for the purposes of sub-paragraph (1C), (1E), (1F) or (2A) above whether a person is or becomes connected with the issuer, no account shall be taken of—
For the purpose of determining whether a security held by a person who is not connected with the issuer is a relevant discounted security by virtue of this paragraph, a security which— shall be assumed not to be a security falling within sub-paragraph (1)(b) above.
In this paragraph references to redemption, in relation to a security, do not include references to redemption of the security on any such occasion as, by reason of sub-paragraph (1A) of paragraph 3 above, is not to be taken into account for the purpose of determining whether the security is a relevant discounted security by virtue of sub-paragraph (1)(b) of that paragraph.
In section 92 of that Act, after subsection (6) there shall be inserted the following subsections—
Subject to subsections (9) to (12) below, subsections (1) to (7) above have effect in relation to—
any transfer of a security on or after 15th February 1999; or
any occasion on or after that date on which a person holding a security becomes entitled to any payment on its redemption.
For the purposes of section 92 of that Act, subsections (1) to (7) above—
have effect in relation to any accounting period of a company ending on or after 15th February 1999; but
do not affect any amount falling to be brought into account in respect of any disposal (in whole or in part) of an asset representing a creditor relationship if the disposal was one completed before that day.
For the purposes of paragraphs 17 and 18 of Schedule 9 to that Act, subsections (1) to (7) above—
have effect in relation to any accounting period of a company ending on or after 15th February 1999; but
do not affect any amount falling to be brought into account in respect of a security representing a debtor relationship of a company if, on that day, the company was no longer subject to any liability under the relationship.
For the purposes of sections 117(2AA) and 251(8) of the Taxation of Chargeable Gains Act 1992, subsections (1) to (7) above have effect in relation to any disposal (in whole or in part) of an asset on or after 15th February 1999.
For the purposes of subsection (1)(c) of section 254 of that Act (which, notwithstanding its repeal by the Finance Act 1998, continues to have effect in relation to loans made before 17th March 1998), subsections (1) to (7) above have effect in relation to any claim made on or after 15th February 1999.
This section applies where—
before 15th February 1999 there occurred a transaction (“the relevant transaction”) to which sections 127 to 130 of the Taxation of Chargeable Gains Act 1992 applied; and
the new holding (within the meaning given by section 126 of that Act) consisted of or included something (“the new asset”) that—
did not fall to be treated as a qualifying corporate bond in relation to the relevant transaction, but
by virtue of section 65 above, does fall to be so treated in relation to a disposal on or after 15th February 1999.
Section 116 of the Taxation of Chargeable Gains Act 1992 (reorganisations etc. involving qualifying corporate bonds) shall have effect in relation to any disposal of the whole or part of the new asset on or after 15th February 1999 as if—
there had been a transaction (“the subsequent transaction”) by which the person holding the new asset had disposed of it and immediately re-acquired it;
the subsequent transaction had occurred at the time mentioned in subsection (3) below;
the asset re-acquired had been a qualifying corporate bond; and
the subsequent transaction had been a transaction to which section 127 of that Act would have applied but for section 116(5) of that Act.
That time is—
where the relevant transaction took place before 5th April 1996, that date;
where the relevant transaction took place on or after that date, immediately after the relevant transaction.
Any income that is treated as arising at the time mentioned in subsection (5) of that section, as it applies by virtue of sub-paragraph (3) above, shall be brought into account as a non-trading credit given for the purposes of this Chapter for the accounting period in which that time falls.
Any income that is treated as arising on the day mentioned in subsection (5) of that section, as it applies by virtue of sub-paragraph (2) above, shall be brought into account as a non-trading credit given for the purposes of this Chapter for the accounting period in which that day falls.
In paragraph 19(7) of that Schedule, for paragraph (b) there shall be substituted the following paragraph—.
In subsection (5)(c) of sections 64 and 65 of the Finance Act 1993 (which have effect, notwithstanding their repeal by the Finance Act 1996, in relation to deep discount and deep gain securities held on and after 31st March 1996), for “it is transferred by the creditor company” there shall be substituted “the creditor company makes a disposal of the security”.
After subsection (5) of section 65 of that Act there shall be inserted the following subsection—
Subsections (1) and (2) above apply in relation to income treated as arising on or after 15th February 1999.
Subsection (3) above applies in any case where the day mentioned in paragraph 19(9) of Schedule 15 to the Finance Act 1996 falls on or after 15th February 1999.
Subsections (4) and (5) above apply for determining whether a time on or after 15th February 1999—
is a time falling within section 64(5)(c) of the Finance Act 1993; or
is on a day falling within section 65(5)(c) of that Act.
After section 469 of the Taxes Act 1988 there shall be inserted the following section—
Section 328 of the Taxes Act 1988 (agreements with the Board about the taxation regime for common investment funds) shall cease to have effect.
Subsections (1) and (2) above have effect in relation to—
any income arising to a common investment fund on or after 6th April 1999; and
any distribution made by such a fund for a distribution period beginning on or after that date.
For the purposes of the Tax Acts where any common investment fund was in existence on 5th April 1999—
the distribution period of that fund which was current on that date for the purposes of section 469 of the Taxes Act 1988 shall be taken to have ended with that date; and
the fund’s first accounting period for the purposes of corporation tax, and its first distribution period for the purposes of the enactments relating to authorised unit trusts, shall each be taken to have begun with 6th April 1999.
In this section “common investment fund” means any common investment fund established under section 42 of the Administration of Justice Act 1982.
The Taxes Act 1988 shall be amended as follows.
In Schedule 28B (requirements to be satisfied by qualifying investments of VCTs), after paragraph 10B there shall be inserted the following paragraphs—
In paragraph 13 of Schedule 28B, at the beginning of sub-paragraph (1) there shall be inserted “Subject to paragraph 10C(15) above,”.
In section 842AA (venture capital trusts), after subsection (5) there shall be inserted the following subsections—
This section—
shall have effect in relation to any arrangements made, and rights of conversion exercised, on or after 16th June 1999; and
shall be deemed to have come into force on that date.
In Schedule 15B to the Taxes Act 1988 (VCTs: relief from income tax), in paragraph 7 (relief on distributions), in sub-paragraph (3)(a), after “trust,” there shall be inserted—.
This section applies in relation to shares acquired on or after 9th March 1999.
In section 289 of the Taxes Act 1988 (eligibility for EIS relief), in subsection (1A)—
for paragraph (a) there shall be substituted—; and
in paragraph (b), for “such a company” there shall be substituted “a company falling within paragraph (a) above”.
This section applies in relation to shares issued on or after 6th April 1999.
After section 150C of the Taxation of Chargeable Gains Act 1992 insert—
Schedule 7 to this Act (which inserts Schedule 5BA into that Act) shall have effect.
In consequence of the insertion of Schedule 5BA, in that Act—
in section 2A(8) (qualifying holding period for taper relief), after “that Schedule” insert “and paragraph 3 of Schedule 5BA”; and
in paragraph 2(4) of Schedule A1 (effect of periods not counting for taper relief purposes), after “paragraphs 10 to 12 below” insert “or paragraph 4 of Schedule 5BA”.
Schedule 8 to this Act (which amends Schedule 5B to the Taxation of Chargeable Gains Act 1992 in relation to cases where there is a disposal of some, but not all, of the shares to which relief under that Schedule is attributable) shall have effect.
The amendments made by Schedule 8 to this Act have effect in relation to shares issued on or after 6th April 1999.
Schedule 9 to this Act (which makes provision about tax-free benefits in relation to value shifting) shall have effect.
For subsection (2) of section 71 of the Taxation of Chargeable Gains Act 1992 (allowable losses of trustees treated as transferred to a person becoming absolutely entitled to settled property) there shall be substituted the following subsections—
This section applies in relation to any occasion on or after 16th June 1999 on which a person becomes absolutely entitled to settled property as against the trustee.
In Part VIII of the Taxation of Chargeable Gains Act 1992 (supplemental), after section 284 there shall be inserted the following sections—
Sections 284A and 284B of the Taxation of Chargeable Gains Act 1992 have effect in relation to any case in which the circumstances arising as mentioned in subsection (6)(a) of section 284A are circumstances arising on or after 9th March 1999, whether the benefit mentioned in subsection (1) of that section was obtained as so mentioned before or after the passing of this Act.
In section 22(3D) of the Capital Allowances Act 1990 (first year allowances: transitional relief), for “1st July 1999” there shall be substituted “1st July 2000”.
In section 22 of the Capital Allowances Act 1990 (“the 1990 Act”) (first-year allowances), in subsection (3CC) (which restricts the expenditure on machinery and plant for use in Northern Ireland which is eligible for 100 per cent. allowances), after paragraph (b) there shall be inserted ; or
After subsection (3CC) of that section there shall be inserted—
“agriculture” and “agricultural produce” have the same meanings as in section 6 of the European Communities Act 1972; “fish” includes shellfish; “fish farming” means the intensive rearing, on a commercial basis, of fish intended for human consumption; “fishing” means a trade, or part of a trade, which consists of the catching or taking of fish; “goods vehicle” has the same meaning as in the Road Traffic (Northern Ireland) Order 1995;
In section 22B of the 1990 Act (withdrawal of first-year allowance on change of use)—
in subsection (2)(a), for “the period of two years beginning with the date of the incurring of that expenditure” there shall be substituted “the relevant period”; and
after subsection (2) there shall be inserted—
After section 22B of the 1990 Act there shall be inserted—
The preceding provisions of this section have effect in relation to every chargeable period ending on or after 12th May 1998.
Schedule 10 to this Act (which, for purposes connected with the sharing of pensions between ex-spouses, makes provision with respect to pensions and annuities) shall have effect.
Section 657(2) of the Taxes Act 1988 (annuities not treated as purchased life annuities within section 656) shall have effect, and shall be deemed always to have had effect, with the substitution of the following paragraph for the “or” at the end of paragraph (d)—.
This section applies for the purposes of corporation tax in relation to the disposal by a company (“the relevant company”) of any asset where—
the asset is one acquired by the relevant company from an insurance company at a time when the relevant company and that insurance company were both members of the same group of companies;
there was an occasion before the disposal (whether the occasion of the transfer of the asset to the relevant company or the occasion of an earlier transfer of the asset) in relation to which the non-statutory arrangements for groups of insurance companies were applied in the case of the transferring company;
the application of those arrangements in relation to that occasion had the effect of preventing the cost of the asset’s acquisition by the transferring company (“the previous acquisition”) from being brought into account for tax purposes; and
there has not, between that occasion and the making of the disposal, been any relevant event by reference to which the cost of the previous acquisition has been brought into account in computing the profits or losses of any company for tax purposes.
Subject to subsection (5) below, where the computation of the relevant company’s profits or losses from any trade requires the cost of the acquisition of the asset by that company to be brought into account in the accounting period in which the disposal takes place, that cost shall be brought into account in that period as if it were an amount equal to the cost of the previous acquisition.
Subject to subsections (4) and (5) below, where— the question whether an amount falls to be brought into account in accordance with paragraph 6(2) or (3) of that Schedule, and the amount (if any) falling to be so brought into account, shall be determined as if the notional closing value of the relationship on 31st March 1996 had been equal to the cost of the previous acquisition.
the asset disposed of represents a creditor relationship,
the disposal is such that paragraph 6 of Schedule 15 to the Finance Act 1996 (adjustment for pre-commencement trading relationships) would require an amount to be brought into account in the accounting period in which the disposal takes place in any case in which there is, for that relationship, a difference such as is mentioned in sub-paragraph (1) of that paragraph, and
the cost of the previous acquisition is less than the amount which for the purposes of paragraph 5(2) of that Schedule would (apart from this subsection) be the notional closing value of the relationship on 31st March 1996,
In any case where the asset represents a creditor relationship in relation to which an election under paragraph 6(4) of Schedule 15 to the Finance Act 1996 has effect—
subsection (3) above and paragraphs (b) and (c) below shall be disregarded in determining the amounts falling to be brought into account under paragraph 6(4) to (7) of that Schedule;
paragraph 6(1) and (2) of that Schedule shall be treated as applying, notwithstanding paragraph 6(4)(a), if, in the case of that relationship, the amount referred to in subsection (3)(c) above exceeds the cost of the previous acquisition; and
the amount falling by virtue of paragraph (b) above to be brought into account in accordance with paragraph 6(2) of that Schedule shall be determined as if the excess referred to in paragraph 6(2)(a) were the excess mentioned in paragraph (b) above.
Where— subsections (2) to (4) above shall have effect as if the references to the previous acquisition were references to the acquisition which is the previous acquisition in relation to the earliest of those occasions.
there are two or more occasions such as are mentioned in paragraph (b) of subsection (1) above, and
paragraph (d) of that subsection is satisfied in relation to each of them,
In subsection (1)(d) above “relevant event”, in relation to any asset, means—
a disposal of the asset; or
any event by reference to which the conditions of the non-statutory arrangements for groups of insurance companies has required the cost of the previous acquisition to be brought into account in computing the profits or losses of any company for tax purposes.
Section 170 of the Taxation of Chargeable Gains Act 1992 (meaning of groups etc.) shall apply for construing references in the preceding provisions of this section to a group of companies as it applies for the purposes of sections 171 to 181 of that Act.
In the preceding provisions of this section—
“syndicate rights”, in relation to a member, means rights under a syndicate in which the member participates.
“payment” includes a repayment;
References in this section to an asset shall be construed as if section 473 of the Taxes Act 1988 (cases where different assets are treated as the same) applied for the purposes of this section as it applies for the purposes of that Act; and paragraph 12(2) of Schedule 9 to the Finance Act 1996 (cases where different companies are treated as the same) shall apply for the purposes of this section as it applies for the purposes of Chapter II of Part IV of that Act of 1996.
In this section any reference to the non-statutory arrangements for groups of insurance companies is a reference to so much of any arrangements made by the Board otherwise than by virtue of an enactment as—
in relation to an accounting period beginning before 1st January 2000— or
provided for a single assessment of the trading profits of a group of insurance companies to be made on the principal company of the group; and
excluded trading profits on intra-group transfers of investments from the group assessment;
contains transitional provision, in connection with the withdrawal of any arrangements falling within paragraph (a) above, for allowing trading profits on intra-group transfers to be excluded from assessments of members of groups of insurance companies that relate to accounting periods beginning on or after 1st January 1999 and before 1st January 2000.
This section—
shall not be construed as requiring any amount representing a gain on the disposal of the asset to be brought into account for tax purposes in so far as an amount representing that gain is or has already been brought into account, as an attributed gain, under any regulations made by virtue of Schedule 16 to the Finance Act 1993 (Forex transitional provisions); and
shall be without prejudice to any power of the Board apart from this section to enforce any conditions subject to which any relief in accordance with the non-statutory arrangements for groups of insurance companies has been allowed.
This section applies in relation to disposals by the relevant company made in accounting periods beginning on or after 1st January 1999.
This section applies where a member has entered into a members' agent pooling arrangement (“the arrangement”).
Subsections (3) to (9) below shall apply for the purpose of determining any liability of the member’s to capital gains tax that may arise from transactions effected in pursuance of the arrangement.
The syndicate rights held by the member under the arrangement shall be treated as a single asset acquired by him at the time when he entered into the arrangement; but, subject to subsection (9) below, he shall not be treated as disposing of the asset (in whole or in part) except as mentioned in subsection (6) below.
The member shall be treated as having given, wholly and exclusively for the acquisition of the asset, consideration equal to any amount paid by him on entering into the arrangement.
Any other amount paid by the member under the arrangement shall, on a disposal of the asset, be treated as expenditure incurred wholly and exclusively on the asset for the purpose of enhancing its value and reflected in its state or nature at the time of the disposal.
If an amount is paid to the member at any time under the arrangement, he shall be treated as disposing of the whole asset or, as the case may be, part of the asset at that time for a consideration equal to that amount.
If syndicate rights held by the member otherwise than under the arrangement become at any time rights held by him under the arrangement, he shall be treated as disposing of those rights at that time for a consideration equal to their market value at that time.
If syndicate rights held by the member under the arrangement become at any time rights held by him otherwise than under the arrangement, he shall be treated as acquiring those rights at that time for a consideration equal to their market value at that time.
Nothing in subsection (3) above shall affect the operation of section 24(1) of the Taxation of Chargeable Gains Act 1992 (disposals where assets extinguished etc.) in relation to the asset.
Subject to subsection (11) below this section applies to arrangements entered into on or after 6th April 1999 or subsisting on that date.
In the case of arrangements subsisting on 6th April 1999, this section has effect— and the incidental costs of any acquisition falling within paragraph (b) or (c) above shall be taken to be incidental costs of the acquisition of the asset.
as if the time mentioned in subsection (3) above were the earliest time (“the notional time of acquisition”) at which the member acquired any of the syndicate rights held by him under the arrangement immediately before 6th April 1999;
as if the consideration referred to in subsection (4) above were the consideration, in money or money’s worth, given by him wholly and exclusively for the acquisition of such of those rights as he acquired at the notional time of acquisition; and
in relation to times before 6th April 1999, as if the amount mentioned in subsection (5) above were the amount of any consideration, in money or money’s worth, given by him wholly and exclusively for the acquisition, after the notional time of acquisition, of rights such as are mentioned in paragraph (a) above;
In section 82 above and this section, except where the context otherwise requires—
“member” means an individual who is an underwriting member of Lloyd's;
“electronic communications” includes any communications by means of a telecommunication system (within the meaning of the Telecommunications Act 1984);
“members' agent pooling arrangement”, in relation to a member, means an arrangement— under which a members' agent arranges for the member’s participation in syndicates; and which satisfies the conditions set out in subsection (2) below;
The conditions mentioned in paragraph (ii) of the above definition of “members' agent pooling arrangement” are that under the arrangement—
the member must participate in each of the syndicates to which the arrangement relates; and
the extent to which the member participates in each such syndicate is determined—
by the members' agent; or
according to a formula provided for in the arrangement.
References in section 82 above to the payment of an amount are references to the payment of an amount in money or money’s worth; and to the extent that an amount mentioned in subsection (4), (5) or (6) of that section is paid in money’s worth, the amount of the consideration or expenditure there referred to shall be calculated by reference to the market value of the money’s worth at the time of the payment mentioned in that subsection.
Section 82 above and this section have effect in relation to a Scottish partnership which is an underwriting member of Lloyd’s as they have effect in relation to a member, but as if the reference in section 82(2) to any liability of the member’s to capital gains tax that may arise from transactions effected in pursuance of the arrangement were a reference to any such liability of members of the partnership that may so arise.
In section 155 of the Taxation of Chargeable Gains Act 1992 (classes of assets for the purposes of roll-over relief), after Class 7 there shall be inserted—
This section applies to—
assets (or interests in them) disposed of on or after 6th April 1999;
assets (or interests in them) acquired on or after that date.
This section applies in relation to any chargeable period where—
the Board have made a written agreement with any person (“the taxpayer”);
the agreement relates to one or more of the matters mentioned in subsection (2) below and to that chargeable period;
the agreement is one made as a consequence of an application by the taxpayer to the Board for the clarification by agreement of the effect in the taxpayer’s case of provisions by reference to which questions relating to any one or more of those matters fall, or might fall, to be determined; and
the agreement contains a declaration that it is an agreement made for the purposes of this section.
Those matters are—
the attribution of income to a branch or agency through which the taxpayer has been carrying on a trade in the United Kingdom, or is proposing so to carry on a trade;
the attribution of income to any permanent establishment of the taxpayer (wherever situated) through which he has been carrying on, or is proposing to carry on, any business;
the extent to which income which has arisen or may arise to the taxpayer is to be taken for any purpose to be income arising in a country or territory outside the United Kingdom;
the treatment for tax purposes of any provision made or imposed (whether before or after the date of the agreement) as between the taxpayer and any associate of his;
the treatment for tax purposes of any provision made or imposed (whether before or after the date of the agreement) as between a ring fence trade carried on by the taxpayer and any other activities so carried on.
Subject to the following provisions of this section and to section 86 below, the Tax Acts shall have effect in the taxpayer’s case as if questions relating to the matters mentioned in subsection (2) above were, to the extent provided for in the agreement, to be determined in accordance with the agreement, and without reference to the provisions in accordance with which they would otherwise have fallen to be determined.
In the case of so much of any question as— the provisions reference to which is capable of being excluded under subsection (3) above by an agreement made for the purposes of this section shall be confined to those contained in Schedule 28AA to the Taxes Act 1988 (transfer pricing rules).
relates to any matter mentioned in paragraph (d) or (e) of subsection (2) above, and
is not comprised in a question falling within another paragraph of that subsection,
Any such application to the Board as is mentioned in subsection (1)(c) above must set out—
the taxpayer’s understanding of what would, in his case, be the effect, in the absence of any agreement, of the provisions in relation to which clarification is sought;
the respects in which it appears to the taxpayer that clarification is required in relation to those provisions; and
how the taxpayer proposes that matters should be clarified in a manner consistent with the understanding mentioned in paragraph (a) above.
For the purposes of this section two persons are associates, in relation to provision made or imposed as between them if, within the meaning of Schedule 28AA to the Taxes Act 1988— and, in the case of provision made or imposed by or in relation to the terms of any sale of oil (within the meaning of paragraph 9 of that Schedule), two persons shall also be treated as associates for the purposes of this section wherever sub-paragraph (2) of that paragraph would require them for the purposes of that Schedule to be treated in relation to that provision as falling within paragraph (b) above.
one of them is directly or indirectly participating, at the time of the making or imposition of the provision, in the management, control or capital of the other; or
the same person or persons is or are, at that time, directly or indirectly participating in the management, control or capital of each of the two persons;
In this section “ring fence trade”, in relation to the taxpayer, means any activities which—
are carried on by the taxpayer as, or as part of, a trade; and
in accordance with section 492(1) of the Taxes Act 1988 (tax treatment of oil extraction activities), either—
fall to be treated for tax purposes as a separate trade, distinct from all other activities carried on by the taxpayer; or
would so fall if the taxpayer did carry on any other activities as part of that trade.
This section applies in relation to any chargeable period ending on or after the day on which this Act is passed but only if the agreement is one made on or after that day and in relation to that period.
The chargeable periods in relation to which provision may be made by a section 85 agreement include periods ending before the making of the agreement.
An agreement shall not have effect in accordance with section 85(3) above in relation to any determination of a question which—
relates to a time after a time as from which an officer of the Board has revoked the agreement in accordance with its terms;
relates to a time after or in relation to which there has been a failure by a party to the agreement to comply with any provision of the agreement compliance with which is, under the terms of the agreement, to be a condition of its having effect; or
relates to any matter as respects which any other conditions which, by the terms of the agreement, are to be conditions of its having effect have not been, or are no longer, satisfied.
Where— it shall be the duty of the Board to ensure that all such modifications of the section 85 agreement are made (whether in exercise of powers conferred on the Board by that agreement or otherwise) as may be necessary for enabling effect to be given to the mutual agreement in relation to the subject-matter of the section 85 agreement.
there is a section 85 agreement between the Board and any person, and
there is a mutual agreement made under and for the purposes of any double taxation arrangements which is not consistent with the terms of the section 85 agreement,
It shall be the duty of any person who is a party to a section 85 agreement to provide the Board from time to time with all such reports and other information as he may be required to provide under the agreement or by virtue of any request made by an officer of the Board in accordance with the terms of the agreement.
Where— the agreement shall be deemed never to have been made.
the Board and any person have purported to enter into a section 85 agreement at any time,
before that time, that person fraudulently or negligently provided the Board with information which was false or misleading,
that information was so provided for or in connection with the application to the Board for the making of the agreement or otherwise in connection with its preparation, and
the Board have notified that person that the agreement is nullified by reason of the misrepresentation,
Any provision of a section 85 agreement that provides for the modification or revocation of that agreement by the Board, or by an officer of the Board, may provide for the modification or revocation to take effect as from such time (including a time before the modification is made or the agreement revoked) as the Board or officer may determine.
Where a section 85 agreement— the adjustments shall be made for those purposes in the manner provided for in the agreement.
relates to a chargeable period beginning or ending before the making of the agreement, and
provides for the manner in which adjustments are to be made for tax purposes in consequence of that agreement,
A person shall be liable to a penalty not exceeding £10,000 if he fraudulently or negligently makes any false or misleading statement to the Board or an officer of the Board either—
for or in connection with any application to the Board for them to enter into a section 85 agreement; or
otherwise in connection with the preparation of such an agreement.
Section 86(4) of the Finance Act 1999.
In this section—
any officer of either body of Commissioners; or
the Commissioners of Inland Revenue or the Commissioners of Customs and Excise,
This section applies where—
any agreement made for the purposes of section 85 above has effect in relation to any provision (“the actual provision”) made or imposed as between any person (“the taxpayer”) and another (“the other party”); and
section 85(3) above has the effect in the taxpayer’s case of requiring a question relating to the actual provision to be determined in accordance with the agreement rather than by reference to rules which would otherwise be applicable by virtue of Schedule 28AA to the Taxes Act 1988.
Paragraphs 6 and 7 of Schedule 28AA to the Taxes Act 1988 (relief from double counting in the case of disadvantaged persons) shall have effect in the other party’s case on the assumption that any question falling within subsection (3) below is to be determined, to the same extent as in the taxpayer’s case, by reference to the agreement.
Those questions are—
whether the taxpayer is a person on whom a potential advantage in relation to United Kingdom taxation is conferred by the actual provision; and
what constitutes the arm’s length provision in relation to the actual provision.
Subsection (2) above shall have effect subject to any agreement made for the purposes of section 85 above between the Board and the other party.
Section 111 of the Finance Act 1998 (notice to persons who may be entitled to claim as disadvantaged persons) shall have effect as if the assumptions referred to in subsection (1)(b) of that section included any assumptions falling to be made by virtue of the agreement.
A dividend paid by a company shall not fall within sub-paragraph (1)(d) above if, and to the extent that, the profits which are the relevant profits in relation to the dividend derive from dividends or other distributions paid to the company at any time which are dividends or other distributions— Subsections (3) and (4) of section 799 (double taxation relief: computation of underlying tax) apply for the purposes of this sub-paragraph as they apply for the purposes of subsection (1) of that section.
Subsection (1) above applies for the purpose of determining whether dividends paid on or after 9th March 1999 for accounting periods ending on or after that date fall within sub-paragraph (1)(d) of paragraph 2 of that Schedule.
In the Table in section 98 of the Taxes Management Act 1970 (penalties for failure to provide information, produce documents etc.), in the first column, after the entry for Part III of the Taxes Management Act 1970 insert “regulations under section 59E of this Act;”.
In section 102(5)(a) of the Finance Act 1989 (surrender of company tax refund within group), for “section 10 of the Taxes Act 1988” substitute “section 59D or 59E of the Taxes Management Act 1970”.
This section has effect in relation to accounting periods ending on or after 1st July 1999.
In section 826(4) of the Taxes Act 1988 (interest on tax overpaid)—
for “the repayment of, or of the part in question of, the loan or advance mentioned in section 419(4) was made” substitute “the event giving rise to entitlement to relief under section 419(4) occurred”; and
in paragraph (a)(i) of that subsection, after “repayment” insert “, or the release or writing off,”.
This section has effect in relation to the release or writing off of the whole or part of a debt on or after 6th April 1999.
Schedule 16 to the Taxes Act 1988 (collection of income tax on company payments) is amended as follows.
In paragraph 4 (payment of tax), omit—
in sub-paragraph (1), the words “Subject to sub-paragraph (3) below,”; and
sub-paragraph (3).
In paragraph 8 (items included in return or claim in error)—
for “should have been included in a return under Schedule 13” substitute “should not have been so included”; and
for “been included in the right return” substitute “not been included in the return or claim in question”.
In section 32(6) of the Finance Act 1998 (meaning of “unrelieved surplus advance corporation tax”), for “paragraph 11” substitute “paragraph 12”.
Subsections (1) to (3) above have effect—
in relation to periods for which a return is required under paragraph 2 of Schedule 16 to the Taxes Act 1988 beginning on or after 6th April 1999; and
in relation to accounting periods beginning on or after that date.
The amendment made by subsection (4) above shall be deemed always to have had effect.
Part VIII of Schedule 18 to the Finance Act 1998 (claims for group relief) is amended as follows.
In paragraph 75 (reduction in amount available for surrender by way of group relief)—
in sub-paragraph (1), for “amount available for relief” substitute “total amount available for surrender”; and
in sub-paragraphs (2) and (4), before “amount available for surrender” insert “total”.
After that paragraph insert—
If an assessment under this paragraph is made because a claimant company fails, or is unable, to amend its company tax return under paragraph 75(6), the assessment is not out of time if it is made within one year from—
In section 87A(3) of the Taxes Management Act 1970 (interest on unpaid corporation tax assessed on other persons), for “section 96(8) of the Finance Act 1990” substitute “paragraph 75A(2) of Schedule 18 to the Finance Act 1998”.
Section 96 of the Finance Act 1990 shall cease to have effect.
This section has effect in relation to accounting periods ending on or after 1st July 1999.
The enactments mentioned in Schedule 11 to this Act have effect with the amendments specified there, which are minor amendments and amendments consequential on Schedule 18 to the Finance Act 1998 (company tax returns, assessments and claims, etc.).
The amendments made by Schedule 11 to this Act have effect in relation to accounting periods ending on or after 1st July 1999.
This section applies where—
a contract (“the old contract”) provides for the sale by a person (“A”) of oil consisting of gas to the British Gas Corporation or one of its successors (“the purchaser”);
the old contract is a contract made, or treated (by virtue of this section) as made, before the end of June 1975;
the old contract is replaced by a contract (“the new contract”) for the sale of oil consisting of gas to the purchaser made after the end of June 1975; and
any of the rights and liabilities which, under the old contract, were rights and liabilities of A are, under the new contract, rights and liabilities of another person (“B”).
The new contract shall be treated for the purposes of section 10(1)(a) of the Oil Taxation Act 1975 as the same contract as the old contract unless the rights and liabilities of B under the new contract are so different from those of A under the old contract that a contract conferring those rights and imposing those liabilities on A could not have been regarded as the same contract as the old contract.
For the purposes of subsection (1) above the successors of the British Gas Corporation are—
British Gas plc; and
British Gas Trading Limited.
This section shall be deemed always to have had effect.
This section applies to a lease (“the lease in question”) of an asset (“the relevant asset”) where—
a person (“the seller”) who is a participator in an oil field (“the seller’s oil field”) has made a disposal in a chargeable period of the relevant asset or an interest in it;
the relevant asset was a qualifying asset in relation to the seller and the seller’s oil field is the chargeable field in relation to it;
the relevant asset is used in connection with an oil field (“the lessee’s oil field”) by a participator in that field (“the lessee”) under the lease in question;
the seller, or a person connected with him at any time in the relevant period, is the lessee; and
the lessee uses the relevant asset before the end of the period of two years beginning with the disposal.
Subject to subsection (8) below, to the extent that the expenditure falling within subsection (3) below exceeds the amount of the cap, that expenditure shall not be allowable under section 3 or 4 of the principal Act or section 3 of the Oil Taxation Act 1983 for the lessee’s oil field.
That expenditure is the aggregate of the following—
the total expenditure, excluding operating expenditure, incurred by the lessee under the lease in question; and
if at any time after the disposal he acquires the relevant asset or an interest in it, the total expenditure (not falling within paragraph (a) above) incurred by him in acquiring the asset or interest.
Subject to subsections (5) to (7) below—
if the period in which the disposal was made is one in which the seller has benefitted from safeguard relief, the amount of the cap is the smaller of—
the amount given by dividing the marginal tax on the disposal receipts by the applicable rate of tax; and
the amount of the disposal receipts; and
in any other case the amount of the cap is the amount of the disposal receipts.
Subject to subsection (7) below, where at the relevant time there are, in relation to the relevant asset, two or more leases to which this section applies, the amount of the cap for the lease in question shall be the appropriate proportion of the cap found by applying subsection (4) above.
For the purposes of subsection (5) above the appropriate proportion is the proportion given by the formula— where— A is the proportion of the total use of the relevant asset during the term of the lease in question that is expected to be use under the lease; and B is— in a case where the seller disposed of the whole of the relevant asset, one; and in any other case, the proportion that the value of the interest disposed of by him bore to the total value of the relevant asset.
Where at the relevant time the relevant asset is used, or is expected to be used, by the lessee under the lease in question in connection with two or more oil fields, the amount of the cap for each of the fields shall be so much of the cap found by applying subsections (4) to (6) above as accords with the proportion of the use of the asset under the lease that is expected, at that time, to be—
use in connection with that field; or
use giving rise to tariff receipts of the lessee attributable to that field.
Where— the excess shall continue to be allowable.
expenditure falling within subsection (3) above has been allowed for the lessee’s oil field, on a claim under Schedule 5 or 6 to the principal Act, on the basis that the cap was of a particular amount;
information later becomes available to the Board which establishes that the cap is not of that amount; and
the amount that was allowed exceeds the amount (if any) of the expenditure falling within that subsection that would have been allowed on the claim if the information had been available when the expenditure was allowed,
Subject to subsection (10) below, this section and sections 96 and 97 below apply to assets, or interests in assets, disposed of on or after 9th March 1999.
This section and those sections do not apply to assets, or interests in assets, disposed of pursuant to an agreement made before that date if—
the agreement is not conditional; or
the agreement is conditional and the condition is satisfied before that date.
This section applies where—
section 95 above has applied to a lease;
the lessee has transferred the whole or part of his interest in the lessee’s oil field; and
pursuant to the transfer, the relevant asset is used in connection with that oil field under a lease (“the new participator’s lease”) by the person who is the new participator in relation to the transfer.
Subject to subsection (4) below, section 95 above shall have effect as if the new participator were the lessee and the new participator’s lease were the lease in question.
The reference in subsection (1)(b) above to the lessee includes a reference to a successor of his; and subject to subsection (4) below, the expenditure that the new participator is treated by virtue of subsection (2) above as having incurred includes—
any expenditure, excluding operating expenditure, incurred by the lessee or a successor of his under the lease in question or a lease of the relevant asset; and
any expenditure (not falling within paragraph (a) above) incurred by the lessee or a successor of his after the disposal mentioned in section 95(1)(a) above in acquiring the relevant asset or an interest in it.
Where the transfer mentioned in subsection (1)(b) above, or any antecedent transfer, was a transfer of part of the transferor’s interest in the lessee’s oil field—
the amount of the cap which is applicable by virtue of subsection (2) above shall be so much of the cap that would be applicable apart from this subsection as accords with the proportion of the lessee’s interest in the field that is represented by the new participator’s interest in the field; and
the expenditure incurred (as mentioned in subsection (3) above) by the lessee or any successor of his that is treated, by virtue of subsection (2) above, as expenditure incurred by the new participator shall be so much of the expenditure incurred (as so mentioned) by the person concerned as accords with the proportion of that person’s interest in the field that is represented by the new participator’s interest in the field.
A person is a successor of the lessee for the purposes of this section if and only if—
this section has applied to an earlier transfer by the lessee or a successor of his of the whole or part of his interest in the lessee’s oil field; and
that person was the new participator in relation to the earlier transfer and used the relevant asset under the lease in connection with that oil field.
In this section “antecedent transfer” means a transfer (other than the transfer mentioned in subsection (1)(b) above) by the lessee or a successor of his of the whole or part of his interest in the lessee’s oil field, pursuant to which the relevant asset was used as mentioned in subsection (1)(c) above.
For the purposes of section 95 above the marginal tax on the disposal receipts is the difference between—
the amount of tax to which the seller is chargeable on the assessable profit accruing to him from the seller’s oil field in the period in which the asset or interest was disposed of; and
the amount of tax to which the seller would have been so chargeable if the amount or value of the consideration received or receivable by him in respect of the disposal in that period of the asset or interest had been nil.
For the purposes of that section—
any question whether a person is connected with the seller shall be determined in accordance with the provisions of section 839 of the Taxes Act 1988;
the relevant period is the period beginning with the time of the disposal of the asset or interest and ending with the time when the first claim is made for the allowance, for the lessee’s oil field, of expenditure incurred by the lessee or a successor of his under the lease in question or a lease of the relevant asset (and in this paragraph the reference to the lessee includes a reference to a person who is treated as the lessee by virtue of section 96 above);
the applicable rate of tax is the rate at which tax is charged under section 1(2) of the principal Act at the time of the disposal of the asset or interest;
the amount of the disposal receipts is the aggregate of the amount or value of any consideration received or receivable by the seller in respect of the disposal of the asset or interest;
a chargeable period is a period in which the seller benefits from safeguard relief if and only if the tax payable by the seller for that period is less than it would have been if section 9 of the principal Act (safeguard relief) had not been enacted;
the relevant time is the end of the earliest claim period for which a claim such as is mentioned in paragraph (b) above is made; and
tariff receipts of the lessee shall be taken to be attributable to an oil field if and only if they are attributable to the field for any chargeable period for the purposes of the Oil Taxation Act 1983.
In section 96 above references— shall be construed in accordance with Schedule 17 to the Finance Act 1980.
to the transfer by a person of the whole or part of his interest in the lessee’s oil field; or
in relation to a transfer, to the new participator,
The expenditure which for the purposes of sections 95 and 96 above shall be taken to be operating expenditure shall be so much of the expenditure incurred by the lessee or, as the case may be, a successor of his under the lease concerned as appears, on a just and reasonable estimate, to be operating expenditure.
References in this section to a successor of the lessee shall be construed in accordance with section 96(5) above.
In this section and sections 95 and 96 above—
“tariff receipts” has the same meaning as in that Act.
“the principal Act” means the Oil Taxation Act 1975;
“the new participator’s lease” shall be construed in accordance with section 96(1) above;
This section and sections 95 and 96 above shall be construed as one with Part I of the principal Act.
Subsection (2) below applies where—
an asset which is not a mobile asset is a qualifying asset for the purposes of the Oil Taxation Act 1983 in relation to a person (“the taxpayer”) who is a participator in an oil field (“the field”);
tariff receipts or disposal receipts of the taxpayer which are referable to the asset are attributable to the field for a chargeable period (“the earlier period”);
receipts of the taxpayer which are referable to the asset for a subsequent chargeable period (“the later period”) would not, apart from this section, be tariff receipts or disposal receipts attributable to the field for that period as a result of—
the taxpayer’s ceasing to be a participator in the field; or
his becoming a participator in another oil field; and
not more than two chargeable periods intervene between the earlier period and the later period.
The Oil Taxation Acts shall have effect, in relation to the later period and any subsequent chargeable period, as if—
receipts of the taxpayer which are referable to the asset for the period concerned were tariff receipts or disposal receipts attributable to the field for that period; and
in a case falling within subsection (1)(c)(i) above, the taxpayer continued to be a participator in the field.
Subsection (4) below applies where—
an asset which is not a mobile asset is a qualifying asset for the purposes of the Oil Taxation Act 1983 in relation to a person (“the taxpayer”) who is a participator in an oil field (“the field”);
tariff receipts or disposal receipts of the taxpayer which are referable to the asset are attributable to the field for a chargeable period (“the earlier period”);
in a subsequent chargeable period (“the later period”) the taxpayer disposes of— to another person (“the transferee”) in circumstances such that section 7 of the Oil Taxation Act 1983 does not apply to the disposal; and
the asset; or
an interest in the asset,
not more than two chargeable periods intervene between the earlier period and the later period.
The Oil Taxation Acts shall have effect, in relation to the later period and any subsequent chargeable period, as if—
receipts of the transferee which are referable to the asset for the period concerned were tariff receipts or disposal receipts attributable to the field for that period; and
the transferee were a participator in the field.
Subject to subsection (6) below, any reference in this section to receipts of any person which are referable to the asset for a period is a reference to any sums which—
are received or receivable by that person in that period in respect of the use of the asset, or the provision of services or other business facilities of whatever kind in connection with its use; or
are received or receivable by that person in respect of the disposal in that period of the asset, or an interest in the asset.
In a case falling within subsection (3)(c)(ii) above—
any sums which are received or receivable by the transferee otherwise than by virtue of his acquisition of the interest shall not be regarded for the purposes of subsection (4) above as receipts of his which are referable to the asset for any period; and
for the purposes of paragraph (a) above, such apportionments shall be made as may be just and reasonable.
This section shall be construed as one with Part I of the Oil Taxation Act 1975; and in this section “the Oil Taxation Acts” means—
the enactments relating to petroleum revenue tax (including this section);
Chapter V of Part XII of the Taxes Act 1988 (petroleum extraction activities); and
sections 62 to 65 of the Finance Act 1991 (oil industry).
Nothing in this section shall be taken to affect the meaning of “participator” in paragraph 4 of Schedule 2 to the principal Act.
Subject to subsection (11) below, subsection (1) above applies where— was made on or after 1st July 1999.
the disposal by virtue of which the taxpayer ceased to be a participator in the field; or
the acquisition by virtue of which he became a participator in the other oil field,
Subject to subsection (11) below, subsection (3) above applies where the asset, or the interest in the asset, was disposed of on or after that date.
Neither subsection (1) nor subsection (3) above applies where the disposal or acquisition concerned was made pursuant to an agreement which was made before 1st July 1999 and either—
the agreement was not conditional; or
the agreement was conditional and the condition was satisfied before that date.
In paragraph 3 of Schedule 19 to the Finance Act 1982 (months in which instalments may be withheld)—
in sub-paragraph (1), at the beginning there shall be inserted “Subject to sub-paragraph (1A) below,” and after “month” there shall be inserted “(the relevant month)”; and
Sub-paragraph (1) above does not apply if the relevant month is a month in which any consideration (whether in the nature of income or capital) is received or receivable by the participator in respect of any such matter as is mentioned in paragraph (a) or (b) of section 6(2) of the Oil Taxation Act 1983 (chargeable tariff receipts).
Subsection (1) above applies for the purpose of determining whether instalments are payable in respect of chargeable periods ending on or after 31st December 1999.
After section 494 of the Taxes Act 1988 there shall be inserted the following section—
Subject to subsection (3) below, this section applies to assets, or interests in assets, disposed of on or after 9th March 1999.
This section does not apply to assets, or interests in assets, disposed of pursuant to an agreement made before that date if—
the agreement is not conditional; or
the agreement is conditional and the condition is satisfied before that date.
In subsection (1)(b) of section 233 of the Finance Act 1994 (relief for tariff receipts from participator in non-taxable field)—
for “a participator in a non-taxable field” there shall be substituted “any person”, and
for “in connection with that non-taxable field” there shall be substituted “otherwise than in connection with a taxable field”.
Subsection (1) above applies to sums received or receivable in any chargeable period ending on or after 31st December 1999.
In paragraph 2 of Schedule 2 to the Oil Taxation Act 1975 (returns by participators)—
in sub-paragraph (1) (returns must be delivered within two months of the end of a chargeable period), after “the period” there shall be inserted “or within such longer period as the Board may allow”; and
The power of the Board to allow an extension of time under sub-paragraph (1) above shall include power—
In paragraph 5 of that Schedule (returns by the responsible person)—
in sub-paragraph (1) (returns must be delivered within one month of the end of a chargeable period), after “the period” there shall be inserted “or within such longer period as the Board may allow”; and
The power of the Board to allow an extension of time under sub-paragraph (1) above shall include power—
After paragraph 12 of that Schedule there shall be inserted the following paragraph—
Where— sub-paragraph (1) above shall have effect as if the reference to six years after the end of the claim period in which the expenditure is incurred were a reference to two years after the relevant time. In sub-paragraph (7) above “the relevant time” means the earlier of—
2(7) For the reference to paragraph 5 of Schedule 2 to this Act substitute a reference to paragraph 2 of that Schedule; for the reference to paragraph 2(1) of Schedule 5 to this Act substitute a reference to paragraph 1(2) of this Schedule. 2(8) —
In subsection (4) of section 62 of the Finance Act 1987 (returns relating to sales of oil), for the words from the beginning to “additional return” there shall be substituted—.
In subsection (6) of that section, for paragraph (b) (return under subsection (4) not to include details included in return under paragraph 2 of Schedule 2 to the principal Act) there shall be substituted the following paragraph—.
The preceding provisions of this section apply in relation to chargeable periods ending on or after 30th June 1999.
Section 193 of the Taxation of Chargeable Gains Act 1992 (roll-over relief not available for gains on oil licences) shall cease to have effect.
This section has effect in relation to—
a disposal of a licence or an interest in a licence which occurs on or after 1st July 1999;
an acquisition of a licence or an interest in a licence which occurs on or after 1st July 1999.
The following shall be inserted after section 102 of the Finance Act 1986 (inheritance tax: gifts with reservation)—
For subsection (3) of section 216 of the Inheritance Tax Act 1984 (delivery of accounts) there shall be substituted the following subsections—
This section has effect in relation to deaths occurring on or after 9th March 1999.
After section 219 of the Inheritance Tax Act 1984 there shall be inserted the following sections—
In subsection (3) of section 237 of the Inheritance Tax Act 1984 (imposition of Inland Revenue charge), for ““personal property” includes leaseholds” there shall be substituted ““personal property” does not include leaseholds”.
After subsection (3A) of that section there shall be inserted the following subsections—
Subsection (1) above has effect in relation to deaths occurring on or after 9th March 1999; and subsection (2) above has effect in relation to tax charged on or after that day.
For section 245 of the Inheritance Tax Act 1984 (failure to provide information) there shall be substituted the following sections—
In section 247 of that Act (provision of incorrect information)—
in subsection (1)—
for “£50 and twice the difference” there shall be substituted “£3,000 and the difference”; and
for “£50”, in the other place where it occurs, there shall be substituted “£1,500”;
in subsection (3), for “£500” and “£250” there shall be substituted “£3,000” and “£1,500” respectively; and
in subsection (4), for “£500” there shall be substituted “£3,000”.
Subsection (1) above does not have effect in relation to a failure by any person— where the period within which the person is required to perform the obligation in question expires before the day on which this Act is passed.
to deliver an account under section 216 or 217 of the Inheritance Tax Act 1984,
to make a return under section 218 of that Act, or
to comply with a notice under section 219 of that Act,
Subsection (2) above has effect in relation to incorrect accounts, information or documents delivered, furnished or produced on or after the day on which this Act is passed.
For section 15 of the Stamp Act 1891 (penalty upon stamping instruments after execution) substitute—.
In section 178(2) of the Finance Act 1989 (enactments for purposes of which Treasury may prescribe rates of interest), before paragraph (a) insert—.
The consequential amendments in Schedule 12 to this Act have effect.
This section applies to instruments executed on or after 1st October 1999.
A payment by the Commissioners to which this section applies shall be paid with interest at the rate applicable under section 178 of the Finance Act 1989 for the period between the relevant time (as defined below) and the date on which the order for the payment is issued.
This section applies to any repayment by the Commissioners of duty, or any penalty on late stamping, under the enactments relating to stamp duty. In that case the relevant time is 30 days after the day on which the instrument in question was executed or, if later, the date on which the payment of duty or penalty was made.
This section applies to a repayment by the Commissioners of an amount lodged with them in respect of the duty payable on stamping an instrument if— In that case the relevant time is 30 days after the day on which the instrument was executed or, if later, the date on which the amount was lodged with the Commissioners.
the instrument is presented for stamping,
the instrument is duly stamped, and
the repayment is of an amount then repayable.
This section also applies to a money payment made by the Commissioners under section 11 of the Stamp Duties Management Act 1891 (allowances for spoiled or misused stamps). In that case the relevant time is the date on which the duty was paid for the stamp in respect of which the allowance is made.
A payment by the Commissioners under section 12A(2)(b) of that Act (allowances for lost or spoiled instruments) is treated for the purposes of this section as a repayment of the duty or penalty by reference to which it is made. In that case the relevant time is the date on which the payment of duty or penalty was made.
No interest is payable under this section if the amount of the payment to which this section applies is less than £25.
No interest is payable under this section in respect of a payment made in consequence of an order or judgment of a court having power to allow interest on the payment.
Interest paid to any person under this section is not income of that person for any tax purposes.
In section 178(2) of the Finance Act 1989 (enactments for purposes of which Treasury may prescribe rates of interest), after paragraph (o) add—, and.
This section applies in relation to instruments executed on or after 1st October 1999.
Section 55 of the Finance Act 1963 and section 4 of the Finance Act (Northern Ireland) 1963 (rates of stamp duty on conveyance or transfer on sale) are each amended as follows.
In subsection (1)(d) (rate of £2 for every £100 etc. where consideration does not exceed £500,000 and the instrument is certified at that amount) for “£2” substitute “£2.50p”.
In subsection (1)(e) (rate of £3 for every £100 etc. in cases not otherwise provided for) for “£3” substitute “£3.50p”.
This section applies to instruments executed on or after 16th March 1999, except where the instrument in question is executed in pursuance of a contract made on or before 9th March 1999.
This section shall be deemed to have come into force on 16th March 1999.
The amount of any stamp duty chargeable ad valorem—
shall be a percentage of the amount specified in the relevant charging provision, and
shall be rounded up (if necessary) to the nearest multiple of £5.
The amount of every fixed stamp duty shall be £5.
The provisions of Schedule 13 to this Act have effect in place of Schedule 1 to the Stamp Act 1891, and certain related enactments, so far as they relate to the instruments (other than bearer instruments) chargeable to duty and the method of calculation and rates of duty.
The consequential amendments in Schedule 14 to this Act have effect.
The percentage rates specified in Schedule 13 and the enactments amended by Schedule 14 correspond to the rates of duty generally in force at the passing of this Act. In the case of an instrument in relation to which there was then in force transitional provision in connection with an earlier change in the rate of duty having the effect that a different rate applied, the new or amended provisions have effect as if a reference to a percentage corresponding to that different rate were substituted.
This section has effect in relation to instruments executed on or after 1st October 1999.
The provisions of Schedule 15 to this Act have effect in place of the heading “Bearer Instruments” in Schedule 1 to the Stamp Act 1891, and certain related enactments, and incorporate amendments in relation to bearer instruments corresponding to those made by— section 109 (interest and penalties on late stamping), section 112 (general amendment of charging provisions), and Part I of Schedule 17 to this Act (amendments of penalties other than on late stamping).
The percentage rates specified in Schedule 15 correspond to the rates of duty generally in force at the passing of this Act. In the case of an instrument in relation to which there was then in force transitional provision in connection with an earlier change in the rate of duty having the effect that a different rate applied, the new provisions have effect as if a reference to a percentage corresponding to that different rate were substituted.
The consequential amendments specified in Schedule 16 to this Act have effect.
This section applies in relation to bearer instruments issued on or after 1st October 1999.
The provisions of Schedule 17 to this Act (stamp duty: penalties other than on late stamping) have effect.
The provisions of that Schedule have effect in relation to penalties in respect of things done or omitted on or after 1st October 1999.
Schedule 18 to this Act (stamp duty: minor amendments and repeal of obsolete provisions) has effect.
In section 95 of the Finance Act 1986 (exceptions from charge on entry into depositary receipt system), for subsection (2) (bearer instruments) substitute—.
In section 97 of the Finance Act 1986 (exceptions from charge on entry into clearance system), for subsection (3) (bearer instruments) substitute—.
This section applies to any instrument issued on or after 30th January 1999, except one giving effect to an agreement for a company merger or takeover entered into in writing by the companies involved before that date.
In section 95(2) of the Finance Act 1986 (bearer instruments excepted from charge on entry into depositary receipt system), for paragraph (b) (one of the categories of instrument to which the exception does not apply) substitute—.
After that subsection insert—.
For subsection (6) of that section substitute—.
In section 97(3) of that Act (bearer instruments excepted from charge on entry into clearance system), for paragraph (b) (one of the categories of instrument to which the exception does not apply) substitute—.
After that subsection insert—.
For subsection (7) of that section substitute—.
Subsections (1) to (6) above apply in relation to any instrument issued on or after 9th March 1999, except one giving effect to an agreement for a company merger or takeover entered into in writing by the companies involved before 30th January 1999.
After section 95 of the Finance Act 1986 (depositary receipts: exceptions) insert—.
In section 99(10) of that Act (meaning of “chargeable securities”), after “95,” insert “95A,”.
After section 97 of that Act (clearance services: exceptions) insert—.
In section 99(10) of that Act (meaning of “chargeable securities”), after “97” insert “, 97AA”.
This section applies in relation to securities issued on or after 1st May 1998.
The Treasury may by regulations make provision excluding from the definition of “chargeable securities” in Part IV of the Finance Act 1986 such rights in or in relation to securities as, in accordance with the regulations, are to be treated as exempt UK depositary interests in foreign securities.
Subject to subsection (3), the regulations may—
define “depositary interest”, “UK depositary interest” and “foreign securities” for this purpose; and
exempt such descriptions of UK depositary interests in foreign securities (as so defined) as may from time to time be specified in the regulations.
The regulations shall not make provision for the exemption of a depositary interest unless the terms of issue of the interest are such that it can only be transferred in accordance with regulations under section 207 of the Companies Act 1989 (transfer of securities without written instrument) or by means of a transfer within section 186(1) of the Finance Act 1996 (transfer of securities to member of electronic transfer system).
The regulations may contain such incidental, supplementary, consequential and transitional provision as appears to the Treasury to be appropriate. This may include provision modifying the enactments relating to stamp duty reserve tax for the purpose of giving effect to the exemption conferred by regulations under this section (or, where earlier regulations are varied or revoked, withdrawing an exemption formerly conferred).
Regulations under this section may make different provision for different cases.
Regulations under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.
Section 90 of the Finance Act 1986 (exceptions from the general charge to stamp duty reserve tax) is amended as follows.
In subsection (3F)(c) (conditions of exception under subsection (3E)) for “securities which are not listed” substitute “chargeable securities which are not listed”.
In subsection (5) for “by a person” substitute “for the purposes of a business”; and in subsection (6) for “A person is within this subsection if his business is exclusively” substitute “A business is within this subsection if, or so far as, it consists of”.
Subsection (2) above applies to instruments issued on or after 9th March 1999.
Subsection (3) above applies to agreements to transfer securities made on or after 9th March 1999.
The following provisions have effect with respect to the power conferred on the Treasury by section 98(1) of the Finance Act 1986 (stamp duty reserve tax: regulations with respect to administration, etc.).
That power includes power to make provision—
applying the provisions of the Taxes Management Act 1970 relating to penalties and the payment of interest on overdue tax, and
requiring information to be provided, or books, documents or other records to be made available for inspection, and imposing a penalty for failure to do so.
That power includes, and shall be deemed always to have included, power to make provision requiring specified descriptions of persons to account for and pay tax, and any interest on it, on behalf of the person liable to pay it.
The following provisions of this Act (which apply generally to instruments executed on or after 1st October 1999)— do not apply to transfers or other instruments relating to units under a unit trust scheme.
section 109 and Schedule 12 (interest and penalties on late stamping),
section 110 (interest on duty overpaid, etc.), and
section 112 and Schedules 13 and 14 (general amendment of charging provisions),
Subsection (1) does not affect the operation of those provisions in relation to stamp duty—
on a conveyance or transfer on sale of property other than units under a unit trust scheme in relation to which such units form the whole or part of the consideration, or
under Schedule 15 to this Act (bearer instruments).
In subsections (1) and (2) “unit” and “unit trust scheme” have the same meaning as in Part VII of the Finance Act 1946 or Part III of the Finance (No.2) Act (Northern Ireland) 1946.
Schedule 19 to this Act (stamp duty and stamp duty reserve tax: unit trusts) has effect. This subsection and that Schedule come into force on 6th February 2000.
This Part—
so far as it relates to stamp duty shall be construed as one with the Stamp Act 1891, and
so far as it relates to stamp duty reserve tax shall be construed as one with Part IV of the Finance Act 1986.
In this Part—
“the enactments relating to stamp duty” means the Stamp Act 1891 and any enactment amending or which is to be construed as one with that Act; and
“the enactments relating to stamp duty reserve tax” means Part IV of the Finance Act 1986 and any enactment amending or which is to be construed as one with that Part.
The following provisions of this Part shall cease to have effect on the day appointed under section 111(1) of the Finance Act 1990 (abolition of stamp duty for securities etc.)— section 113; sections 116 to 121; subsections (1)(b) and (2)(b) of this section; in Schedule 13— paragraph 3, in paragraph 4 the words “in the case of any other conveyance or transfer on sale”, paragraph 7(1)(b)(ii) to (iv), paragraph 24(a), (b) and (d); in Schedule 14, paragraphs 5, 8, 12, 13, 16 to 21 and 23; Schedule 15; in Schedule 16, paragraphs 2 to 11; in Schedule 17, paragraphs 6 to 8; Parts I to III of Schedule 19; in Part IV of that Schedule, the words “and the enactments relating to stamp duty reserve tax” in paragraphs 14(1), 15, 16, 17(1) and 18(1).
The amendment by this Part, or the repeal in consequence of this Part, of any enactment relating to stamp duty does not affect that enactment as applied for any purpose other than stamp duty.
In section 42 of the Finance Act 1996 (amount of landfill tax), in subsections (1)(a) and (2), for “£7”, in each place where it occurs, there shall be substituted “£10”.
This section has effect in relation to taxable disposals made, or treated as made, on or after 1st April 1999.
In section 51(2)(b) of the Finance Act 1994 (4 per cent. standard rate of insurance premium tax), for “4 per cent.” there shall be substituted “5 per cent.”
Subsection (1) above has effect in relation to a premium which falls to be regarded for the purposes of Part III of the Finance Act 1994 (insurance premium tax) as received under a taxable insurance contract by an insurer on or after 1st July 1999.
Subsection (1) above does not have effect in relation to a premium which—
is in respect of a contract made before 1st July 1999, and
falls to be regarded for the purposes of Part III of that Act as received under the contract by the insurer on a date before 1st January 2000, by virtue of regulations under section 68 of that Act (special accounting schemes).
Subsection (3) above does not apply in relation to a premium which—
is an additional premium under a contract,
falls to be regarded for the purposes of Part III of that Act as received under the contract by the insurer on or after 1st July 1999, by virtue of regulations under section 68 of that Act, and
is in respect of a risk which was not covered by the contract before 1st July 1999.
In the application of sections 67A to 67C of that Act (announced increase in rate of insurance premium tax) in relation to the increase under subsection (1) above and the exception under subsection (3) above—
the announcement for the purpose of sections 67A(1) and 67B(1) shall be taken to have been made on 9th March 1999,
the date of the change is 1st July 1999, and
the concessionary date is 1st January 2000.
This section applies for the determination and recovery of the amount of any interest charged in accordance with Article 232 of the Community Customs Code (interest on duty not paid within the prescribed period) on arrears of customs duty payable to the Commissioners.
Subject to subsection (3) below, the interest shall be charged on the amount in arrears at the rate applicable under section 197 of the Finance Act 1996 (power to fix rates of interest applicable in the case of indirect taxes) for the period which—
begins with the latest time for payment of that amount; and
ends with the day before that on which payment of that amount is actually made.
Regulations made for the purposes of this section under section 197 of the Finance Act 1996 may provide that, where the amount of interest computed in any case in accordance with subsection (2) above is less than such minimum amount as may be specified in or determined in accordance with the regulations, the amount of interest charged in that case is (instead of being the amount so computed) to be taken to be equal to that minimum amount.
Subsections (2) and (3) above have effect subject to Article 232(2) of the Community Customs Code (power to waive interest in certain cases).
Any interest the amount of which falls to be determined in accordance with this section shall be recoverable by the Commissioners as if it were customs duty; but nothing in this subsection shall be taken to impose any liability to interest on an amount so determined.
Interest on an amount of customs duty shall not be recoverable from any person at any time more than three years after the latest time for payment of that amount unless a written notice that arrears of customs duty attract interest was given to that person by the Commissioners at a time falling—
at or after the time when that amount first became payable; and
before the end of that three years.
In this section—
“company” includes any body of persons, corporate or unincorporate;
The preceding provisions of this section— and different days may be appointed under this subsection for different purposes.
shall have effect for periods beginning on or after such day as the Treasury may by order made by statutory instrument appoint; and
shall so have effect in relation to interest running from before that day, as well as in relation to interest running from, or from after, that day;
Subject to the following provisions of this section, where the Commissioners are liable to repay an amount to any person in consequence of— then, if and to the extent that they would not be liable to do so apart from this section, the Commissioners shall pay interest to him on that amount for the applicable period.
the payment to them by way of customs duty of an amount that was not due from that person, or
any requirement to repay an amount of customs duty in accordance with the Community Customs Code or Council Regulation (EEC) No. 2454/93,
The amounts that carry interest under subsection (1) above—
include only so much of any amount mentioned in that subsection as is the subject of a claim that the Commissioners are required to satisfy or have satisfied; and
do not include any amount of interest under this section.
Subject to section 128 below, in relation to any amount that carries interest under subsection (1) above, the applicable period for the purposes of this section is the period which—
begins with the sixty-first day after the making of the claim for repayment of that amount; and
ends with the date on which the Commissioners issue the repayment of that amount.
The Commissioners shall not be liable to pay interest under this section except on the making of a claim for that purpose.
A claim under this section must be in writing and must be made not more than three years after the end of the applicable period to which it relates.
Any reference in this section to the issue by the Commissioners of any repayment of any amount includes a reference to the discharge by way of set-off of the Commissioners' liability to repay that amount.
Interest under this section shall be payable at the rate applicable under section 197 of the Finance Act 1996.
In this section and section 128 below—
any other person who for the purposes of electronic communications is acting under the authority of either body of Commissioners.
“non-UK company” means a company that is not a UK company.
The Commissioners may by order modify subsection (3) above so as to provide for interest under this section to begin to run from a time before the sixty-first day after the making of the claim for repayment.
The power of the Commissioners to make an order under subsection (9) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.
This section has effect in relation only to a repayment the claim for which is made on or after such day as the Treasury may by order made by statutory instrument appoint; and different days may be appointed under this subsection for different purposes.
In determining the applicable period for the purposes of section 127 above in the case of interest on the amount of any repayment there shall be left out of account any period by which the Commissioners' issue of the repayment is delayed as a result of circumstances beyond their control.
The reference in subsection (1) above to a period by which the Commissioners' issue of a repayment is delayed as a result of circumstances beyond their control includes, in particular, any period which is referable to any one or more of the matters mentioned in subsections (3) to (5) below.
The first of those matters is any unreasonable delay in the making of any claim for the repayment of the amount on which interest is claimed.
The second of those matters is any failure by any person to provide the Commissioners— with all the information required by them to enable the existence and amount of the claimant’s entitlement to a repayment to be determined.
at or before the time of the making of any such claim, or
subsequently in response to a request for information by the Commissioners,
The third of those matters is the making, as part of or in association with such a claim, of a claim to anything to which the person making the claim has no entitlement.
In determining for the purposes of subsection (4) above whether any period of delay is referable to a failure by any person to provide information in response to a request by the Commissioners, there shall be taken to be so referable any period which—
begins with the date on which the Commissioners request that person to provide information which they reasonably consider relevant to the matter to be determined; and
ends with the earliest date on which it would be reasonable for the Commissioners to conclude—
that they have received a complete answer to their request for information;
that they have received all that they need in answer to that request; or
that it is unnecessary for them to be provided with any information in answer to that request.
Where— the amount shall be recoverable by the Commissioners as if it were customs duty.
the Commissioners have issued an amount to any person by way of—
a payment of interest under section 127 above, or
a repayment of customs duty or of interest on arrears of customs duty,
that person was not entitled to that amount, and
the Commissioners are entitled to recover it,
An amount shall not be recoverable from any person in accordance with subsection (1) above at any time more than three years after the payment or repayment was issued unless a written notice that the amount is recoverable was given to that person by the Commissioners before the end of those three years.
Any reference in this section to the issue by the Commissioners of any payment or repayment of any amount includes a reference to the discharge by way of set-off of the Commissioners' liability to pay or, as the case may be, to repay that amount.
Nothing in this section shall be taken to impose any liability to interest on an amount to which subsection (1) above applies.
In this section—
This section shall have effect in relation to amounts issued on or after such day as the Treasury may by order made by statutory instrument appoint; and different days may be appointed under this subsection for different purposes.
In section 14(1) of the Finance Act 1994 (reviewable and appealable decisions), for the “and” at the end of paragraph (c) there shall be substituted—.
For sub-paragraph (k) of paragraph 1 of Schedule 5 to that Act (under which decisions as to interest under the Community Customs Code are reviewable and appealable) there shall be substituted the following sub-paragraph—.
In section 197(2) of the Finance Act 1996 (setting of rates of interest for indirect taxes), after paragraph (e) there shall be inserted the following paragraph—
Subsections (1) and (2) above have effect in relation to decisions made on or after the day on which this Act is passed.
The Commissioners of Inland Revenue and the Commissioners of Customs and Excise may incur expenditure in order to secure that, if the United Kingdom were to move to the third stage of economic and monetary union, they would be able to exercise their functions relating to taxes and duties (including agricultural levies of the European Community).
Regulations may be made, in accordance with this section, for facilitating the use of electronic communications for—
the delivery of information the delivery of which is authorised or required by or under any legislation relating to a taxation matter;
the making of payments under any such legislation.
The power to make regulations under this section is conferred—
on the Commissioners of Inland Revenue in relation to matters which are under their care and management; and
on the Commissioners of Customs and Excise in relation to matters which are under their care and management.
For the purposes of this section provision for facilitating the use of electronic communications includes any of the following—
provision authorising persons to use electronic communications for the delivery of information to tax authorities, or for the making of payments to tax authorities;
provision requiring electronic communications to be used for the making to tax authorities of payments due from persons using such communications for the delivery of information to those authorities;
provision authorising tax authorities to use electronic communications for the delivery of information to other persons or for the making of any payments;
provision as to the electronic form to be taken by any information that is delivered to any tax authorities using electronic communications;
provision requiring persons to prepare and keep records of information delivered to tax authorities by means of electronic communications, and of payments made to any such authorities by any such means;
provision for the production of the contents of records kept in accordance with any regulations under this section;
provision imposing conditions that must be complied with in connection with any use of electronic communications for the delivery of information or the making of any payment;
provision, in relation to cases where use is made of electronic communications, for treating information as not having been delivered, or a payment as not having been made, unless conditions imposed by any such regulations are satisfied;
provision, in relation to such cases, for determining the time when information is delivered or a payment is made;
provision, in relation to such cases, for determining the person by whom information is to be taken to have been delivered or by whom a payment is to be taken to have been made;
provision, in relation to cases where information is delivered by means of electronic communications, for authenticating whatever is delivered.
The power to make provision under this section for facilitating the use of electronic communications shall also include power to make such provision as the persons exercising the power think fit (including provision for the application of conclusive or other presumptions) as to the manner of proving for any purpose—
whether any use of electronic communications is to be taken as having resulted in the delivery of information or the making of a payment;
the time of delivery of any information for the delivery of which electronic communications have been used;
the time of the making of any payment for the making of which electronic communications have been used;
the person by whom information delivered by means of electronic communications was delivered;
the contents of anything so delivered;
the contents of any records;
any other matter for which provision may be made by regulations under this section.
Regulations under this section may—
allow any authorisation or requirement for which such regulations may provide to be given or imposed by means of a specific or general direction given by the Commissioners of Inland Revenue or the Commissioners of Customs and Excise;
provide that the conditions of any such authorisation or requirement are to be taken to be satisfied only where such tax authorities as may be determined under the regulations are satisfied as to specified matters;
allow a person to refuse to accept delivery of information in an electronic form or by means of electronic communications except in such circumstances as may be specified in or determined under the regulations;
allow or require use to be made of intermediaries in connection with—
the delivery of information, or the making of payments, by means of electronic communications; or
the authentication or security of anything transmitted by any such means.
Power to make provision by regulations under this section shall include power—
to provide for a contravention of, or any failure to comply with, a specified provision of any such regulations to attract a penalty of a specified amount not exceeding £1,000;
to provide that specified enactments relating to penalties imposed for the purposes of any taxation matter (including enactments relating to assessments, review and appeal) are to apply, with or without modifications, in relation to penalties under such regulations;
to make different provision for different cases;
to make such incidental, supplemental, consequential and transitional provision in connection with any provision contained in any such regulations as the persons exercising the power think fit.
The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.
References in this section to the delivery of information include references to any of the following (however referred to)—
the production or furnishing to a person of any information, account, record or document;
the giving, making, issue or surrender to, or service on, any person of any notice, notification, statement, declaration, certificate or direction;
the imposition on any person of any requirement or the issue to any person of any request;
the making of any return, claim, election or application;
the amendment or withdrawal of anything mentioned in paragraphs (a) to (d) above.
References in this section to a taxation matter are references to any of the matters which are under the care and management of the Commissioners of Inland Revenue or of the Commissioners of Customs and Excise.
In this section—
“tax authorities” means—
“subordinate legislation” has the same meaning as in the Interpretation Act 1978;
Without prejudice to section 132 above, where any power to make subordinate legislation for or in connection with the delivery of information or the making of payments is conferred in relation to any taxation matter on— that power shall be taken (to the extent that it would not otherwise be so taken) to include power to make any such provision in relation to the delivery of that information or the making of those payments as could be made by any person by regulations in exercise of a power conferred by that section.
the Commissioners of Inland Revenue,
the Commissioners of Customs and Excise, or
the Treasury,
Provision made in exercise of the powers conferred by section 132 above or subsection (1) above shall have effect notwithstanding so much of any enactment or subordinate legislation as (apart from the provision so made) would require— in a form or manner that would preclude the use of electronic communications for its delivery or payment, or the use in connection with its delivery or payment of an intermediary.
any information to be delivered, or
any amount to be paid,
Schedule 3A to the Taxes Management Act 1970 (electronic lodgment of tax returns etc.) shall cease to have effect.
Subsection (3) above shall come into force on such day as the Treasury may by order made by statutory instrument appoint; and different days may be appointed under this subsection for different purposes.
Expressions used in this section and section 132 above have the same meanings in this section as in that section.
Schedule 5A to the National Loans Act 1968 (the Debt Management Account) shall be amended in accordance with subsections (2) to (6) below.
In paragraph 1(2) (objects of the Treasury’s operation of the Debt Management Account), after paragraph (b) there shall be inserted—.
After paragraph 5 there shall be inserted—
In paragraph 9(1) (payments from Debt Management Account into National Loans Fund in respect of securities or Treasury bills), after “Treasury bills” there shall be inserted “(other than bills issued by virtue of paragraph 4 above)”.
In paragraph 13(1) (payment into Debt Management Account of sums in respect of payments of interest made from that Account), after “respect of” there shall be inserted “(a)” and after “the Account” there shall be inserted , and
In paragraph 13(3) (payment into National Loans Fund in respect of payments of interest received or earned by the Debt Management Account), after “respect of” there shall be inserted “(a)” and after “the Account” there shall be inserted , and
In section 18 of the National Savings Bank Act 1971 (securities in which ordinary deposits may be invested), in paragraph (a), for the words “or on the National” to the end there shall be substituted “, on the National Loans Fund with recourse to the Consolidated Fund or on the Debt Management Account with recourse to the National Loans Fund and then to the Consolidated Fund, or”.
Subsection (6) above has effect in relation to any benefit accruing to the Debt Management Account on or after 1st April 1999.
Where, at the close of business on any day, a sum stands to the credit of— that sum may be lent to the National Loans Fund on that day.
the General Account of the Commissioners of Customs and Excise, or
the General Account of the Commissioners of Inland Revenue,
Subsection (1) above does not apply to any sum to the extent that it is required to be paid, on the day in question, in accordance with section 10 of the Exchequer and Audit Departments Act 1866.
A loan made by virtue of subsection (1) above shall be repaid before the close of business on the day after the loan is made or, where that day is not a business day, before the close of business on the next business day.
Subject to subsection (3) above, a loan made by virtue of subsection (1) above shall be made in such circumstances, and on such terms and conditions, as the Treasury may from time to time direct.
In this section “business day” means any day other than—
a Saturday or Sunday;
Good Friday or Christmas Day;
a day which, in England and Wales, is a bank holiday under the Banking and Financial Dealings Act 1971;
a day specified in an order under section 2(1) of that Act (days on which financial dealings are suspended) and declared by that order to be a non-business day for the purposes of this paragraph; or
a day appointed by Royal proclamation as a public fast or thanksgiving day.
The descriptions of stock and bonds specified in Part I of Schedule 11 to the Finance Act 1942 (description of Government stock and bonds to which the provisions of that Act regarding transfer and registration apply, and which by virtue of section 16(3) of the National Loans Act 1968 include descriptions of certain securities issued under that Act) do not include—
any securities (of whatever series) of any of the descriptions specified in subsection (2) below issued before 20th July 1998, or
any securities issued on or after 20th July 1998 under the auspices of the Director of Savings.
The descriptions referred to in subsection (1) are— Defence Bonds; National Development Bonds; British Savings Bonds; National Savings Indexed Income Bonds; National Savings Income Bonds; National Savings Deposit Bonds; National Savings Capital Bonds; Children’s Bonus Bonds; National Savings FIRST Option Bonds; National Savings Pensioners Guaranteed Income Bonds.
The modifications made by this section shall be deemed always to have had effect.
The following shall be inserted after section 12(2) of the National Savings Bank Act 1971 (secrecy)—
In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988.
The enactments mentioned in Schedule 20 to this Act (which include provisions that are spent or of no practical utility) are hereby repealed to the extent specified in the third column of that Schedule.
The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained or referred to in the notes set out in that Schedule.
This Act may be cited as the Finance Act 1999.