Statement by the Delegation of the United States of America on the parliamentary elections in Montenegro, held on 16 October 2016
For the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine) there shall be substituted the Table in Schedule 1 to this Act.
In section 62(1) of that Act (cider) for “£22.39” there shall be substituted “ £22.82 ”.
This section shall be deemed to have come into force on 1st January 1994.
For the Table in Schedule 1 to the Tobacco Products Duty Act 1979 there shall be substituted—
This section shall be deemed to have come into force at 6 o’clock in the evening of 30th November 1993.
In section 6(1) of the Hydrocarbon Oil Duties Act 1979 for “£0.3058” (duty on light oil) and “£0.2514” (duty on heavy oil) there shall be substituted “ £0.3314 ” and “ £0.2770 ” respectively.
In section 11(1) of that Act (rebate on heavy oil) for “£0.0105” (fuel oil) and “£0.0149” (gas oil) there shall be substituted “ £0.0116 ” and “ £0.0164 ” respectively.
In section 14(1) of that Act (rebate on light oil for use as furnace fuel) for “£0.0105” there shall be substituted “ £0.0116 ”.
This section shall be deemed to have come into force at 6 o’clock in the evening of 30th November 1993.
The Vehicles (Excise) Act 1971 shall be amended as follows.
In section 2(1)(b) (six month licences), for “£35” there shall be substituted “£50”.
In Schedule 1 (annual rates of duty on motorcycles), in Part I, paragraph 4(a) (special provision about old motorcycles in Northern Ireland) shall be omitted.
In Schedule 2 (annual rates of duty on hackney carriages)—
in Part I, paragraph 3 (special provision about vehicles used partly for private purposes) and paragraph 5 (special provision for Northern Ireland) shall be omitted; and
in the second column of the first entry in the Table set out in Part II (hackney carriages with seating capacity under nine), for “125” there shall be substituted “130”.
38,000 44,000 — — — 2,730 2,730 1,240
In Schedule 4, in paragraph 6 (farmers' goods vehicles and showmen’s goods vehicles), sub-paragraph (6)(a), (c) and (d) (exceptional cases where rate is not determined according to sub-paragraphs (3) to (5)) shall be omitted.
In Schedule 5 (annual rates of duty on vehicles not falling within Schedules 1 to 4A), in the second column of paragraph 2 in the Table set out in Part II (vehicles other than those constructed before 1947), for “125.00” there shall be substituted “130.00”.
This section shall apply in relation to licences taken out after 30th November 1993.
Schedule 2 to this Act (which contains miscellaneous provisions relating to vehicles excise duty) shall have effect.
Schedule 3 to this Act (which makes amendments to the Betting and Gaming Duties Act 1981 about gaming machine licence duty) shall have effect.
In the following provisions of this Chapter references to an appeal tribunal are references to the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.
As from the coming into force of this section the tribunals for which provision is made by Schedule 8 to the Value Added Tax Act 1983 (value added tax tribunals)—
shall be known as the VAT and duties tribunals; and
shall (in addition to their jurisdiction in relation to matters relating to value added tax) have the jurisdiction in relation to matters relating to customs and excise which is conferred by this Chapter.
Accordingly—
the President of Value Added Tax Tribunals and any Vice-President of Value Added Tax Tribunals shall be known after the coming into force of this section as, respectively, the President of the VAT and Duties Tribunals and a Vice-President of the VAT and Duties Tribunals; and
references in the Value Added Tax Act 1983 or in any other enactment, or in any subordinate legislation, to a value added tax tribunal, to the President of Value Added Tax Tribunals or to a Vice-President of Value Added Tax Tribunals, and any cognate expressions, shall be construed in accordance with subsection (1) and paragraph (a) above.
In the following provisions of this Chapter references to an appeal tribunal are references to a VAT and duties tribunal.
Sections 25 and 29 of the Finance Act 1985 (settling of appeals by agreement and enforcement of decisions of tribunal) shall have effect as if—
the references to section 40 of the Value Added Tax Act 1983 included references to this Chapter; and
references to value added tax included references to any relevant duty.
Without prejudice to the generality of the power conferred by paragraph 9 of Schedule 8 to the Value Added Tax Act 1983 (rules of procedure for tribunals), rules under that paragraph may provide for costs awarded against an appellant on an appeal by virtue of this Chapter to be recoverable, and for any directly applicable Community legislation relating to any relevant duty or any enactment so relating to apply, as if the amount awarded were an amount of duty which the appellant is required to pay.
VAT and duties 44. VAT and duties tribunals for England and Wales and for Northern Ireland, constituted in accordance with Schedule 8 to the Value Added Tax Act 1983 (c. 55).
VAT and duties 63. VAT and duties tribunals for Scotland constituted in accordance with Schedule 8 to the Value Added Tax Act 1983 (c. 55).
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Subject to the following provisions of this section, in any case where— that person shall be liable to a penalty of an amount equal to the amount of duty evaded or, as the case may be, sought to be evaded.
any person engages in any conduct for the purpose of evading any duty of excise, and
his conduct involves dishonesty (whether or not such as to give rise to any criminal liability),
References in this section to a person’s evading a duty of excise shall include references to his obtaining or securing, without his being entitled to it— and shall also include references to his evading the cancellation of any entitlement to, or the withdrawal of, any such repayment, rebate, drawback, relief, exemption or allowance.
any repayment, rebate or drawback of duty;
any relief or exemption from or any allowance against duty; or
any deferral or other postponement of his liability to pay any duty or of the discharge by payment of any such liability,
In relation to any such evasion of duty as is mentioned in subsection (2) above, the reference in subsection (1) above to the amount of duty evaded or sought to be evaded shall be construed as a reference to the amount of the repayment, rebate, drawback, relief, exemption or allowance or, as the case may be, the amount of the payment which, or the liability to make which, is deferred or otherwise postponed.
Where a person is liable to a penalty under this section—
the Commissioners or, on appeal, an appeal tribunal may reduce the penalty to such amount (including nil) as they think proper; and
an appeal tribunal, on an appeal relating to a penalty reduced by the Commissioners under this subsection, may cancel the whole or any part of the reduction made by the Commissioners.
Neither of the following matters shall be a matter which the Commissioners or any appeal tribunal shall be entitled to take into account in exercising their powers under subsection (4) above, that is to say—
the insufficiency of the funds available to any person for paying any duty of excise or for paying the amount of the penalty;
the fact that there has, in the case in question or in that case taken with any other cases, been no or no significant loss of duty.
Statements made or documents produced by or on behalf of a person shall not be inadmissible in— by reason only that any of the matters specified in subsection (7) below has been drawn to his attention and that he was, or may have been, induced by that matter having been brought to his attention to make the statements or produce the documents.
any criminal proceedings against that person in respect of any offence in connection with or in relation to any duty of excise, or
any proceedings against that person for the recovery of any sum due from him in connection with or in relation to any duty of excise,
The matters mentioned in subsection (6) above are—
that the Commissioners have power, in relation to any duty of excise, to assess an amount due by way of a civil penalty, instead of instituting criminal proceedings;
that it is the Commissioners' practice, without being able to give an undertaking as to whether they will make such an assessment in any case, to be influenced in determining whether to make such an assessment by the fact (where it is the case) that a person has made a full confession of any dishonest conduct to which he has been a party and has given full facilities for an investigation;
that the Commissioners or, on appeal, an appeal tribunal have power to reduce a penalty under this section, as provided in subsection (4) above; and
that, in determining the extent of such a reduction in the case of any person, the Commissioners or tribunal will have regard to the extent of the co-operation which he has given to the Commissioners in their investigation.
Where, by reason of conduct falling within subsection (1) above, a person is convicted of an offence, that conduct shall not also give rise to liability to a penalty under this section.
This section applies, subject to section 10 below, to any conduct in relation to which any enactment (including an enactment contained in this Act or in any Act passed after this Act) provides for the conduct to attract a penalty under this section.
Any person to whose conduct this section applies shall be liable—
in the case of conduct in relation to which provision is made by subsection (4) below , or by or under any other enactment, for the penalty attracted to be calculated by reference to an amount of, or an amount payable on account of, any duty of excise, to a penalty of whichever is the greater of 5 per cent. of that amount and £250; and
in any other case, to a penalty of £250.
Subject to section 13(3) and (4) below, in the case of any conduct to which this section applies which is conduct in relation to which provision is made by subsection (4) or (5) below or any other enactment for that conduct to attract daily penalties, the person whose conduct it is—
shall be liable, in addition to an initial penalty under subsection (2) above, to a penalty of £20 for every day, after the first, on which the conduct continues, but
shall not, in respect of the continuation of that conduct, be liable to further penalties under subsection (2) above.
Where any conduct to which this section applies consists in a failure, in contravention of any subordinate legislation, to pay any amount of any duty of excise or an amount payable on account of any such duty, then, in so far as that would not otherwise be the case—
the penalty attracted to that contravention shall be calculated by reference to the amount unpaid; and
the contravention shall also attract daily penalties.
Where— that contravention shall also attract daily penalties.
a contravention of any provision made by or under any enactment consists in or involves a failure, before such time as may be specified in or determined in accordance with that provision, to send a return to the Commissioners showing the amount which any person is or may become required to pay by way of, or on account of, any duty of excise, and
that contravention attracts a penalty under this section,
Where, by reason of any conduct to which this section applies, a person is convicted of an offence, that conduct shall not also give rise to liability to a penalty under this section.
If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this subsection was exercised, they may by order substitute for any sum for the time being specified in subsection (2) or (3) above such other sum as appears to them to be justified by the change.
The power to make an order under subsection (7) above—
shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons; but
shall not be exercisable so as to vary the penalty for any conduct occurring before the coming into force of the order.
Schedule 4 to this Act (which provides for the conduct to which this section applies, repeals the summary offences superseded by this section and makes related provision with respect to forfeiture) shall have effect.
Subject to subsection (2) below and to any express provision to the contrary made in relation to any conduct to which section 9 above applies, such conduct shall not give rise to any liability to a penalty under that section if the person whose conduct it is satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the conduct.
Where it appears to the Commissioners or, on appeal, an appeal tribunal that there is no reasonable excuse for a continuation of conduct for which there was at first a reasonable excuse, liability for a penalty under section 9 above shall be determined as if the conduct began at the time when there ceased to be a reasonable excuse for its continuation.
For the purposes of this section—
an insufficiency of funds available for paying any duty or penalty due shall not be a reasonable excuse; and
where reliance is placed by any person on another to perform any task, then neither the fact of that reliance nor the fact that any conduct to which section 9 above applies was attributable to the conduct of that other person shall be a reasonable excuse.
This section applies where—
in accordance with regulations under section 51 of the Finance Act 1997 (enforcement by distress), a person (“the person levying the distress”) is empowered or authorised to distrain any property of another person (“the person in default”) who has refused or neglected to pay any amount of relevant duty or any amount recoverable as if it were an amount of relevant duty due from him; and
the person levying the distress and the person in default have entered into a walking possession agreement.
In this section a “walking possession agreement” means an agreement under which, in consideration of the property distrained upon being allowed to remain in the custody of the person in default and of the delaying of its sale, the person in default—
acknowledges that the property specified in the agreement is under distraint and held in walking possession; and
undertakes that, except with the consent of the Commissioners and subject to such conditions as they may impose, he will not remove or allow the removal of any of the specified property from the premises named in the agreement.
Subject to subsection (4) below, if the person in default is in breach of the undertaking contained in a walking possession agreement, he shall be liable to a penalty equal to one-half of the unpaid duty or penalty which gives rise to the distraint.
The person in default shall not be liable to a penalty under subsection (3) above if he satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the breach in question.
This section extends only to Northern Ireland.
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Subject to subsection (4) below, where it appears to the Commissioners— the Commissioners may assess the amount of duty due from that person to the best of their judgement and notify that amount to that person or his representative.
that any person is a person from whom any amount has become due in respect of any duty of excise; and
that there has been a default falling within subsection (2) below,
The defaults falling within this subsection are—
any failure by any person to make, keep, preserve or produce as required or directed by or under any enactment any returns, accounts, books, records or other documents;
any omission from or inaccuracy in any returns, accounts, books, records or other documents which any person is required or directed by or under any enactment to make, keep, preserve or produce;
any failure by any person to take or permit to be taken any step which he is required under ...... Schedule 1 to the Finance Act 1997 or Part 1 of Schedule 24 to the Finance Act 2012 or Part 3 of the Finance Act 2014 to take or to permit to be taken;
any unreasonable delay in performing any obligation the failure to perform which would be a default falling within this subsection.
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Subject to subsection (4) below, where it appears to the Commissioners— the Commissioners may assess the amount of duty due from that person and notify that amount to that person or his representative.
that any person is a person from whom any amount has become due in respect of any duty of excise; and
that the amount due can be ascertained by the Commissioners,
Where an amount has been assessed as due from any person and notified in accordance with this section, it shall, subject to any appeal under section 16 below, be deemed to be an amount of the duty in question due from that person and may be recovered accordingly, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.
An assessment of the amount of any duty of excise due from any person shall not be made under this section at any time after whichever is the earlier of the following times, that is to say— but this subsection shall be without prejudice, where further evidence comes to the knowledge of the Commissioners at any time after the making of an assessment under this section, to the making of a further assessment within the period applicable by virtue of this subsection in relation to that further assessment.
subject to subsection (5) below, the end of the period of 4 years beginning with the time when his liability to the duty arose; and
the end of the period of one year beginning with the day on which evidence of facts, sufficient in the opinion of the Commissioners to justify the making of the assessment, comes to their knowledge;
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Subsection (4) above shall have effect as if the reference in paragraph (a) to 4 years were a reference to twenty years in any case falling within subsection (5A)(a) or (b) of any assessment to any amount of duty the assessment or payment of any of which has been postponed or otherwise affected by—
conduct in respect of which any person (whether or not the person assessed)—
has become liable to a penalty under section 8 above, or
has been convicted of an offence of fraud or dishonesty; or
any conduct in respect of which proceedings for an offence of fraud or dishonesty would have been commenced or continued against any person (whether or not the person assessed), but for their having been compounded under section 152(a) of the Management Act.
The reference in subsection (4) above to the time when a person’s liability to a duty of excise arose are references—
in the case of a duty of excise on goods, to the excise duty point; and
in any other case, to the time when the duty was charged.
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sections 100(3), 136(1), 159(6), 167(1), 168(1), 170(1) and (2) and 170B(1) of the Management Act,
section 24(6) of the Betting and Gaming Duties Act 1981 and paragraph 13(3) of Schedule 1, paragraph 7(3) of Schedule 2 and paragraph 16(1) of Schedule 3 to that Act,
section 31(1) and (3) of the Finance Act 1993, and
section 41(1) and (3) below,
In this section “representative”, in relation to a person appearing to the Commissioners to be a person from whom any amount has become due in respect of any duty of excise, means his personal representative , trustee in bankruptcy or interim or permanent trustee, any receiver or liquidator appointed in relation to that person or any of his property or any other person acting in a representative capacity in relation to that person.
The cases are—
a case involving a loss of duty of excise brought about deliberately by the person assessed (P) or by another person acting on P's behalf, and
a case in which P has participated in a transaction knowing that it was part of arrangements of any kind (whether or not legally enforceable) intended to bring about a loss of duty of excise.
The reference in subsection (5A) to a loss of duty of excise brought about deliberately by P or another person includes a loss that arises as a result of—
a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by that person, or
a deliberate failure by that person to comply with an obligation specified in the Table in paragraph 1 of Schedule 41 to the Finance Act 2008 with respect to that duty of excise.
Where any person is liable to a penalty under this Chapter, the Commissioners may assess the amount due by way of penalty and notify that person, or his representative, accordingly.
An assessment under this section may be combined with an assessment under section 12 above, but any notification for the purposes of any such combined assessment shall separately identify any amount assessed by way of a penalty.
In the case of any amount due from any person by way of a penalty under section 9 above for conduct consisting in a contravention which attracts daily penalties—
a notification of an assessment under this section shall specify a date, being a date no later than the date of the notification, to which the penalty as assessed is to be calculated; and
if the contravention continues after that date, a further assessment, or (subject to this subsection) further assessments, may be made under this section in respect of any continuation of the contravention after that date.
If— that contravention shall be treated for the purposes of this Chapter as having been remedied, and accordingly the conduct shall be deemed to have ceased, immediately before that date.
a person is assessed to a penalty in accordance with paragraph (a) of subsection (3) above, and
the contravention to which that penalty relates is remedied within such period after the date specified for the purposes of that subsection in the notification of assessment as may for the purposes of this subsection be notified to that person by the Commissioners,
If an amount has been assessed as due from any person and notified in accordance with this section, then unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced, that amount shall, subject to any appeal under section 16 below, be recoverable as if it were an amount due from that person as an amount of the appropriate duty.
In subsection (5) above “the appropriate duty” means—
the relevant duty (if any) by reference to an amount of which the penalty in question is calculated; or
where there is no such duty, the relevant duty the provisions relating to which are contravened by the conduct giving rise to the penalty or, if those provisions relate to more than one duty, such of the duties as appear to the Commissioners and are certified by them to be relevant in the case in question.
In this section “representative”, in relation to a person liable to a penalty under this Chapter, means his personal representative , trustee in bankruptcy or interim or permanent trustee, any receiver or liquidator appointed in relation to that person or any of his property or any other person acting in a representative capacity in relation to that person.
This subsection applies where any relevant excise duty relief other than an excepted relief—
has been given but ought not to have been given, or
would not have been given had the facts been known or been as they later turn out to be.
Where subsection (1) above applies, the Commissioners may assess the amount of the relief given as being excise duty due from the liable person and notify him or his representative accordingly.
Where an amount has been assessed as due from any person under— and notice has been given accordingly, that amount shall, subject to any appeal under section 16 below, be deemed to be an amount of excise duty due from that person and may be recovered accordingly, unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.
subsection (2) above,
section 94 or 96 of the Management Act, ...
section 60, 78 or 79 of the Finance (No. 2) Act 2023,
section 10, 13, 13ZB, 13AB, 13AD, 14, 14F, 23 or 24 of the Hydrocarbon Oil Duties Act 1979,
section 8 of the Tobacco Products Duty Act 1979, or
section 2 of the Finance (No. 2) Act 1992,
No assessment under any of the provisions referred to in subsection (3) above, or under section 61 or 167 of the Management Act, shall be made at any time after whichever is the earlier of the following times, that is to say—
subject to subsection (6) below, the end of the period of 4 years beginning with the relevant time; and
the end of the period of one year beginning with the day on which evidence of facts, sufficient in the opinion of the Commissioners to justify the making of the assessment, comes to their knowledge.
Subsection (4) above shall be without prejudice, where further evidence comes to the knowledge of the Commissioners at any time after the making the assessment concerned, to the making of a further assessment within the period applicable by virtue of that subsection in relation to that further assessment.
Subsection (4) above shall have effect as if the reference in paragraph (a) to 4 years were a reference to twenty years in any case falling within section 12(5A)(a) or (b).
For the purposes of subsection (6), a reference in section 12(5A) to a loss of duty of excise includes a loss caused by giving relief, allowing a rebate, conferring an entitlement to drawback or repaying an amount that ought not to have been given, allowed, conferred or repaid.
For the purposes of section 12A above and this section, relevant excise duty relief has been given if (and only if)— and the amount of the relief is the amount mentioned in relation to the relief in this subsection.
an amount of excise duty which a person is liable to pay has been remitted or payment of an amount of excise duty which a person is liable to pay has been waived;
an amount of excise duty has been repaid to a person;
an amount by way of drawback of excise duty has been paid to a person;
an allowance of excise duty in any amount has been made to a person;
an amount by way of rebate has been allowed to a person;
the liability of a person to repay an amount paid by way of drawback of excise duty has been waived;
an amount has been paid to a person under section 20(3) of the Hydrocarbon Oil Duties Act 1979 (payments in respect of contaminated or accidentally mixed oil); or
an amount of relief has been allowed to a person by virtue of section 20AA or 20AB of that Act (power to allow reliefs), or in accordance with paragraph 10 of Schedule 3 to that Act (power to make regulations for the purpose of relieving from excise duty oil intended for exportation or shipment as stores);
For the purposes of section 12A above the relevant time is—
in the case of an assessment under section 61 of the Management Act, the time when the ship or aircraft in question returned to a place within the United Kingdom;
in the case of an assessment under section 94 of that Act, the time at which the goods in question were warehoused;
in the case of an assessment under that section as it has effect by virtue of section 95 of that Act, the time when the goods in question were lawfully taken from the warehouse;
in the case of an assessment under section 96 of that Act, the time when the goods in question were moved by pipe-line or notified as goods to be moved by pipe-line;
in the case of an assessment under section 167 of that Act—
if the assessment relates to unpaid duty, the time when the duty became payable or, if later, the time when the document in question was delivered or the statement in question was made; and
if the assessment relates to an overpayment, the time when the overpayment was made;
in the case of an assessment under section 78 of the Finance (No. 2) Act 2023, the time of delivery from the relevant premises (as defined in that section);
in the case of an assessment under section 79 of that Act, the time of importation;
in the case of an assessment under section 60 of that Act, the the time at which the requirement to pay the duty took effect (which time, in a case where there was an excise duty point for the beer fixed under section 1 of the Finance (No. 2) Act 1992, is that excise duty point);
in the case of an assessment under section 10, 13, 13ZB, 13AB, 13AD, 14 , 14F or 23 of the Hydrocarbon Oil Duties Act 1979, the time of the action which gave rise to the power to assess;
in the case of an assessment under section 24(4A) or (4B) of that Act, the time when the rebate was allowed or the oil was delivered without payment of duty (as the case may be);
in the case of an assessment under section 8 of the Tobacco Products Duty Act 1979, the time when the Commissioners are satisfied of a failure to prove as mentioned in subsection (2)(a) or (b) of that section;
in the case of an assessment under section 2 of the Finance (No. 2) Act 1992, the time when the sums were paid or credited in respect of the drawback;
in the case of an assessment under section 12A(2) above, the time when the relevant excise duty relief in question was given.
In section 12A above “the liable person” means—
in the case of excise duty which has been remitted or repaid under section 130 of the Management Act on the basis that goods were lost or destroyed while in a warehouse, the proprietor of the goods or the occupier of the warehouse;
in the case of a rebate which has been allowed on any oil under section 11 of the Hydrocarbon Oil Duties Act 1979, the person to whom the rebate was allowed or the occupier of any warehouse from which the oil was delivered for home use;
in the case of a rebate allowed on any petrol under section 13A of that Act, the person to whom the rebate was allowed or the occupier of any warehouse from which the petrol was delivered for home use;
in any other case, the person mentioned in subsection (1) above to whom the relief in question was given.
In section 12A above—
This section applies to the following decisions by HMRC , not being decisions under this section or section 15 below, that is to say—
any decision under section 152(b) of the Management Act as to whether or not anything forfeited or seized under the customs and excise Acts is to be restored to any person or as to the conditions subject to which any such thing is so restored;
whether or not, and at what time, anything is charged in any case with any such duty or levy;
the rate at which any such duty or levy is charged in any case, or the amount charged;
the person liable in any case to pay any amount charged, or the amount of his liability; or
whether or not any person is entitled in any case to relief or to any repayment, remission or drawback of any such duty or levy, or the amount of the relief, repayment, remission or drawback to which any person is entitled;
any relevant decision which is linked by its subject matter to such a decision under section 152(b) of the Management Act.
so much of any decision by the Commissioners that a person is liable to any penalty under any of the provisions of this Chapter, or as to the amount of his liability, as is contained in any assessment under section 13 above; and
any decision by the Commissioners or any officer which is of a description specified in Schedule 5 to this Act.
Any person who is— may by notice in writing to the Commissioners require them to review that decision.
a person whose liability to pay any relevant duty or penalty is determined by, results from or is or will be affected by any decision to which this section applies,
a person in relation to whom, or on whose application, such a decision has been made, or
a person on or to whom the conditions, limitations, restrictions, prohibitions or other requirements to which such a decision relates are or are to be imposed or applied,
The Commissioners shall not be required under this section to review any decision unless the notice requiring the review is given before the end of the period of forty-five days beginning with the day on which written notification of the decision, or of the assessment containing the decision, was first given to the person requiring the review.
But in the case of a relevant decision that falls within subsection (1)(b), a person may require HMRC to review the decision under this section only if HMRC are also required to review the decision within subsection (1)(a) to which it is linked.
For the purposes of subsection (3) above it shall be the duty of the Commissioners to give written notification of any decision to which this section applies to any person who—
requests such a notification;
has not previously been given written notification of that decision; and
if given such a notification, will be entitled to require a review of the decision under this section.
A person shall be entitled to give a notice under this section requiring a decision to be reviewed for a second or subsequent time only if—
the grounds on which he requires the further review are that the Commissioners did not, on any previous review, have the opportunity to consider certain facts or other matters; and
he does not, on the further review, require the Commissioners to consider any facts or matters which were considered on a previous review except in so far as they are relevant to any issue to which the facts or matters not previously considered relate.
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the Community Customs Code,
any Community legislation made for the purpose of implementing that Code, or
any enactment or subordinate legislation so made,
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to provide, in relation to any description of decisions to which this section is applied by any such regulations, that section 16(4) below shall have effect as if those decisions were of a description specified in Schedule 5 to this Act; and
to make such other incidental, supplemental, consequential and transitional provision as the Commissioners think fit.
This section applies for the purposes of the following provisions of this Chapter.
A reference to a relevant decision is a reference to any of the following decisions—
any decision by HMRC, in relation to any customs duty or to any agricultural levy of the European Union, as to—
whether or not, and at what time, anything is charged in any case with any such duty or levy;
the rate at which any such duty or levy is charged in any case, or the amount charged;
the person liable in any case to pay any amount charged, or the amount of his liability; or
whether or not any person is entitled in any case to relief or to any repayment, remission or drawback of any such duty or levy, or the amount of the relief, repayment, remission or drawback to which any person is entitled;
so much of any decision by HMRC that a person is liable to any duty of excise, or as to the amount of his liability, as is contained in any assessment under section 12 above;
any decision by HMRC to assess any person to excise duty under section 12A(2) above, section 61, 94, 96 or 167 of the Management Act, section 52, 60, 78 or 79 of Part 2 of the Finance (No. 2) Act 2023 (alcohol duty), section 10, 13, 13ZB, 13AB, 13AD, 14, 14F, 23 or 24 of the Hydrocarbon Oil Duties Act 1979,section 8 of the Tobacco Products Duty Act 1979, section 2 of the Finance (No 2) Act 1992 or as to the amount of duty to which a person is to be assessed under any of those provisions;
any decision by HMRC on a claim under section 137A of the Management Act for repayment of excise duty;
any decision by HMRC as to whether or not any person is entitled to any drawback of excise duty by virtue of regulations under section 2 of the Finance (No 2) Act 1992, or the amount of the drawback to which any person is so entitled;
any decision by HMRC that a person is liable to a penalty, or as to the amount of the person's liability, under—
regulations under section 102 of Part 2 of the Finance (No. 2) Act 2023 (alcohol duty), ...
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any decision by HMRC that a person is liable to a penalty, or as to the amount of the person's liability, under section 8O of the Tobacco Products Duty Act 1979;
any decision by HMRC that a person is liable to a penalty, or as to the amount of a person's liability, under—
regulations under section 55 of the Finance (No. 2) Act 2017, or
Schedule 13 to that Act;
any decision by HMRC that a person is liable to a penalty, or as the amount of the person’s liability, under—
section 125 of FA 2026;
section 126(1) of FA 2026;
so much of any decision by HMRC that a person is liable to any penalty under any of the provisions of this Chapter, or as to the amount of his liability, as is contained in any assessment under section 13 above;
any decision as to whether or not—
an amount due in respect of customs duty or agricultural levy, or
any repayment by HMRC of an amount paid by way of customs duty or agricultural levy, is to carry interest, or as to the rate at which, or period for which, any such amount is to carry interest;
any decision by HMRC which is of a description specified in Schedule 5 to this Act, except for any decision under section 152(b) of the Management Act as to whether or not anything forfeited or seized under the customs and excise Acts is to be restored to any person or as to the conditions subject to which any such thing is so restored.
Where the Commissioners are required in accordance with section 14 or 14A to review any decision, it shall be their duty to do so and they may, on that review, either—
confirm the decision; or
withdraw or vary the decision and take such further steps (if any) in consequence of the withdrawal or variation as they may consider appropriate.
Where— they shall be assumed for the purposes of section 14 or 14A to have confirmed the decision.
it is the duty of the Commissioners in pursuance of a requirement by any person under section 14 or 14A above to review any decision; and
they do not, within the period of forty-five days beginning with the day on which the review was required, give notice to that person of their determination on the review,
The Commissioners shall not by virtue of any requirement under this Chapter to review a decision have any power, apart from their power in pursuance of section 8(4) above, to mitigate the amount of any penalty imposed under this Chapter.
An appeal against a decision on a review under section 15 (not including a deemed confirmation under section 15(2)) may be made to an appeal tribunal within the period of 30 days beginning with the date of the document notifying the decision to which the appeal relates.
any decision by the Commissioners on a review under section 15 above (including a deemed confirmation under subsection (2) of that section); and
any decision by the Commissioners on such review of a decision to which section 14 above applies as the Commissioners have agreed to undertake in consequence of a request made after the end of the period mentioned in section 14(3) above.
An appeal under this section with respect to a decision falling within subsection (1) or (1A) shall not be entertained unless the appellant is the person who required the review in question.
An appeal against a deemed confirmation under section 15(2) may be made to an appeal tribunal within the period of 75 days beginning with the date on which the review was required.
An appeal which relates to a relevant decision falling within any of paragraphs (a) to (h) of section 13A(2), or which relates to a decision on a review of any such relevant decision, shall not be entertained if the amount of relevant duty which HMRC have determined to be payable in relation to that decision has not been paid or deposited with them unless—
the Commissioners have, on the application of the appellant, issued a certificate stating either— or
that such security as appears to them to be adequate has been given to them for the payment of that amount; or
that, on the grounds of the hardship that would otherwise be suffered by the appellant, they either do not require the giving of security for the payment of that amount or have accepted such lesser security as they consider appropriate;
the tribunal to which the appeal is made decide that the Commissioners should not have refused to issue a certificate under paragraph (a) above and are satisfied that such security (if any) as it would have been reasonable for the Commissioners to accept in the circumstances has been given to the Commissioners.
Subject to subsections (1C) to (1E), an appeal against a relevant decision (other than any relevant decision falling within subsection (1) or (1A)) may be made to an appeal tribunal within the period of 30 days beginning with—
in a case where P is the appellant, the date of the document notifying P of the decision to which the appeal relates, or
in a case where a person other than P is the appellant, the date the other person becomes aware of the decision, or
if later, the end of the relevant period (within the meaning of section 15D).
In relation to any decision as to an ancillary matter, or any decision on the review of such a decision, the powers of an appeal tribunal on an appeal under this section shall be confined to a power, where the tribunal are satisfied that the Commissioners or other person making that decision could not reasonably have arrived at it, to do one or more of the following, that is to say—
to direct that the decision, so far as it remains in force, is to cease to have effect from such time as the tribunal may direct;
to require the Commissioners to conduct, in accordance with the directions of the tribunal, a review or further review as appropriate of the original decision; and
in the case of a decision which has already been acted on or taken effect and cannot be remedied by a review or further review as appropriate , to declare the decision to have been unreasonable and to give directions to the Commissioners as to the steps to be taken for securing that repetitions of the unreasonableness do not occur when comparable circumstances arise in future.
In a case where HMRC are required to undertake a review under section 15C—
an appeal may not be made until the conclusion date, and
any appeal is to be made within the period of 30 days beginning with the conclusion date.
In relation to other decisions, the powers of an appeal tribunal on an appeal under this section shall also include power to quash or vary any decision and power to substitute their own decision for any decision quashed on appeal.
In a case where HMRC are requested to undertake a review in accordance with section 15E—
an appeal may not be made to an appeal tribunal—
unless HMRC have notified P, or the other person, as to whether or not a review will be undertaken, and
if HMRC have notified P, or the other person, that a review will be undertaken, until the conclusion date;
any appeal where paragraph (a)(ii) applies is to be made within the period of 30 days beginning with the conclusion date;
if HMRC have notified P, or the other person, that a review will not be undertaken, an appeal may be made only if the appeal tribunal gives permission to do so.
On an appeal under this section the burden of proof as to— shall lie upon the Commissioners; but it shall otherwise be for the appellant to show that the grounds on which any such appeal is brought have been established.
the matters mentioned in subsection (1)(a) and (b) of section 8 above,
the question whether any person has acted knowingly in using any substance or liquor in contravention of section 114(2) of the Management Act, and
the question whether any person had such knowledge or reasonable cause for belief as is required for liability to a penalty to arise under section 22(1) (1AA), (1AB) or (1AC) or 23(1) of the Hydrocarbon Oil Duties Act 1979 (use of fuel substitute or road fuel gas on which duty not paid),
In a case where section 15F(8) applies, a notice of appeal may be made at any time from the end of the period specified in section 15F(6) to the date 30 days after the conclusion date.
An appeal tribunal shall not, by virtue of anything contained in this section, have any power, apart from their power in pursuance of section 8(4) above, to mitigate the amount of any penalty imposed under this Chapter.
An appeal may be made after the end of the period specified in subsection (1), (1A), (1B), (1C)(b), (1D)(b) or (1E) if the appeal tribunal gives permission to do so.
Subject to subsection (9) below references in this section to a decision as to an ancillary matter are references to any decision of a description specified in Schedule 5 to this Act which is not comprised in a decision falling within section 13A(2)(a) to (h) above.
In this section “conclusion date” means the date of the document notifying the conclusion of the review
An appeal under this section with respect to a relevant decision (other than any relevant decision falling within subsection (1) or (1A)) shall not be entertained unless the appellant is—
a person whose liability to pay any relevant duty or penalty is determined by, results from or is or will be affected by the relevant decision,
a person in relation to whom, or on whose application, the relevant decision has been made, or
a person on whom the conditions, limitations, restrictions, prohibitions or other requirements to which the relevant decision relates are or are to be imposed or applied.
Subsection (3) above shall not apply if the appeal arises out of an assessment under section 78 or 79 of the Finance (No. 2) Act 2023 (alcohol duty: certain reliefs or exemptions for spirits).
Sections 85 and 85B of the Value Added Tax Act 1994 (settling of appeals by agreement and payment of tax where there is a further appeal) shall have effect as if—
the references to section 83 of that Act included references to this section, and
the references to value added tax included references to any relevant duty.
References in this section to a decision as to an ancillary matter do not include a reference to a decision of a description specified in the following paragraphs of Schedule 5—
paragraph 3(4);
paragraph 4(3);
paragraph 5B;
paragraph 9(e);
paragraph 9A.
Nothing in this section shall be taken to confer on an appeal tribunal any power to vary an amount of interest specified in an assessment under paragraph 11A of Schedule 6 to this Act except in so far as it is necessary to reduce it to the amount which is appropriate under paragraph 7 of that Schedule.
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This section applies if—
a person may, under section 14(2), require HMRC to review a decision, and
the person gives notice requiring such a review after the end of the 45 day period mentioned in section 14(3).
HMRC are required to carry out a review of the decision in either of the following cases.
The first case is where HMRC are satisfied that—
there was a reasonable excuse for not giving notice requiring a review before the end of that 45 day period, and
the notice given after the end of that period was given without unreasonable delay after that excuse ceased.
The second case is where—
HMRC are not satisfied as mentioned in subsection (3), and
the appeal tribunal, on application made by the person, orders HMRC to carry out a review.
A person may require HMRC to review a decision falling within section 14(1)(b) only if HMRC are also required to review the decision within section 14(1)(a) to which it is linked.
Section 14(5) applies to notices given under this section as it applies to notices given under section 14.
If HMRC notify a person (P) of a relevant decision by HMRC, HMRC must at the same time, by notice to P, offer P a review of the decision.
This section does not apply to the notification of the conclusions of a review.
Any person (other than P) who has the right of appeal under section 16 against a relevant decision may require HMRC to review that decision.
The other person may not notify HMRC requiring a review of the decision if either of the following conditions is met.
Condition A is that—
the relevant decision falls within section 14(1)(b) (decision linked to decision under section 152(b) of the Management Act about things forfeited or seized), and
under section 15, HMRC are reviewing, or have reviewed, the decision under section 152(b) of the Management Act to which the relevant decision is linked.
Condition B is that P or the other person has brought an appeal under section 16 with respect to the relevant decision.
A notification that such a person requires a review must be made within 30 days of that person becoming aware of the decision.
HMRC must review a decision if—
they have offered a review of the decision under section 15A, and
P notifies HMRC of acceptance of the offer within 30 days beginning with the date of the document containing the notification of the offer of the review.
P may not notify HMRC of acceptance of the offer of review if either of the following conditions is met.
Condition A is that—
the relevant decision falls within section 14(1)(b) (decision linked to decision under section 152(b) of the Management Act about things forfeited or seized), and
under section 15, HMRC are reviewing, or have reviewed, the decision under section 152(b) of the Management Act to which the relevant decision is linked.
Condition B is that P has brought an appeal under section 16 with respect to the relevant decision.
HMRC must review a decision if a person other than P notifies them under section 15B.
HMRC shall not review a decision if P, or another person, has appealed to the appeal tribunal under section 16 in respect of the decision.
If under section 15A, HMRC have offered P a review of a decision, HMRC may within the relevant period notify P that the relevant period is extended.
If under section 15B another person may require HMRC to review a matter, HMRC may within the relevant period notify the other person that the relevant period is extended.
If notice is given the relevant period is extended to the end of 30 days from—
the date of the notice, or
any other date set out in the notice or a further notice.
In this section “relevant period” means—
the period of 30 days referred to in—
section 15C(1)(b) (in a case falling within subsection (1)), or
section 15B(5) (in a case falling within subsection (2)), or
if notice has been given under subsection (1) or (2), that period as extended (or as most recently extended) in accordance with subsection (3).
This section applies if—
HMRC have offered a review of a decision under section 15A and P does not accept the offer within the time allowed under section 15C(1) or 15D(1); or
a person who requires a review under section 15B does not notify HMRC within the time allowed under that section or section 15D(3).
HMRC must review the decision if—
after the time allowed, P, or the other person, notifies HMRC in writing requesting a review out of time,
HMRC are satisfied that P, or the other person, had a reasonable excuse for not accepting the offer or requiring review within the time allowed, and
HMRC are satisfied that P, or the other person, made the request without unreasonable delay after the excuse had ceased to apply.
HMRC shall not be required to review a decision under this section if Condition A is met (see sections 15B(3) and 15C(3)).
HMRC shall not review a decision if P, or another person, has appealed to the appeal tribunal under section 16 in respect of the decision.
This section applies if HMRC are required to undertake a review under section 15C or 15E.
The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.
For the purposes of subsection (2) HMRC must, in particular, have regard to steps taken before the beginning of the review—
by HMRC in making the decision, and
by any person who is seeking to resolve disagreement about the decision.
The review must take account of any representations made by P, or the other person, at a stage which gives HMRC a reasonable opportunity to consider them.
The review may conclude that the decision is to be—
upheld,
varied, or
cancelled.
HMRC must give P, or the other person, notice of the conclusions of the review and their reasoning within—
the period of 45 days beginning with the relevant date, or
such other period as HMRC and P, or the other person, may agree.
In subsection (6) “relevant date” means—
the date HMRC received P’s notification accepting the offer of a review (in a case falling within section 15A),
the date HMRC received notification from another person requiring review (in a case falling within section 15B), or
the date on which HMRC decided to undertake the review (in a case falling within section 15E).
Where HMRC are required to undertake a review but do not give notice of the conclusions within the time period specified in subsection (6), the review is to be treated as having concluded that the decision is upheld.
If subsection (8) applies, HMRC must notify P or the other person of the conclusion which the review is treated as having reached.
Section 16B applies where HMRC notify P of an approval decision and—
HMRC are required to review the decision under section 15C or 15E, or
the decision, or the decision on a review under that section, has been appealed to an appeal tribunal under section 16.
An approval decision is a decision as to whether or not, and in which respects, any person or place (as the case may be) is to be or is to continue to be—
approved under section 92 of CEMA 1979 (warehousekeepers and owners of warehouses goods regime: approval of excise warehouses);
approved and registered under section 100G of CEMA 1979 by virtue of—
regulation 3 of the Warehousekeepers and Owners of Warehoused Goods Regulations 1999 (S.I. 1999/1278) (authorized warehousekeepers);
regulation 5 of those Regulations (registered owners);
regulation 6 of those Regulations (duty representatives);
regulation 4 of the Hydrocarbon Oil (Registered Dealers in Controlled Oil) Regulations 2002 (S.I. 2002/3057) (registered dealers in controlled oil);
approved and registered to carry on a controlled activity under section 100 of the Finance (No. 2) Act 2023 (alcohol wholesalers registration scheme);
approved to carry on a controlled activity under section 8L of TPDA 1979 (raw tobacco scheme);
approved and registered under section 49 F(No.2)A 2017 (fulfilment houses due diligence scheme);
licensed to carry out a regulated activity under the Tobacco Products Manufacturing Machinery (Licensing Scheme) Regulations 2018 (S.I. 2018/75) (tobacco machinery scheme).
approved under section 82 of the Finance (No. 2) Act 2023 (approval to produce alcoholic products);
approved under section 122 or 123 of FA 2026 (approved stamp holders and United Kingdom representatives);
The Commissioners may by regulations made by statutory instrument amend subsection (2) so as to add, vary or remove a paragraph of that subsection.
A statutory instrument containing regulations under subsection (3) is subject to annulment in pursuance of a resolution of the House of Commons.
On an application by P, HMRC may grant temporary approval if they are satisfied that—
P has demonstrated that if temporary approval were not granted the review or appeal in respect of the approval decision, or the appeal from a decision on review of that decision, would be rendered nugatory by virtue of P being unable to continue as a going concern or otherwise, and
it is appropriate in all the circumstances to grant temporary approval (despite the approval decision).
In determining whether it would be appropriate to grant temporary approval, HMRC must have regard to—
the prospect of the review or appeal in respect of the approval decision, or appeal from a decision on review of that decision, being determined in P's favour;
any alternative steps available to, and taken by, P to protect P's position pending the final determination of the review or appeal;
whether P has acted expeditiously in requiring the review or in bringing and progressing the appeal.
Subject to any provision made in regulations under section 16C, temporary approval has effect as an approval, registration or licence (as the case may be) under the relevant provision listed in section 16A(2) that—
commences on the day on which the application for temporary approval is granted,
expires—
on the expiry day determined in accordance with subsection (4), or
if HMRC are satisfied that it is appropriate in all the circumstances, on a later day determined by HMRC, and
is subject to any conditions or restrictions imposed on the temporary approval.
For the purposes of subsection (3)(b)(i), the expiry day in relation to a temporary approval is —
in a case where the approval decision is cancelled on a review, the day on which it is cancelled;
in a case where the approval decision is upheld on a review, the last day on which an appeal could be brought against that decision (ignoring any possibility of an appeal brought out of time with permission), unless paragraph (4)(c) applies;
in a case where an appeal (other than an appeal brought out of time with permission) is brought in respect of an approval decision or a decision on a review of that decision, the day on which the appeal is finally determined.
HMRC may revoke a temporary approval, or vary the conditions or restrictions to which it is subject, if they are satisfied that a change in circumstances justifies doing so.
HMRC may by notice published in such form as HMRC considers appropriate make provision about the timing, form, content and determination of applications under subsection (1).
Subsection (8) applies if HMRC— the approval decision, or the decision on a review of that decision under section 15C or 15E, has been appealed to an appeal tribunal under section 16.
refuse an application under subsection (1),
grant an application under that subsection subject to conditions or restrictions,
vary the conditions or restrictions to which a temporary approval is subject, or
revoke a temporary approval, and
If, on an application by P, the appeal tribunal decides that HMRC should not have (as the case may be)— the appeal tribunal may order HMRC to make any decision that it would have been open to HMRC to make under this section.
refused the application,
granted the application subject to particular conditions or restrictions,
varied the conditions or restrictions to which the temporary approval is subject, or
revoked the temporary approval,
If the appeal tribunal makes an order under subsection (8), HMRC or P may apply to the appeal tribunal to vary or revoke that order.
HMRC must notify P of any decision to grant or revoke a temporary approval or to vary the conditions or restrictions to which such approval is subject.
The Commissioners may by regulations make such provision as they consider appropriate in consequence of provision made in sections 16A and 16B (including by virtue of regulations under section 16A(3)).
Regulations under this section may amend, repeal, revoke or otherwise modify any enactment.
Regulations under this section are to be made by statutory instrument.
A statutory instrument containing regulations under this section which amend, repeal or modify the application of an Act of Parliament must be laid before the House of Commons after being made and, unless approved by that House before the end of the period of 28 days beginning with the date on which the instrument is made, ceases to have effect at the end of that period.
Any other statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.
The fact that a statutory instrument ceases to have effect as a result of subsection (4) does not affect—
anything previously done under the instrument, or
the making of a new instrument.
In calculating the period of 28 days mentioned in subsection (4), no account is to be taken of any time—
during which Parliament is dissolved or prorogued, or
during which the House of Commons is adjourned for more than four days.
In this section “enactment” includes an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978.
Subject to the following provisions of this section, expressions used in this Chapter and in the Management Act have the same meanings in this Chapter as in that Act.
In this Chapter—
“regulations” means regulations made by the Commissioners under this section.
“underwriting year” means the calendar year.
“the Management Act” means the Customs and Excise Management Act 1979;
is made in accordance with the rules or practice of Lloyd’s; and
in relation to an underwriting year, means the underwriting year next but one following that year; and
For the purposes of this Chapter a contravention consisting in a failure to do something at or before a particular time shall be taken to continue after that time until the thing is done, and references in this Chapter to the remedying of such a contravention shall be construed accordingly.
References in this Chapter to a duty of excise do not include references to vehicle excise duty.
Subject to subsection (2) below, references in the Management Act to a penalty shall not include references to a penalty under this Chapter.
Section 117 of the Management Act (execution and distress against revenue traders) shall have effect—
as if any amount assessed as due from any person by way of a penalty under this Chapter . . . were an amount of excise duty payable by that person; . . .
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for “estimated under section 116A above” of “assessed under section 12 of the Finance Act 1994”; and
for the word “estimated”, in the second and third places where it occurs, of “assessed”.
Section 127 of the Management Act (determination of disputes as to duties on imported goods) shall cease to have effect; . . .
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In section 29A(1)(d) of that Act of 1981 (certificate to be evidence of certain matters), for the words “or estimate made in pursuance of this Act” there shall be substituted “ made in pursuance of this Act or in any assessment made under section 12 of the Finance Act 1994 ”.
In section 35(1)(c) of the Finance Act 1993 (certificate to be evidence of certain matters), for the words “in an estimate made under section 116A of the Customs and Excise Management Act 1979” there shall be substituted “ in any assessment made under section 12 of the Finance Act 1994 ”.
In section 827 of the Taxes Act 1988 (VAT penalties etc.), after subsection (1) there shall be inserted the following subsection—
Subsections (1) and (2) above shall be without prejudice to section 13(5) above; and subsection (7) above shall have effect in relation to any chargeable period ending after the coming into force of the provision which provides for the imposition of the penalty in question.
Subject to section 18(8) above, this Chapter shall come into force on such day as the Commissioners may by order made by statutory instrument appoint, and different days may be appointed under this subsection for different provisions and for different purposes.
An order under this section may make such transitional provision and savings as appear to the Commissioners to be appropriate in connection with the bringing into force by such an order of any provision of this Chapter.
Nothing in any provision of this Chapter shall, in respect of conduct occurring before the coming into force of that provision, impose or affect any liability to any civil or criminal penalty or any liability of goods to forfeiture.
This Chapter applies to any person carrying on a trade or business which consists of or includes any of the following activities—
importing or exporting any goods of a class or description subject to a duty of customs (whether or not in fact chargeable with that duty);
producing, manufacturing or applying a process to them;
buying, selling or dealing in them;
handling or storing them;
financing or facilitating any activity mentioned in paragraphs (a) to (d) above.
In subsection (1) above “duty of customs” includes any agricultural levy of the European Union .
In this Chapter—
“customs goods” means any goods mentioned in paragraph (a) of subsection (1) above; and
any reference to the business of a person to whom this Chapter applies is a reference to the trade or business carried on by him as mentioned in that subsection.
This Chapter shall have effect and be construed as if it were contained in the Customs and Excise Management Act 1979.
In consequence of the provision made by sections 21 to 27 below, any power under— shall cease to be exercisable in relation to a person to the extent that the goods in question are customs goods.
section 75A, 75B or 75C of the Customs and Excise Management Act 1979 to require a person importing or exporting goods to keep or preserve records, or
section 77A, 77B or 77C of that Act to require a person to furnish information or produce documents relating to imported or exported goods,
The Commissioners may by regulations require any person to whom this Chapter applies—
to keep such records as may be prescribed in the regulations; and
to preserve those records—
for such period not exceeding four years as may be prescribed in the regulations, or
for such lesser period as the Commissioners may require.
The Commissioners may also require any person mentioned in subsection (3) below—
to keep such records as they may specify; and
to preserve those records for such period not exceeding four years as they may require.
The person referred to is any person who—
is not carrying on a trade or business which consists of or includes the importation or exportation of customs goods, but
is concerned in some other capacity in such importation or exportation.
A duty imposed under subsection (1)(b) or (2)(b) above to preserve records may be discharged by the preservation of the information contained in them by such means as the Commissioners may approve.
On giving approval under subsection (4) above, the Commissioners may impose such reasonable requirements as appear to them necessary for securing that the information will be as readily available to them as if the records themselves had been preserved.
Regulations under this section may—
make different provision for different cases; and
be framed by reference to such records as may be specified in any notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice.
Any person who fails to comply with a requirement imposed by virtue of this section shall be liable on summary conviction to a penalty not exceeding level 3 on the standard scale.
Where any information is preserved by approved means as mentioned in section 21(4) above, a copy of any document in which it is contained shall, subject to subsection (2) below, be admissible in evidence in any proceedings, whether civil or criminal, to the same extent as the records themselves.
A statement contained in a document produced by a computer shall not by virtue of subsection (1) above be admissible in evidence—
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in civil proceedings in Scotland, except in accordance with sections 5 and 6 of the Civil Evidence (Scotland) Act 1988;
in criminal proceedings in Scotland, except in accordance with Schedule 8 to the Criminal Procedure (Scotland) Act 1995;
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Every person to whom this Chapter applies shall furnish the Commissioners, within such time and in such form as they may reasonably require, with such information relating to his business as they may reasonably specify.
Every person to whom this Chapter applies shall, if required to do so by an officer, produce or cause to be produced for inspection by the officer— any documents which relate to his business.
at that person’s principal place of business or at such other place as the officer may reasonably require, and
at such time as the officer may reasonably require,
Where it appears to an officer that any documents which relate to a business of a person to whom this Chapter applies are in the possession of another person, the officer may require that other person, at such time and place as the officer may reasonably require, to produce those documents or cause them to be produced.
For the purposes of this section, the documents which relate to a business of a person to whom this Chapter applies shall be taken to include—
any profit and loss account and balance sheet, and
any documents required to be kept by virtue of section 21(1) above.
Every person mentioned in section 21(3) above shall furnish the Commissioners, within such time and in such form as they may reasonably require, with such information relating to the importation or exportation of customs goods in which he is concerned as they may reasonably specify.
Every person mentioned in section 21(3) above shall, if required to do so by an officer, produce or cause to be produced for inspection by the officer at such time and place as the officer may reasonably require, any documents which relate to the importation or exportation of customs goods in which he is concerned.
An officer may take copies of, or make extracts from, any document produced under this section.
If it appears to an officer to be necessary to do so, he may, at a reasonable time and for a reasonable period, remove any document produced under this section.
Where a document is removed under subsection (8) above—
if the person from whom the document is removed so requests, he shall be given a record of what was removed;
if the document is reasonably required for the proper conduct of any business, the person by whom the document was produced or caused to be produced shall be provided as soon as practicable with a copy of the document free of charge;
if the document is lost or damaged, the Commissioners shall be liable to compensate the owner of it for any expenses reasonably incurred by him in replacing or repairing it.
If a person claims a lien on any document produced by him under subsection (3) or (6) above—
the production of the document shall be without prejudice to the lien; and
the removal of the document under subsection (8) above shall not be regarded as breaking the lien.
Any person who fails to comply with a requirement imposed under this section shall be liable on summary conviction to a penalty not exceeding level 3 on the standard scale.
any premises are used in connection with a business of a person to whom this Chapter applies, and
This section applies where an officer has reasonable cause to believe that— ...
The officer may at any reasonable time enter and inspect the premises.
any customs goods are on those premises,
The officer may inspect, examine and take account of any goods found on the premises.
The officer may require a relevant person to provide any assistance that is reasonable for the purpose of exercising the power in subsection (3).
For example, the officer may require a relevant person to move, open or unpack goods and containers.
The officer may, for the purpose of exercising the power in subsection (3)—
move, open, or unpack goods and containers;
search containers and anything in them;
mark goods and containers.
The Commissioners are not to bear any costs incurred by a relevant person in complying with a requirement under subsection (4).
But the Commissioners are to bear the costs of anything done by the officer under subsection (6).
In this section “relevant person” means—
the person to whom this Chapter applies;
the occupier of the premises;
a person who has (or appears to have) possession or control of the goods;
a person who is (or appears to be) acting on behalf of a person within any of paragraphs (a) to (c).
Section 159(2) of the Customs and Excise Management Act 1979 (examinations of goods to be at a place appointed by the Commissioners) does not apply to an examination under subsection (3).
Where, on an application by an officer, a justice is satisfied that there are reasonable grounds for believing— he may make an order under this section.
that an offence in connection with a duty of customs is being, has been or is about to be committed, and
that any information or documents which may be required as evidence for the purpose of any proceedings in respect of such an offence is in the possession of any person,
An order under this section is an order that the person who appears to the justice to be in possession of the information or documents to which the application relates shall— not later than the end of the period of seven days beginning with the date of the order or the end of such longer period as the order may specify.
furnish an officer with the information or produce the document,
permit an officer to take copies of or make extracts of any document produced, and
permit an officer to remove any document which he reasonably considers necessary,
In this section “justice” means a justice of the peace or, in relation to Scotland, a justice within the meaning of section 308 of the Criminal Procedure (Scotland) Act 1995.
An officer who removes any document in the exercise of a power conferred under section 25 above shall, if so requested by a person showing himself— provide that person with a record of what he removed.
to be the occupier of premises from which it was removed, or
to have had custody or control of it immediately before the removal,
The officer shall provide the record within a reasonable time from the making of the request for it.
Subject to subsection (7) below, if a request for permission to be granted access to any document which— is made to the officer in charge of the investigation by a person who had custody or control of the document immediately before it was so removed or by someone acting on behalf of such a person, the officer shall allow the person who made the request access to it under the supervision of an officer.
has been removed by an officer, and
is retained by the Commissioners for the purposes of investigating an offence,
Subject to subsection (7) below, if a request for a photograph or copy of any such document is made to the officer in charge of the investigation by a person who had custody or control of the document immediately before it was so removed, or by someone acting on behalf of such a person, the officer shall—
allow the person who made the request access to it under the supervision of an officer for the purpose of photographing it or copying it, or
photograph or copy it, or cause it to be photographed or copied.
Where any document is photographed or copied under subsection (4)(b) above, the photograph or copy shall be supplied to the person who made the request.
The photograph or copy shall be supplied within a reasonable time from the making of the request.
There is no duty under this section to grant access to, or to supply a photograph or copy of, any document if the officer in charge of the investigation for the purposes of which it was removed has reasonable grounds for believing that to do so would prejudice—
that investigation;
the investigation of an offence other than the offence for the purposes of the investigation of which the document was removed; or
any criminal proceedings which may be brought as a result of—
the investigation of which he is in charge; or
any such investigation as is mentioned in paragraph (b) above.
Any reference in this section to the officer in charge of the investigation is a reference to the person whose name and address are endorsed on the order concerned as being the officer in charge of it.
Where, on an application made as mentioned in subsection (2) below, the appropriate judicial authority is satisfied that a person has failed to comply with a requirement imposed by section 26 above, the authority may order that person to comply with the requirement within such time and in such manner as may be specified in the order.
An application under subsection (1) above shall be made—
in the case of a failure to comply with any of the requirements imposed by subsections (1) and (2) of section 26 above, by the occupier of the premises from which the document in question was removed or by the person who had custody or control of it immediately before it was so removed, and
in any other case, by the person who has such custody or control.
In this section “the appropriate judicial authority” means—
in England and Wales, a magistrates’ court;
in Scotland, the sheriff; and
in Northern Ireland, a court of summary jurisdiction, as defined in Article 2(2)(a) of the Magistrates’ Courts (Northern Ireland) Order 1981.
Any application for an order under this section—
in England and Wales, shall be made by way of complaint; or
in Northern Ireland, shall be made by way of civil proceedings upon complaint.
Sections 21 and 42(2) of the Interpretation Act (Northern Ireland) 1954 (rules and orders regulating procedure of courts etc and assignment of business to particular courts) shall apply as if any reference in those provisions to any enactment included a reference to this section.
A duty to be known as air passenger duty shall be charged in accordance with this Chapter on the carriage on a chargeable aircraft of any chargeable passenger.
Subject to the provisions of this Chapter about accounting and payment, the duty in respect of any carriage on an aircraft of a chargeable passenger—
becomes due when the aircraft first takes off on the passenger’s flight, and
shall be paid by the operator of the aircraft.
Sections 29 and 29A below set out how to determine if an aircraft is a chargeable aircraft for the purposes of this Chapter.
Subject to sections 31 and 32 below, every passenger on an aircraft is a chargeable passenger for the purposes of this Chapter if his flight begins at an airport in England, Wales or Northern Ireland.
In this Chapter, “flight”, in relation to any person, means his carriage on an aircraft; and for the purposes of this Chapter, a person’s flight is to be treated as beginning when he first boards the aircraft and ending when he finally disembarks from the aircraft.
For the purposes of this Chapter an aircraft is a chargeable aircraft if—
it is a fixed-wing aircraft designed or adapted to carry persons in addition to the flight crew,
its authorised take-off weight is not less than 5.7 tonnes, and
it is fuelled by kerosene (as defined in section 1(8) of the Hydrocarbon Oil Duties Act 1979).
In this section “take-off weight”, in relation to an aircraft, means the total weight of the aircraft and its contents when taking off; and for the purposes of this section the authorised take-off weight of an aircraft is less than 5.7 tonnes if—
there is a certificate of airworthiness in force in respect of the aircraft showing that the maximum authorised take-off weight (assuming the most favourable circumstances for take-off) is less than 5.7 tonnes, or
the Commissioners are satisfied that the aircraft is not designed or adapted to take off when its take-off weight is 5.7 tonnes or more (assuming the most favourable circumstances for take-off) or the aircraft belongs to a class or description of aircraft in respect of which the Commissioners are so satisfied.
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there is a certificate of airworthiness in force in respect of the aircraft showing that the maximum number of persons who may be seated on the aircraft (excluding members of the flight crew and cabin attendants) is less than twenty, or
the Commissioners are satisfied that the aircraft is not designed or adapted to seat twenty or more persons (excluding members of the flight crew and cabin attendants) or the aircraft belongs to a class or description of aircraft in respect of which the Commissioners are so satisfied.
In this section “certificate of airworthiness” has the same meaning as in the Air Navigation Order.
Air passenger duty is chargeable on the carriage of each chargeable passenger at the rate determined as follows.
If the passenger's journey ends at a place in ... a territory specified in Part 1 of Schedule 5A—
if the passenger's agreement for carriage provides for standard class travel in relation to every flight on the passenger's journey, the rate is £15, and
in any other case, the rate is £32.
Subsection (1) does not apply to the carriage of a chargeable passenger to which section 30A below (Northern Ireland long haul and ultra-long haul rates of duty) applies.
If the passenger’s journey ends at a place in the United Kingdom—
if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is £8, and
in any other case, the rate is £16.
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Subject to subsection (6) below, the journey of a passenger whose agreement for carriage is evidenced by a ticket ends for the purposes of this section at his final place of destination.
If the passenger’s journey ends at a place in a territory specified in Part 1A of Schedule 5A—
if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is £102, and
in any other case, the rate is £244.
Where in the case of such a passenger— his journey ends for those purposes where the first flight not followed by a connected flight ends.
his journey includes two or more flights, and
any of those flights is not followed by a connected flight,
The journey of any passenger whose agreement for carriage is not evidenced by a ticket ends for those purposes where his flight ends.
For the purposes of this Chapter, successive flights are connected if (and only if) they are treated under an order as connected.
If the passenger's journey ends at any other place—
if the passenger's agreement for carriage provides for standard class travel in relation to every flight on the passenger's journey, the rate is £106, and
in any other case, the rate is £253.
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In relation to the carriage of a chargeable passenger on an aircraft to which subsection (4F) applies—
if the rate which (apart from this subsection) would apply is the rate in subsection (1B)(a) or (b), a rate of £142 is to apply instead,
if the rate which (apart from this subsection) would apply is the rate in subsection (2)(a) or (b), a rate of £142 is to apply instead, ...
if the rate which (apart from this subsection) would apply is the rate in subsection (2A)(a) or (b), a rate of £1,097 is to apply instead, and
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if the rate which (apart from this subsection) would apply is the rate in subsection (4A)(a) or (b), a rate of £1,141 is to apply instead.
This subsection applies to an aircraft if—
its authorised take-off weight is not less than 20 tonnes, but
it is not authorised to seat more than 18 persons (excluding members of the flight crew and cabin attendants).
In subsection (4F)(a) “take-off weight” is to be read in accordance with section 29(2) but as if “20” were substituted for “ 5.7 ” wherever occurring.
For the purposes of subsection (4F)(b) an aircraft is authorised to seat more than 18 persons (excluding members of the flight crew and cabin attendants) if—
there is a certificate of airworthiness (as defined in section 29(4)) in force in respect of the aircraft showing that the maximum number of persons who may be seated on the aircraft (excluding members of the flight crew and cabin attendants) is more than 18, or
the Commissioners are satisfied that the aircraft is designed or adapted to seat more than 18 persons (excluding members of the flight crew and cabin attendants) or the aircraft belongs to a class or description of aircraft in respect of which the Commissioners are so satisfied.
The Treasury may by order amend Schedule 5A.
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In this section “standard class travel”, in relation to carriage on an aircraft, means—
in the case of an aircraft on which only one class of travel is available, that class of travel;
in any other case, the lowest class of travel available on the aircraft.
But a class of travel is not standard class travel if the seats for passengers whose agreement for carriage provides for that class of travel have a pitch exceeding 1.016 metres (40 inches).
For this purpose “pitch”, in relation to a seat, means the distance between a fixed point on the seat and the same point on the seat immediately in front of it; but where there is no seat immediately in front of the seat, the seat is to be treated as having the same pitch as the seat immediately behind it.
This section applies for the purposes of this Chapter.
An aircraft is not a chargeable aircraft whenever its operation falls within an exemption set out in sub-paragraph (b), (c), (f) or (g) under the category of activity “Aviation” in Annex I to Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 (as amended by Directive 2008/101/EC of the European Parliament and of the Council of 19 November 2008).
Those exemptions are to be read in accordance with paragraphs 2.2 to 2.5 of the Annex to Commission Decision 2009/450/EC of 8 June 2009.
An aircraft is not a chargeable aircraft whenever it is being operated under a public service obligation imposed under Article 16 of Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 (common rules for the operation of air services).
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he is a chargeable passenger in relation to a flight on his outward journey, and
his final place of destination in relation to that journey is in the United Kingdom,
“underwriting business”, in relation to a corporate member, means its underwriting business as a member of Lloyd’s;
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either his outward journey or his return journey includes two or more flights, and
in relation to any of those flights (other than the first) on the journey in question, he would (apart from that subsection) be a chargeable passenger.
A passenger whose agreement for carriage is evidenced by a ticket is not a chargeable passenger in relation to a flight which is the second or a subsequent flight on his journey if—
the prescribed particulars of the flight are shown on the ticket, and
that flight and the previous flight are connected.
A child who—
has not attained the age of two years, and
is not allocated a separate seat before he first boards the aircraft,
A passenger not carried for reward is not a chargeable passenger if he is carried—
in pursuance of any requirement imposed under any enactment, or
for the purpose only of inspecting matters relating to the aircraft or the flight crew.
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Subsections (2) and (3) below apply in the case of a person whose agreement for carriage is evidenced by a ticket.
Where— he shall not by reason of the change of circumstances be treated as a chargeable passenger in relation to that flight.
at the time the ticket is issued or, if it is altered, at the time it is last altered, he would not (assuming there is no change of circumstances) be a chargeable passenger in relation to any flight in the course of his journey, and
by reason only of a change of circumstances not attributable to any act or default of his, he arrives at or departs from an airport in the course of that journey on a flight the prescribed particulars of which were not shown on his ticket at that time,
Where— he shall not by reason of the change of circumstances be treated as a chargeable passenger in relation to that flight.
at the time the ticket is issued or, if it is altered, at the time it is last altered, he would (assuming there is no change of circumstances) be a chargeable passenger in relation to one or more flights (“the proposed chargeable flights”) in the course of his journey,
by reason only of a change of circumstances not attributable to any act or default of his, he arrives at or departs from an airport in the course of that journey on a flight the prescribed particulars of which were not shown on his ticket at that time, and
but for this subsection he would by reason of the change be a chargeable passenger in relation to a number of flights exceeding the number of the proposed chargeable flights,
Where— he shall not by reason of the change of circumstances be treated as a chargeable passenger in relation to that flight.
at the time a passenger’s flight begins, by virtue of section 31(4A) above he would not (assuming there is no change of circumstances) be a chargeable passenger in relation to the flight, and
by reason only of a change of circumstances not attributable to any act or default of his, the flight does not return to the airport from which it departed or exceeds 60 minutes in duration (excluding any period during which the aircraft’s doors are open for boarding or disembarkation),
This section applies to the carriage of a chargeable passenger if—
the carriage begins on or after the relevant day,
the only flight, or the first flight, of the passenger's journey begins at a place in Northern Ireland,
the passenger's journey does not end at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A, and
if the passenger's journey has more than one flight, the first flight is not followed by a connected flight beginning at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A.
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Air passenger duty is chargeable on the carriage of the chargeable passenger at the rate determined as follows—
if the passenger's agreement for carriage provides for standard class travel in relation to every flight on the passenger's journey, the rate is the rate set by an Act of the Northern Ireland Assembly for the purposes of this paragraph, and
in any other case, the rate is the rate set by an Act of the Northern Ireland Assembly for the purposes of this paragraph.
In relation to the carriage of a chargeable passenger on an aircraft to which section 30(4F) applies—
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... The following rate is to apply instead of the rate set for the purposes of subsection (5)(a) or (b)—
the rate set by an Act of the Northern Ireland Assembly for the purposes of this paragraph, ...
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The rate of £0 may be set for the purposes of any paragraph.
The same rate may be set for the purposes of two or more paragraphs.
For the purposes of any paragraph, an Act of the Northern Ireland Assembly may set one rate for cases within section 30(2A) and a different rate for cases within section 30(4A).
Subsections (5) to (7) and (10) to (12) of section 30 apply for the purposes of this section as they apply for the purposes of that section.
“The relevant day” means the day appointed as such by an order.
Section 42(4) and (5) does not apply to an order under subsection (9).
None of the following applies to any matter in respect of which this section authorises provision to be made by an Act of the Northern Ireland Assembly—
any paragraph of Schedule 2 or 3 to the Northern Ireland Act 1998 (excepted and reserved matters);
section 63 of that Act (financial acts of the Assembly).
A Bill containing provision authorised by this section may not be passed by the Northern Ireland Assembly except in pursuance of a recommendation which—
is made by the Minister of Finance and Personnel, and
is signified to the Assembly by the Minister or on the Minister's behalf.
A Bill containing provision authorised by this section may not be passed by the Northern Ireland Assembly without cross-community support (as defined in section 4(5) of the Northern Ireland Act 1998).
“Passed”, in relation to a Bill, means passed at the final stage (at which the Bill can be passed or rejected but not amended).
Duty paid to the Commissioners in respect of the carriage of chargeable passengers to which this section applies must be paid by the Commissioners into the Consolidated Fund of Northern Ireland.
The Commissioners shall under this section keep a register of aircraft operators.
The operator of a chargeable aircraft becomes liable to be registered under this section if the aircraft is used for the carriage of any chargeable passengers.
A person who has become liable to be registered under this section ceases to be so liable if the Commissioners are satisfied at any time—
that he no longer operates any chargeable aircraft, or
that no chargeable aircraft which he operates will be used for the carriage of chargeable passengers or, if the Commissioners have decided to keep a register under section 33A below, that no chargeable aircraft which he operates will be used for the carriage of chargeable passengers apart from the carriage of chargeable passengers to which section 30A above applies .
If the Commissioners decide to keep a register under section 33A below, an operator of a chargeable aircraft does not become liable to be registered under this section just because the aircraft is used for the carriage of chargeable passengers to which section 30A above applies.
A person who is not registered under this section and has not given notice under this subsection shall, if he becomes liable to be registered under this section at any time, give written notice of that fact to the Commissioners not later than the end of the prescribed period beginning with that time.
Notice under subsection (4) above shall be in such form, be given in such manner and contain such information as the Commissioners may direct.
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Regulations may make provision as to the information to be included in, and the correction of, the register kept under this section or section 33A below .
In particular, the regulations may provide—
for the inclusion in the register of persons who have not given notice under this section but appear to the Commissioners to be liable to be registered,
for persons who are liable to be registered— the register in prescribed circumstances,
not to be included in, or
to be removed from,
for the removal from the register of persons who have ceased to be so liable, and
for the time from which an entry in the register is to be effective (which may be earlier than the time when the entry is first made in the register).
An aircraft operator who— is required to have a fiscal representative.
is or is liable to be registered, and
does not meet the requirements of subsection (3) below,
In this Chapter “fiscal representative”, in relation to an aircraft operator, means a person who meets those requirements and stands appointed by the operator for the purposes of this section.
A person meets the requirements of this subsection if—
he has any business establishment or other fixed establishment in the United Kingdom, or
if he is an individual, he has his usual place of residence in the United Kingdom.
Where any person is appointed under this section to be the fiscal representative of any aircraft operator (in this section referred to as his “principal”), then, subject to subsection (5) below and section 34A, the fiscal representative—
shall be entitled to act on his principal’s behalf for any of the purposes of the enactments relating to duty,
shall, subject to such provisions as may be made by regulations, secure (where appropriate by acting on his principal’s behalf) his principal’s compliance with and discharge of the obligations and liabilities to which his principal is subject by virtue of those enactments, and
shall be personally liable in respect of any failure of his principal to comply with or discharge any such obligation or liability as if the obligations and liabilities imposed on his principal were imposed jointly and severally on the fiscal representative and his principal.
A fiscal representative shall not be liable by virtue of subsection (4) above himself to be registered ..., but regulations may—
require the names of fiscal representatives to be shown in such manner as may be prescribed against the names of their principals in the register kept under section 33 or 33A above , and
make it the duty of a fiscal representative, for the purposes of registration, to notify the Commissioners, within such period as may be prescribed, that his appointment has taken effect or has ceased to have effect.
The Commissioners may under this section keep a register of aircraft operators.
If the Commissioners decide to keep a register under this section, the operator of a chargeable aircraft becomes liable to be registered under this section if the aircraft is used for the carriage of chargeable passengers to which section 30A above applies.
A person who has become liable to be registered under this section ceases to be so liable if the Commissioners are satisfied at any time—
that he no longer operates any chargeable aircraft, or
that no chargeable aircraft which he operates will be used for the carriage of chargeable passengers to which section 30A above applies.
A person who is not registered under this section and has not given notice under this subsection shall, if he becomes liable to be registered under this section at any time, give written notice of that fact to the Commissioners not later than the end of the prescribed period beginning with that time.
Notice under subsection (4) above shall be in such form, be given in such manner and contain such information as the Commissioners may direct.
Regulations may make provision about—
the manner in which a person is to be appointed as a fiscal representative, and
the circumstances in which a person is to be treated as having ceased to be a fiscal representative.
If any aircraft operator who is required to have a fiscal representative fails to appoint such a representative before the prescribed time, his failure shall attract a penalty under section 9 above.
Any failure of a fiscal representative to give any notice which he is required to give by regulations under section 34(5)(b) above shall attract a penalty under section 9 above.
The Commissioners may require— to provide such security, or further security, as they may think appropriate for the payment of any duty which is or may become due from the operator.
any operator of an aircraft who is or is liable to be registered, or
any fiscal representative,
Any failure by a person to provide any security which he is required by the Commissioners to provide under subsection (1) above shall attract a penalty under section 9 above.
For the purposes of this section, a person shall not be treated as having been required to provide security under subsection (1) above unless the Commissioners have either—
served notice of the requirement on him, or
taken all such other steps as appear to them to be reasonable for bringing the requirement to his attention.
Subject to the following provisions of this section, where— that appointment shall have effect in accordance with subsection (2) below.
the appointment of any person to be the fiscal representative of an aircraft operator contains a statement that the appointment is made for administrative purposes only,
the operator has complied with any obligations for the provision of security imposed, in relation to appointments containing such statements, by any general directions given by the Commissioners, and
the operator is not for the time being in contravention of any requirement to provide any security that he is required to provide under section 36 below,
Where the appointment of any person as a fiscal representative has effect in accordance with this subsection section 34(4)(b) and (c) above shall be taken, in the case of that person—
not to impose any requirement on the representative to secure the payment of amounts of duty which are or may become due from his principal, and
not to make him personally liable either to pay any such amounts or in respect of any failure by his principal to pay them.
The security that may be required by general directions given by the Commissioners for the purposes of this section is any such security for the payment of amounts of duty which are or may become due from the person providing the security as may be determined in accordance with the directions.
The power of the Commissioners under section 36 below to require the provision of security shall not include any power to require a fiscal representative of an aircraft operator whose appointment has effect in accordance with subsection (2) above to provide any security for the payment of amounts of duty which are or may become due from his principal.
In this section references to an amount of duty include references to any penalty or interest that is recoverable as if it were an amount of duty, but only in so far as the penalty or interest is in respect of a failure by an aircraft operator to pay an amount of duty, or to pay such an amount before a certain time.
Where any amount of duty becomes payable at any time by the operator of an aircraft and, within the period of ninety days beginning with that time, that amount, or any other amount which becomes payable by him within the period, is not paid, the Commissioners may give notice under this section to any handling agent of his.
If any operator of an aircraft who is required to have a fiscal representative fails to appoint such a representative before the prescribed time, the Commissioners may give notice under this section to any handling agent of his.
In this Chapter “handling agent”, in relation to the operator of an aircraft (“the principal”), means any person (other than an individual) who, under an agreement with the principal, makes arrangements for—
the allocation of seats to passengers on aircraft operated by the principal, or
the supervision of the boarding of such aircraft by passengers.
A notice under this section—
may be given on the ground referred to in subsection (1) above only if the Commissioners consider it necessary to do so for the protection of the revenue, and
may at any time be withdrawn by the Commissioners.
A notice under this section shall become effective on the date stated in it or, if later, the time when the notice is received by the handling agent and shall continue to be effective until withdrawn.
If, where a notice given to a handling agent under this section is effective— the handling agent shall be liable jointly and severally with his principal for the payment of the duty.
the allocation of seats to passengers on aircraft operated by his principal, or the supervision of the boarding of such aircraft by passengers, is carried out in pursuance of arrangements made by him under any agreement with his principal, and
any duty payable in respect of those passengers is not paid,
Regulations shall require aircraft operators who are registered or liable to be registered—
to keep accounts for the purposes of duty in such form and manner as may be prescribed, and
to make returns in respect of duty—
by reference to such periods as may be prescribed or as may be allowed by the Commissioners, in relation to a particular operator, in accordance with regulations, and
at such time and in such manner as may be prescribed or specified.
Any person from whom any duty is due shall pay the duty at such time and in such manner as may be prescribed or specified.
In this section “specified” means specified in a notice published, and not withdrawn, by the Commissioners.
Regulations may require a prescribed person to make, at prescribed times during a prescribed period, payments based on an estimate of what the person's liability will be for duty charged in the period.
The estimate and the amounts of the payments are to be determined in accordance with provision made by the regulations.
Any failure by any person to comply with regulations under this section shall, unless he is complying with the corresponding provisions of such a notice, attract a penalty under section 9 above and, in the case of any failure to keep accounts, daily penalties.
The payments are to be treated as being payments on account of the person's liability for duty charged in the period.
The regulations must make provision for dealing with cases where this results in an overpayment of duty by providing for amounts— or both.
to be repaid by the Commissioners, or
to be treated as having been paid on account of the person's liability for duty charged in other periods,
This section applies if the Commissioners consider that, having regard to difficulties encountered or expected to be encountered by any registered operator in obtaining and recording information about passengers and their journeys, it is appropriate for this Chapter to have effect in relation to the registered operator in accordance with a special accounting scheme.
The Commissioners may agree with the registered operator that this Chapter is to have effect in relation to the registered operator in accordance with a special accounting scheme agreed between the Commissioners and the registered operator (but subject to subsection (4)).
A special accounting scheme is a scheme which makes provision for methods of calculating—
how many persons are to be regarded for the purposes of this Chapter as chargeable passengers carried by chargeable aircraft operated by a registered operator, and
how many of those are to be so regarded as having been so carried on journeys in respect of which duty is chargeable at any particular rate.
who are not passengers of a description mentioned in section 31(4) or (5) above;
The Commissioners may publish a notice specifying terms and conditions subject to which special accounting schemes are to have effect.
how many of those relevant passengers may be treated as passengers who are not chargeable passengers, and
how many of them may be treated as passengers on the carriage of whom duty shall be charged at the rate mentioned in section 30(2) above.
Where the Commissioners and a registered operator have agreed that this Chapter is to have effect in relation to the registered operator in accordance with a special accounting scheme, this Chapter has effect in relation to the registered operator in accordance with the scheme (and with any notice under subsection (4) which has been published by the Commissioners and not withdrawn) for the period agreed by the Commissioners and the registered operator.
derived from surveys of passengers carried on chargeable aircraft operated by the operator for whom the scheme is prepared, or
relating to airports and routes used by that operator,
The Commissioners and the registered operator may at any time agree to vary the special accounting scheme for the future.
The Commissioners may at any time terminate the operation of the special accounting scheme— by giving notice to the registered operator.
on the application of the registered operator, or
where they have reasonable grounds for doing so,
This Chapter shall have effect for the specified period as if, except in accordance with provision made to the contrary by the scheme (by virtue of subsection (4) above)—
each of the passengers who are relevant passengers of the registered operator were chargeable passengers, and
duty were charged on the carriage of each of them at the rate mentioned in section 30(4) above.
Regulations may make further provision with respect to schemes under this section, including in particular provision amending this section.
Air passenger duty shall be a duty of excise and, accordingly, shall be under the care and management of the Commissioners.
Schedule 6 to this Act (administration and enforcement) shall have effect.
A person who is knowingly concerned— is guilty of an offence.
in the fraudulent evasion (by him or another person) of duty, or
in taking steps with a view to such fraudulent evasion,
A person guilty of an offence under subsection (1) above is liable—
on summary conviction, to a penalty of— or to imprisonment for a term not exceeding six months, or to both, or
£20,000, or
if greater, treble the amount of the duty evaded or sought to be evaded,
on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding 14 years, or to both.
A person who in connection with duty— is guilty of an offence.
makes a statement that he knows to be false in a material particular or recklessly makes a statement that is false in a material particular, or
with intent to deceive, produces or makes use of a book, account, return or other document that is false in a material particular,
A person guilty of an offence under subsection (3) above is liable—
on summary conviction, to a penalty of £20,000 or to imprisonment for a term not exceeding six months, or to both, or
on conviction on indictment, to a penalty of any amount or to imprisonment for a term not exceeding two years, or to both.
An officer of Revenue and Customs may disclose to the Secretary of State, the Treasury or the Department of Finance and Personnel in Northern Ireland any information for purposes connected with the setting of rates of duty under section 30A above, including (in particular) to enable the setting of rates under that section to be taken into account for the purposes of section 58 of the Northern Ireland Act 1998 (payments by Secretary of State into Consolidated Fund of Northern Ireland).
Information disclosed under subsection (1) above may not be further disclosed without the consent of the Commissioners (which may be general or specific).
In section 19 of the Commissioners for Revenue and Customs Act 2005 (wrongful disclosure) references to section 18(1) of that Act are to be read as including a reference to subsection (2) above.
In this Chapter “regulations” means regulations made by the Commissioners and “order” means an order made by the Treasury.
Regulations and orders may make different provision for different cases or circumstances and make incidental, supplemental, saving or transitional provision.
Any power to make regulations or an order is exercisable by statutory instrument.
No order which appears to the Treasury to extend the circumstances in which passengers are to be treated as chargeable passengers , or to increase the rate of air passenger duty to be charged on the carriage of any chargeable passengers whose journeys end in any place, shall be made unless a draft of the order has been laid before and approved by the House of Commons.
Any other order, and any regulations, shall be subject to annulment in pursuance of a resolution of the House of Commons.
In this Chapter—
“agreement for carriage”, in relation to the carriage of any person, means the agreement or arrangement under which he is carried, whether the carriage is by a single carrier or successive carriers,
A child who has not attained the age of 16 years is not a chargeable passenger in relation to a flight if the child's agreement for carriage—
is evidenced by a ticket, and
provides for standard class travel in relation to every flight on the child's journey.
Subsections (10) to (12) of section 30 (meaning of “standard class travel”) apply for the purposes of subsection (4ZA) as they apply for the purposes of that section.
A passenger is not a chargeable passenger in relation to a flight if under his agreement for carriage (whether or not it is evidenced by a ticket)—
the flight is to depart from and return to the same airport, and
the duration of the flight (excluding any period during which the aircraft’s doors are open for boarding or disembarkation) is not to exceed 60 minutes.
A passenger is not a chargeable passenger in relation to a flight if under his agreement for carriage (whether or not it is evidenced by a ticket) the flight is to depart from an airport which is in a region of England, Wales or Northern Ireland designated by order.
An order may be made for the purposes of subsection (4B) above in respect of any region which has a population density of not more than 12.5 persons per square kilometre.
In subsections (4B) and (4C) above, references to a region are references to an area which is determined by the Treasury to constitute a region for the purposes of those subsections.
“syndicate” means a syndicate of underwriting members of Lloyd’s formed for an underwriting year;
the person registered as a managing agent at Lloyd’s who was acting as such an agent for the syndicate at the end of that year, or
“taxable intermediary’s fees” has the meaning given by section 53AA(9) above.
“corporate member” means a body corporate which is a member of Lloyd’s and is or has been an underwriting member;
Section 1.
Description of wine or made-wine Rates of duty per hectolitre £ Wine or made-wine of a strength not exceeding 2 per cent. 13.48 Wine or made-wine of a strength exceeding 2 per cent. but not exceeding 3 per cent. 22.46 Wine or made-wine of a strength exceeding 3 per cent. but not exceeding 4 per cent. 31.45 Wine or made-wine of a strength exceeding 4 per cent. but not exceeding 5 per cent. 40.44 Wine or made-wine of a strength exceeding 5 per cent. but not exceeding 5.5 per cent. 49.42 Wine or made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent. and not being sparkling 134.77 Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent. 222.55 Wine or made-wine of a strength exceeding 15 per cent. but not exceeding 22 per cent. 207.33
Description of wine or made-wine Rates of duty per litre of alcohol in the wine or made-wine £ Wine or made-wine of a strength exceeding 22 per cent. 19.81
Section 5.
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after “physical” there shall be inserted “or mental”, and
in paragraph (c), after “subsection” there shall be inserted “or by reason of the continued operation of the provisions mentioned in section 12(1) of the Finance (No.2) Act 1992”.
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in paragraph (c), for “motor trader or vehicle tester within the meaning of section 16 of this Act” there shall be substituted “person entitled to make one”, and
for “dealer, trader, tester or other person” there shall be substituted “person”.
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In Article 34 of the Road Traffic (Northern Ireland) Order 1981 (obligatory vehicle test certificates), the following paragraph shall be substituted for paragraph (3)—
In section 47 of the Road Traffic Act 1988 (obligatory test certificates), the following subsection shall be substituted for subsection (4)—
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Paragraphs . . ., 24 and 25 shall come into force on 1st June 1994.
Section 6.
The Betting and Gaming Duties Act 1981 shall be amended as follows. For section 21(3) (period of gaming machine licences) there is substituted—. Section 22(5) (rates of duty) is omitted. For section 23 (amount of duty) there is substituted— In section 24 (restrictions on number of licences)— are omitted. In section 26 (supplementary provisions), in subsection (4)— In Part II of Schedule 4 (supplementary provisions) for paragraphs 6 and 7 (applications and duration of licences) there is substituted— Paragraphs 9 to 11A of that Schedule (amendment, etc.) shall not apply at any time before 1st May 1994 to any licence in relation to which this paragraph has effect. This paragraph shall have effect in relation to gaming machine licences granted for any period beginning on or after 1st May 1994.
No special licence (as defined in section 21(2) of the Betting and Gaming Duties Act 1981) may be granted for any period beginning on or after 1st May 1994.
Accordingly, that Act shall be amended as follows. In section 21, for the words following “force” in subsection (1) to the end of subsection (2) there is substituted—a licence granted under this Part of this Act with respect to the premises. . Section 21A (special licences) is omitted. In section 24— In paragraph 8 of Schedule 4 (transfer of licences), in sub-paragraph (1), for paragraphs (a) and (b) there is substituted “ transfer a gaming machine licence in respect of any premises to a successor in title to the interest in those premises of the person to whom the licence was granted ”. Paragraph 11(2) of that Schedule is omitted. In paragraph 12 of that Schedule (display of licence), for “an ordinary licence” there is substituted “ a gaming machine licence ”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In paragraph 18 of that Schedule (forfeiture), for paragraphs (a) and (b) there is substituted “ those machines which are authorised by the gaming machine licence or licences produced to him ”. Paragraph 4(2) below shall cease to have effect. This paragraph shall come into force on 1st May 1995.
In Part I of Schedule 4 to that Act (exemptions), for paragraph 4 (and the cross-heading preceding it) there shall be substituted— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sections 21(3) and 23 of that Act (as inserted by this Schedule) shall have effect for the purposes of paragraph 4(6) of that Schedule (as so inserted) in relation to gaming machine licences granted for the period of six months beginning with 1st April 1994. This paragraph shall have effect in relation to gaming machine licences granted for any period beginning on or after 1st April 1994.
Part II of Schedule 4 to that Act shall be amended as follows. Paragraphs 9 and 10 (amendment of licences) are omitted. In paragraph 11 (surrender of licence), for sub-paragraph (1) there is substituted—. Paragraph 11A (reduction of duty in certain cases) is omitted. Sub-paragraph (3) above shall not apply to special licences; and sections 21(3) and 23 of that Act (as inserted by this Schedule) shall have effect for the purposes of paragraph 11(1B)(b) of that Schedule (as so inserted) in relation to gaming machine licences granted for any period beginning before 1st May 1994. This paragraph shall come into force on 1st May 1994.
Section 9.
The Management Act shall be amended in accordance with the following provisions of this Part of this Schedule.
In subsection (6) of section 92 (offence of making alteration in or addition to approved warehouse), for the words from “he shall be liable” onwards there shall be substituted “ the making of the alteration or addition shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ” For subsection (8) of that section (offence of contravening condition or direction given in connection with the approval of a warehouse) there shall be substituted the following subsection—
In section 93(6) (offence of failing to comply with any warehousing regulations or with any condition, restriction or requirement imposed under any warehousing regulations), for the words from “he shall be liable” onwards there shall be substituted “ his failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
In section 100J (offence and forfeiture in the case of a contravention of REDS regulations), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any goods in respect of which any person contravenes any provision of any such regulations, or fails to comply with any such condition or restriction, shall be liable to forfeiture. ”
In section 101(4) (offence of failing to produce licence after being requested to do so)—
for “a reasonable time” there shall be substituted “ one month ”; and
for the words from “he shall be liable” onwards there shall be substituted “ his failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
In subsection (2) of section 107 (offence of failing to display notice or comply with directions as to the form and manner of a notice), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ” In subsection (3) of that section (offence of affixing misleading notice), for the words from “he shall be liable” onwards there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
In section 108(4) (offence of contravening directions in relation to premises etc. entered under the revenue trade provisions), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
In subsection (1) of section 111 (using premises or article without having entered them), for the words from “he shall be liable” to the words “and any”, in the first place where they occur, there shall be substituted “ his use of the premises or article shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any ”. Subsection (2) of that section (fraudulent use of entered premises or article) shall cease to have effect.
In section 114(2) (offence of using prohibited substance or liquor), for the words from “he shall be liable” onwards there shall be substituted “ his use of that substance or liquor in that manner shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties); but section 10 of that Act (exception for cases of reasonable excuse) shall not apply in relation to conduct attracting a penalty by virtue of this subsection. ”
In subsection (4) of section 115 (offence of tampering etc. with specimen)— After that subsection there shall be inserted the following subsection—
In section 116(3) (offence of failing to pay duty on demand), for the words from “the trader shall” onwards there shall be substituted “ the trader’s failure to pay the duty on demand shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount of the duty demanded and shall also attract daily penalties. ”
In section 118G (offences in connection with record keeping etc. by revenue traders), for the words from “he shall be liable” onwards there shall be substituted “ his failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and, in the case of any failure to keep records, shall also attract daily penalties. ”
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The Alcoholic Liquor Duties Act 1979 shall be amended in accordance with the following provisions of this Part of this Schedule.
In section 8(2) (offence of contravening condition of remission of duty on spirits used for medical or scientific purposes), for the words from “then” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
In section 10(2) (offence of contravening condition of remission of duty on spirits used in art or manufacture), for the words from “then” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
In subsection (3) of section 13 (offence and forfeiture in the case of a contravention of regulations etc. applying to the manufacture of spirits)— Subsection (4) of that section (power to vary penalty under subsection (3)) shall cease to have effect. In subsection (5) of that section (offence and forfeiture in the case of a contravention of any condition imposed with respect to any process of manufacture involving spirits), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits in respect of which any person contravenes or fails to comply with any such condition shall be liable to forfeiture. ”
In subsection (4) of section 15 .... For subsection (5) of that section there shall be substituted the following subsection— In subsection (7) of that section (offence and forfeiture in the case of a contravention of regulations relating to a distiller’s warehouse), for the words from “he shall” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits in respect of which any person contravenes any such regulation, or fails to comply with any such regulation or condition, shall be liable to forfeiture. ” Subsection (8) of that section (power to vary penalty under subsection (7)) shall cease to have effect.
In subsection (2) of section 16 (offence and forfeiture in the case of a contravention of regulations relating to racking at a distillery), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture. ” In subsection (3) of that section (forfeiture and offence in the case of an excess of stock), for the words from “the distiller shall be liable” onwards there shall be substituted “ there shall be deemed to have been conduct by the distiller attracting a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
In section 18(6) (rectifying or compounding spirits in contravention of an excise licence), for the words from “he shall be liable” onwards there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
In subsection (2) of section 19 (offence and forfeiture in the case of contraventions of obligations imposed by or under regulations relating to the rectifying etc. of spirits), for the words from “he shall” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any spirits and any other article in respect of which any person contravenes any such regulation, or fails to comply with any such regulation, condition, requirement or restriction, shall be liable to forfeiture. ” Subsection (3) of that section (power to vary penalty under subsection (2)) shall cease to have effect.
In each of subsections (1) and (2) of section 20 (forfeiture and offences in the case of an excess or deficiency of stock), for the words from “the rectifier shall be liable” onwards there shall be substituted “ there shall be deemed to have been conduct by the rectifier attracting a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
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In subsection (1) of section 33 (offence and forfeiture in the case of the use of spirits relieved from spirits duty), in the words after paragraph (c), for the words from “he shall” to “greater” there shall be substituted “ his doing so shall, unless he has complied with the requirements specified in subsection (2) below, attract a penalty under section 9 of the Finance Act 1994 (civil penalties) ”. In subsection (5) of that section (contravention of enforcement regulations), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
For subsection (2) of section 34 (offence of contravening prohibition on grogging) there shall be substituted the following subsection—
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In section 41A(8) (offence and forfeiture in the case of a contravention of a condition of registration), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any beer in respect of which any person contravenes or fails to comply with any such condition shall be liable to forfeiture. ”
In section 44(2) (offence of contravening condition imposed in connection with remission of duty on beer used for the purposes of research or experiment), for the words from “then” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
In section 46(2) (offence of contravening regulations relating to the remission of duty on spoilt beer), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
In subsection (4) of section 47 (offence of failing to apply for registration as a brewer), for the words from “he shall be liable” to “scale;” there shall be substituted “ his failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) ”. In subsection (5) of that section (offence and forfeiture in the case of the production of beer by an unregistered person), for the words from “he shall be liable” onwards there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount of duty charged on the beer produced, and the beer produced and any worts found on those premises shall be liable to forfeiture. ”
For subsection (3) of section 49 (offence and forfeiture in the case of a contravention of beer regulations) there shall be substituted the following subsection—
In section 54(5) (offence of producing wine on unlicensed premises), for the words from “he shall” to “and the wine” there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount of duty charged on the wine produced, and the wine ”.
In section 55(6) (offence of producing made-wine on unlicensed premises), for the words from “he shall” to “and the made-wine” there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount of duty charged on the made-wine produced, and the made-wine ”.
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for “Any person who” there shall be substituted “Where any person”; and
for the words from “shall be liable” to “scale” there shall be substituted “his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties)”.
In section 56(2) (offence and forfeiture in the case of a contravention of regulations relating to wine and made-wine), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture. ”
For subsection (2) of section 59 (offence of rendering wine or made-wine sparkling) there shall be substituted the following subsection—
In section 61(2) (offence of contravening regulations relating to the remission of duty on spoilt wine or made-wine), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
In subsection (4) of section 62 (offence of producing cider on unlicensed premises), for the words from “he shall” to “and the cider” there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount of duty charged on the cider made, and the cider ”. In subsection (6) of that section (offence and forfeiture in the case of a contravention of regulations made for the purposes of managing the duty on cider), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture. ”
In section 64(2) (offence of contravening regulations relating to the remission of duty on spoilt cider), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
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In section 75(5) (offence of unlicensed methylation of spirits)—
for “Any person who” there shall be substituted “ Where any person ”; and
for the words from “shall be liable” onwards there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
In subsection (3) of section 77 (offence of contravening regulations relating to methylated spirits or any condition, restriction or requirement imposed under any such regulations), for the words from “he shall be liable” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ” In subsection (4) of that section (offence of unlicensed dealing in methylated spirits), for the words from “he shall be liable” onwards there shall be substituted “ his doing so shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ” In subsection (5) of that section (forfeiture), for “an offence under subsection (3) or (4) above is committed” there shall be substituted “ there is such a contravention or failure to comply as is mentioned in subsection (3) above or any such dealing as is mentioned in subsection (4) above ”.
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The Hydrocarbon Oil Duties Act 1979 shall be amended in accordance with the following provisions of this Part of this Schedule.
In subsection (3) of section 10 (offences in connection with use etc. of oil that has been relieved of duty for a purpose which does not qualify for relief)— In subsection (4) of that section (offence of supplying for a use that does not qualify for relief)—
In subsection (1) of section 13 (offences in connection with use etc. of heavy oil)— In subsection (2) of that section (offence of supplying heavy oil for a use in contravention of section 12(2))—
In subsection (4) of section 14 (offences in connection with use etc. of oil in the case of which rebate has been allowed)— In subsection (5) of that section (offence of supplying for a use for which no rebate is allowed)—
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In section 20AA(4) (offence and forfeiture in the case of a contravention of the regulations relating to reliefs), for paragraph (a) there shall be substituted the following paragraph—.
In section 21(3) (offence and forfeiture in the case of a contravention of regulations relating to administration or enforcement)—
for “A person who” there shall be substituted “ Where any person ”; and
for the words from “shall be liable on” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any goods in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture. ”
In subsection (1) of section 22 (offence and forfeiture in the case of the use of fuel substitute for a chargeable purpose without duty having been paid)— After that subsection there shall be inserted the following subsection—
In subsection (1) of section 23 (offence and forfeiture in the case of the use etc. of road fuel gas without duty having been paid)— After that subsection there shall be inserted the following subsection—
In section 24(4) (offence and forfeiture in the case of a contravention of regulations relating to incidental matters)—
for “A person who” there shall be substituted “ Where any person ”; and
for the words from “shall be liable on” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any goods in respect of which any person contravenes or fails to comply with any such regulation shall be liable to forfeiture. ”
In section 7(2) of the Tobacco Products Duty Act 1979 (offence and forfeiture in the case of a contravention of regulations for the management of the duty etc.), for the words from “he shall be liable” onwards there shall be substituted “ his failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any article in respect of which any person fails to comply with any such regulation, or which is found on premises in respect of which any person has failed to comply with any such regulation, shall be liable to forfeiture. ”
The Betting and Gaming Duties Act 1981 shall be amended in accordance with the following provisions of this Part of this Schedule.
In section 24(5) (offence where gaming machine provided without there being a licence in force)—
for “any person who at the time when it is so provided” there shall be substituted “ the provision of the machine shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and, for the purposes of the application of that section to the conduct attracting the penalty, the provision of the machine shall be treated as the conduct of each of the persons who, at the time when the gaming machine is provided ”; and
the words after paragraph (f) shall be omitted.
Where any person— his failure to pay, contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which, in the case of a failure to pay, shall be calculated by reference to the amount of duty payable. Any such failure to pay as is mentioned in sub-paragraph (1)(a) above shall also attract daily penalties. Any person who obstructs any officer in the exercise of his functions in relation to general betting duty or pool betting duty shall be guilty of an offence and liable on summary conviction to a penalty of level 4 on the standard scale. In paragraph 14(3) of that Schedule (offence of failing to produce permit within period reasonably required)— In paragraph 15 of that Schedule (forfeiture and cancellation of licence on second or subsequent conviction),—
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In sub-paragraph (3) of paragraph 16 of Schedule 3 (offence of contravening provision made by or under that Schedule)— “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ” Sub-paragraph (4) of that paragraph (continuing offences) shall cease to have effect.
In sub-paragraph (1) of paragraph 16 of Schedule 4 (offence of contravening provision made by or under that Schedule), for the words from “he shall be guilty” onwards there shall be substituted “ his contravention, failure to comply or refusal shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ” Sub-paragraph (2) of that paragraph (continuing offences) shall cease to have effect.
Chapter II of Part I of the Finance Act 1993 shall be amended in accordance with the following provisions of this Part of this Schedule.
In section 27(4) (offence of failing to pay duty)—
for “A person who” there shall be substituted “ Where a person ”; and
for the words from “is guilty” onwards there shall be substituted “ his failure so to make the payment shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) which shall be calculated by reference to the amount which has not been paid and shall also attract daily penalties. ”
In each of sections 28(3) and 29(8) (offences of contravening regulations made for the purposes of lottery duty)—
for “A person who” there shall be substituted “ Where a person ”; and
for the words from “is guilty” onwards there shall be substituted “ his contravention or failure to comply shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). ”
Section 13A.
The following decisions so far as they are made under any provision made by or under Part 1 of the Taxation (Cross-border Trade) Act 2018, that is to say—
any decision in relation to any goods as to whether or not the entry, unloading or transit of the goods, or their release by or to any person or for any purpose, is to be allowed or otherwise permitted;
any decision as to whether or not permission for the examination of, or the taking of samples from, any goods presented to the Commissioners is to be granted;
any decision as to whether or not consent to the amendment or withdrawal of any Customs or other declaration is to be given;
any decision as to the route to be used for the movement of any goods;
any other decision as to whether or not the requirements of any procedure for goods which are to be or have been presented to the Commissioners, or any other formalities in relation to any such goods, have been satisfied or complied with or are to be waived, or as to the measures to be taken, including any requirements to be imposed, in consequence of the inability or other failure of any person to comply with the required procedure;
any decision, in any particular case, as to whether or not any licence, authorisation or approval is to be granted to any person (whether in respect of any premises, place or area or anything else);
any decision, in any particular case, as to whether or not the carrying out of any processing or other operations or the use of any procedure is to be, or to continue to be, authorised or approved;
any decision in relation to— as to whether or not its establishment, operation or construction or the person by whom it is to be established, operated or constructed, is to be, or to continue to be, authorised or approved for any purpose;
the establishment or operation of any warehouse or other facility, or
the construction of any building,
any decision consisting in the imposition of a requirement to supply information or assistance, or to furnish any document or other evidence, to the Commissioners or any officer or of a requirement to be present or represented when anything is done in relation to any goods;
any decision to take or retain samples of any goods or as to the examination or analysis to which any goods or samples are to be subjected;
any decision, in any particular case, as to whether or not a fee is to be charged to any person under regulations made under section 27 of the Taxation (Cross-border Trade) Act 2018 or as to the amount of any such fee;
any decision as to whether or not collection of interest on arrears of customs duty or agricultural levy is to be waived;
any decision, in relation to a decision mentioned in any of the preceding sub-paragraphs, as to the conditions subject to which the decision so mentioned is made or, as the case may be, the matters to which that decision relates have effect;
any decision as to whether or not any person is to be required to give any security or other guarantee for the fulfilment, in whole or in part, of— or as to the form or amount of, or the conditions of, any such security or other guarantee;
any obligation to pay any customs duty or any agricultural levy of the European Union; or
any obligation to comply with a condition of any permission, designation, approval, authorisation or requirement mentioned in any of the preceding sub-paragraphs or with any provision for the purposes of which any decision falling within any of those sub-paragraphs is made,
any decision as to the time at which or the period within which any obligation to pay any ... agricultural levy of the European Union ...;
any decision as to whether or not a decision falling within this paragraph is to be varied, suspended or revoked, including a decision as to whether or not the time at which any such decision is to take effect is to be deferred , and a decision as to whether or not a licence, authorisation or approval is to be suspended or revoked or the terms of a licence, authorisation or approval are to be varied.
any decision as to the time at which or the period within which any obligation to pay any customs duty or to do any other thing required or authorised as a result of provision made by or under Part 1 of the Taxation (Cross-border Trade) Act 2018 is to be complied with;
The following decisions under or for the purposes of the Management Act, that is to say— Any decision which is made under or for the purposes of any regulations under any of sections 3, 31 or 93 of the Management Act (application to pipe-lines, control of movement of goods and warehousing regulations) and is- Any decision which is made under or for the purposes of any regulations under section 35(4), 42 or 66 of the Management Act (report inwards, procedure in relation to goods on arrival etc. or in relation to goods for exportation) and is— Any decision which is made under or for the purposes of any regulations under section 60A of the Management Act (power to make regulations about stores) and is a decision about granting or withdrawing authorisation for goods to be shipped or carried as stores without payment of duty or on drawback. Any decision which is made under or for the purposes of any regulations under section 127A of the Management Act (deferment of duty) and is—
The following decisions under or for the purposes of Part 2 of the Finance (No. 2) Act 2023 (alcohol duty)— Any decision which— Any decision which is made under or for the purposes of any regulations under section 90 (denatured alcohol) or section 92 (regulations relating to denatured alcohol) of the Finance (No. 2) Act 2023 and is a decision— Any decision which—
The following decisions under or for the purposes of the Hydrocarbon Oil Duties Act 1979— Any decision which is made under or for the purposes of any regulations made under section 20AA of the Hydrocarbon Oil Duties Act 1979 and is a decision as to whether or not relief is to be allowed. Any decision which is made under or for the purposes of any regulations made or having effect as if made under section 21 or 24 of the Hydrocarbon Oil Duties Act 1979 and is— Any decision which—
Any decision which is made under or for the purposes of any regulations made under section 2 or 7 of the Tobacco Products Duty Act 1979 and is—
a decision as to whether or not any duty is remitted or repaid or as to the conditions subject to which it is remitted or repaid; or
a decision as to whether or not any premises are to be, or to continue to be, registered for any purpose or as to the conditions subject to which any premises are so registered.
Any decision—
to refuse an approval under section 8L of the Tobacco Products Duty Act 1979 (raw tobacco: approval to carry on a controlled activity);
to impose a condition or restriction on, or to revoke or vary the terms of, an approval under that section.
The following decisions under or for the purposes of the Betting and Gaming Duties Act 1981, that is to say— Any decision which is made under or for the purposes of— and is a decision as to whether or not any person is to be required to give any security for any duty which is or may become due, or as to the form or amount of, or the conditions of, any such security. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Any decision as to whether or not any person is to be, or continues to be, approved under section 122 or 123 of FA 2026.
Any decision as to whether or not any person is to be or to continue to be registered under section 29 of the Finance Act 1993 (registration for the purposes of lottery duty) and any decision which is made under or for the purposes of any regulations under that section and is a decision as to whether or not any person is to be required to give any security for the payment of any lottery duty that may become due, or as to the form or amount of, or the conditions of, any such security.
Any decision made under or for the purposes of any regulations under section 21 of this Act or for the purposes of subsection (2) of that section which is— Any decision for the purposes of section 23 of this Act which is—
The following decisions under or for the purposes of Chapter IV of Part I of this Act, that is to say—
any decision under regulations made by virtue of section 33 to register, or not to register, any person as an aircraft operator in the register kept under that section or to remove a person so registered from the register;
any decision under such regulations to show, or not to show, the name of any person as a fiscal representative in that register or to remove a name from the register;
any decision under section 36 to require a person to provide security, including any decision as to the form or amount of the security; . . .
any decision to give a person a notice under section 37.
any decision with respect to the amount of any interest specified in an assessment under paragraph 11A of Schedule 6;
In this Schedule references to any decision as to the conditions subject to which any other decision (whether or not specified in this Schedule) is made include references to— but those references do not include references to any decision as to the enforcement of any condition, restriction or prohibition in criminal proceedings, by the seizure or forfeiture of goods or, for purposes connected with any duty of excise, by any other means. References in this Schedule to decisions as to the exercise of any power to require security for the fulfilment of any obligation, the observance of any conditions or the payment of any duty shall be without prejudice to any reference to decisions as to the exercise of any general power in the case in question to impose conditions in connection with the making of any other decision and shall include references to the exercise of any power to require further security for the fulfilment of that obligation, the observance of those conditions or, as the case may be, the payment of that duty.
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Any decision under or for the purposes of Part 2 of Schedule 3 to the Finance Act 2001 (interest).
Any decision for the purposes of Part 3 of the Finance (No. 2) Act 2017 (imported goods fulfilment businesses) as to—
whether or not, and in which respects, any person is to be, or to continue to be, approved and registered, or
the conditions or restrictions subject to which any person is approved and registered.
Section 40.
The Customs and Excise Management Act 1979 shall have effect for the purposes of Chapter IV of Part I of this Act in relation to— as it has effect in relation to revenue traders, but with the modifications mentioned in sub-paragraph (2), and paragraphs 3 and 4, below. That Act shall have effect, in relation to any person to whom sub-paragraph (1) above applies, as if—
Section 118B of that Act shall have effect for the purposes of Chapter IV of Part I of this Act in relation to any person who, in the course of a trade or business carried on by him, issues or arranges for the issue of tickets as if—
he were a revenue trader, and
the references to services supplied by or to him in the course or furtherance of a business were to services supplied by or to him in the course of issuing or arranging for the issue of tickets.
A notice may require any person to whom paragraph 1 above applies to furnish, at specified times and in the specified form, any such information to the Commissioners as he could be required by the Commissioners to furnish under subsection (1) of section 118B; and any such requirement shall have effect as a requirement under that subsection. A notice may require any person to whom paragraph 1 or 2 above applies to produce or cause to be produced for inspection by an officer, at specified places and times, any such documents as he could be required by the officer to produce under that subsection; and any such requirement shall have effect as a requirement under that subsection. In this paragraph—
In relation to any person to whom paragraph 1 or 2 above applies—
that Act shall have effect as if “document” had the same meaning as in Chapter IV of Part I of this Act, and
that Act and this Schedule shall have effect as if any reference to the production of any document, in the case of information recorded otherwise than in legible form, were to producing a copy of the information in legible form.
Any person having the management of an airport shall, if required to do so by the Commissioners— Any such person shall, if required to do so by an officer, produce any documents relating to those matters, or cause them to be produced, for inspection by that officer. The matters referred to in sub-paragraphs (1) and (2) above are— Documents produced under sub-paragraph (2) above shall be produced, at such time as the officer may reasonably require, at the principal place of business of the person required to produce them or cause them to be produced or at such other place as the officer may reasonably require. An officer may take copies of, or make extracts from, any document produced under this paragraph. If it appears to an officer to be necessary to do so, he may, at a reasonable time and for a reasonable period, remove any document produced under this paragraph. Where an officer removes a document under sub-paragraph (6) above, then— Any reference in this paragraph to the production of a document, in the case of information recorded otherwise than in legible form, is to producing a copy of the information in legible form. Any failure by a person having the management of an airport to comply with a requirement imposed under this paragraph shall attract a penalty under section 9 of this Act.
An appeal which relates to duty shall not be entertained under section 16 of this Act at any time if any return for an accounting period to which the appeal relates which the appellant is required by regulations made by virtue of section 38 of this Act to make has not at that time been made.
Where an assessment of duty due from any person (“the person assessed”) is made under section 12 of this Act and any of the conditions in sub-paragraph (2) below is fulfilled, the whole of the amount assessed shall, subject to paragraph 8 below, carry interest at the rate applicable under section section 197 of the Finance Act 1996 from the reckonable date until payment. The conditions are— In a case where— the whole of the amount paid shall carry interest at the rate applicable under section 197 of the Finance Act 1996 from the reckonable date until the date on which it was paid. In this paragraph and paragraph 8 below the “reckonable date” means the latest date on which a return is required to be made under Chapter IV of Part I of this Act for the accounting period to which the amount assessed or paid relates; and interest under this paragraph shall run from the reckonable date even if that date is a non-business day, within the meaning of section 92 of the Bills of Exchange Act 1882. Interest under this paragraph shall be paid without any deduction of income tax.
Where on an appeal by any person (“the appellant”) to a tribunal under section 16 of this Act against an assessment of duty— that amount or, as the case may be, that part of it shall carry interest at the rate applicable under section 197 of the Finance Act 1996 from the reckonable date until payment. In sub-paragraph (1) above, “cash security” means such adequate security as enables the Commissioners to place the amount in question on deposit. Interest under this paragraph shall be paid without any deduction of income tax.
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A certificate of the Commissioners— shall be sufficient evidence of that fact until the contrary is proved. A photograph of any document furnished to the Commissioners for the purposes of Chapter IV of Part I of this Act and certified by them to be such a photograph shall be admissible in any proceedings, whether civil or criminal, to the same extent as the document itself. Any document purporting to be a certificate under sub-paragraph (1) or (2) above shall be taken to be such a certificate until the contrary is proved.
Where by virtue of paragraph 7 above duty due from any person for an accounting period carries interest, the Commissioners may assess that person to an amount of interest in accordance with this paragraph. Notice of the assessment shall be given to the person liable for the interest or a representative of his. The amount of the interest shall be calculated by reference to a period ending on a date (“the due date”) no later than the date of the notice. The notice shall specify— Sub-paragraphs (6) and (7) below apply where the specified duty or any part of it is unpaid on the date of the notice. If the unpaid amount or any part of it is paid by the payment date, the payment shall be treated for the purposes of paragraph 7 above as made on the due date. To the extent that the unpaid amount is not paid by the payment date, an assessment may be made under this paragraph in respect of any interest on the unpaid amount which accrues after the due date. For the purposes of sub-paragraphs (6) and (7) above, a payment— shall be treated as made in discharge (or partial discharge) of the liability to pay the specified interest before it is treated as discharging to any extent the liability to pay the unpaid amount. A notice of interest assessed under this paragraph may be combined in one document with notification of an assessment under section 12 of this Act which relates to the specified duty. A notice which is so combined must comply with the requirements of this paragraph which relate to a notice which is not so combined. The specified interest shall be recoverable as if it were duty due from the person assessed to that interest. For the purposes of this paragraph a person is a representative of another if—
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Section 64.
Regulations may require registrable persons to keep records. Regulations under sub-paragraph (1) above may be framed by reference to such records as may be specified in any notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice. Regulations may — A duty under the regulations to preserve records may be discharged— subject to any conditions or exceptions specified in writing by the Commissioners.
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An authorised person who removes anything in the exercise of a power conferred by or under paragraph 4 or 4A above shall, if so requested by a person showing himself— provide that person with a record of what he removed. The authorised person shall provide the record within a reasonable time from the making of the request for it. Subject to sub-paragraph (7) below, if a request for permission to be allowed access to anything which— is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed or by someone acting on behalf of such a person, the officer shall allow the person who made the request access to it under the supervision of an authorised person. Subject to sub-paragraph (7) below, if a request for a photograph or copy of any such thing is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed, or by someone acting on behalf of such a person, the officer shall— Subject to sub-paragraph (7) below, where anything is photographed or copied under sub-paragraph (4)(b) above the officer shall supply the photograph or copy, or cause it to be supplied, to the person who made the request. The photograph or copy shall be supplied within a reasonable time from the making of the request. There is no duty under this paragraph to allow access to, or to supply a photograph or copy of, anything if the officer in overall charge of the investigation for the purposes of which it was removed has reasonable grounds for believing that to do so would prejudice— Any reference in this paragraph to the officer in overall charge of the investigation is a reference to the person whose name and address are endorsed on the warrant concerned as being the officer so in charge.
Where, on an application made as mentioned in sub-paragraph (2) below, the appropriate judicial authority is satisfied that a person has failed to comply with a requirement imposed by paragraph 5 above, the authority may order that person to comply with the requirement within such time and in such manner as may be specified in the order. An application under sub-paragraph (1) above shall be made— In this paragraph “the appropriate judicial authority” means— In England and Wales and Northern Ireland, an application for an order under this paragraph shall be made by way of complaint; and sections 21 and 42(2) of the Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this paragraph.
Where, on an application by an authorised person, a justice of the peace or, in Scotland, a justice (within the meaning of section 462 of the Criminal Procedure (Scotland) Act 1975) is satisfied that there are reasonable grounds for believing— he may make an order under this paragraph. An order under this paragraph is an order that the person who appears to the justice to be in possession of the recorded information to which the application relates shall— not later than the end of the period of 7 days beginning on the date of the order or the end of such longer period as the order may specify. The reference in sub-paragraph (2)(a) above to giving an authorised person access to the recorded information to which the application relates includes a reference to permitting the authorised person to take copies of it or to make extracts from it. Where the recorded information consists of information stored in any electronic form , an order under this paragraph shall have effect as an order to produce the information in a form in which it is visible and legible or from which it can readily be produced in a visible and legible form and, if the authorised person wishes to remove it, in a form in which it can be removed. This paragraph is without prejudice to paragraphs 3 and 4 above.
Tax due from any person shall be recoverable as a debt due to the Crown. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . In the Insolvency (Northern Ireland) Order 1989, in Article 346(1) (preferential debts) the words “ insurance premium tax ” shall be inserted after “VAT” and in Schedule 4 (categories of preferential debts) the following paragraph shall be inserted after paragraph 3— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Where a person has paid an amount to the Commissioners by way of tax which was not tax due to them, they shall be liable to repay the amount to him. The Commissioners shall only be liable to repay an amount under this paragraph on a claim being made for the purpose. It shall be a defence, in relation to a claim under this paragraph, that repayment of an amount would unjustly enrich the claimant. The Commissioners shall not be liable, on a claim made under this paragraph, to repay any amount paid to them more than 4 years before the making of the claim. A claim under this paragraph shall be made in such form and manner and shall be supported by such documentary evidence as may be prescribed by regulations. Except as provided by this paragraph, the Commissioners shall not be liable to repay an amount paid to them by way of tax by virtue of the fact that it was not tax due to them.
A person is guilty of an offence if— Any reference in sub-paragraph (1) above to the evasion of tax includes a reference to the obtaining of a payment under regulations under section 55(3)(c) or (d) or (f) of this Act. A person is guilty of an offence if with the requisite intent— and the requisite intent is intent to deceive or to secure that a machine will respond to the document as if it were a true document. A person is guilty of an offence if in furnishing any information for the purposes of this Part of this Act he makes a statement which he knows to be false in a material particular or recklessly makes a statement which is false in a material particular. A person is guilty of an offence by virtue of this sub-paragraph if his conduct during any specified period must have involved the commission by him of one or more offences under the preceding provisions of this paragraph; and the preceding provisions of this sub-paragraph apply whether or not the particulars of that offence or those offences are known. A person is guilty of an offence if— with reason to believe that tax in respect of the contract will be evaded. A person is guilty of an offence if he enters into taxable insurance contracts without giving security (or further security) he has been required to give under paragraph 24 below.
A person guilty of an offence under paragraph 9(1) above shall be liable— The reference in sub-paragraph (1) above to the amount of the tax shall be construed, in relation to tax itself or a payment falling within paragraph 9(2) above, as a reference to the aggregate of— A person guilty of an offence under paragraph 9(3) or (4) above shall be liable— In a case where— the alternative penalty is a penalty equal to three times the aggregate of the amount (if any) falsely claimed by way of credit and the amount (if any) by which the gross amount of tax was understated. A person guilty of an offence under paragraph 9(5) above shall be liable— and paragraph 9(2) and sub-paragraph (2) above shall apply for the purposes of this sub-paragraph as they apply respectively for the purposes of paragraph 9(1) and sub-paragraph (1) above. A person guilty of an offence under paragraph 9(6) above shall be liable on summary conviction to a penalty of £20,000 or three times the amount of the tax, whichever is the greater. A person guilty of an offence under paragraph 9(7) above shall be liable on summary conviction to a penalty of £20,000. In this paragraph—
Sections 145 to 155 of the Customs and Excise Management Act 1979 (proceedings for offences, mitigation of penalties and certain other matters) shall apply in relation to offences under paragraph 9 above and penalties imposed under paragraph 10 above as they apply in relation to offences and penalties under the customs and excise Acts as defined in that Act.
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This paragraph applies if a person fails to comply with— and sub-paragraphs (2) and (3) below shall have effect subject to sub-paragraphs (5) and (6) below and paragraph 25(7) below. The person shall be liable to a penalty equal to 5 per cent. of the tax due or, if it is greater, to a penalty of £250. The person— and a relevant day is any day falling after the time within which the tax is required to be paid or the return is required to be furnished. For the purposes of sub-paragraph (2) above the tax due— A failure falling within sub-paragraph (1) or (3) above shall not give rise to liability to a penalty under this paragraph if the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the failure. Where, by reason of a failure falling within sub-paragraph (1) or (3) above— that failure shall not also give rise to liability to a penalty under this paragraph. If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this sub-paragraph was exercised, they may by order substitute for the sums for the time being specified in sub-paragraphs (2) and (3) above such other sums as appear to them to be justified by the change. An order under sub-paragraph (7) above shall not apply in relation to a failure which began before the date on which the order comes into force.
This paragraph applies where— and sub-paragraphs (2) and (3) below shall have effect subject to sub-paragraphs (4) and (5) below and paragraph 25(7) below. The person shall be liable to a penalty equal to 5 per cent. of the tax assessed as mentioned in sub-paragraph (1) above or, if it is greater, to a penalty of £250. The person— and a relevant day is any day falling after the time within which the tax is required to be paid. A person shall not be liable to a penalty by virtue of this paragraph if he satisfies the Commissioners or, on appeal, an appeal tribunal that he took all reasonable steps to ensure that the tax mentioned in sub-paragraph (1)(b) above was paid within the time required by the regulations. Where, by reason of a failure to pay tax, a person is convicted of an offence (whether under this Part of this Act or otherwise), that failure shall not also give rise to liability to a penalty under this paragraph. If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this sub-paragraph was exercised, they may by order substitute for the sums for the time being specified in sub-paragraphs (2) and (3) above such other sums as appear to them to be justified by the change. An order under sub-paragraph (6) above shall not apply in relation to any failure to pay tax that was required to be paid before the date on which the order comes into force.
If a person fails to comply with— he shall be liable to a penalty of £250; but this is subject to sub-paragraphs (3) and (4) below. A requirement falls within this sub-paragraph if it is— A failure falling within sub-paragraph (1) above shall not give rise to liability to a penalty under this paragraph if the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the failure. Where by reason of a failure falling within sub-paragraph (1) above— that failure shall not also give rise to liability to a penalty under this paragraph. If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this sub-paragraph was exercised, they may by order substitute for the sum for the time being specified in sub-paragraph (1) above such other sum as appears to them to be justified by the change. An order under sub-paragraph (5) above shall not apply in relation to a failure which began before the date on which the order comes into force.
A person who— shall be liable to a penalty of £10,000; but this is subject to sub-paragraph (2) below. A failure falling within sub-paragraph (1) above shall not give rise to liability to a penalty under this paragraph if the person concerned satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the failure. If it appears to the Treasury that there has been a change in the value of money since the passing of this Act or, as the case may be, the last occasion when the power conferred by this sub-paragraph was exercised, they may by order substitute for the sum for the time being specified in sub-paragraph (1) above such other sum as appears to them to be justified by the change. An order under sub-paragraph (3) above shall not apply in relation to a case where the duty mentioned in sub-paragraph (1) above was imposed before the date on which the order comes into force.
This paragraph applies where— For the purposes of this paragraph a walking possession agreement is an agreement under which, in consideration of the property distrained upon being allowed to remain in the custody of the person in default and of the delaying of its sale, the person in default— Subject to sub-paragraph (4) below, if the person in default is in breach of the undertaking contained in a walking possession agreement, he shall be liable to a penalty equal to half of the tax or other amount referred to in sub-paragraph (1)(a) above. The person in default shall not be liable to a penalty under sub-paragraph (3) above if he satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for the breach in question. This paragraph extends only to Northern Ireland.
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For the purposes of paragraphs ... 15(5), 17(3)... and 19(4) above—
an insufficiency of funds available for paying any amount is not a reasonable excuse, and
where reliance is placed on any other person to perform any task, neither the fact of that reliance nor any conduct of the person relied upon is a reasonable excuse.
Where an assessment is made under any provision of section 56 of this Act, the whole of the amount assessed shall carry interest at the rate applicable under section 197of the Finance Act 1996 from the reckonable date until payment; but this is subject to sub-paragraph (2) and paragraph 25(7) below. Sub-paragraph (1) above shall not apply in relation to an assessment under section 56(1) of this Act unless at least one of the following conditions is fulfilled, namely— In a case where— the whole of the amount paid shall carry interest at the rate applicable under section 197 of the Finance Act 1996 from the reckonable date until the date on which it was paid; and for the purposes of this sub-paragraph a relevant assessment is an assessment in relation to which sub-paragraph (1) above would have applied if the assessment had been made. The references in sub-paragraphs (1) and (3) above to the reckonable date shall be construed as follows— and interest under this paragraph shall run from the reckonable date even if that date is a non-business day, within the meaning of section 92 of the Bills of Exchange Act 1882. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Interest under this paragraph shall be paid without any deduction of income tax.
Where, due to an error on the part of the Commissioners, a person— then, if and to the extent that they would not be liable to do so apart from this paragraph, they shall (subject to the following provisions of this paragraph) pay interest to him on that amount for the applicable period. In sub-paragraph (1) above— Interest under this paragraph shall be payable at the rate applicable under sectioin 197 of the Finance Act 1996 The applicable period, in a case falling within sub-paragraph (1)(a) above, is the period— The applicable period, in a case falling within sub-paragraph (1)(b) or (c) above, is the period— In determining the applicable period for the purposes of this paragraph there shall be left out of account any period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims the interest. The reference in sub-paragraph (5) above to a period by which the Commissioners’ authorisation of the payment of interest is delayed by the conduct of the person who claims it includes, in particular, any period which is referable to— In determining for the purposes of sub-paragraph (5A) 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, except so far as may be provided for by regulations, any period which— The Commissioners shall only be liable to pay interest under this paragraph on a claim made in writing for that purpose. A claim under this paragraph shall not be made more than 4 years after the end of the applicable period to which it relates. References in this paragraph to the authorisation by the Commissioners of the payment of any amount include references to the discharge by way of set-off of the Commissioners’ liability to pay that amount.
In a case where— the interest shall be treated as an amount to which he is entitled by way of credit in pursuance of the regulations. Sub-paragraph (1) above shall be disregarded for the purpose of determining a person’s entitlement to interest or the amount of interest to which he is entitled.
Where it appears to the Commissioners requisite to do so for the protection of the revenue they may require a registrable person, as a condition of his entering into taxable insurance contracts, to give security (or further security) of such amount and in such manner as they may determine for the payment of any tax which is or may become due from him.
Where a person is liable— the Commissioners may, subject to sub-paragraph (2) below, assess the amount due by way of penalty or interest (as the case may be) and notify it to him accordingly; and the fact that any conduct giving rise to a penalty under any of paragraphs 12 to 19 above may have ceased before an assessment is made under this paragraph shall not affect the power of the Commissioners to make such an assessment. In the case of the penalties and interest referred to in the following paragraphs of this sub-paragraph, the assessment under this paragraph shall be of an amount due in respect of the accounting period which in the paragraph concerned is referred to as the relevant period— In a case where the amount of any penalty or interest falls to be calculated by reference to tax which was not paid at the time it should have been and that tax cannot be readily attributed to any one or more accounting periods, it shall be treated for the purposes of this Part of this Act as tax due for such period or periods as the Commissioners may determine to the best of their judgment and notify to the person liable for the tax and penalty or interest. Where a person is assessed under this paragraph to an amount due by way of any penalty or interest falling within sub-paragraph (2) above and is also assessed under subsection (1) or (2) of section 56 of this Act for the accounting period which is the relevant period under sub-paragraph (2) above, the assessments may be combined and notified to him as one assessment, but the amount of the penalty or interest shall be separately identified in the notice. Sub-paragraph (6) below applies in the case of— Where this sub-paragraph applies in the case of an amount— If, within such period as may be notified by the Commissioners to the person liable to the penalty under paragraph 15 or 16 above or for the interest under paragraph 21 above— it shall be treated for the purposes of paragraph 15, 16 or 21 above (as the case may be) as remedied or paid on the date specified as mentioned in sub-paragraph (6)(a) above. Where an amount has been assessed and notified to any person under this paragraph it shall be recoverable as if it were tax due from him unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced. Subsection (8) of section 56 of this Act shall apply for the purposes of this paragraph as it applies for the purposes of that section.
Subject to the following provisions of this paragraph, an assessment under— shall not be made more than 4 years after the relevant event . In this paragraph “the relevant event”, in relation to an assessment, means— An assessment under paragraph 25 above of— may be made at any time before the expiry of the period of two years beginning with the time when the amount of tax due for the accounting period concerned has been finally determined. In relation to an assessment under paragraph 25 above, any reference in sub-paragraph (1A) or (2) above to the accounting period concerned is a reference to that period which, in the case of the penalty or interest concerned, is the relevant period referred to in sub-paragraph (2) of that paragraph. An assessment of an amount due from a person in a case involving a loss of tax— may be made at any time not more than 20 years after the relevant event. In sub-paragraph (4)(a) the reference to a loss brought about deliberately by the person includes a loss brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.
If, otherwise than in circumstances falling within subsection (5)(b) of section 56 of this Act, it appears to the Commissioners that the amount which ought to have been assessed in an assessment under any provision of that section or under paragraph 25 above exceeds the amount which was so assessed, then— the Commissioners may make a supplementary assessment of the amount of the excess and shall notify the person concerned accordingly.
under the like provision as that assessment was made, and
on or before the last day on which that assessment could have been made,
Notwithstanding any obligation not to disclose information that would otherwise apply, the Commissioners may disclose information— for the purpose of assisting the Secretary of State in the performance of his duties. Notwithstanding any such obligation as is mentioned in sub-paragraph (1) above— may disclose information to the Commissioners or to an authorised officer of the Commissioners for the purpose of assisting the Commissioners in the performance of duties in relation to tax. Information that has been disclosed to a person by virtue of this paragraph shall not be disclosed by him except— References in the preceding provisions of this paragraph to an authorised officer of the Secretary of State are to any person who has been designated by the Secretary of State as a person to and by whom information may be disclosed under this paragraph. The Secretary of State shall notify the Commissioners in writing of the name of any person designated under sub-paragraph (4) above.
Notwithstanding any obligation not to disclose information that would otherwise apply, the Commissioners may disclose information— for the purpose of assisting the Treasury in the performance of their duties. Notwithstanding any such obligation as is mentioned in sub-paragraph (1) above— may disclose information to the Commissioners or to an authorised officer of the Commissioners for the purpose of assisting the Commissioners in the performance of duties in relation to tax. Information that has been disclosed to a person by virtue of this paragraph shall not be disclosed by him except— References in the preceding provisions of this paragraph to an authorised officer of the Treasury are to any person who has been designated by the Treasury as a person to and by whom information may be disclosed under this paragraph. The Treasury shall notify the Commissioners in writing of the name of any person designated under sub-paragraph (4) above.
Notwithstanding any obligation not to disclose information that would otherwise apply, the Commissioners may disclose information to a regulator for the purpose of assisting the regulator in the performance of its functions. Information that has been disclosed to a regulator pursuant to this paragraph shall not be disclosed by the regulator except for the purpose of any proceedings connected with the operation of any provision of, or made under, any enactment in relation to insurance or to tax. In this paragraph “regulator” means—
A certificate of the Commissioners— shall be sufficient evidence of that fact until the contrary is proved. Any document purporting to be a certificate under sub-paragraph (1) above shall be taken to be such a certificate until the contrary is proved.
Any notice, notification or requirement to be served on, given to or made of any person for the purposes of this Part of this Act may be served, given or made by sending it by post in a letter addressed to that person or his tax representative at the last or usual residence or place of business of that person or representative.
In section 827 of the Taxes Act 1988 (no deduction for penalties etc.) the following subsection shall be inserted after subsection (1A)—
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if collected or received in Great Britain, be placed to the general account of the Commissioners kept at the Bank of England under section 17 of the Customs and Excise Management Act 1979;
if collected or received in Northern Ireland, be paid into the Consolidated Fund of the United Kingdom in such manner as the Treasury may direct.
In section 1(1) of the Provisional Collection of Taxes Act 1968 after “value added tax,” there shall be inserted “ insurance premium tax, ”.
In a case where— the amount repayable shall be the difference between the tax paid by reference to the actual chargeable amount at the rate specified in the resolution and the tax that would have been payable by reference to the actual chargeable amount at the lower rate. In sub-paragraph (1) above the “actual chargeable amount” means the chargeable amount by reference to which tax was paid. In a case where— the tax chargeable at the lower rate shall be charged by reference to the same chargeable amount as that by reference to which tax would have been chargeable at the rate specified in the resolution.
Where, after the making of a contract of insurance and before a given premium is received by the insurer under the contract, there is a change in the tax chargeable on the receipt of the premium, then, unless the contract otherwise provided, there shall be added to or deducted from the amount payable as the premium an amount equal to the difference between— References in sub-paragraph (1) above to a change in the tax chargeable include references to a change to or from no tax being chargeable. Where this paragraph applies, the amount of the premium shall not be treated as altered for the purposes of calculating tax.
Section 77.
In section 257A(6) of the Taxes Act 1988 (relief confined to one deduction), for “deduction” there shall be substituted “ income tax reduction ”.
In subsections (1) and (2) of section 257BA of that Act (elections as to transfer of relief under section 257A)— In subsection (3) of that section— Any election made for the purposes of section 257BA of the Taxes Act 1988 which— shall so have effect as if it were an election for the purposes of that section as amended by this paragraph.
his wife shall be entitled (in addition to any reduction to which she is entitled by virtue of an election under section 257BA) to an income tax reduction calculated by reference to an amount equal to the unused part of the amount by reference to which her husband’s income tax reduction fell to be calculated in pursuance of section 257A and any election under section 257BA. her husband shall be entitled (in addition to any other reduction to which he is entitled by virtue of section 257A) to an income tax reduction calculated by reference to an amount equal to the unused part of the amount by reference to which his wife’s income tax reduction fell to be calculated in pursuance of that election. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subsection (6) of that section (calculation of amount left after deductions of a person’s total income) shall cease to have effect.
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In section 37A of the Taxes Management Act 1970 (effect of assessment where allowances transferred)—
after the word “person’s”, in the first place where it occurs, there shall be inserted “ liability to income tax or ”;
for the words from “any deduction made” to “spouse” there shall be substituted “ any income tax reduction or deduction from total income made in the case of that person’s spouse ”; and
for the words from “and where” onwards there shall be substituted “ and the entitlement in that case of the first-mentioned person for the year in question to any income tax reduction or deduction from total income shall be treated as correspondingly reduced. ”
Section 81.
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Subsections (4) and (5) of section 353 of the Taxes Act 1988 (restriction of relief to basic rate tax) shall cease to have effect.
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for the words from “where” to “but” there shall be substituted “falling within subsection (1)(b) above shall be given only against income from the letting of any land, caravan or house-boat (whether or not the land, caravan or house-boat in question), but”; and
for the words “the first-mentioned land, caravan or house-boat” there shall be substituted “the land, caravan or house-boat in question”.
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In subsection (2) of section 370 of the Taxes Act 1988 (conditions for interest to be treated as relevant loan interest)— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In section 375(3) of the Taxes Act 1988 (liability of borrower for excess where deduction should not have been made), for the words from “entitles” to “been allowed” there shall be substituted “ shall be taken as regards the borrower as entitling him to any deduction or to retain any amount deducted and, accordingly, where any amount that has been deducted exceeds the amount which ought to have been deducted ”.
Subsection (7) of section 57 of the Finance Act 1993 (transitional provision for bridging loans made before 6th April 1991) shall cease to have effect.
Section 83.
In this Schedule “the 1989 Act” means the Finance Act 1989.
Section 54 of the 1989 Act (relief on premiums for medical insurance) shall be amended as follows. In subsection (3) (relief by deduction from income) for the words from “it shall be deducted” to the end of the subsection there shall be substitutedthe individual shall be entitled to relief under this subsection in respect of the payment; and (except where subsections (4) to (6) below apply) relief under this subsection shall be given— The following subsections shall be inserted after subsection (3)— This paragraph shall apply in relation to payments made on or after 6th April 1994.
In sections 257D(8) and 265(3) of the Taxes Act 1988 (total income after deductions) paragraph (d) (deduction on account of payments to which section 54(5) of the 1989 Act applies to be disregarded) shall be omitted. This paragraph shall apply in relation to payments made on or after 6th April 1994.
In section 54 of the 1989 Act the following subsection shall be inserted after subsection (2)— This paragraph shall apply where the first or only payment to be made in respect of a premium under the contract after the death occurs is made on or after 6th April 1994.
Section 55 of the 1989 Act (eligible contracts) shall be amended as follows. In subsection (2) (conditions for contract’s being eligible) the following paragraphs shall be inserted after paragraph (b)—. Also in subsection (2)— The following subsections shall be inserted after subsection (2)— Subsections (3) to (6) shall be omitted. In subsection (9) (approved benefit) for “mentioned in section 56(3)(a) below” there shall be substituted the following paragraphs— The following subsections shall be inserted after subsection (9)— This paragraph shall apply where the time which is the relevant time for the purposes of section 55 falls on or after 1st July 1994.
The Board shall not certify a contract under section 56 of the 1989 Act in such a way that the certification is expressed to take effect on or after 1st July 1994.
Section 91.
Chapter IA of Part V of the Taxation of Chargeable Gains Act 1992 shall be amended as follows.
In section 164A—
in subsection (1)(a), for the words following “(“the re-investor”)” there is substituted “ on any disposal by him of any asset (“the asset disposed of”); and ”,
in subsection (2), “Subject to section 164C” is omitted and for “initial holding” (in three places) there is substituted “ asset disposed of ”,
subsections (3) to (7) are omitted,
in subsection (9), for “initial holding” there is substituted “ asset disposed of ”, and
for subsection (12) there is substituted—.
For section 164B there is substituted—
Sections 164C to 164E are omitted.
In section 164H(1), “within the meaning of section 164C” is omitted.
In section 164L(10), for the words following “trustees or” there is substituted “ any individual or charity by virtue of whose interest, at the time of the acquisition, section 164B applies to the settled property ”.
For section 164A(8) there is substituted—
Section 164A(11) is omitted and after section 164B there is inserted—
In section 164F— Section 164F as amended by sub-paragraph (1) above shall have effect as follows— References in sub-paragraph (2) above to an amount being carried forward from a disposal of shares are references to the reduction by that amount, in accordance with section 164D(3)(a), of the amount of the consideration for the disposal of those shares.
In section 164L—
after subsection (10) there is inserted—, and
“chargeable business asset”, in relation to any company, means a chargeable asset (including goodwill but not including shares or securities or other assets held as investments) which is, or is an interest in, an asset used for the purposes of a trade, profession, vocation, office or employment carried on by—
In section 164N, after subsection (1) there is inserted—.
Section 93.
This Schedule applies in relation to chargeable gains and allowable losses accruing to— (referred to in this Schedule as “the taxpayer”).
an individual, or
the trustees of a settlement made before 30th November 1993;
This paragraph applies for the purposes of this Schedule, and the determinations required by this paragraph to be made shall be made without regard to paragraphs 4 to 7 below. If an allowable loss accrues on a disposal made on or after 30th November 1993 and, under the old indexation rules, a greater allowable loss would have accrued, there is an indexation loss in respect of the disposal equal to the amount by which the allowable loss which would have accrued under the old indexation rules exceeds the allowable loss accruing on the disposal. If a disposal made on or after 30th November 1993 is one on which neither a gain nor a loss accrues and, under the old indexation rules, an allowable loss would have accrued, there is an indexation loss in respect of the disposal equal to the amount of the allowable loss that would have accrued under the old indexation rules. If the total amount of chargeable gains accruing to the taxpayer in any year of assessment for which this Schedule has effect exceeds the allowable losses accruing in that year, there is a relevant gain for that year equal to the amount of the excess.
The cases in which the appropriation of an asset by the taxpayer is treated under section 161(1) of the 1992 Act (appropriations to and from stock) as a disposal of the asset include cases in which, if he had sold the asset for its market value, an allowable loss would have accrued to him under the old indexation rules. Where, but for an election under subsection (3) of section 161 of the 1992 Act— paragraphs 1 and 2 above and 6 and 7 below shall apply, as if the asset had been so treated, to determine for the purposes of subsection (3) of that section any increase to be made in the amount of any allowable loss; and the appropriation of the asset is referred to below as a “relevant appropriation”. Sections 574 to 576 of the Taxes Act (relief for individual on disposal of shares in qualifying trading company) shall apply if an individual who has subscribed for shares as mentioned in section 574(1) disposes of them in circumstances where paragraph 2(3) above applies as they apply in other cases. Where a person makes a claim for relief under subsection (1) of section 574 in the case of a disposal in respect of which there is an indexation loss (referred to below as a “section 574 disposal”)— References in this paragraph and paragraphs 6 and 7 below to an increase in any loss include, in circumstances where paragraph 2(3) above applies, a reference to the creation of the loss.
Where in the case of any taxpayer— then, for the purposes of the 1992 Act, the amount by which the total amount of chargeable gains accruing to the taxpayer in that year exceeds the allowable losses accruing in the year shall be reduced by the amount mentioned in sub-paragraph (2) below, and shall be so reduced before the deduction of any allowable losses carried forward from any previous year or carried back under section 62 from any subsequent year. The amount referred to in sub-paragraph (1) above is so much of the total of indexation losses in respect of disposals made in that year as does not exceed— whichever is the smaller.
Where in the case of any taxpayer— then, for the purposes of the 1992 Act, the amount by which the total amount of chargeable gains accruing to the taxpayer in the year 1994-95 exceeds the allowable losses accruing in that year shall be reduced by the amount mentioned in sub-paragraph (2) below, and shall be so reduced before the deduction of any allowable losses carried forward from any previous year or carried back under section 62 from any subsequent year. The amount referred to in sub-paragraph (1) above is so much of the total of indexation losses in respect of disposals made in the year 1994-95, plus any unused indexation losses for the previous year, as does not exceed— whichever is the smaller. For the purposes of this paragraph, if the total amount of indexation losses in respect of disposals made by the taxpayer in the year 1993-94 exceeds the aggregate of— there are unused indexation losses for that year of an amount equal to the excess.
This paragraph applies where, at any time in the period beginning with 30th November 1993 and ending with 5th April 1994, the taxpayer makes any relevant appropriation or any section 574 disposal; and for the purposes of this paragraph there shall be determined— If the aggregate of the amounts referred to in sub-paragraph (1)(a) and (b) above does not exceed £10,000, the amount of any allowable loss referable to such an appropriation or disposal shall be increased by any indexation loss in respect of it. In any other case, notwithstanding anything in paragraphs 4 and 5 above—
This paragraph applies where, at any time in the year 1994-95, the taxpayer makes any relevant appropriation or any section 574 disposal; and for the purposes of this paragraph there shall be determined— If the aggregate of the amounts referred to in sub-paragraph (1)(a) and (b) above does not exceed the limit for 1994-95, that is— the amount of any allowable loss referable to such an appropriation or disposal shall be increased by any indexation loss in respect of it. In any other case, notwithstanding anything in paragraph 5 above, the aggregate of the amount of any reduction for the year 1994-95 to be made under paragraph 5(1) above and of the amount of any indexation losses in respect of relevant appropriations or section 574 disposals made in that year—
In this Schedule— Other expressions not defined in this Schedule but used both in it and in the 1992 Act have the same meaning as in that Act. References in this Schedule to the reduction of any amount include its reduction to nil.
Section 102.
The Finance Act 1989 shall be amended as provided in this Schedule.
This paragraph applies in relation to trusts established on or before the day on which the Finance Act 1994 was passed.
In Schedule 5, the following paragraphs shall be inserted after paragraph 3—
In Schedule 5, the following shall be inserted at the end of paragraph 12 (position after trust’s establishment)— “ This paragraph applies in relation to trusts established on or before the day on which the Finance Act 1994 was passed. ”
In Schedule 5, the following paragraph shall be inserted after paragraph 12—
Section 69 (chargeable events) shall be amended as follows. In subsection (1)(c) (retention of securities at expiry of seven years from acquisition) for “period of seven years” there shall be substituted “ qualifying period ”. After subsection (4) there shall be inserted—
Paragraph 9 of Schedule 5 (transfer of securities) shall be amended as follows. In sub-paragraph (1)(b) for “period of seven years” there shall be substituted “ qualifying period ”. After sub-paragraph (2) there shall be inserted—
In Schedule 5, the following paragraph shall be inserted after paragraph 16—
Section 112.
Chapter III of Part XII of the Taxes Act 1988 shall be amended in accordance with paragraphs 2 to 5 of this Schedule.
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Subject to sub-paragraph (2) below, this Schedule shall have effect in relation to distribution periods beginning on or after 1st April 1994. Nothing in the amendments made by this Schedule shall be taken to permit— to be shown as available for distribution as foreign income dividends unless the distribution date for that distribution period is 1st July 1994 or a subsequent date.
Section 137.
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in subsection (1), for the words preceding paragraph (a) there is substituted “An individual is not eligible for relief in respect of any shares in a company if, at the date mentioned in subsection (2) below”, and
in subsection (4)(a) for “any of its subsidiaries” there is substituted “any company which is a 51 per cent. subsidiary of that company on the date referred to in subsection (2) above”.
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for subsections (1) to (3) there is substituted—,
subsection (4) is omitted,
in subsection (7), at the end there is inserted “or would not be fully paid up if any undertaking to pay cash to the company at a future date were disregarded”,
for subsection (8) there is substituted—, and
subsections (9) to (11) are omitted.
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in subsection (1), “(6) and” is omitted,
in subsection (2)—
in paragraph (a), for “commodities, shares, securities, land or futures” there is substituted “land, in commodities or futures or in shares, securities or other financial instruments”,
in paragraph (g), after “another person” there is inserted “(other than a company of which the company providing the services or facilities is the subsidiary)”, and
paragraphs (h) and (j) are omitted,
in subsection (5), for the words preceding paragraph (a) there is substituted “A trade shall not be treated as failing to comply with this section by reason only that it consists to a substantial extent of receiving royalties or licence fees if”, and
in subsection (9), for “289(1)(d)” there is substituted “289(2)(c)”.
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for subsection (4) there is substituted—,
in subsection (5), the definition of “property development” is omitted,
and section 312(1A)(b) shall apply to determine the relevant period for the purposes of that section
subsections (6) to (8) are omitted.
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in subsection (1), for the words preceding paragraph (a) there is substituted “An individual is not eligible for relief in respect of any shares in a company if”, and
after subsection (2) there is inserted—
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for subsection (1) there is substituted—, and
in subsection (2)—
in paragraph (c), for “291(3)(a) or (e)” there is substituted “291A(3)(a) or (f)”, and
in paragraph (h), for “section 291(3)(a), (b), (c), (d) or (e)” there is substituted “any of the paragraphs of section 291A(3)”.
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subsections (1) and (2) are omitted,
after subsection (6) there is inserted—, and
subsection (7) is omitted.
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for subsection (1) there is substituted—,
in subsection (3), for the words preceding paragraph (a) there is substituted “Any relief attributable to any shares in a company held by an individual shall be withdrawn if”,
after subsection (4) there is inserted—, and
in subsection (5)—
“subsidiary” means a company which would be a subsidiary if the relevant period for the purposes of section 308 were the period referred to in section 312(1A)(a)
and section 312(1A)(a) applies to determine the relevant period for the purposes of this section
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for subsection (1) there is substituted—,
in subsection (3), for “291(4)” there is substituted “291B(1)” and for “291” there is substituted “291B”,
after subsection (6) there is inserted—,
subsection (8) is omitted,
after subsection (9) there is inserted—, and
subsections (10) and (11) are omitted.
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in subsection (1)—
in paragraph (a), for “289(8)(a), (b) or (c)” there is substituted “289A(7)(a), (b) or (c)”, and
for paragraph (b) there is substituted—,
after subsection (3) there is inserted—,
in subsection (8), for “entitled to” there is substituted “eligible for”,
in subsection (10), the second sentence is omitted, and
after that subsection there is inserted—.
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in subsection (1), the words from “but” to the end are omitted,
for subsection (2) there is substituted—,
in subsection (6)—
in paragraph (a), for “289(11)” there is substituted “289(6)”,
after that paragraph there is inserted—, and
after paragraph (c) there is inserted—,
after subsection (8) there is inserted—, and
subsection (9) is omitted.
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after subsection (5) there is inserted—, and
subsection (6) is omitted.
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in subsection (1), for “304(2) to (6)” there is substituted “304”,
in subsection (2), for “289(11)” there is substituted “289(1)(c) or (6)”,
in subsection (5), for “289(11), 291(10)” there is substituted “289(6), 291B(5)”,
in subsection (6), for “289(11)” (in both places) there is substituted “289(6)” and for “291(10)” there is substituted “291B(5)”, and
subsections (10) and (11) are omitted.
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in subsection (2), for the words preceding “this Chapter” there is substituted “Where eligible shares are held on a bare trust for two or more beneficiaries”, and
In any case where this subsection applies, sections 289A and 289B shall have effect as if
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in subsection (1)—
in the definition of “control”, for “291(7), 308(2) and 309(6)(a)” there is substituted “291B(4) and 308(2)”,
“eligible for relief” has the meaning given by section 289(1), “eligible shares” has the meaning given by section 289(7)
the definition of “fixed-rate preference share capital” is omitted,
the definition of “the relevant period” is omitted,
“relief” means relief under this Chapter, “subsidiary”, in relation to any company (except in the expression “51 per cent. subsidiary” or where otherwise defined), means a subsidiary of that company of a kind which that company may hold under section 308, “51 per cent. subsidiary”, in relation to any company, means (except in the case of references to a company which is a 51 per cent. subsidiary on a particular date or at a particular time) a company which is a 51 per cent. subsidiary of that company at any time in the relevant period (applying subsection (1A)(a) below)
“unquoted company” means a company none of whose shares, stocks, debentures or other securities are marketed to the general public
after that subsection there is inserted—,
in subsection (2), for “section 291” there is substituted “sections 291 to 291B”,
for subsections (4) and (5) there is substituted—, and
in subsection (7), for “289(1)(d)” there is substituted “289(2)(c)”.
The Taxation of Chargeable Gains Act 1992 shall be amended as follows:
In section 150 (business expansion schemes), at the end of subsection (1) there is inserted “ and references in this section to Chapter III of Part VII of the Taxes Act or any provision of that Chapter are to that Chapter or provision as it applies in relation to shares issued before 1st January 1994 ”.
After that section there is inserted—.
At the end of section 164M of that Act (exclusion of double relief) there is inserted “ but the reference in this section to that Chapter is to that Chapter as it applies in relation to shares issued before 1st January 1994 ”.
After that section there is inserted—. This paragraph has effect in relation to shares issued on or after 1st January 1994.
In section 164N(1), in the definition of “eligible shares”, for “and 164M” there is substituted “ 164M and 164MA ”.
In section 231(1)(d), “(business expansion scheme)” is omitted.
Section 138.
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Section 826 of the Taxes Act 1988 shall be amended as follows. In subsection (1) the following paragraph shall be inserted after paragraph (a)—. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 146.
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Subsection (1) of section 271 of that Act shall have effect, and be deemed always to have had effect, as if— Subsection (2) of that section shall have effect, and be deemed always to have had effect, as if paragraph (b) and the word “or” immediately preceding it were omitted.
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Sections ... 843(2) of that Act (in their application as amended by the Taxation of Chargeable Gains Act 1992) shall have effect, and be deemed always to have had effect, as if, in each case, for “the 1990 Act” there were substituted “the 1992 Act”.
Paragraph 8(b) of Schedule 11 to that Act (in its application as amended by the Capital Allowances Act 1990) shall have effect, and be deemed always to have had effect, as if the words “Chapter II of Part I of the 1968 Act or” were omitted.
Part I of Schedule 11 to the Finance Act 1996 (special provision with respect to loan relationships for insurance companies) shall have effect (subject to sub-paragraph (2) below) in relation to qualifying contracts as it has effect in relation to loan relationships which are creditor relationships within the meaning of Chapter II of Part IV of that Act. That Part of that Schedule shall have effect in its application in relation to qualifying contracts, as if—
Where the I minus E basis is applied for any accounting period in respect of the life assurance business or capital redemption business of any insurance company, this Chapter shall have effect for that period in relation to contracts and options held for the purposes of that business as if the words in subsection (10) of section 150A from “but references” onwards were omitted. Expressions used in sub-paragraph (1) above and in Part I of Schedule 11 to the Finance Act 1996 have the same meanings in this paragraph as in that Part of that Schedule.
Subject to sub-paragraph (2) below, sub-paragraphs (3) and (4) below apply where— Where the qualifying contract was held partly for the purposes of the life assurance business and partly for other purposes— Notwithstanding anything in sections 159 and 160 of this Act, amount A for the period shall not— Notwithstanding anything in those sections, amount B for the period shall not— Subsection (5)(a) of section 173 of this Act applies for the purposes of this paragraph as it applies for the purposes of that section.
Subject to sub-paragraph (2) below, sub-paragraph (3) below applies where a qualifying contract was at any time in an accounting period of a mutual trading company held by the company for the purposes of any non-life mutual business carried on by it. Where the qualifying contract was held partly for the purposes of the non-life mutual business and partly for other purposes— Notwithstanding anything in section 159 of this Act—
In this Schedule— . . . . . . “non-life mutual business” means any mutual trading, or any mutual insurance or other mutual business, which (in either case) is not life assurance business. . . .
Section 196.
For section 7 of the Management Act there shall be substituted the following section— This paragraph has effect as respects the year 1995-96 and subsequent years of assessment.
In subsection (2) of section 12A of the Management Act (European Economic Interest Groupings), for the words “making assessments to income tax, corporation tax and capital gains tax on members of a grouping” there shall be substituted the words “ securing that members of a grouping are assessed to income tax and capital gains tax or (as the case may be) corporation tax ”.
After section 12A of the Management Act there shall be inserted the following section—
After subsection (1A) of section 30 of the Management Act (recovery of overpayment of tax etc.) there shall be inserted the following subsection— For subsection (5) of that section there shall be substituted the following subsection—
After section 30 of the Management Act there shall be inserted the following section— This paragraph, so far as it relates to partnerships whose trades, professions or businesses are set up and commenced before 6th April 1994, has effect as respects the year 1997-98 and subsequent years of assessment.
After section 30A of the Management Act there shall be inserted the following section—
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After section 33 of the Management Act there shall be inserted the following section—
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In subsection (1) of section 36 of the Management Act (fraudulent or negligent conduct), for the words from “twenty years” to the end there shall be substituted the words— For subsection (2) of that section there shall be substituted the following subsection—
In subsections (1) and (2) of section 40 of the Management Act (assessments on personal representatives), for the words “the third year next following the year of assessment” there shall be substituted the words “ the period of three years beginning with the 31st January next following the year of assessment ”.
For section 42 of the Management Act there shall be substituted the following section—
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For subsections (6) and (7) of section 50 of the Management Act (procedure on appeal) there shall be substituted the following subsections— In subsection (8) of that section, after the words “an assessment” there shall be inserted the words “ (other than a self-assessment) ”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For subsection (1) of section 55 of the Management Act there shall be substituted the following subsection— In the following provisions of that section, for the word “assessment”, in each place where it occurs, there shall be substituted the words “ amendment or assessment ”.
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for the words “Interest charged under Part IX of this Act” there shall be substituted the words “A penalty imposed under Part II, VA or X of this Act, a surcharge imposed under Part VA of this Act and interest charged under Part IX of this Act”; and
for the words “if it is interest on tax” there shall be substituted the words “if it is a penalty or surcharge imposed in respect of, or if it is interest on, tax”.
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After section 70 of the Management Act there shall be inserted the following section— This paragraph has effect as respects cheques received on or after 6th April 1996.
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In subsection (1) of section 87A of the Management Act (interest on overdue corporation tax etc.), for the words “section 10 of the principal Act” there shall be substituted the words “ section 59D of this Act ”.
For section 93 of the Management Act there shall be substituted the following section—
After section 93 of the Management Act there shall be inserted the following section—
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For subsection (2) of section 98B of the Management Act (European Economic Interest Groupings) there shall be substituted the following subsections— In subsection (3) of that section, for the words “subsection (2)” there shall be substituted the words “ subsection (2A) or (2B) ”. In subsection (4) of that section, for the words “subsection (2)” there shall be substituted the words “ subsections (2A) and (2B) ”.
In subsection (1) of section 100B of the Management Act (appeals against penalty determinations), after the words “subject to” there shall be inserted the words “ sections 93, 93A and 95A of this Act ”. At the beginning of subsection (2) of that section there shall be inserted the words “ Subject to sections 93(8) and 93A(7) of this Act ”.
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After section 103 of the Management Act there shall be inserted the following section—
In subsection (1) of section 118 of the Management Act (interpretation), after the definition of “the Special Commissioners Regulations” there shall be inserted the following definitions—. Subsection (3) of that section (effect of assessments in partnership name) shall cease to have effect. Sub-paragraph (2) above, so far as it relates to partnerships whose trades, professions or businesses are set up and commenced before 6th April 1994, has effect as respects the year 1997-98 and subsequent years of assessment.
After Schedule 1 to the Management Act there shall be inserted the following Schedule—
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For subsection (1) of section 824 of the Taxes Act 1988 (repayment supplements: individuals and others) there shall be substituted the following subsection— For subsection (3) of that section there shall be substituted the following subsection— The following shall cease to have effect, namely— This paragraph, so far as it relates to partnerships whose trades, professions or businesses are set up and commenced before 6th April 1994, has effect as respects the year 1997-98 and subsequent years of assessment.
In subsection (2) of section 826 of the Taxes Act 1988 (interest on tax overpaid), for the words “section 10” there shall be substituted the words “ section 59D of the Management Act (payment of corporation tax) ”.
In sub-paragraph (3) of paragraph 2 of Schedule 5 to the Taxes Act 1988 (farming: election for the herd basis), for the words from “not later” to the end there shall be substituted the following paragraphs— In sub-paragraph (4) of that paragraph, for paragraphs (a) and (b) there shall be substituted the following paragraphs— After that sub-paragraph there shall be inserted the following sub-paragraphs— An election for the herd basis made by virtue of sub-paragraph (1) above shall only be valid if made— An election for the herd basis made by virtue of sub-paragraph (1) above shall, notwithstanding paragraph 2(4) above, have effect— In this paragraph—
In subsection (2)(f) of section 178 of the Finance Act 1989 (setting of rates of interest), for the words “sections 86, 86A, 87, 87A, and 88” there shall be substituted the words “ sections 59C, 86, 86A, 87, 87A, 88 and 103A ”.
In subsection (1) of section 16 of the Social Security Contributions and Benefits Act 1992 (application of Income Tax Acts to class 4 contributions), for paragraph (b) there shall be substituted the following paragraph—.
In subsection (1) of section 283 of the Taxation of Chargeable Gains Act 1992 (repayment supplements)— For subsection (2) of that section there shall be substituted the following subsection— In subsection (4) of that section, for the words from “partnership” to “section 701(9) of that Act)” there shall be substituted the words “ trust or ”. Subsection (5) of that section shall cease to have effect.
Section 218.
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is from a source arising before 6th April 1994 and ceasing before 6th April 1998, and
is chargeable to tax under Case III of Schedule D,
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is from a source arising before 6th April 1994 and ceasing before 6th April 1998, and
is chargeable to tax under Case IV or V of Schedule D,
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... this paragraph applies in the case of— Sub-paragraph (3) below applies where— The following shall be set off one against the other, namely— and if the amount given by paragraph (a) exceeds that given by paragraph (b) above, the person chargeable in respect of income (if any) arising in the subsequent year from the same source as the original income shall be chargeable for that year to an amount of income tax equal to the excess . , and the person shall be liable for any tax so chargeable The assumptions are— Where the period on the income of which income tax is chargeable for the year 1996-97 is that year, sub-paragraph (3) above shall have effect as if for paragraph (b) there were substituted the following paragraph—. Any reference in sub-paragraph (2) or (3) above to section 804 or Part XVIII of the Taxes Act 1988 includes a reference to the corresponding provisions of any earlier enactments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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In this Schedule— Where, as respects income from any source, income tax is to be charged under Case IV or V of Schedule D by reference to the amounts of income received in the United Kingdom, the source shall be treated for the purposes of this Schedule as arising on the date on which the first amount of income is so received.
Section 228.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Subsection (3) of that section shall cease to have effect. In this paragraph—
In subsection (1) of section 172 of the 1993 Act (year of assessment in which profits or losses arise), for paragraphs (a) and (b) there shall be substituted the following paragraphs—. Sub-paragraph (1) above does not have effect for the years 1994-95, 1995-96 and 1996-97, but in relation to those years that section shall have effect as if paragraphs (a) and (b) of subsection (1) were omitted.
For subsection (1) of section 174 of the 1993 Act (premiums trust funds) there shall be substituted the following subsection—
After subsection (4) of section 177 of the 1993 Act (reinsurance to close) there shall be inserted the following subsection— This paragraph has effect for the underwriting year 1993 and subsequent underwriting years.
In subsection (2) of section 178 of the 1993 Act (stop-loss and quota share insurance)— This paragraph has effect as respects insurance money and other amounts payable in respect of losses declared in the underwriting year 1997 or subsequent underwriting years.
In section 179 of the 1993 Act (cessation: final year of assessment), subsection (3) and, in subsection (2), the words “to subsection (3) below and” shall cease to have effect. After that section there shall be inserted the following section— This paragraph has effect in any case where the member dies after the end of the year 1993-94.
In section 182 of the 1993 Act (regulations), subsections (2) to (4) shall cease to have effect. This paragraph has effect for the year 1997-98 and subsequent years of assessment.
In subsection (1) of section 184 of the 1993 Act (interpretation and commencement)— In subsection (2)(c) of that section, for the word “agent”, in both places where it occurs, there shall be substituted the words “ managing agent ”.
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“payment”, unless the contrary intention appears, means a payment in money; In paragraph 7(2) of that Schedule (payments out of fund on cessation), for the words “money’s worth” there shall be substituted the words “ in assets forming part of the fund ”. This paragraph has effect for the year 1992-93 and subsequent years of assessment.
For paragraph 8 of that Schedule (entitlement of member for tax purposes) there shall be substituted the following paragraph— This paragraph has effect for the year 1994-95 and subsequent years of assessment.
In sub-paragraphs (1) to (4) of paragraph 10 of that Schedule (tax consequences of payments into and out of fund), for the word “corresponding”, in each place where it occurs, there shall be substituted the word “ relevant ”. After sub-paragraph (4) of that paragraph there shall be inserted the following sub-paragraph— Sub-paragraphs (1) and (2) above do not have effect for the years 1994-95, 1995-96 and 1996-97, but in relation to those years that Schedule shall have effect as if paragraph 10 were omitted.
In sub-paragraph (2) of paragraph 11 of that Schedule (tax consequences of cessation), for the words “the final year of assessment” there shall be substituted the words “ the relevant year of assessment ” and for the words “the relevant year” there shall be substituted the words “ the relevant underwriting year ”. In sub-paragraphs (3) and (4) of that paragraph, for the words “the relevant year” there shall be substituted the words “ the penultimate underwriting year ”. For sub-paragraph (5) of that paragraph there shall be substituted the following sub-paragraph—
In sub-paragraph (1) of paragraph 13 of that Schedule (winding up of old-style funds), the words from “and a transfer” to the end shall cease to have effect. After sub-paragraph (5) of that paragraph there shall be inserted the following sub-paragraph— This paragraph has effect for the year 1992-93 and subsequent years of assessment.
Sections 231 and 234.
An election shall be made by serving it on the Board, shall be in such form as may be prescribed by the Board and shall contain such information as the Board may reasonably require with respect to— The reference in sub-paragraph (1)(e) above to an oil field includes a reference to any area which the electing participator expects might be determined as an oil field under Schedule 1 to the principal Act. An election shall include a declaration that it is correct and complete to the best of the knowledge and belief of the electing participator. An election shall be irrevocable.
The Board shall reject an election if they are not satisfied— Subject to sub-paragraph (3) below, the Board shall also reject an election if it appears to them— Before rejecting an election under sub-paragraph (2)(a) above the Board may, if they think fit, by notice in writing give the electing participator an opportunity to correct any error in the information and, if he does so, the information shall then be treated as having been provided in the correct form. In sub-paragraph (2)(b) above “the specified date” means such date as may be specified in the notice concerned, being a date not earlier than one month after the date on which the notice was given. A notice under sub-paragraph (2)(b) above shall be given within the period of three months beginning on the date on which the election was received by the Board.
Notice of the acceptance or rejection of an election shall be served on the electing participator before the expiry of the period of three months beginning on whichever of the following dates is the later or latest— If no such notice of acceptance or rejection is so served, the Board shall be deemed to have accepted the election and to have served notice of their acceptance on the last day of the period referred to in sub-paragraph (1) above.
Where the Board serve notice on an electing participator under paragraph 3 above rejecting an election, he may appeal ... against the notice. An appeal under sub-paragraph (1) above shall be made by notice of appeal served on the Board within thirty days beginning on the date of the notice in respect of which the appeal is brought. Where, at any time after the service of notice of appeal under this paragraph and before the determination of the appeal by the tribunal , the Board and the appellant agree that the notice in respect of which the appeal is brought should stand or that the election to which it related should be accepted with or without modification, the same consequences shall ensue as if the tribunal had determined the appeal to that effect. On the hearing of an appeal under this paragraph, the tribunal shall either dismiss the appeal or allow it; and if the tribunal allows the appeal, the tribunal shall direct either— In an appeal under sub-paragraph (1)— Any reference in this Chapter to an election accepted by the Board shall be construed as including a reference to an election accepted in pursuance of an appeal under this paragraph.
Within thirty days of the relevant date, the electing participator shall furnish to the responsible person for the field to which the election applies (or would apply if the election were accepted) a copy of— For the purposes of sub-paragraph (1) above, the relevant date is— In a case where paragraph 9 below applies (or would apply if an election were accepted) sub-paragraphs (1) and (2) above shall require the electing participator additionally to furnish copies of the same documents to the responsible person for any non-chargeable field mentioned in sub-paragraph (3) of that paragraph. In a case where paragraph 11 below applies (or would apply if an election were accepted) sub-paragraphs (1) and (2) above shall require the electing participator additionally to furnish copies of the same documents to the old participator referred to in that paragraph.
Where a participator fraudulently or negligently furnishes any incorrect information or makes any incorrect declaration in or in connection with an election he shall be liable to a penalty not exceeding—
in the case of negligence, £50,000, and
in the case of fraud, £100,000.
Without prejudice to paragraph 6 above, this paragraph applies if, at any time after notice of the acceptance of an election has been served by the Board, it appears to the Board that, as a result of an error in the information furnished to the Board, the election should not have been accepted. If, in a case where this paragraph applies, either— the Board may serve on the electing participator and on the responsible person for the field to which the election applies a notice rescinding the acceptance and stating what appears to the Board to be the correct position. When a notice under sub-paragraph (2) above becomes effective, the election shall be treated as having been rejected in accordance with paragraph 3 above. If, in a case where this paragraph applies,— the election shall be treated as having been made and accepted subject to such modifications (being modifications to correct the effect of the error) as the Board may direct, by notice served on the electing participator and on the responsible person for the field to which the election applies. A notice served under sub-paragraph (2) or sub-paragraph (4) above shall become effective either—
This paragraph applies where the Board serve notice under sub-paragraph (2) or sub-paragraph (4) of paragraph 7 above; and in the following provisions of this paragraph such a notice is referred to as a “re-opening notice”. The electing participator may, by notice of appeal served on the Board within thirty days beginning on the date of the re-opening notice, appeal ... against the re-opening notice. A notice of appeal under sub-paragraph (2) above shall state the grounds on which the appeal is brought. An appeal under this paragraph may at any time before it is notified to the tribunal be abandoned by notice served on the Board by the electing participator. A re-opening notice may be withdrawn at any time before it becomes effective. In any case where— the re-opening notice shall take effect subject to such modifications as may be necessary to give effect to that agreement; and thereupon the appeal shall be treated as having been abandoned. Subject to sub-paragraph (8) below, on an appeal against a re-opening notice the tribunal may vary the notice, quash the notice or dismiss the appeal; and the notice may be varied whether or not the variation is to the advantage of the electing participator. The provisions relating to the variation of a re-opening notice referred to in sub-paragraph (7) above shall not apply in respect of any such notice served under sub-paragraph (2) of paragraph 7 above. In an appeal under sub-paragraph (2)—
The provisions of this paragraph apply where— Any reference in this paragraph to allowable expenditure has the same meaning as in Part II of Schedule 1 to the 1983 Act and is a reference to expenditure incurred on an asset to which the election applies. Sub-paragraph (4) below applies if, by virtue of paragraph 5 of Schedule 1 to the 1983 Act (which, in a case falling within this paragraph, provides for the apportionment of allowable expenditure between two or more fields), any part of the allowable expenditure is apportioned to a taxable field (a “non-chargeable field”) other than the field to which the election applies. Where this sub-paragraph applies, then, so far as concerns the electing participator (as a participator in a non-chargeable field), section 232 of this Act shall apply in relation to that part of the allowable expenditure which is apportioned to the non-chargeable field as it applies in relation to the part apportioned to the field to which the election applies.
If, while an election is in operation, the electing participator (or a person who is treated as an electing participator by virtue of this paragraph) transfers the whole or part of his interest in the field to which the election applies, then, so far as concerns that interest or part, the new participator shall thereafter be treated as the electing participator for the purposes of this Chapter, other than paragraph 11 below, and, in particular,— If, in a case where paragraph 9 above applies, the electing participator, as a participator in the non-chargeable field (within the meaning of that paragraph) transfers the whole or part of his interest in that field, sub-paragraph (1) above (except paragraph (b)) shall apply in relation to that transfer as if— In sub-paragraph (1) above the expressions “the old participator” and “the new participator” have the same meaning as in Schedule 17 to the Finance Act 1980.
This paragraph applies in any case where— With regard to so much of the expenditure referred to in sub-paragraph (1)(b) above as falls to be taken into account under paragraph (b)(i) or paragraph (c)(i) of subsection (9) of section 2 of the principal Act in computing, for any chargeable period ending before the transfer period, the assessable profit or allowable loss accruing to the old participator or any predecessor of his, section 232 of this Act shall apply in the case of the old participator or, as the case may be, his predecessor as it is expressed to apply in the case of the electing participator. If, as a result of the operation of sub-paragraph (2) above, there is a reduction in the amount which would otherwise be the accumulated capital expenditure of the old participator at the end of the last chargeable period before the transfer period, paragraph 8 of Schedule 17 to the Finance Act 1980 shall be taken to have transferred a correspondingly reduced amount to the electing participator. In this paragraph—
This paragraph applies if there is a disposal of an asset which, immediately before the disposal or at an earlier time, was an asset to which an election applies; and in this paragraph— Where a person has incurred expenditure on the acquisition of a transferred asset, he shall be treated for the purposes of the expenditure relief provisions as having incurred that expenditure only to the extent that it does not exceed the amount which, having regard to section 232 of this Act or the previous operation of this paragraph, was (in the case of the vendor) allowable under those provisions immediately before the disposal in respect of his expenditure on the asset. Any expenditure incurred on the asset after the disposal shall be left out of account for the purposes of the expenditure relief provisions.
This paragraph applies if, after 30th November 1993 and before the date of an election, expenditure was incurred by the electing participator under a contract— If, in a case where this paragraph applies, the other person referred to in paragraph (a) or paragraph (b) of sub-paragraph (1) above (“the contractor”) has performed his obligations by entering into one or more further contracts, the contractor shall be treated for the purposes of subsection (2) of section 191 of the Finance Act 1993 (time when expenditure is incurred) as having performed his obligations under the contract only to the extent that, at that time, the asset or interest in question has been acquired by or, as the case may be, the services or other business facilities have been provided to, the electing participator.
Section 236.
In section 2 (assessable profits and allowable losses), in subsection (5) (amounts to be included in calculation of gross profit or loss) in each of paragraphs (b) and (c), after the word “oil”, in the first place where it occurs, there shall be inserted “ (not being light gases) ” and after paragraph (c) there shall be inserted—. In subsection (9) of that section (amounts to be taken into account in determining amount of debit or credit in respect of expenditure), in paragraph (a)—
In Schedule 2 (management and collection of PRT), in paragraph 2(2) (returns by participators), in paragraph (a)(iii) after the words “delivery was made” and in paragraph (b)(ii) after the word “made” there shall be inserted the words “ or (in the case of light gases) the market value as determined in accordance with paragraph 3A of Schedule 3 to this Act ”.
In Schedule 3 (miscellaneous provisions relating to PRT), in paragraph 2 (definition of market value of oil)— Sub-paragraphs (2) and (3) below also apply where the market value of any light gases falls to be ascertained under paragraph 3A below. In sub-paragraph (2) of paragraph 2A, after the words “paragraph 2 above”, in each place where they occur, there shall be inserted “ or, as the case may require, sub-paragraph (2)(b) of paragraph 3A below ”. In sub-paragraph (3) of paragraph 2A, after the words “paragraph 2”, in the first place where they occur, there shall be inserted “ or, as the case may require, in accordance with paragraph 3A below ”. Sub-paragraph (4) of paragraph 2A shall be omitted.
After paragraph 3 of Schedule 3 (aggregate market value of oil) there shall be inserted—
Section 252.
In this Schedule— Section 151(2) and (3) of the Railways Act 1993 (companies wholly owned by the Crown or the Franchising Director) shall have effect for the purposes of this Schedule as it has effect for the purposes of that Act. Any reference in this Schedule to “assignment” shall be construed in Scotland as a reference to “assignation”. This Schedule—
For the purposes of the Gains Act, where there is a relevant transfer, the disposal of property, rights and liabilities which is constituted by that transfer shall, subject to the following provisions of this Schedule, be taken, in relation to the transferee as well as the predecessor, to be for a consideration such that no gain or loss accrues to the predecessor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section 171(1) of the Gains Act (which makes provision in relation to the disposal of assets from one member of a group of companies to another member of the group) shall not apply where the disposal in question is a relevant transfer.
Subsection (4) of section 23 of the Gains Act (adjustments where compensation or insurance money used for purchase of replacement asset) shall have effect in accordance with sub-paragraph (3) below in any case where— Subsection (5) of that section (adjustments where a part of any compensation or insurance money is used for the purchase of a replacement asset) shall have effect in accordance with sub-paragraph (3) below in any case where— In a case falling within sub-paragraph (1) or (2) above, subsection (4) or, as the case may be, subsection (5) of section 23 of the Gains Act shall have effect as if the transferee and the predecessor were the same person, except that—
Nothing in Part II or III of the Railways Act 1993, and no instrument or agreement made, or other thing done, under or by virtue of either of those Parts, shall be regarded as a scheme or arrangement for the purposes of section 30 of the Gains Act (value-shifting). In any case where— sub-paragraph (3) below shall apply. Where this sub-paragraph applies— In this paragraph—
Subsection (1) of section 174 of the Gains Act (which applies section 41 of that Act to cases where assets have been acquired without gain or loss) shall have effect, without prejudice to paragraph 2 above or paragraph 7(2), 11(3) or (4) or 25(2) below, where there has been— as if the asset to which the transfer or disposal relates had thereby been transferred and acquired in relevant circumstances, within the meaning of that subsection.
a relevant transfer,
a disposal to which paragraph 7(2) below applies, or
a disposal falling within paragraph 11(3) or (4) or 25(2) below,
Subject to the following provisions of this paragraph, where any asset, or any interest in an asset, is the subject of a relevant transfer, sections 152 to 160 of the Gains Act (roll-over relief on replacement of business assets) shall have effect as if— In any case where— that section shall have effect as if the gain had accrued to, and the claim for it to be held over had been made by, the transferee and as if the predecessor’s acquisition of the depreciating asset had been the transferee’s acquisition of that asset. Where an asset, or an interest in an asset, is the subject of a relevant transfer, the predecessor shall not be entitled at any time after the coming into force of the relevant transfer to make any claim under section 152 or 153 of the Gains Act in respect of his acquisition of the asset or interest. Where an asset, or an interest in an asset, is the subject of a relevant transfer, the transferee shall not, by virtue of any provision of this Schedule, be treated for the purposes of sections 152 to 154 of the Gains Act as having applied the whole or any part of the consideration for any disposal— Without prejudice to paragraph 1(4)(b) above, expressions used in sub-paragraph (2) above and in section 154 of the Gains Act have the same meaning in that sub-paragraph as they have in that section.
Sub-paragraph (2) below applies to any disposal effected pursuant to an obligation imposed by a section 85 transfer scheme by virtue of section 91(1)(c) of the Railways Act 1993 (obligations to enter into agreements or execute instruments) if the person making the disposal is— and the person to whom the disposal is made is either a person falling within paragraphs (a) to (d) above or the Franchising Director. A disposal to which this sub-paragraph applies shall be taken for the purposes of corporation tax on chargeable gains, in relation to the person to whom the disposal is made as well as the person making the disposal, to be effected for a consideration such that no gain or loss accrues to the person making the disposal. Section 171(1) of the Gains Act (transfers within a group) shall not apply where the disposal in question is one to which sub-paragraph (2) above applies. Section 17 of that Act (disposals and acquisitions treated as made at market value) shall not have effect in relation to a disposal or the corresponding acquisition if— unless the person making the disposal is connected with the person to whom the disposal is made. In this paragraph, “the corresponding acquisition”, in the case of any disposal, means the acquisition made by the person to whom the disposal is made.
For the purposes of section 179 of the Gains Act (company ceasing to be a member of a group), where any company (“the degrouped company”) ceases, by virtue of a qualifying transaction, to be a member of a group of companies, the degrouped company shall not, by virtue of that qualifying transaction, be treated under that section as having sold, and immediately reacquired, any asset acquired from a company which was at the time of acquisition a member of that group. Where sub-paragraph (1) above applies in relation to any asset, section 179 of the Gains Act shall have effect on the first subsequent occasion on which the degrouped company ceases to be a member of a group of companies (the “subsequent group”), otherwise than by virtue of a qualifying transaction, as if both the degrouped company and the company from which the asset was acquired had been members of the subsequent group at the time of acquisition. Where, disregarding any preparatory transactions, a company would be regarded for the purposes of section 179 of the Gains Act (and, accordingly, of this paragraph) as ceasing to be, or becoming, a member of a group of companies by virtue of a qualifying transaction, it shall be regarded for those purposes as so doing by virtue of the qualifying transaction and not by virtue of any preparatory transactions. In this paragraph— Expressions used in this paragraph and in section 179 of the Gains Act have the same meaning in this paragraph as they have in that section.
Where by virtue of any relevant transfer— that Act shall have effect as if the transferee and not the predecessor were the original creditor for those purposes. Where, by virtue of any relevant transfer, any obligations of the predecessor under a guarantee of the repayment of a loan are transferred to the transferee, the transferee shall be treated for the purposes of section 253(4) of the Gains Act (relief for guarantors) as a person who gave the guarantee. In any case where— those sections shall have effect with the modifications set out in sub-paragraph (4) below. Those modifications are— and those sections shall accordingly have effect as if there had been no assignment of the right to recover the principal of the loan or of any right to recover an amount paid under the guarantee. In any case where— the relevant transfer shall not be treated as an assignment of the debt for the purposes of those sections and sub-paragraph (2) above shall not have effect in relation to the transferee, so far as relating to the amount mentioned in paragraph (b) above. In any case where— that Act shall have effect as if a chargeable gain equal to so much of the allowable loss as corresponds to the amount recovered had accrued to the transferee or, as the case may be, to the company in the same group as the transferee. In any case where— that Act shall have effect as if a chargeable gain equal to so much of the allowable loss as corresponds to the amount recovered had accrued to the transferee or, as the case may be, to the company in the same group as the transferee. In any case where— that Act shall have effect as if a chargeable gain equal to so much of the allowable loss as corresponds to the amount recovered had accrued to the transferee or, as the case may be, to the company in the same group as the transferee. In any case where sub-paragraph (6), (7) or (8) above applies in relation to an allowable loss, subsections (7) and (8) of section 253 of the Gains Act . . . (which deem a chargeable gain to arise where an amount treated as an allowable loss is recovered by another company in the same group) shall not apply in relation to that allowable loss. Expressions used in this paragraph and in section 253 . . . of the Gains Act have the same meaning in this paragraph as they have in that section.
Schedule 2 to the Gains Act (assets held on 6th April 1965) shall have effect in relation to any assets which vest in the transferee by virtue of a relevant transfer as if—
the predecessor and the transferee were the same person; and
those assets, to the extent that they were in fact acquired or provided by the predecessor, were acquired or, as the case may be, provided by the transferee.
In this paragraph, “relevant disposal” means— Subject to sub-paragraph (3) below, section 17 of the Gains Act (disposals and acquisitions treated as made at market value) shall not have effect— unless, in a case falling within paragraph (a) or (b) above, the person making the disposal is connected with the person making the acquisition. Where there is a relevant disposal of an asset of— to the Franchising Director or a company wholly owned by the Crown, the disposal shall be taken for the purposes of the Gains Act, in relation to the person making the disposal and, if the disposal is made to a company wholly owned by the Crown, the person to whom the disposal is made, to be for a consideration such that no gain or loss accrues on the disposal. Where there is a disposal of a historical record or artefact in accordance with directions under section 125 of the Railways Act 1993 and the disposal is either— the disposal shall be taken for the purposes of the Gains Act, in relation to the person to whom the disposal is made as well as the person making the disposal, to be for a consideration such that no gain or loss accrues on the disposal. In this paragraph—
This paragraph applies in any case where— Where this paragraph applies, the trading stock in question shall, for the purposes (whether in relation to the predecessor or the transferee) of computing for the purposes of the Corporation Tax Acts the profits of the predecessor’s trade and the transferee’s trade,— In this paragraph “trading stock” has the same meaning as in section 100 of the Taxes Act 1988.
Where, by virtue of any relevant transfer, there is transferred any right of the predecessor to receive any amount which is for the purposes of corporation tax— the transfer shall not require any modification of the way in which that amount has been and is to be treated in relation to the predecessor for those purposes or entitle any amount due or paid in respect of that right to be treated as a trading receipt of the transferee for any accounting period.
an amount brought into account as a trading receipt of the predecessor for any accounting period ending before the time when the transfer comes into force, or
an amount falling to be so brought into account if it is assumed, where it is not the case, that the accounting period of the predecessor current on the day before the transfer comes into force ends immediately before that time,
If the whole or any part of the amount of a liability transferred by virtue of a relevant transfer falls, for the purposes of corporation tax,— then the transfer shall not require any modification of the way in which that amount or, as the case may be, that part of that amount has been or is to be treated in relation to the predecessor for those purposes or entitle any amount due or paid in respect of that liability or, as the case may be, the corresponding part of that liability to be deductible in computing the transferee’s profits, or any description of the transferee’s profits, for any accounting period. If and to the extent that the amount of any liability which, in consequence of any relevant transfer, falls to be discharged by the transferee is an amount which would (but for that and any other transfer) have fallen to be deductible in computing the predecessor’s profits, or any description of the predecessor’s profits, for any accounting period beginning with the coming into force of the transfer or at any subsequent time, that amount shall, to that extent,— and for the purposes of this sub-paragraph it shall be assumed, where it is not the case, that the accounting period of the predecessor current on the day before the transfer comes into force ends immediately before the coming into force of that transfer. For the purposes of corporation tax, where any relevant transfer has the effect that any liability falls to any extent to be discharged by the transferee instead of by the predecessor, the amounts deductible in computing the transferee’s profits, or any description of the transferee’s profits, for any accounting period shall not include any amount in respect of so much of that liability as falls to be so discharged unless it is an amount which (but for that and any other transfer) would have fallen to be deductible in computing the predecessor’s profits, or any description of the predecessor’s profits, for any accounting period beginning or ending after the coming into force of that transfer. The preceding provisions of this paragraph shall apply in relation to the deduction of charges on income against the total profits of the predecessor or transferee for any period as they apply in relation to the deduction of any amount in the computation for that period of the profits of the predecessor or, as the case may be, of the transferee. For the purposes of Chapter II of Part VI of the Taxes Act 1988 (definition of distributions), where in the case of any relevant transfer any consideration given or treated as given in respect of a security relating to— would fall (apart from this sub-paragraph) to be regarded for those purposes as new consideration received by the predecessor, that consideration shall be treated instead, to the extent that it relates to so much of the liability as falls in consequence of the transfer to be discharged by the transferee, as if it were new consideration received by the transferee.
Subject to the following provisions of this paragraph, where as a result of a relevant transfer, the predecessor falls to be regarded for the purposes of section 343 of the Taxes Act 1988 (company reconstructions without change of ownership) as ceasing to carry on a trade and the transferee falls to be regarded for the purposes of that section as beginning to carry on that trade— The following provisions of this paragraph apply in any case where— and any reference in this paragraph to a transferred loss is a reference to the amount mentioned in paragraph (a) above. The transferee shall be entitled to relief under section 393(1) of the Taxes Act 1988 for the transferred loss, as for a loss sustained by the transferee in carrying on its trade, but the transferred loss may only be set off against trading income of the transferee which arises in an accounting period throughout which the transferee is a public sector railway company. Where the transferee ceases to be a public sector railway company, it shall be assumed for the purposes of giving relief by virtue of sub-paragraph (3) above that— and any apportionment under this sub-paragraph shall be on a time basis according to the respective lengths of the component accounting periods except that, if it appears that that method would work unreasonably or unjustly, such other method shall be used as appears just and reasonable. Relief by virtue of sub-paragraph (3) above in respect of a transferred loss shall be given against the trading income of any accounting period of the transferee before relief is given against that income in respect of losses incurred by the transferee after the relevant date. As from the relevant date— Without prejudice to the generality of sub-paragraphs (1) and (3) above, if the conditions in subsection (1) of section 343 of the Taxes Act 1988 become satisfied at any time on or after the relevant date in relation to any trade (or, where subsection (8) of that section applies, any part of a trade which falls to be treated for the purposes of that section as a separate trade), the company which is the successor, within the meaning of that section, shall not become entitled to relief by virtue of subsection (3) of that section in respect of any amount for which the company which is the predecessor, within the meaning of that section, would have been entitled to relief by virtue of sub-paragraph (3) above had it continued to carry on the trade (or the part of the trade which falls to be treated as a separate trade). Subject to sub-paragraph (9) below, the provisions of a restructuring scheme providing for the determination of the amount which is to be that of any transferred loss may include provision— The consent of the Treasury shall be required for the making or modification of a determination of any such amount as is mentioned in sub-paragraph (8) above; and the consent of the transferee shall also be required for any such modification after the coming into force of the relevant transfer. Where there is a determination, or a modification of a determination, for any purposes of this paragraph, all necessary adjustments shall be made by making assessments or by repayment or discharge of tax, and shall be so made notwithstanding any limitation on the time within which assessments may be made. For the purposes of this paragraph, a transferee is at any time a “public sector railway company” if, and only if, it is at that time— In this paragraph— It shall be assumed for the purposes of the definitions of “unrelieved trading losses” and “unrelieved transferred losses” in sub-paragraph (12) above (if it is not in fact the case) that the trading income mentioned in those definitions is at least equal to the aggregate amount of the losses in question of each of those descriptions.
Where any of the liabilities of a successor company are extinguished by virtue of section 106(1) of the Railways Act 1993, section 400 of the Taxes Act 1988 (reduction of allowable losses on write-off of government investment) shall not have effect in relation to any amount of government investment in a body corporate which, apart from this paragraph, would thereby fall to be regarded as written-off for the purposes of that section.
The existence of the powers of the Secretary of State or the Franchising Director under Part II of the Railways Act 1993 shall not be regarded as constituting arrangements falling within subsection (1) or (2) of section 410 of the Taxes Act 1988 (arrangements for the transfer of a company to another group or consortium). Nothing in Part II of the Railways Act 1993, and no direction given by the Secretary of State under or by virtue of any provision of that Part, shall be regarded as constituting option arrangements for the purposes of paragraph 5B of Schedule 18 to the Taxes Act 1988. Arrangements relating to the transfer, pursuant to any provision of Part II of the Railways Act 1993, of shares of a subsidiary of the Board to— shall not, so far as so relating, be regarded as constituting arrangements falling within subsection (1)(b)(i) or (ii) of section 410 of the Taxes Act 1988. Arrangements relating to the transfer, by virtue of a section 85 transfer scheme, of the whole or any part of a trade carried on by the Board or a wholly owned subsidiary of the Board to— shall not, so far as so relating, be regarded as constituting arrangements falling within section 410(1)(b)(iii) of the Taxes Act 1988. Arrangements relating to the transfer, pursuant to any provision of Part II of the Railways Act 1993, of shares of a subsidiary of the Board, or shares of a company owned by a consortium, to— shall not, so far as so relating, be regarded as constituting arrangements falling within section 410(2)(b)(ii) of the Taxes Act 1988. None of sub-paragraphs (3) to (5) above shall have effect in relation to any arrangements if— Section 413(6)(a) of the Taxes Act 1988 (company owned by a consortium) shall have effect for the purposes of sub-paragraph (5) above as it has effect for the purposes of Chapter IV of Part X of that Act. In this paragraph—
Subject to sub-paragraph (2) below, any shares issued by a relevant company in pursuance of section 98 or 106 of the Railways Act 1993 (initial share holding in, and extinguishment of certain liabilities of, successor companies) shall be treated for the purposes of the Corporation Tax Acts as if they had been issued wholly in consideration of a subscription paid to that company (and attributable equally between those shares) of an amount equal— reduced, in either case, by the principal sum payable under any debentures issued by the company in pursuance of the section in question. Where two or more classes of share are issued by a relevant company in pursuance of section 98 or, as the case may be, section 106 of the Railways Act 1993— and each of the issued shares of any of those classes shall be treated for the purposes of the Corporation Tax Acts as if it had been issued wholly in consideration of a subscription paid to the relevant company of an amount equal to the appropriate price for a share of that class. Any debenture issued by a relevant company in pursuance of section 98 or 106 of the Railways Act 1993 shall be treated for the purposes of the Corporation Tax Acts as if it had been issued— If any debenture issued as mentioned in sub-paragraph (3) above includes provisions for the payment of a sum expressed as interest in respect of a period which falls wholly or partly before the issue of the debenture, any payment made in pursuance of that provision in respect of that period shall be treated for the purposes of the Corporation Tax Acts as if the debenture had been issued at the commencement of that period and, accordingly, as interest on the principal sum payable under the debenture. The value required to be determined for the purposes of sub-paragraph (1)(a) or (2)(a) above is market value, as defined in section 272 of the Gains Act. In this paragraph—
For the purposes of section 781 of the Taxes Act 1988 (assets leased to traders and others), where the interest of the lessor or the lessee under a lease, or any other interest in an asset, vests in any person by virtue of a relevant transfer— No charge shall arise under section 781(1) of the Taxes Act 1988 by virtue of section 783(2) of that Act in a case where the capital sum mentioned in section 781(1)(b)(i) or (ii) of that Act is the consideration obtained (or treated by section 783(4) of that Act as obtained) by the Board on a disposal pursuant to a direction under Part II of the Railways Act 1993 of securities of a subsidiary of the Board. The grant of a lease of an asset— shall be treated for the purposes of section 781 of the Taxes Act 1988 (notwithstanding anything in section 783(4) of that Act) as made without any capital sum having been obtained by the grantor. No charge shall arise under section 781(1) of the Taxes Act 1988 in a case where the capital sum mentioned in section 781(1)(b)(i) or (ii) of that Act is the consideration obtained (or treated by section 783(4) of that Act as obtained) on a disposal of, or of an interest in, rolling stock by— in any case where before, at or after the time when the disposal is made the lessee’s interest in a lease of the rolling stock has belonged to an associate of the person making the disposal. Section 782 of the Taxes Act 1988 (leased assets: special cases) shall not apply to payments made by— under a lease of an asset which at any time before the creation of the lease was used by a body falling within paragraphs (a) to (d) above for the purposes of a trade carried on by that body and which was, when so used, owned by that body. Section 781 of the Taxes Act 1988 shall not, by virtue of sub-paragraph (5) above, apply to any payments to which, by virtue of section 782 of that Act, it would not have applied apart from that sub-paragraph. In this paragraph—
Subject to the following provisions of this Schedule, where, apart from this paragraph— then ... sub-paragraphs (2) to (4) below shall apply. Subject to sub-paragraphs (3) and (4) below, in a case falling within sub-paragraph (1) above— For the purposes of the Corporation Tax Acts, only such amounts (if any) as may be specified in or determined in accordance with the restructuring scheme providing for a relevant transfer shall be allocated to the transferee in respect of expenditure by reference to which capital allowances may be made by virtue of sub-paragraph (2) above in relation to anything to which the transfer relates. Sub-paragraph (2) above shall affect the amounts falling to be taken into account in relation to the predecessor as expenditure by reference to which capital allowances may be made only so far as necessary to give effect to a reduction of any such amount by a sum equal to so much of that amount as is allocated to the transferee as mentioned in sub-paragraph (3) above. Subject to sub-paragraph (6) below, the provisions of a restructuring scheme providing for the determination of any amount which for the purposes of sub-paragraph (3) above is to be allocated, in the case of any relevant transfer, to the transferee may include provision— The consent of the Treasury shall be required for the making or modification of a determination of any such amount as is mentioned in sub-paragraph (5) above; and the consent of the transferee shall also be required for any such modification after the coming into force of the relevant transfer. This sub-paragraph applies in any case where assets which are the subject of a relevant transfer became vested in the predecessor by virtue of a transfer made by a company; and in any such case— Neither section 343 of the Taxes Act 1988 (company reconstructions without change of ownership) nor sections 266 and 267 of the Capital Allowances Act (election where predecessor and successor are connected persons) shall have effect in a case falling within sub-paragraph (1) above. In determining whether sub-paragraph (1) above has effect in relation to a relevant transfer in a case where— the trade or part of a trade which is continued or, as the case may be, was being carried on shall for the purposes of that sub-paragraph be treated in relation to any trade or part of a trade which is transferred by virtue of the transfer as a separate trade and shall accordingly be disregarded. Where there is a determination, or a modification of a determination, for any purposes of this paragraph, all necessary adjustments shall be made by making assessments or by repayment or discharge of tax, and shall be so made notwithstanding any limitation on the time within which assessments may be made.
The Capital Allowances Act shall have effect in accordance with this paragraph in relation to any property if— and in this paragraph “the relevant scheme”, in relation to property to which a relevant transfer relates, means the restructuring scheme that provides for that transfer. In any case where— that deemed sale shall be treated as a sale at the price so specified or determined (instead of at the price determined under that section or any other provision of the Capital Allowances Act), sections 567 to 570 of that Act shall not apply and that provision of the scheme shall have an equivalent effect in relation to the expenditure which the transferee is to be treated as having incurred in making the corresponding purchase. Where the property is plant or machinery which would, for the purposes of the Capital Allowances Act, be treated on the coming into force of the relevant transfer as disposed of by the predecessor to the transferee and the relevant scheme contains provision for the disposal value of that property to be deemed for the purposes of that Act to be of such amount as may be specified in or determined in accordance with the scheme— Sub-paragraphs (5) and (6) of paragraph 20 above shall apply in relation to any determination of any amount in accordance with any provision made by a restructuring scheme for the purposes of this paragraph as they apply for the purposes of a determination such as is mentioned in those sub-paragraphs. Where there is a determination, or a modification of a determination, for any purposes of this paragraph, all necessary adjustments shall be made by making assessments or by repayment or discharge of tax, and shall be so made notwithstanding any limitation on the time within which assessments may be made.
In this paragraph, “relevant disposal” means— A relevant disposal of the relevant interest in— shall be treated for the purposes of Part 3 of the Capital Allowances Act, and the other provisions of that Act which are relevant to that Part, as a sale of that relevant interest; and sections 567 to 570 of that Act (sales between connected persons or without change of control) shall not have effect in relation to that sale. Where there is a relevant disposal of plant or machinery, the amount which, in consequence of that disposal, is to be brought into account as the disposal value of that plant or machinery for the purposes of section 55 of the Capital Allowances Act (determination of entitlement or liability) shall, subject to section 62 of that Act (general limit on amount of disposal value) be taken— notwithstanding any other provision of the the Capital Allowances Act. Where, in consequence of a relevant disposal, a fixture is treated by section 188 of the Capital Allowances Act as ceasing to belong to a person at any time, the amount which, in consequence of that disposal, is to be brought into account as the disposal value of the fixture for the purposes of section 55 of that Act shall, subject to section 62 of that Act, be taken— notwithstanding any other provision of the Capital Allowances Act.
Section 779 of the Taxes Act 1988 (sale and lease back) shall not apply by virtue of subsection (1) or (2) of that section in any case where the liability of the transferor, or of the person associated with the transferor, is— A lease is “exempt” for the purposes of sub-paragraph (1)(c) above if— Rent or other payments are “exempt” for the purposes of paragraph (d) of sub-paragraph (1) above if— In this paragraph “transferor”, “lease” and “rent” have the same meaning as they have in section 779 of the Taxes Act 1988 and “associated” shall be construed in accordance with subsection (11) of that section.
No charge to tax shall arise by virtue of section 36 of the Taxes Act 1988 (charge on sale of land with right to reconveyance) where the sale in question is constituted by a disposition to a franchise company—
by virtue of a transfer scheme;
pursuant to an obligation imposed by a transfer scheme by virtue of section 91(1)(c) of the Railways Act 1993; or
pursuant to paragraph 2 of Schedule 8 to that Act.
Subject to sub-paragraph (2) below, where the effect of a restructuring scheme is modified in pursuance of an agreement or direction under paragraph 2 or 3 of Schedule 8 to the Railways Act 1993, the Corporation Tax Acts and this Schedule shall have effect as if— A disposal of an asset— shall be taken for the purposes of corporation tax on chargeable gains, in relation to the person to whom the disposal is made as well as the person making the disposal, to be effected for a consideration such that no gain or loss accrues to the person making the disposal. Section 171(1) of the Gains Act (transfers within a group) shall not apply where the disposal in question falls within sub-paragraph (2) above. Any reference in sub-paragraph (1) or (2) above to an agreement or direction under paragraph 2 or 3 of Schedule 8 to the Railways Act 1993 includes a reference to such an agreement or direction as varied in accordance with a direction given by the Secretary of State under paragraph 14(2) of that Schedule. For the purposes of sub-paragraph (1)(b) above—
Where liability for a loan made to the Board is vested in a successor company by virtue of a section 85 transfer scheme, the vesting shall not affect any direction given, or having effect as if given, by the Treasury under section 755 of the Income Tax (Trading and Other Income) Act 2005 (income tax exemption for interest on foreign currency securities) in respect of the loan.
This paragraph applies to any person (an “eligible person”)— but this sub-paragraph is subject to sub-paragraph (2) below. This paragraph shall not apply, or shall cease to apply, to a person if, on or after 11th January 1994, any of the following conditions became or becomes satisfied in his case, that is to say— Section 86 of ITEPA 2003 (exception for certain transport vouchers) shall, if and so long as the conditions in sub-paragraph (4) below are satisfied, have effect in relation to a transport voucher provided for an eligible person, notwithstanding— but this sub-paragraph is subject to sub-paragraph (2) above. The conditions mentioned in sub-paragraph (3) above are— The Secretary of State may, with the consent of the Treasury, by order prescribe for any purposes of this paragraph circumstances— The employers who are to be regarded for the purposes of this paragraph as “engaged in the railway industry” are those who carry on activities of a class or description specified for the purposes of this sub-paragraph in an order made by the Secretary of State with the consent of the Treasury; and the Secretary of State may so specify any class or description of activity which, in his opinion, falls within, or is related to or connected with, the railway industry. Any power to make an order under this paragraph shall be exercisable by statutory instrument; and a statutory instrument containing such an order shall be subject to annulment pursuant to a resolution of the House of Commons. In determining for the purposes of sub-paragraph (4)(d) above whether the current transport voucher benefits in the case of an eligible person are not significantly better than the former transport voucher benefits for comparable employees, regard shall be had, in particular, to— Chapter I of Part XIV of the Employment Rights Act 1996, except section 218(6), shall apply for the purposes of this paragraph as it applies for the purposes of that Act. In this paragraph— Subject to paragraph 1(1) and sub-paragraph (12) above, expressions used in this paragraph and in section 86 of ITEPA 2003 have the same meaning in this paragraph as in that section. This does not apply in relation to the reference to a transport voucher in sub-paragraph (1) above. This paragraph has effect—
Section 253.
In this Schedule— This Schedule, so far as it relates to corporation tax on chargeable gains, shall be construed as one with the Taxation of Chargeable Gains Act 1992.
The following shall apply for the purposes of the Corporation Tax Acts— This paragraph shall have effect in relation to accounting periods beginning after the final accounting period.
This paragraph applies where NIAL has, before the transfer date, disposed of (or of its interest in) any assets used, throughout the period of ownership, wholly or partly for the purposes of the transferred trade. Sections 152 to 156 of the Taxation of Chargeable Gains Act 1992 (roll-over relief on replacement of business assets) shall have effect in relation to that disposal as if NIAL and the successor company were the same person.
This paragraph applies where under Article 54(2) an asset of the Holding Company is transferred to the successor company. The disposal of the asset by the Holding Company shall be taken for the purposes of corporation tax on chargeable gains to be effected for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to the Holding company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
This paragraph applies where— For the purposes of the Capital Allowances Act 2001— In this paragraph— . . . “balancing allowance” and “balancing charge” have the same meanings as in Chapter 7 of Part 3 of the Capital Allowances Act 2001; “the property” means the building or structure referred to in sub-paragraph (1); and “relevant interest” has the same meaning as in Chapter 3 of Part 3 of the Capital Allowances Act 2001.
Any share issued by the successor company under Article 57 shall be treated for the purposes of the Corporation Tax Acts as if it had been issued wholly in consideration of a subscription paid to the company of an amount equal to the nominal value of the share. Any debenture issued by the successor company under Article 57 shall be treated for the purposes of the Corporation Tax Acts as if it had been issued— If any such debenture includes provision for the payment of a sum expressed as interest in respect of a period which falls wholly or partly before the issue of the debenture, any payment made in pursuance of that provision in respect of that period shall be treated for the purposes of the Corporation Tax Acts as if the debenture had been issued at the commencement of that period and, accordingly, as interest on the principal sum payable under the debenture.
Section 258.
(1)Rates Chapter Short title Extent of repeal 1971 c. 10. The Vehicles (Excise) Act 1971. In Schedule 1, in Part I, paragraph 4(a). In Schedule 2, in Part I, paragraphs 3 and 5. In Schedule 4, paragraph 6(6)(a), (c) and (d). 1985 c. 54. The Finance Act 1985. Section 4(4). 1991 c. 31. The Finance Act 1991. In Schedule 3, in Part I, paragraph 21. 1993 c. 34. The Finance Act 1993. Section 17(3)(a) and (7)(b). Section 20(3). These repeals have effect in relation to licences taken out after 30th November 1993. (2)Transitional modifications Chapter Short title Extent of repeal 1971 c. 10. The Vehicles (Excise) Act 1971. In section 2A(1), the words “(other than licences for one calendar year)”. In Schedule 7, in Part I, paragraphs 1(c), 3(b), 18, 19, 21, and 22 and, so far as it relates to section 26(2), paragraph 23. 1988 c. 54. The Road Traffic (Consequential Provisions) Act 1988. In Schedule 2, in Part III, paragraph 23. These repeals come into force on 1st June 1994. (3)Other provisions Chapter Short title Extent of repeal 1971 c. 10. The Vehicles (Excise) Act 1971. Section 1(4). In section 3(3), the words “the restoration of any forfeiture and”. Section 4(3)(a). 1971 c. 10. (contd.) The Vehicles (Excise) Act 1971. (contd.) In section 16(4), the words following paragraph (b). In section 18, subsections (8) and (9) and, in subsection (10), paragraph (b) and the word “and” immediately preceding it. Section 21. In section 22, in subsection (1), the words “or sign to be exhibited”, “or 21” and “or exhibited” and, in subsection (2), the words “or sign exhibited” and “or sign”. In section 23, as set out in paragraph 20 of Part I of Schedule 7, in subsection (1)(f), the words “or the signs” and “or signs”. In section 25, in subsection (1), in paragraph (a), the words “temporary licences or” and, in paragraph (b), the words from the beginning to “allocated to the dealer in pursuance of this Act or” and, in subsection (2), the words “requirement or” (in both places). In section 26, in subsection (1), the words “or sign to be exhibited” and “or 21” and, in subsection (2)(a), the words “temporary licences or”. In section 28(1), “11(2),”. In section 29(4), “11(2),”. In section 35(2), the words “and forfeitures” (in both places). Section 36. In section 37—in subsection (3), as set out in paragraph 22 of Part I of Schedule 7, “2(5), 11(3), 14,”,in subsection (3A), as so set out, “14,” and “14 or”, and in subsection (4), “11(3), 14, 15(1), 17(1),”. In Schedule 4, paragraph 5 and, in paragraph 15(1), in the definition of “goods vehicle”, the words “(including a tricycle as defined in Schedule 1 to this Act and weighing more than 425 kilograms unladen)”. 1976 c. 40. The Finance Act 1976. In section 11, in subsection (2)(c), the words “or, if it falls” onwards and subsection (5). In section 12(2)(a), the words “either” and “, or elsewhere”. 1983 c. 28. The Finance Act 1983. In Schedule 3, in Part II, paragraph 9. 1986 c. 41. The Finance Act 1986. In Schedule 2, in Part I, in paragraph 4, in sub-paragraph (5), in paragraph (a), the words “, including those words where they appear in the subsection as set out in paragraph 12 of Part I of Schedule 7,” and paragraph (c) and sub-paragraph (7)(b). 1987 c. 16. The Finance Act 1987. In Schedule 1, in Part III, paragraphs 16(2) and 18(2) and (3). 1988 c. 53. The Road Traffic Offenders Act 1988. In Schedule 5, the entry relating to the Vehicles (Excise) Act 1971. 1988 c. 54. The Road Traffic (Consequential Provisions) Act 1988. In Schedule 3, paragraph 15. 1990 c. 29. The Finance Act 1990. In Schedule 2, in Part II, paragraph 6(1) to (3). 1991 c. 31. The Finance Act 1991. In Schedule 3, Part II. 1993 c. 34. The Finance Act 1993. In section 19(2), the words “including that subsection as set out in paragraph 12 of Part I of Schedule 7”.
Chapter Short title Extent of repeal 1981 c. 63. The Betting and Gaming Duties Act 1981. Section 21A. Section 22(5). In section 24, subsection (2), in subsections (3) and (4) the word “such”, in subsection (3) the words from “but” to the end, in subsection (4) the words “or there are special licences in force with respect to those machines” and in subsection (6)(a) the words from “or” at the end of sub-paragraph (i) to “greater”. In section 26, in subsection (4) the words “section 22(5) or”. In Schedule 4, paragraphs 9, 10 and 11A. 1982 c. 39. The Finance Act 1982. In Schedule 6, paragraphs 9, 11 and 15. 1984 c. 43. The Finance Act 1984. In Schedule 3, paragraphs 3 to 5, 6(b) to (d) and (f), 7(3) to (7) and (9) to (11). 1985 c. 54. The Finance Act 1985. In Schedule 5, paragraphs 2, 3(1) and 9(1). 1987 c. 16. The Finance Act 1987. Section 4. Section 5(1), (4) and (5). 1993 c. 34. The Finance Act 1993. Section 15. In section 16, subsections (4)(b) and (5). These repeals have effect in accordance with Schedule 3 to this Act.
Chapter Short title Extent of repeal 1979 c. 2. The Customs and Excise Management Act 1979. Section 111(2). In section 113(4), the words from “and the trader” onwards. Section 116A. Section 127. 1979 c. 4. The Alcoholic Liquor Duties Act 1979. Section 13(4). Section 15(8). Section 19(3). 1979 c. 7. The Tobacco Products Duty Act 1979. Section 8(3). 1981 c. 35. The Finance Act 1981. In Schedule 8— (a) in paragraph 2(d), paragraph (ii) and the word “and” immediately preceding it; (b) paragraph 7; (c) in paragraph 12, in sub-paragraph (b), the words from “and after” onwards and sub-paragraph (c); (d) in paragraph 14, the words from “and after” in sub-paragraph (c) to the end of sub-paragraph (d); and (e) in paragraph 15, sub-paragraph (c) and the word “and” immediately preceding it. 1981 c. 63. The Betting and Gaming Duties Act 1981. In section 24(5), the words after paragraph (f). In Schedule 1— (a) paragraph 11; (b) in paragraph 14(3), the word “reasonably”; and (c) in paragraph 15(1), the words from “(not being” to “9 above)”. In Schedule 2, paragraph 5 and, in paragraph 7(6), the words “(1) or”. In Schedule 3, paragraphs 14 and 16(4). In Schedule 4, paragraph 16(2). 1985 c. 54. The Finance Act 1985. In Schedule 5, paragraph 9(2). 1989 c. 26. The Finance Act 1989. Section 15. 1992 c. 48. The Finance (No. 2) Act 1992. In Schedule 2, paragraph 2(6). Section 19 of this Act applies to these repeals as it applies to Chapter II of Part I of this Act.
Chapter Short title Extent of repeal 1985 c. 54. The Finance Act 1985. In section 20(2)(a) the words “one month after”. This repeal has effect in accordance with section 46 of this Act.
(1) Reliefs Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. Section 257BB(6). In section 257D(5)(d), the words “section 257A and”. In section 265(3)(b), the words from “section 257A” to “or under”. In section 347B(2), the words “Notwithstanding section 347A(1)(a) but”. 1988 c. 39. The Finance Act 1988. In Schedule 3, paragraph 33. 1992 c. 48. The Finance (No. 2) Act 1992. In Schedule 5, paragraph 8(2). The repeals in section 347B of the Income and Corporation Taxes Act 1988 and in the Finance Act 1988 have effect in relation to payments becoming due on or after 6th April 1994 and the other repeals have effect in accordance with section 77(7) of this Act. (2)Interest relief Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. Section 257D(8)(a). Section 265(3)(a). Section 353(4) and (5). 1991 c. 31. The Finance Act 1991. Section 27(1) to (5) and (7). 1992 c. 12. The Taxation of Chargeable Gains Act 1992. In section 6(1), the words “353(4), 369(3A)”, the words “certain interest etc. and” and paragraph (a). 1992 c. 48. The Finance (No. 2) Act 1992. In section 19, in subsection (3), the words “353(5), 369(3B)” and subsection (5). 1993 c. 34. The Finance Act 1993. Section 57(7). In Schedule 6, in paragraph 1, the words “353(5), 369(3B)”. These repeals have effect in accordance with section 81(6) of this Act. (3)Medical insurance Chapter Short title Extent of repeal 1988 c.1. The Income and Corporation Taxes Act 1988. In section 257D(8), paragraph (d). In section 265(3), paragraph (d). 1989 c.26. The Finance Act 1989. In section 55, in subsection (2) paragraph (e) and the word “and” immediately preceding it, and subsections (3) to (6).
The repeals in the Income and Corporation Taxes Act 1988 have effect in accordance with paragraph 3 of Schedule 10 to this Act. The repeals in the Finance Act 1989 have effect in accordance with paragraph 5 of that Schedule.
(4)Vocational training Chapter Short title Extent of repeal 1991 c. 31. The Finance Act 1991. In section 32(10), the words after paragraph (b). This repeal comes into force in accordance with section 84(4) of this Act. (5)Beneficial loans Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 160(4), the words from “and Part III” to the end. Section 167(2A). Section 191B(14). In Schedule 7, in paragraph 1(5) the words “his employer, being” and Parts III to V. 1991 c. 31. The Finance Act 1991. Section 31. In Schedule 6, paragraphs 2 and 5. These repeals have effect in accordance with section 88(5) of this Act. (6)Vouchers Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 141(1), the words following paragraph (b). (7)Relief on re-investment Chapter Short title Extent of repeal 1992 c. 12. The Taxation of Chargeable Gains Act 1992. In section 164A, in subsection (2) the words “Subject to section 164C”, and subsections (3) to (7) and (11). Sections 164C to 164E. In section 164F, in subsection (5)(a) the words “or 164D” and in subsection (10) the words “(within the meaning of section 164D)”. In section 164H(1), the words “within the meaning of section 164C”. These repeals have effect in accordance with section 91(2) of this Act. (8)Indexation allowance Chapter Short title Extent of repeal 1992 c. 12. The Taxation of Chargeable Gains Act 1992. In section 56(1)(a), the words “or loss”. Section 103. Section 111. Sections 182 to 184. Section 200. In Schedule 7A, in paragraph 2(4) the words “except in relation to the calculation of any indexed rise”, in paragraph 2(9) the definition of “indexed rise”, in paragraph 4(12) the words from “together” to the end and paragraph 4(13). 1993 c. 34. The Finance Act 1993. In Schedule 17, paragraph 8. These repeals have effect in accordance with section 93(11) of this Act. (9)Commodity and financial futures Chapter Short title Extent of repeal 1992 c. 12. The Taxation of Chargeable Gains Act 1992. Section 143(4). This repeal has effect in accordance with section 95(2) of this Act. (10) Settlements with foreign element: information Chapter Short title Extent of repeal 1970 c. 9. The Taxes Management Act 1970. In the Table in section 98, in the second column the entry relating to paragraphs 11 to 14 of Schedule 5 to the Taxation of Chargeable Gains Act 1992. 1992 c. 12. The Taxation of Chargeable Gains Act 1992. In Schedule 5, paragraphs 11 to 14. These repeals have effect in accordance with section 97 of this Act. (11) Profit sharing schemes Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In Schedule 10, in paragraph 3 the words from “In this paragraph” to the end of the paragraph. (12) Retirement benefits schemes Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 188(1), paragraph (c). In section 189, paragraph (b). In section 591(2)(g) the words “approved by the Board and”. Section 605(1) and (2). In section 612(1), the definition of “administrator”.
The repeals in sections 188 and 189 have effect in accordance with section 108 of this Act. The repeal in section 591 has effect in accordance with section 107 of this Act. The repeal of section 605(1) and (2) has effect in accordance with section 105 of this Act. The repeal in section 612(1) has effect in accordance with section 103 of this Act.
(13) Authorised unit trusts Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 468, subsection (2), and in subsection (6) the definition of “distribution period”. Sections 468F and 468G. 1993 c. 34. The Finance Act 1993. In Schedule 6, paragraphs 4, 5 and 25(2). These repeals have effect in accordance with section 111 of and Schedule 14 to this Act. (14) Manufactured payments Chapter Short title Extent of repeal 1988 c.1. The Income and Corporation Taxes Act 1988. In paragraph 5 of Schedule 23A, in sub-paragraphs (2) and (4) the word “and” at the end of paragraph (b). These repeals have effect in accordance with section 123 of this Act. (15) Controlled Foreign Companies Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In paragraph 2 of Schedule 25, in sub-paragraph (1), in paragraph (a) the words “or for some other period which, in whole or in part, falls within that accounting period” and the words following paragraph (d), and sub-paragraph (2). These repeals have effect in accordance with section 134(5) of this Act. (16) Repeals connected with foreign income dividends Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 434(6A) the word “and” at the end of paragraph (a). In section 438(6) the words from “being” to “that profit,”. In section 731(9), in the definition of “interest” the words from “and in applying” to the end of paragraph (b). (17) Enterprise investment scheme Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 257D(8)(b), the words “or under section 289”. In section 265(3)(b), the words “or under section 289”. In section 290A, subsection (10) and, in subsection (11), the definition of “prospectus”. In section 293, subsection (4) and subsections (9) to (11). Section 296(6). In section 297, in subsection (1) the words “(6) and” and in subsection (2) paragraphs (h) and (j). In section 298, in subsection (5) the definition of “property development” and subsections (6) to (8). Section 301(1), (2) and (7). Section 303(8), (10) and (11). In section 306(10), the second sentence. In section 307, in subsection (1) the words from “but” to the end and subsection (9). Section 308(6). Section 309. Section 310(10) and (11). In section 312, in subsection (1) the definitions of “fixed-rate preference share capital” and “the relevant period”. 1988 c. 39. The Finance Act 1988. Section 50. Schedule 4. 1990 c. 29. The Finance Act 1990. Section 73. 1992 c. 12. The Taxation of Chargeable Gains Act 1992. In section 231(1)(d) the words “(business expansion scheme)”. 1992 c. 48. The Finance (No. 2) Act 1992. Sections 38 to 40. These repeals have effect in relation to shares issued on or after 1st January 1994. (18) Deduction from income Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 808 the words “In this section “securities” includes stocks and shares.” This repeal has effect in accordance with section 140 of this Act. (19) Qualifying lenders Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. Section 376(5). In section 379, the words “except in section 376(4) and (5)”. In section 828(4), “376(5)”. (20) Premiums referred to pension business Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 431(4), in paragraph (d) the words “approved by the Board and” and in paragraph (e) the words “approved by the Board”. These repeals have effect in accordance with section 143 of this Act. (21) Business donations Chapter Short title Extent of repeal 1990 c. 29. The Finance Act 1990. Section 75. (22) Minor corrections Chapter Short title Extent of repeal 1965 c. 25. The Finance Act 1965. Section 87. Schedule 21. 1966 c. 18. The Finance Act 1966. In Schedule 5, paragraph 19. In Schedule 6, paragraph 23. 1970 c. 9. The Taxes Management Act 1970. In Schedule 4, paragraph 6. 1970 c. 10. The Income and Corporation Taxes Act 1970. In Schedule 15, in Part I of the Table in paragraph 11, the entry relating to the Finance Act 1966. 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 43(1), the words “or IV”. In section 271— (a) in subsection (1)— (i) the words “or contract”, wherever they occur, (ii) in paragraph (b), the words “or the contract was made after that date”, and (iii) in paragraph (c), the words “or, as the case may be, the body with which the contract was made”, and (b) in subsection (2), paragraph (b) and the word “or” immediately preceding it. Section 614(1). In Schedule 11, in paragraph 8(b), the words “Chapter II of Part I of the 1968 Act or”. The repeals in sections 43 and 271 of, and Schedule 11 to, the Income and Corporation Taxes Act 1988 have effect in accordance with Schedule 17 to this Act. (23) Management: self-assessment etc. Chapter Short title Extent of repeal 1970 c. 9. The Taxes Management Act 1970. In section 11(1), the words “inspector or other”. Section 11A. In section 12, subsections (1) and (4). In section 33(2), the proviso. In section 95(3), the words from “and the references” to the end. Section 118(3). 1975 c. 45. The Finance (No. 2) Act 1975. Section 67(1). 1988 c. 1. The Income and Corporation Taxes Act 1988. Section 5. Section 10. In section 203(2)(dd), the words from “(being not less” to “due)”. Section 478. In section 824, subsection (5), in subsection (9), the words “a partnership” and the words “(within the meaning of section 111 of the Finance Act 1989)”, and subsection (10). 1992 c. 12 The Taxation of Chargeable Gains Act 1992. Section 283(5).
The repeal of section 118(3) of the Taxes Management Act 1970 has effect in accordance with section 199(2) of, and paragraph 34(3) of Schedule 19 to, this Act. The repeal of section 5 of the Income and Corporation Taxes Act 1988— The repeals in section 824 of the Income and Corporation Taxes Act 1988 has effect in accordance with section 199(2) of, and paragraph 41(4) of Schedule 19 to, this Act. The other repeals have effect in accordance with section 199(2) of this Act.
(24) Changes for facilitating self-assessment Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 65, in subsection (1), the words “and sections 66 and 67” and the words “the year preceding”, in subsection (3), the words from “Nothing in this subsection” to the end, and in subsection (5), the words “subject to sections 66 and 67” and the words “the year preceding”, in each place where they occur. Sections 66 and 67. In section 96, in subsection (5), paragraph (b), in subsection (6), the words from “except that” to the end, and in subsection (7), paragraph (b). In section 113, in subsection (1), the words “and of section 114(3)(b)”, subsections (3) to (5) and, in subsection (6), the words from “and where” to the end. In section 114, in subsection (3), the words from “except that” to the end, and subsection (4). In section 115, subsections (1) to (3) and (6). In section 277, in subsection (1), the words “Subject to subsection (2) below”, paragraph (c) and the word “and” immediately preceding that paragraph, and subsection (2). Section 380(3). Section 381(6). Section 383. In section 384, in subsection (1), the words “(including any amount in respect of capital allowances which, by virtue of section 383, is to be treated as a loss)”, in subsection (2), the words “or an allowance in respect of expenditure incurred”, paragraph (b) and the word “or” immediately preceding that paragraph, and subsection (5). In section 385, subsections (2), (3), (5) and (8). Section 386(4). In section 388, in subsection (6), paragraphs (b) and (d) and the word “and” immediately preceding paragraph (d), and in subsection (7), the words from the beginning to “an earlier year; and”. In section 389, subsections (3) and (5) to (7). In section 397(1), the words from “and where” to the end. In section 521, in subsections (1) and (2), the words “or its basis period”. In section 528(1), the words “or its basis period”. In section 530, in subsections (4) and (5), the words “or its basis period”. In section 804(8), the definitions of “non-basis period” and “years of commencement” and the words “references to the enactments relating to cessation are references to sections 63, 67 and 113”. 1990 c. 1. The Capital Allowances Act 1990. In section 3, in subsections (1) and (2B) to (4), the words “or its basis period”, in each place where they occur. In section 4(10), the words “or of which the basis periods end on or before that date”. In section 7, in subsections (2) and (3), the words “or its basis period”. In section 8, in subsection (3), the words “or its basis period”, and in subsection (5), in paragraph (a), the words from “or” to the end. In section 9(3), the words “or its basis period”. In section 19(3), the words “or its basis period”, in each place where they occur. In section 21(8), the words “or its basis period”. In section 23(2), the words “or its basis period”. In section 24, in subsections (6), (6A) and (7), the words “or its basis period”, in each place where they occur. In section 25, in subsections (1) and (7), the words “or its basis period”. In section 33(3), the words “or, as the case may be, in its basis period”. In section 37, in subsections (2) and (9), the words “or its basis period”, in subsection (5), the words “or, as the case may be, in its basis period” and, in subsection (6), the words “or in the basis period for which”. In section 42(4), the words “or in the basis period for which”. In section 46(1), the words “or in the basis period for which”. In section 47(1), the words “or in the basis period for which”. In section 48, in subsections (3), (4) and (5), the words “or its basis period”. In section 49(2), the words “or its basis period”. In section 61(5), the words “or its basis period”. In section 62A(6), the words “or its basis period”. In section 67(6), the words “or its basis period”. In section 73(3), the words “or its basis period”. In section 79, in subsections (3) and (5), the words “or its basis period”, in each place where they occur. In section 85, in subsections (1), (3) and (4), the words “or its basis period”, in each place where they occur. In section 87(6), the words “or of which the basis periods end on or before that date”. In section 93(3), the words “or its basis period”. In section 99, in subsections (1) and (4), the words “or its basis period”. In section 101, in subsections (2) and (6) to (8), the words “or its basis period”. In section 121(4), the words “or its basis period” and the words “or, as the case may be, its basis period”. In section 124(3), the words “or its basis period”. In section 126(2), the words “or its basis period”, in each place where they occur. In section 128(1), the words “or its basis period”. In section 129(3), the words “or the basis periods for which”. In section 134(1), the words from “but where a writing-down allowance” to the end. In section 138(7), the words “or its basis period”. In section 148(7), the words “or its basis period”. In section 159, in subsections (4) and (6), the words “or its basis period”. In section 159A(4), the words “or its basis period”. 1991 c. 31. The Finance Act 1991. In section 72(8), the words “383(6), (7) and (8)”. 1994 c. 9. The Finance Act 1994. In section 118(6), the words “or its basis period”.
The repeal in section 65(3) of the Income and Corporation Taxes Act 1988 has effect in accordance with sections 207(6) and 218(1)(b) of this Act. The repeal in section 96(6) of the Income and Corporation Taxes Act 1988 has effect in accordance with section 216(5) of this Act. The repeal in section 96(7) of the Income and Corporation Taxes Act 1988 has effect in accordance with section 214(7) of this Act. The following repeals, namely— The following repeals, namely— The repeals of subsections (3) and (8) of section 385 of the Income and Corporation Taxes Act 1988 have effect in accordance with section 209(7) of this Act. The other repeals have effect in accordance with section 218(1) of this Act.
The following repeals, namely—
the repeals in sections 113, 114, 115, 277, 380, 381 and 386 of the Income and Corporation Taxes Act 1988;
the repeal of subsection (5) of section 384 of that Act;
the repeal of subsections (2) and (5) of section 385 of that Act; and
the repeal of subsection (3) of section 389 of that Act, have effect in accordance with section 215(4) of this Act.
(25) Lloyd’s underwriters Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. Section 627. Section 641(2). 1993 c. 34. The Finance Act 1993. Section 171(3). In section 179, in subsection (2), the words “to subsection (3) below and”, and subsection (3). In section 182, subsections (2) to (4). Section 183(3). In section 184(1), the words “or the managing agent of a syndicate of which he is a member”. In Schedule 19, Part II. In Schedule 20, in paragraph 13(1), the words from “and a transfer” to the end.
The repeals in the Income and Corporation Taxes Act 1988 and in section 183 of the Finance Act 1993 have effect in accordance with section 228(4) of this Act.
The repeal in section 171 of the Finance Act 1993 has effect in accordance with paragraph 1(3)(b) of Schedule 21 to this Act.
The repeals in section 179 of the Finance Act 1993 have effect in accordance with paragraph 6(3) of that Schedule.
The repeals in section 182 of the Finance Act 1993 have effect in accordance with paragraph 7(2) of that Schedule.
The repeal in paragraph 13(1) of Schedule 20 to the Finance Act 1993 has effect in accordance with paragraph 16(3) of that Schedule.
The other repeals have effect in accordance with section 228(3) of this Act.
Chapter Short title Extent of repeal 1975 c. 22. The Oil Taxation Act 1975. In section 2(9)(a)(i), the words “or, as the case may be”. In Schedule 3, in paragraph 2A, sub-paragraph (4). 1993 c. 34. The Finance Act 1993. Section 190(5)(b).
The repeals in the Oil Taxation Act 1975 have effect in accordance with section 236 of this Act.
The repeal in the Finance Act 1993 has effect in accordance with section 238 of this Act.
(1) Exchange, partition, etc. Chapter Short title Extent of repeal 1891 c. 39. The Stamp Act 1891. In section 73, the words from first “upon” to “heritable property, or” and the words “exchange or”. In Schedule 1, the heading “Exchange or Excambion”. 1991 c. 31. The Finance Act 1991. In section 110, subsection (3)(e) and, in subsection (4), the words following “exempt property”. These repeals have effect in accordance with section 241(6) of this Act. (2)Production of instruments in Northern Ireland Chapter Short title Extent of repeal 1936 c. 33 (N. I.). The Finance Act (Northern Ireland) 1936. Section 9. This repeal has effect in accordance with section 245(8) of this Act.
(1) Companies treated as non-resident Chapter Short title Extent of repeal 1988 c.1. The Income and Corporation Taxes Act 1988. In section 468F, in subsection (1)(c) the words “and not a dual resident” and in subsection (8) the definition of “dual resident”. In section 742(8) the words “, or regarded for the purposes of any double taxation arrangements having effect by virtue of section 788 as resident in a territory outside the United Kingdom,”. In section 745(4) the words “, or regarded for the purposes of any double taxation arrangements having effect by virtue of section 788 as resident in a territory outside the United Kingdom,”. Section 749(4A). Section 751(2)(bb). 1990 c.29. The Finance Act 1990. Section 66. In section 67, subsections (1) and (2). 1992 c.12. The Taxation of Chargeable Gains Act 1992. Section 139(3). Section 160. In section 166(2) the words “or a company” and the words “or company”. In section 171(2), paragraph (e) and the word “or” immediately preceding it. Section 172(3)(a). In section 175(2) the words from “or a company which” to the end of paragraph (b). Section 186. In section 187, in subsection (1)(a) the words “or 186” and in subsection (6) the words “or, as the case may be, section 186(2),” and the words “or, as the case may be, section 186(1)”. Section 188. In section 211(3) the words “(and would not be a gain on which, under any double taxation relief arrangements, it would not be liable to tax)”. 1993 c. 34. The Finance Act 1993. Section 61(3). These repeals have effect in accordance with section 251 of this Act. (2)Railway taxation provisions Chapter Short title Extent of repeal 1992 c. 12. The Taxation of Chargeable Gains Act 1992. In section 35(3)(d), the word “and” immediately preceding sub-paragraph (viii). This repeal shall be deemed to have come into force on 11th January 1994. (3)Assigned matters: minor corrections Chapter Short title Extent of repeal 1979 c. 2. The Customs and Excise Management Act 1979. In section 118A, subsection (7). 1983 c. 55. The Value Added Tax Act 1983. In Schedule 7, in paragraph 7, sub-paragraph (6).
“relevant transaction” means a transaction as a result of which— and any reference to an associated company is, unless the contrary intention appears, a reference to an associated company of the qualifying company.
“increase”, in relation to the rate of tax, includes the imposition of a charge to tax by adding to the descriptions of contract which are taxable insurance contracts;
the terms of a qualifying contract to which a qualifying company is party are varied;
. . .
. . ., in this Chapter, in relation to a passenger whose agreement for carriage is evidenced by a ticket—
“transferred loss”, in relation to such a contract, means a loss for which that other person takes over liability under the contract (disregarding, in the case of a loss that has been declared at the time it is taken over, any part of it in respect of which the member has paid a cash call before that time).
In a case where— they may cancel his registration with effect from the earliest practicable time after he so ceased.
the Commissioners are satisfied that a person has ceased to receive, as insurer, premiums in the course of any taxable business, but
he has not notified them under subsection (3) above,
The agreements and arrangements covered by the definition of “agreement for carriage” in subsection (1) include informal agreements or arrangements between, for example, members of a family or friends.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subject to the preceding provisions of this section, expressions used in this Chapter and in the Customs and Excise Management Act 1979 have the same meaning as in that Act.
This Chapter applies to any carriage of a passenger on an aircraft which begins after 31st October 1994.
For the purpose of determining whether or not a person is a chargeable passenger in relation to any carriage on an aircraft beginning after that date, the provisions of section 31 above and any order made by virtue of that section shall be treated as having applied to any such carriage of that person which began on or before that date as they would apply to any such carriage of that person beginning after that date.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 14 of the Finance Act 1985 (misdeclaration or neglect resulting in understatement or overclaim) shall be amended as follows.
In subsection (4), for the words from “aggregate of” to the end there is substituted “amount of the understatement of liability or, as the case may be, overstatement of entitlement referred to, in relation to that period, in subsection (1) above”.
In subsection (5A), for “subsections (4B) and (5) above” there is substituted “this section”.
This section shall have effect in relation to any prescribed accounting period beginning on or after such day as the Treasury may by order made by statutory instrument appoint.
Section 20 of the Finance Act 1985 (repayment supplement) shall be amended as follows.
In subsection (1) (supplement of 5 per cent. or £30, whichever is greater) for “£30” there shall be substituted “ £50 ”.
In subsection (2)(a) (return or claim must be received not later than one month after last day on which it is required) the words “one month after” shall be omitted.
This section shall apply where the requisite return or claim is received after the expiry of the period of one month beginning with the day after that on which this Act is passed.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 21 of the Finance Act 1988 (set-off of credits) shall become subsection (1) of that section and the following subsections shall be inserted in that section after subsection (1), that is to say—
This section shall have effect in relation to amounts becoming due on or after such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.
A tax, to be known as insurance premium tax, shall be charged in accordance with this Part.
The tax shall be under the care and management of the Commissioners of Customs and Excise.
Tax shall be charged on the receipt of a premium by an insurer if the premium is received—
under a taxable insurance contract, and
on or after 1st October 1994.
Tax shall be charged by reference to the chargeable amount.
For the purposes of this Part, the chargeable amount is such amount as, with the addition of the tax chargeable, is equal to the amount of the premium.
Subsections (1) and (2) above shall have effect subject to sections 69 and 69A below.
Tax shall be charged—
at the higher rate, in the case of a premium which is liable to tax at that rate; and
at the standard rate, in any other case.
For the purposes of this Part—
the higher rate is 20 per cent .; and
the standard rate is 12 per cent .
Tax shall be payable by the person who is the insurer in relation to the contract under which the premium is received.
Subsection (1) above shall have effect subject to any regulations made under section 65 below.
A premium received under a taxable insurance contract by an insurer is liable to tax at the higher rate if it falls within one or more of the paragraphs of Part II of Schedule 6A to this Act.
Part I of Schedule 6A to this Act shall have effect with respect to the interpretation of that Schedule.
Provision may be made by order amending Schedule 6A as it has effect for the time being.
This section is subject to section 69 below.
This section applies where— a fee in respect of an insurance-related service is charged by a taxable intermediary to a person who is or becomes the insured (or one of the insured) under the contract or to a person who acts for or on behalf of such a person.
at or about the time when a higher rate contract is effected, and
in connection with that contract,
Where this section applies—
a payment in respect of the fee shall be treated for the purposes of this Part as a premium received under a taxable insurance contract by an insurer, and
that premium—
shall be treated for the purposes of this Part as so received at the time when the payment is made, and
shall be chargeable to tax at the higher rate.
Tax charged by virtue of subsection (2) above shall be payable by the taxable intermediary as if he were the insurer under the contract mentioned in paragraph (a) of that subsection.
For the purposes of this section, a contract of insurance is a “higher rate contract” if—
it is a taxable insurance contract; and
the whole or any part of a premium received under the contract by the insurer is (apart from this section) liable to tax at the higher rate.
For the purposes of this Part a “taxable intermediary” is a person falling within subsection (6) or (6A) below who— charges a fee in respect of an insurance-related service to a person who is or becomes the insured (or one of the insured) under the contract or to a person who acts for or on behalf of such a person.
at or about the time when a higher rate contract is effected, and
in connection with that contract,
A person falls within this subsection if the higher rate contract mentioned in subsection (1) above falls within paragraph 2 or 3 of Schedule 6A to this Act (motor cars or motor cycles, or relevant goods) and the person is—
within the meaning of the paragraph in question, a supplier of motor cars or motor cycles or, as the case may be, of relevant goods; or
a person connected with a person falling within paragraph (a) above; or
a person who in the course of his business pays— to a person falling within paragraph (a) or (b) above.
the whole or any part of the premium received under that contract, or
a fee connected with the arranging of that contract,
A person falls within this subsection if the higher rate contract mentioned in subsection (1) above falls within paragraph 4 of Schedule 6A to this Act (travel insurance) and the person is—
the insurer under that contract; or
a person through whom that contract is arranged in the course of his business; or
a person connected with the insurer under that contract; or
a person connected with a person falling within paragraph (b) above; or
a person who in the course of his business pays— to a person falling within any of paragraphs (a) to (d) above.
the whole or any part of the premium received under that contract, or
a fee connected with the arranging of that contract,
For the purposes of this section, any question whether a person is connected with another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010 .
In this section—
A person who— is liable to be registered.
receives, as insurer, premiums in the course of a taxable business, and
is not registered,
“lease”— and “lessee” and “grant” shall be construed accordingly,
Where, by virtue of subsection (7A) above, subsection (7) above does not apply to the receipt of an amount by a person and the whole or part of the amount is referable to commission to which he is entitled—
if the whole of the amount is so referable, the amount shall be treated as received by the insurer when it is deducted by that person; and
otherwise, the part of the amount that is so referable shall be treated as received by the insurer when the remainder of the payment concerned is or is treated as received by him.
includes an underlease or other tenancy and an agreement for a lease, underlease or tenancy, but
The register kept under this section may contain such information as the Commissioners think is required for the purposes of the care and management of the tax.
Provision may be made by order amending subsections (1AA) to (1AE) above.
A person who— shall notify the Commissioners of those facts.
at any time forms the intention of receiving, as insurer, premiums in the course of a taxable business, and
is not already receiving, as insurer, premiums in the course of another taxable business,
A person who at any time— shall notify the Commissioners of those facts.
ceases to have the intention of receiving, as insurer, premiums in the course of a taxable business, and
has no intention of receiving, as insurer, premiums in the course of another taxable business,
Where a person is liable to be registered by virtue of subsection (1) above the Commissioners shall register him with effect from the time when he begins to receive premiums in the course of the business concerned; and it is immaterial whether or not he notifies the Commissioners under subsection (2) above.
Where a person—
notifies the Commissioners under subsection (3) above, and
satisfies them of the facts there mentioned, . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For the purposes of this section regulations may make provision—
as to the time within which a notification is to be made;
as to the circumstances in which premiums are to be taken to be received in the course of a taxable business;
as to the form and manner in which any notification is to be made and as to the information to be contained in or provided with it;
requiring a person who has made a notification to notify the Commissioners if any information contained in or provided in connection with it is or becomes inaccurate;
as to the correction of entries in the register.
References in this section to receiving premiums are to receiving premiums on or after 1st October 1994.
Regulations may provide that a registrable person shall—
account for tax by reference to such periods (accounting periods) as may be determined by or under the regulations;
make, in relation to accounting periods, returns in such form as may be prescribed and at such times as may be so determined;
pay tax at such times and in such manner as may be so determined.
A person who— is liable to be registered.
is a taxable intermediary, and
is not registered,
The register kept under this section may contain such information as the Commissioners think is required for the purposes of the care and management of the tax.
A person who— shall notify the Commissioners of those facts.
at any time forms the intention of charging taxable intermediary’s fees, and
is not already charging such fees in the course of another business,
A person who at any time— shall notify the Commissioners of those facts.
ceases to have the intention of charging taxable intermediary’s fees in the course of his business, and
has no intention of charging such fees in the course of another business of his,
Where a person is liable to be registered by virtue of subsection (1) above, the Commissioners shall register him with effect from the time when he begins to charge taxable intermediary’s fees in the course of the business concerned; and it is immaterial whether or not he notifies the Commissioners under subsection (3) above.
Where a person— the Commissioners shall cancel his registration with effect from the earliest practicable time after he ceases to charge taxable intermediary’s fees in the course of any business of his.
notifies the Commissioners under subsection (4) above, and
satisfies them of the facts there mentioned,
In a case where— they may cancel his registration with effect from the earliest practicable time after he so ceased.
the Commissioners are satisfied that a person has ceased to charge taxable intermediary’s fees in the course of any business of his, but
he has not notified them under subsection (4) above,
For the purposes of this section regulations may make provision—
as to the time within which a notification is to be made;
as to the form and manner in which any notification is to be made and as to the information to be contained in or provided with it;
requiring a person who has made a notification to notify the Commissioners if any information contained in or provided in connection with it is or becomes inaccurate;
as to the correction of entries in the register.
In this Part “taxable intermediary’s fees” means fees which, to the extent of any payment in respect of them, are chargeable to tax by virtue of section 52A above.
Regulations may make provision requiring a registrable person to notify the Commissioners of particulars which—
are of changes in circumstances relating to the registrable person or any business carried on by him,
appear to the Commissioners to be required for the purpose of keeping the register kept under section 53 or 53AA above up to date, and
are of a prescribed description.
Regulations may make provision—
as to the time within which a notification is to be made;
as to the form and manner in which a notification is to be made;
requiring a person who has made a notification to notify the Commissioners if any information contained in it is inaccurate.
Regulations may provide that where an insurer or taxable intermediary has paid tax and all or part of the premium or taxable intermediary’s fee (as the case may be) is repaid, the insurer or taxable intermediary shall be entitled to credit of such an amount as is found in accordance with prescribed rules.
Regulations may provide that where— the insurer shall be entitled to credit of such an amount as is found in accordance with prescribed rules.
by virtue of regulations made under section 68 below tax is charged in relation to a premium which is shown in the accounts of an insurer as due to him,
that tax is paid, and
it is shown to the satisfaction of the Commissioners that the premium, or part of it, will never actually be received by or on behalf of the insurer,
Regulations may make provision as to the manner in which an insurer or taxable intermediary is to benefit from credit, and in particular may make provision—
that an insurer or taxable intermediary shall be entitled to credit by reference to accounting periods;
that an insurer or taxable intermediary shall be entitled to deduct an amount equal to his total credit for an accounting period from the total amount of tax due from him for the period;
that if no tax is due from an insurer or taxable intermediary for an accounting period but he is entitled to credit for the period, the amount of the credit shall be paid to him by the Commissioners;
that if the amount of credit to which an insurer or taxable intermediary is entitled for an accounting period exceeds the amount of tax due from him for the period, an amount equal to the excess shall be paid to him by the Commissioners;
for the whole or part of any credit to be held over to be credited for a subsequent accounting period;
as to the manner in which a person who has ceased to be registrable (whether under section 53 or section 53AA) is to benefit from credit.
Regulations under subsection (3)(c) or (d) above may provide that where at the end of an accounting period an amount is due to an insurer or taxable intermediary who has failed to submit returns for an earlier period as required by this Part, the Commissioners may withhold payment of the amount until he has complied with that requirement.
Regulations under subsection (3)(e) above may provide for credit to be held over either on the insurer’s or taxable intermediary’s application or in accordance with general or special directions given by the Commissioners from time to time.
Regulations may provide that—
no deduction or payment shall be made in respect of credit except on a claim made in such manner and at such time as may be determined by or under regulations;
payment in respect of credit shall be made subject to such conditions (if any) as the Commissioners think fit to impose, including conditions as to repayment in specified circumstances;
deduction in respect of credit shall be made subject to such conditions (if any) as the Commissioners think fit to impose, including conditions as to the payment to the Commissioners, in specified circumstances, of an amount representing the whole or part of the amount deducted.
Regulations may require a claim by an insurer or taxable intermediary to be made in a return required by provision made under section 54 above.
Regulations may provide that where— prescribed adjustments shall be made as regards any amount of tax due from any person.
all or any of the tax payable in respect of a premium or taxable intermediary’s fee has not been paid, and
the circumstances are such that a person would be entitled to credit if the tax had been paid,
In a case where— the Commissioners may assess the amount of tax due from the person concerned to the best of their judgment and notify it to him.
a person has failed to make any returns required to be made under this Part,
a person has failed to keep any documents necessary to verify returns required to be made under this Part,
a person has failed to afford the facilities necessary to verify returns required to be made under this Part, or
it appears to the Commissioners that returns required to be made by a person under this Part are incomplete or incorrect,
Where a person has for an accounting period been paid an amount to which he purports to be entitled under regulations made under section 55 above, then, to the extent that the amount ought not to have been paid or would not have been paid had the facts been known or been as they later turn out to be, the Commissioners may assess the amount as being tax due from him for that period and notify it to him accordingly.
Where a person is assessed under subsections (1) and (2) above in respect of the same accounting period the assessments may be combined and notified to him as one assessment.
Where the person failing to make a return, or making a return which appears to the Commissioners to be incomplete or incorrect, was required to make the return as a personal representative, trustee in bankruptcy, trustee in sequestration, receiver, liquidator or person otherwise acting in a representative capacity in relation to another person, subsection (1) above shall apply as if the reference to tax due from him included a reference to tax due from that other person.
An assessment under subsection (1) or (2) above of an amount of tax due for an accounting period shall not be made after the later of the following— but where further such evidence comes to their knowledge after the making of an assessment under subsection (1) or (2) above another assessment may be made under the subsection concerned in addition to any earlier assessment.
two years after the end of the accounting period;
one year after evidence of facts, sufficient in the Commissioners’ opinion to justify the making of the assessment, comes to their knowledge;
In a case where— then, if the Commissioners think fit, having regard to the failure referred to in paragraph (a) above, they may specify in the assessment referred to in paragraph (c) above an amount of tax greater than that which they would otherwise have considered to be appropriate.
as a result of a person’s failure to make a return for an accounting period the Commissioners have made an assessment under subsection (1) above for that period,
the tax assessed has been paid but no proper return has been made for the period to which the assessment related, and
as a result of a failure to make a return for a later accounting period, being a failure by the person referred to in paragraph (a) above or a person acting in a representative capacity in relation to him, as mentioned in subsection (4) above, the Commissioners find it necessary to make another assessment under subsection (1) above,
Where an amount has been assessed and notified to any person under subsection (1) or (2) above it shall be deemed to be an amount of tax due from him and may be recovered accordingly unless, or except to the extent that, the assessment has subsequently been withdrawn or reduced.
For the purposes of this section notification to— shall be treated as notification to the person in relation to whom the person mentioned in paragraph (a) above, or the first person mentioned in paragraph (b) above, acts.
a personal representative, trustee in bankruptcy, trustee in sequestration, receiver or liquidator, or
a person otherwise acting in a representative capacity in relation to another person,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Where at any time (a relevant time) a person who is an insurer— this section shall have effect with a view to securing that another person is the insurer’s tax representative at that time.
is registered, or liable to be registered, under section 53 above, and
does not have any business establishment or other fixed establishment in the United Kingdom,
If, at the time the insurer first falls within subsection (1) above, the insurer has a representative fulfilling the requirements of section 10 of the Insurance Companies Act 1982—
the Commissioners shall be taken to approve that person at that time as the insurer’s tax representative, and
that person shall be the insurer’s tax representative at any relevant time falling after the time mentioned in paragraph (a) above and before the Commissioners' approval is withdrawn.
If, at the time the insurer first falls within subsection (1) above, the insurer does not have a representative fulfilling the requirements of section 10 of the Insurance Companies Act 1982, the insurer shall take action as mentioned in subsection (4) below.
The insurer takes action as mentioned in this subsection if—
he requests the Commissioners to approve a particular person as his tax representative, and
the request is made with a view to securing that a person approved by the Commissioners becomes the insurer’s tax representative within the relevant period.
If the Commissioners approve a person as the insurer’s tax representative in a case where action has been taken as mentioned in subsection (4) above, that person shall be the insurer’s tax representative at any relevant time falling after the Commissioners' approval is given and before their approval is withdrawn.
Subsection (7) below applies where the Commissioners believe that the revenue would not be sufficiently protected if—
a person were to become the insurer’s tax representative by virtue of subsection (2) above, or
a person who by virtue of any of the provisions of this section is the insurer’s tax representative were to continue to be so.
If the Commissioners require the insurer to take action as mentioned in subsection (4) above the insurer shall comply with that requirement.
In a case where— the Commissioners shall be taken to have withdrawn their approval of that person at the time they inform the insurer that they have received the notification, and that person shall cease at that time to be the insurer’s tax representative.
a person is the insurer’s tax representative,
the insurer withdraws his agreement that that person should act as his tax representative, or that person withdraws his agreement to act as the insurer’s tax representative, or the insurer and that person agree that that person should no longer be the insurer’s tax representative, and
that person notifies the Commissioners accordingly,
Where subsection (8) above applies the insurer shall take action as mentioned in subsection (4) above.
If at any time after the insurer first falls within subsection (1) above— that person shall be the insurer’s tax representative at any relevant time falling after the Commissioners' approval is given and before their approval is withdrawn.
the insurer (otherwise than in pursuance of a duty under subsection (3), (7) or (9) above) requests the Commissioners to approve a particular person as his tax representative, and
the Commissioners approve that person,
The Commissioners may at any time direct that a person who is an agent of the insurer and is specified in the direction shall be the insurer’s tax representative; and—
the direction shall be taken to signify the Commissioners' approval of that person as the insurer’s tax representative;
that person shall be the insurer’s tax representative at any relevant time falling after the Commissioners' direction is made and before their approval is withdrawn;
the direction shall not prejudice any duty of the insurer under subsection (3), (7) or (9) above;
subsection (8) above shall not apply in the case of the person specified in the direction.
Where the Commissioners approve a person under this section as the insurer’s tax representative—
at the time the approval is given they shall be taken to withdraw their approval of any person who was the insurer’s tax representative immediately before the approval was given, and
that person shall cease at that time to be the insurer’s tax representative.
The fact that a person ceases to be an insurer’s tax representative shall not prevent his subsequent approval under this section.
The Commissioners may not withdraw their approval of a person as a tax representative except by virtue of subsection (8) or (12) above.
Regulations may make provision as to the time at which—
the Commissioners' approval is to be treated as given in a case where action has been taken as mentioned in subsection (4) above or a request has been made as mentioned in subsection (10) above;
the Commissioners are to be taken to inform the insurer under subsection (8) above;
a direction of the Commissioners is to be treated as made under subsection (11) above.
The relevant period for the purposes of subsection (4) above is— but if in any case the Commissioners allow a longer period than that found under paragraphs (a) to (c) above, the relevant period is that longer period.
where subsection (4) above applies by virtue of subsection (3) above, the period of 30 days beginning with the day on which the insurer first falls within subsection (1) above;
where subsection (4) above applies by virtue of subsection (7) above, the period of 30 days beginning with the day on which the requirement mentioned in subsection (7) above is made;
where subsection (4) above applies by virtue of subsection (9) above, the period of 30 days beginning with the day on which the person mentioned in subsection (8) above ceases to be the insurer’s tax representative;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Where a person is an insurer’s tax representative at any time, the tax representative— as if the obligations and liabilities imposed on the insurer were imposed jointly and severally on the tax representative and the insurer.
shall be entitled to act on the insurer’s behalf for the purposes of legislation relating to insurance premium tax,
shall secure (where appropriate by acting on the insurer’s behalf) the insurer’s compliance with and discharge of the obligations and liabilities to which the insurer is subject by virtue of legislation relating to insurance premium tax (including obligations and liabilities arising before the person became the insurer’s tax representative), and
shall be personally liable in respect of any failure to secure the insurer’s compliance with or discharge of any such obligation or liability, and in respect of anything done for purposes connected with acting on the insurer’s behalf,
A tax representative shall not be liable by virtue of subsection (1) above himself to be registered under this Part, but regulations may—
require the registration of the names of tax representatives against the names of the insurers in any register kept under this Part;
make provision for the deletion of the names of persons who cease to be tax representatives.
A tax representative shall not by virtue of subsection (1) above be guilty of any offence except in so far as—
the tax representative has consented to, or connived in, the commission of the offence by the insurer,
the commission of the offence by the insurer is attributable to any neglect on the part of the tax representative, or
the offence consists in a contravention by the tax representative of an obligation which, by virtue of that subsection, is imposed both on the tax representative and on the insurer.
Subsection (1)(b) above shall have effect subject to such provisions as may be made by regulations.
Subject to section 60, an appeal shall lie to an appeal tribunal from any person who is or will be affected by any decision of HMRC with respect to the any of the following matters—
the registration or cancellation of registration of any person under this Part;
whether tax is chargeable in respect of a premium or how much tax is chargeable;
whether a person is entitled to credit by virtue of regulations under section 55 above or how much credit a person is entitled to or the manner in which he is to benefit from credit;
whether a payment falls to be treated under section 52A(2) above as a premium received under a taxable insurance contract by an insurer and chargeable to tax at the higher rate;
an assessment falling within subsection (1A) below or the amount of such an assessment;
any refusal of an application under section 63 below;
whether a notice may be served on a person by virtue of regulations made under section 65 below;
an assessment under regulations made under section 65 below or the amount of such an assessment;
whether a scheme established by regulations under section 68 below applies to an insurer as regards an accounting period;
the requirement of any security under paragraph 24 of Schedule 7 to this Act or its amount;
any liability to a penalty under paragraphs 12 to 19 of Schedule 7 to this Act;
a refusal of an application for an exemption under section 69C or the withdrawal of such an exemption;
the amount of any penalty or interest specified in an assessment under paragraph 25 of Schedule 7 to this Act;
a claim for the repayment of an amount under paragraph 8 of Schedule 7 to this Act;
any liability of the Commissioners to pay interest under paragraph 22 of Schedule 7 to this Act or the amount of the interest payable.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
An assessment falls within this subsection if it is an assessment under section 56 above in respect of an accounting period in relation to which a return required to be made by virtue of regulations under section 54 above has been made.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
requests such a notification,
has not previously been given written notification of that decision, and
if given such a notification, will be entitled to require a review of the decision under this section.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
the grounds on which he requires the further review are that the Commissioners did not, on any previous review, have the opportunity to consider certain facts or other matters, and
he does not, on the further review, require the Commissioners to consider any facts or matters which were considered on a previous review except in so far as they are relevant to any issue not previously considered.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
it is the duty under this section of the Commissioners to review any decision, and
they do not, within the period of 45 days beginning with the day on which the review was required, give notice to the person requiring it of their determination on the review,
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
any decision by the Commissioners on a review under section 59 above (including a deemed confirmation under subsection (7) of that section);
any decision by the Commissioners on such review of a decision referred to in section 59(1) above as the Commissioners have agreed to undertake in consequence of a request made after the end of the period mentioned in section 59(3) above.
Without prejudice to paragraph 13 of Schedule 7 to this Act, nothing in section 59 above shall be taken to confer on a tribunal any power to vary an amount assessed by way of penalty or interest except in so far as it is necessary to reduce it to the amount which is appropriate under paragraphs 12 to 21 of that Schedule.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
has made all the returns which he is required to make by virtue of those regulations, and
has paid the amounts shown in those returns as payable by him;
Subject to subsections (4A) and (4B), where the appeal is against the decisions with respect to any of the matters mentioned in section 59(1)(b) and (d), it shall not be entertained unless the amount which HMRC have determined to be payable as tax has been paid or deposited with them.
the amount which the Commissioners have determined to be payable as tax has been paid or deposited with them, or
on being satisfied that the appellant would otherwise suffer hardship the Commissioners agree or the tribunal decides that it should be entertained notwithstanding that that amount has not been so paid or deposited.
Where on an appeal against a decision with respect to any of the matters mentioned in section 59(1)(d) above— the assessment shall have effect as an assessment of the amount specified in the direction and that amount shall be deemed to have been notified to the appellant.
it is found that the amount specified in the assessment is less than it ought to have been, and
the tribunal gives a direction specifying the correct amount,
In a case where the amount determined to be payable as tax has not been paid or deposited an appeal shall be entertained if—
HMRC are satisfied (on the application of the appellant), or
the appeal tribunal decides (HMRC not being so satisfied and on the application of the appellant),
Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007, the decision of the appeal tribunal as to the issue of hardship is final.
Where on an appeal under this section it is found that the whole or part of any amount paid or deposited in pursuance of subsection (4) above is not due, so much of that amount as is found not to be due shall be repaid with interest at the rate applicable under section 197 of the Finance Act 1996 .
Where on an appeal under this section it is found that the whole or part of any amount due to the appellant by virtue of regulations under section 55(3)(c) or (d) or (f) above has not been paid, so much of that amount as is found not to have been paid shall be paid with interest at the rate applicable under section 197 of the Finance Act 1996 .
Where an appeal under this section has been entertained notwithstanding that an amount determined by HMRC to be payable as tax has not been paid or deposited and it is found on the appeal that that amount is due it shall be paid with interest at the rate applicable under section 197 of the Finance Act 1996.
On an appeal against an assessment to a penalty under paragraph 12 of Schedule 7 to this Act, the burden of proof as to the matters specified in paragraphs (a) and (b) of sub-paragraph (1) of paragraph 12 shall lie upon HMRC .
Sections 85 and 85B of the Value Added Tax Act 1994 (settling of appeals by agreement and payment of tax where there is a further appeal) shall have effect as if—
the references to section 83 of that Act included references to section 59 above, and
the references to value added tax included references to insurance premium tax.
Interest under subsection (8) shall be paid without any deduction of income tax.
HMRC must offer a person (P) a review of a decision that has been notified to P if an appeal lies under section 59 in respect of the decision.
The offer of the review must be made by notice given to P at the same time as the decision is notified to P.
This section does not apply to the notification of the conclusions of a review.
Any person (other than P) who has the right of appeal under section 59 against a decision may require HMRC to review that decision if that person has not appealed to the appeal tribunal under section 59G.
A notification that such a person requires a review must be made within 30 days of that person becoming aware of the decision.
Sections 59 and 60 above shall come into force on such day as may be appointed by order.
HMRC must review a decision if—
they have offered a review of the decision under section 59A, and
P notifies HMRC accepting the offer within 30 days from the date of the document containing the notification of the offer.
But P may not notify acceptance of the offer if P has already appealed to the appeal tribunal under section 59G.
HMRC must review a decision if a person other than P notifies them under section 59B.
HMRC shall not review a decision if P, or another person, has appealed to the appeal tribunal under section 59G in respect of the decision.
If under section 59A HMRC have offered P a review of a decision, HMRC may within the relevant period notify P that the relevant period is extended.
If under section 59B another person may require HMRC to review a matter, HMRC may within the relevant period notify the other person that the relevant period is extended.
If notice is given the relevant period is extended to the end of 30 days from—
the date of the notice, or
any other date set out in the notice or a further notice.
In this section “relevant period” means—
the period of 30 days referred to in—
section 59C(1)(b) (in a case falling within subsection (1)), or
section 59B(2) (in a case falling within subsection (2)), or
if notice has been given under subsection (1) or (2), that period as extended (or as most recently extended) in accordance with subsection (3).
This section applies if—
HMRC have offered a review of a decision under section 59A and P does not accept the offer within the time allowed under section 59C(1)(b) or 59D(3); or
a person who requires a review under section 59B does not notify HMRC within the time allowed under that section or section 59D(3).
HMRC must review the decision under section 59C if—
after the time allowed, P, or the other person, notifies HMRC in writing requesting a review out of time,
HMRC are satisfied that P, or the other person, had a reasonable excuse for not accepting the offer or requiring review within the time allowed, and
HMRC are satisfied that P, or the other person, made the request without unreasonable delay after the excuse had ceased to apply.
HMRC shall not review a decision if P, or another person, has appealed to the appeal tribunal under section 59G in respect of the decision.
This section applies if HMRC are required to undertake a review under section 59C or 59E.
The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.
For the purpose of subsection (2), HMRC must, in particular, have regard to steps taken before the beginning of the review—
by HMRC in reaching the decision, and
by any person in seeking to resolve disagreement about the decision.
The review must take account of any representations made by P, or the other person, at a stage which gives HMRC a reasonable opportunity to consider them.
The review may conclude that the decision is to be—
upheld,
varied, or
cancelled.
HMRC must give P, or the other person, notice of the conclusions of the review and their reasoning within—
a period of 45 days beginning with the relevant date, or
such other period as HMRC and P, or the other person, may agree.
In subsection (6) “relevant date” means—
the date HMRC received P’s notification accepting the offer of a review (in a case falling within section 59A), or
the date HMRC received notification from another person requiring review (in a case falling within section 59B), or
the date on which HMRC decided to undertake the review (in a case falling within section 59E).
Where HMRC are required to undertake a review but do not give notice of the conclusions within the time period specified in subsection (6), the review is to be treated as having concluded that the decision is upheld.
If subsection (8) applies, HMRC must notify P or the other person of the conclusion which the review is treated as having reached.
An appeal under section 59 is to be made to the appeal tribunal before—
the end of the period of 30 days beginning with—
in a case where P is the appellant, the date of the document notifying the decision to which the appeal relates, or
in a case where a person other than P is the appellant, the date that person becomes aware of the decision, or
if later, the end of the relevant period (within the meaning of section 59D).
But that is subject to subsections (3) to (5).
In a case where HMRC are required to undertake a review under section 59C—
an appeal may not be made until the conclusion date, and
any appeal is to be made within the period of 30 days beginning with the conclusion date.
In a case where HMRC are requested to undertake a review by virtue of section 59E—
an appeal may not be made to an appeal tribunal—
unless HMRC have notified P, or the other person, as to whether or not a review will be undertaken, and
if HMRC have notified P, or the other person, that a review will be undertaken, until the conclusion date;
any appeal where paragraph (a)(ii) applies is to be made within the period of 30 days beginning with the conclusion date;
if HMRC have notified P, or the other person, that a review will not be undertaken, an appeal may be made only if the appeal tribunal gives permission to do so.
In a case where section 59F(8) applies, an appeal may be made at any time from the end of the period specified in section 59F(6) to the date 30 days after the conclusion date.
An appeal may be made after the end of the period specified in subsection (1), (3)(b), (4)(b) or (5) if the appeal tribunal gives permission to do so.
In this section “conclusion date” means the date of the document notifying the conclusion of the review.
Regulations may make provision for determining by what persons anything required by this Part to be done by an insurer or taxable intermediary is to be done where the business concerned is carried on in partnership or by another unincorporated body.
The registration under this Part of an unincorporated body other than a partnership may be in the name of the body concerned; and in determining whether premiums are received by such a body no account shall be taken of any change in its members.
Regulations may make provision for determining by what person anything required by this Part to be done by an insurer is to be done in a case where insurance business is carried on by persons who are underwriting members of Lloyd’s and are members of a syndicate of such underwriting members.
Regulations may— and regulations under paragraph (a) above may modify section 53 above.
make provision for the registration for the purposes of this Part of a syndicate of underwriting members of Lloyd’s;
provide that for purposes prescribed by the regulations no account shall be taken of any change in the members of such a syndicate;
As regards any case where a person carries on a business of an insurer or taxable intermediary who has died or become bankrupt or incapacitated or been sequestrated, or of an insurer or taxable intermediary which is in liquidation or receivership or administration , regulations may—
require the person to inform the Commissioners of the fact that he is carrying on the business and of the event that has led to his carrying it on;
make provision allowing the person to be treated for a limited time as if he were the insurer or taxable intermediary;
make provision for securing continuity in the application of this Part where a person is so treated.
Regulations may make provision for securing continuity in the application of this Part in cases where a business carried on by a person is transferred to another person as a going concern.
Regulations under subsection (6) above may in particular provide— but the regulations may provide that no such provision as is mentioned in paragraph (a) or (b) of this subsection shall have effect in relation to any transferor and transferee unless an application in that behalf has been made by them under the regulations.
for liabilities and duties under this Part of the transferor to become, to such extent as may be provided by the regulations, liabilities and duties of the transferee;
for any right of either of them to repayment or credit in respect of tax to be satisfied by making a repayment or allowing a credit to the other;
Where under the following provisions of this section any bodies corporate are treated as members of a group, for the purposes of this Part—
any taxable business carried on by a member of the group shall be treated as carried on by the representative member,
the representative member shall be taken to be the insurer in relation to any taxable insurance contract as regards which a member of the group is the actual insurer,
any business carried on by a member of the group who is a taxable intermediary shall be treated as carried on by the representative member,
any receipt by a member of the group of a premium under a taxable insurance contract shall be taken to be a receipt by the representative member, and
all members of the group shall be jointly and severally liable for any tax due from the representative member.
the representative member shall be taken to be the taxable intermediary in relation to any taxable intermediary’s fees as regards which a member of the group is the actual taxable intermediary,
Two or more bodies corporate are eligible to be treated as members of a group if each of them falls within subsection (3) below and—
one of them controls each of the others,
one person (whether a body corporate or an individual) controls all of them, or
two or more individuals carrying on a business in partnership control all of them.
A body falls within this subsection if it is resident in the United Kingdom or it has an established place of business in the United Kingdom.
Where an application to that effect is made to the Commissioners with respect to two or more bodies corporate eligible to be treated as members of a group, then— unless the Commissioners refuse the application; and the Commissioners shall not refuse the application unless it appears to them necessary to do so for the protection of the revenue.
from the beginning of an accounting period they shall be so treated, and
one of them shall be the representative member,
Where any bodies corporate are treated as members of a group and an application to that effect is made to the Commissioners, then, from the beginning of an accounting period— unless the application is to the effect mentioned in paragraph (a) or (c) above and the Commissioners refuse the application.
a further body eligible to be so treated shall be included among the bodies so treated,
a body corporate shall be excluded from the bodies so treated,
another member of the group shall be substituted as the representative member, or
the bodies corporate shall no longer be treated as members of a group,
The Commissioners may refuse an application under subsection (5)(a) or (c) above only if it appears to them necessary to do so for the protection of the revenue.
Where a body corporate is treated as a member of a group as being controlled by any person and it appears to the Commissioners that it has ceased to be so controlled, they shall, by notice given to that person, terminate that treatment from such date as may be specified in the notice.
An application under this section with respect to any bodies corporate must be made by one of those bodies or by the person controlling them and must be made not less than 90 days before the date from which it is to take effect, or at such later time as the Commissioners may allow.
For the purposes of this section a body corporate shall be taken to control another body corporate if it is empowered by statute to control that body’s activities or if it is that body’s holding company within the meaning of section 1159 of and Schedule 6 to the Companies Act 2006 ; and an individual or individuals shall be taken to control a body corporate if he or they, were he or they a company, would be that body’s holding company within the meaning of those provisions .
Schedule 7 to this Act (which contains provisions relating to information, powers, penalties and other matters) shall have effect.
Regulations may make provision under this section with regard to any case where at any time ...the insurer—
does not have any business establishment or other fixed establishment in the United Kingdom, and
is established in a country or territory in respect of which it appears to the Commissioners that the condition in subsection (1A) below is met.
Regulations may make provision allowing notice to be served in accordance with the regulations on— and a notice so served is referred to in this section as a liability notice.
the person who is insured under a taxable insurance contract, if there is one insured person, or
one or more of the persons who are insured under a taxable insurance contract, if there are two or more insured persons;
Regulations may provide that if a liability notice has been served in accordance with the regulations—
the Commissioners may assess to the best of their judgment the amount of any tax due in respect of premiums received by the insurer under the contract concerned after the material date and before the date of the assessment, and
that amount shall be deemed to be the amount of tax so due.
The condition mentioned in subsection (1)(b) above is that there are no arrangements in relation to the country or territory relating to insurance premium tax which—
where there is one person on whom a liability notice has been served in respect of the contract, the date when the notice was served or such later date as may be specified in the notice;
have effect by virtue of an Order in Council under section 173 of the Finance Act 2006, and
contain provision of a kind mentioned in subsection (2)(a) and (b) of that section.
where there are two or more persons on whom liability notices have been served in respect of the contract, the date when the last of the notices was served or such later date as may be specified in the notices.
Regulations may provide that where— the persons mentioned in subsection (6) below shall be jointly and severally liable to pay the tax assessed, and that tax shall be recoverable accordingly.
an assessment is made in respect of a contract under provision included in the regulations by virtue of subsection (3) above, and
the assessment is notified to the person, or each of the persons, on whom a liability notice in respect of the contract has been served,
The material date is—
The persons are—
the person or persons mentioned in subsection (5)(b) above, and
the insurer.
Where regulations make provision under subsection (5) above they must also provide that any provision made under that subsection shall not apply if, or to the extent that, the assessment has subsequently been withdrawn or reduced.
Regulations may make provision as to the time within which, and the manner in which, tax which has been assessed is to be paid.
Where any amount is recovered from an insured person by virtue of regulations made under this section, the insurer shall be liable to pay to the insured person an amount equal to the amount recovered; and regulations may make provision requiring an insurer to pay interest where this subsection applies.
Regulations may make provision for adjustments to be made of a person’s liability in any case where—
an assessment is made under section 56 above in relation to the insurer, and
an assessment made by virtue of regulations under this section relates to premiums received (or assumed for the purposes of the assessment to be received) within a period which corresponds to any extent with the accounting period to which the assessment under section 56 relates.
Regulations may make provision as regards a case where— and the regulations may include provision for determining whether, or how much of, any of the tax paid as mentioned in paragraph (b) above is attributable to premiums received under the contract in the period mentioned in paragraph (a) above.
an assessment made in respect of a contract by virtue of regulations under this section relates to premiums received (or assumed for the purposes of the assessment to be received) within a given period, and
an amount of tax is paid by the insurer in respect of an accounting period which corresponds to any extent with that period;
Regulations may—
make provision requiring the Commissioners, in prescribed circumstances, to furnish prescribed information to an insured person;
make provision requiring any person on whom a liability notice has been served to keep records, to furnish information, or to produce documents for inspection or cause documents to be produced for inspection;
make such provision as the Commissioners think is reasonable for the purpose of facilitating the recovery of tax from the persons having joint and several liability (rather than from the insurer alone);
modify the effect of any provision of this Part.
Regulations may provide for an insured person to be liable to pay tax assessed by virtue of the regulations notwithstanding that he has already paid an amount representing tax as part of a premium.
This section applies where—
anything is received by way of premium under a taxable insurance contract, and
the amount of the premium is less than it would be if it were received under the contract in open market conditions.
The Commissioners may direct that the amount of the premium shall be taken for the purposes of this Part to be such amount as it would be if it were received under the contract in open market conditions.
A direction under subsection (2) above shall be given by notice in writing to the insurer, and no direction may be given more than three years after the time of the receipt.
Where the Commissioners make a direction under subsection (2) above in the case of a contract they may also direct that if— the amount of the premium shall be taken for the purposes of this Part to be such amount as it would be if it were received under the contract in open market conditions.
anything is received by way of premium under the contract after the giving of the notice or after such later date as may be specified in the notice, and
the amount of the premium is less than it would be if it were received under the contract in open market conditions,
For the purposes of this section a premium is received in open market conditions if it is received—
by an insurer standing in no such relationship with the insured person as would affect the premium, and
in circumstances where there is no other contract or arrangement affecting the parties.
For the purposes of this section it is immaterial whether what is received by way of premium is money or something other than money or both.
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In a case where— for the purposes of this Part the premium shall be taken to be received on 1st October 1994.
a premium under a contract of insurance is received by the insurer after 30th November 1993 and before 1st October 1994, and
the period of cover for the risk begins on or after 1st October 1994,
Subsection (3) below applies where—
a premium under a contract of insurance is received by the insurer after 30th November 1993 and before 1st October 1994,
the period of cover for the risk begins before 1st October 1994 and ends after 30th September 1995, and
the premium, or any part of it, is attributable to such of the period of cover as falls after 30th September 1995.
For the purposes of this Part—
so much of the premium as is attributable to such of the period of cover as falls after 30th September 1995 shall be taken to be received on 1st October 1994;
so much as is so attributable shall be taken to be a separate premium.
If a contract relates to more than one risk subsection (1) above shall have effect as if the reference in paragraph (b) to the risk were to any given risk.
If a contract relates to more than one risk, subsections (2) and (3) above shall apply as follows— and any further attribution required by those subsections shall be made accordingly.
so much of the premium as is attributable to any given risk shall be deemed for the purposes of those subsections to be a separate premium relating to that risk;
those subsections shall then apply separately in the case of each given risk and the separate premium relating to it;
Subsections (1) and (4) above do not apply in relation to a contract if the contract belongs to a class of contract as regards which the normal practice is for a premium to be received by or on behalf of the insurer before the date when cover begins.
Subsections (2), (3) and (5) above do not apply in relation to a contract if the contract belongs to a class of contract as regards which the normal practice is for cover to be provided for a period exceeding twelve months.
Any attribution under this section shall be made on such basis as is just and reasonable.
This section applies where a Minister of the Crown announces a proposed increase in the rate at which tax is to be charged on a premium if it is received by the insurer on or after a date specified in the announcement (“the change date”).
This section applies whether or not the announcement includes an announcement of a proposed exception from the increase (for example, for premiums in respect of risks for which the period of cover begins before the change date).
Subsection (4) applies where—
a premium under a contract of insurance is received by the insurer on or after the date of the announcement and before the change date, and
the period of cover for the risk begins on or after the change date.
For the purposes of this Part the premium is to be taken to be received on the change date.
Subsection (6) applies where—
a premium under a contract of insurance is received by the insurer on or after the date of the announcement and before the change date,
the period of cover for the risk—
begins before the change date, and
ends on or after the first anniversary of the change date (“the first anniversary”), and
the premium, or any part of it, is attributable to such of the period of cover as falls on or after the first anniversary.
For the purposes of this Part—
so much of the premium as is attributable to such of the period of cover as falls on or after the first anniversary is to be taken to be received on the change date, and
so much as is so attributable is to be taken to be a separate premium.
In determining whether the condition in subsection (3)(a) or (5)(a) is met, regulations under section 68(3) or (7) apply as they would apart from this section.
But where subsection (4) or (6) applies—
that subsection has effect despite anything in section 68 or regulations under that section, and
any regulations under section 68 have effect as if the entry made in the accounts of the insurer showing the premium as due to the insurer had been made as at the change date.
A premium treated by subsection (6) as received on the change date is not to be taken to fall within any exception, from an increase announced by the announcement, for premiums in respect of risks for which the period of cover begins before the change date.
Any attribution under this section is to be made on such basis as is just and reasonable.
In this section—
“quota share contract” means any contract between a corporate member and another person which— and where the taking over of a member’s rights and liabilities is conditional upon the occurrence of any event, the contract does not take effect until that event occurs; and
Section 66A(3) and (4) do not apply in relation to a premium if the risk to which that premium relates belongs to a class of risk as regards which the normal practice is for a premium to be received by or on behalf of the insurer before the date when cover begins.
Section 66A(5) and (6) do not apply in relation to a premium if the risk to which that premium relates belongs to a class of risk as regards which the normal practice is for cover to be provided for a period of more than twelve months.
If a contract relates to more than one risk, then in the application of section 66A(3) and (4) or 66A(5) and (6)— and subsections (1) and (2) and section 66A(9) apply accordingly.
the reference in section 66A(3)(b) or (5)(b) to the risk is to be read as a reference to any given risk,
so much of the premium as is attributable to any given risk is to be taken for the purposes of section 66A(3) and (4) or 66A(5) and (6) to be a separate premium relating to that risk,
those provisions then apply separately in the case of each given risk and the separate premium relating to it, and
any further attribution required by section 66A(5) and (6) is to be made accordingly,
Any attribution under this section is to be made on such basis as is just and reasonable.
Regulations may make provision establishing a scheme in accordance with the following provisions of this section; and in this section “a relevant accounting period”, in relation to an insurer, means an accounting period as regards which the scheme applies to the insurer.
Regulations may provide that if an insurer notifies the Commissioners that the scheme should apply to him as regards accounting periods beginning on or after a date specified in the notification and prescribed conditions are fulfilled, then, subject to any provision made under subsection (9) below, the scheme shall apply to the insurer as regards accounting periods beginning on or after that date.
Regulations may provide that where— then (whether or not that date is one on which the premium is actually received by the insurer or on which the premium would otherwise be treated for the purposes of this Part as received by him) the premium shall for the purposes of this Part be taken to be received by the insurer on that date or, in prescribed circumstances, to be received by him on a different date determined in accordance with the regulations.
an entry is made in the accounts of an insurer showing a premium under a taxable insurance contract as due to him, and
the entry is made as at a particular date which falls within a relevant accounting period,
Where regulations make provision under subsection (3) above they may also provide that, for the purposes of this Part, the amount of the premium shall be taken to be the amount which the entry in the accounts treats as its amount.
Regulations may provide that provision made under subsections (3) and (4) above shall apply even if the premium, or part of it, is never actually received by the insurer or on his behalf; and the regulations may include provision that, where the premium is never actually received because the contract under which it would have been received is never entered into or is terminated, the premium is nonetheless to be taken for the purposes of this Part to be received under a taxable insurance contract.
Regulations may provide that any provision made under subsection (4) above shall be subject to any directions made under section 66 above.
Regulations may provide that where a premium is treated as received on a particular date by virtue of provision made under subsection (3) above and there is another date on which the premium— the premium shall be taken for the purposes of this Part not to be received by him on that other date.
is actually received by the insurer, or
would, apart from the regulations, be treated for the purposes of this Part as received by him,
Regulations may provide that provision made under subsection (7) above shall apply only to the extent that there is no excess of the actual amount of the premium over the amount which, by virtue of regulations under this section or of a direction under section 66 above, is to be taken for the purposes of this Part to be its amount; and the regulations may include provision that where there is such an excess, the excess amount shall be taken for the purposes of this Part to be a separate premium and to be received by the insurer on a date determined in accordance with the regulations.
Regulations may provide that if a notification has been given in accordance with provision made under subsection (2) above and subsequently— then, if prescribed conditions are fulfilled, the scheme shall not apply to the insurer as regards an accounting period beginning on or after the date specified in the notice mentioned in paragraph (a) or (b) above unless the circumstances are such as may be prescribed.
the insurer gives notice to the Commissioners that the scheme should not apply to him as regards accounting periods beginning on or after a date specified in the notice, or
the Commissioners give notice to the insurer that the scheme is not to apply to him as regards accounting periods beginning on or after a date specified in the notice,
Regulations may include provision—
enabling an insurer to whom the scheme applies as regards an accounting period to account for tax due in respect of that period on the assumption that the scheme will apply to him as regards subsequent accounting periods;
designed to secure that, where the scheme ceases to apply to an insurer, any tax which by virtue of provision made under paragraph (a) above has not been accounted for is accounted for and paid.
Regulations may provide that where— the premium, or such part of it as may be found in accordance with prescribed rules, shall be taken for the purposes of this Part to have been received by the insurer before 1st October 1994.
an entry in the accounts of an insurer shows a premium as due to him,
the entry is made as at a date falling before 1st October 1994,
tax in respect of the receipt of the premium would, apart from the regulations, be charged by reference to a date (whether or not the date on which the premium is actually received by the insurer) falling on or after 1st October 1994,
the date by reference to which tax would be charged falls within a relevant accounting period, and
prescribed conditions are fulfilled,
Without prejudice to subsection (13) below, regulations may include provision modifying any provision made under this section so as to secure the effective operation of the provision in a case where a premium consists wholly or partly of anything other than money.
Regulations may modify the effect of any provision of this Part.
The reference in subsection (3)(a) above to a premium under a taxable insurance contract includes a reference to anything that, although not actually received by or on behalf of the insurer, would be such a premium if it were so received.
This section applies for the purpose of determining the chargeable amount in a case where a contract provides cover falling within any one of the following paragraphs, that is to say— and also provides cover falling within another of those paragraphs.
cover for one or more exempt matters,
cover for one or more standard rate matters, or
cover for one or more higher rate matters,
In the following provisions of this section “the non-exempt premium” means the difference between—
the amount of the premium; and
such part of the premium as is attributable to any exempt matter or matters or, if no part is so attributable, nil.
But this section does not apply for the purpose of determining the chargeable amount in relation to an excepted premium (as to which see section 69A).
If the contract provides cover for one or more exempt matters and also provides cover for either— the chargeable amount is such amount as, with the addition of the tax chargeable at the standard rate or (as the case may be) the higher rate, is equal to the non-exempt premium.
one or more standard rate matters, or
one or more higher rate matters,
If the contract provides cover for both— the higher rate element and the standard rate element shall be found in accordance with the following provisions of this section.
one or more standard rate matters, and
one or more higher rate matters,
For the purposes of this section—
“the higher rate element” is such portion of the non-exempt premium as is attributable to the higher rate matters (including tax at the higher rate); and
“the standard rate element” is the difference between—
the non-exempt premium; and
the higher rate element.
In a case falling within subsection (4) above, tax shall be charged separately— and the tax chargeable in respect of the premium is the aggregate of those amounts of tax.
at the standard rate, by reference to the standard rate chargeable amount, and
at the higher rate, by reference to the higher rate chargeable amount,
For the purposes of this section—
References in this Part to the chargeable amount shall, in a case falling within subsection (4) above, be taken as referring separately to the standard rate chargeable amount and the higher rate chargeable amount.
In applying subsection (2)(b) above, any amount that is included in the premium as being referable to tax (whether or not the amount corresponds to the actual amount of tax payable in respect of the premium) shall be taken to be wholly attributable to the non-exempt matter or matters.
In applying subsection (5)(a) above, any amount that is included in the premium as being referable to tax at the higher rate (whether or not the amount corresponds to the actual amount of tax payable at that rate in respect of the premium) shall be taken to be wholly attributable to the higher rate element.
Subject to subsections (9) and (10) above, any attribution under subsection (2)(b) or (5)(a) above shall be made on such basis as is just and reasonable.
For the purposes of this section—
an “exempt matter” is any matter such that, if it were the only matter for which the contract provided cover, the contract would not be a taxable insurance contract;
a “non-exempt matter” is a matter which is not an exempt matter;
a “standard rate matter” is any matter such that, if it were the only matter for which the contract provided cover, tax at the standard rate would be chargeable on the chargeable amount;
a “higher rate matter” is any matter such that, if it were the only matter for which the contract provided cover, tax at the higher rate would be chargeable on the chargeable amount.
If the contract relates to a lifeboat and lifeboat equipment, the lifeboat and the equipment shall be taken together in applying this section.
For the purposes of this section “lifeboat” and “lifeboat equipment” have the same meaning as in paragraph 6 of Schedule 7A to this Act.
This section applies if any Act—
makes an amendment of section 51(2)(a) or (b) which alters the higher rate or standard rate (“the relevant rate”),
provides for the amendment to have effect in relation to a premium falling to be regarded for the purposes of this Part as received under a taxable insurance contract by an insurer on or after a particular date (“the change date”), and
makes provision that excepts from that amendment a premium which is in respect of a risk for which the period of cover begins before the change date.
Subsection (3) applies if a premium which is liable to tax at the relevant rate, and which falls to be regarded for the purposes of this Part as received under a taxable insurance contract by an insurer on or after the change date, is—
partly in respect of a risk for which the period of cover begins before the change date, and
partly in respect of a risk for which the period of cover begins on or after that date.
So much of the premium as is attributable to the risk for which the period of cover begins on or after the change date is to be treated for the purposes of this Part and the provision mentioned in subsection (1)(c) as a separate premium.
Where a premium is in respect of a relevant rate matter and also a matter that is not a relevant rate matter—
for the purposes of the provision mentioned in subsection (1)(c), the premium is to be treated as in respect of a risk for which the period of cover begins before the change date if the part of it attributable to the relevant rate matter is in respect of such a risk, and
the reference in subsection (2) to a premium which is liable to tax at the relevant rate is to be read as a reference to so much of the premium as is attributable to the relevant rate matter (and subsection (3) is to be read accordingly).
If premiums of any description are excluded from the exception mentioned in subsection (1)(c), nothing in subsections (2) to (4) applies to a premium of that description.
Nothing in subsection (4) applies to an excepted premium (within the meaning given by section 69A).
Any attribution under this section is to be made on such basis as is just and reasonable.
In this section a “relevant rate matter” means—
where the relevant rate is the standard rate, a standard rate matter as defined by section 69(12)(c);
where the relevant rate is the higher rate, a higher rate matter as defined by section 69(12)(d).
In subsection (1) the reference to any Act includes a resolution which has statutory effect under the Provisional Collection of Taxes Act 1968.
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Where— the chargeable amount in relation to the premium is nil.
an insurer at any time (“the relevant time”) receives a premium under a part-exempt contract, and
the conditions in subsection (2) are met,
The conditions are that—
the relevant total is £500,000 or less, and
10% or less of the relevant total is attributable to any non-exempt matter or matters.
For this purpose “the relevant total” is the total of—
the amount of the premium,
the amount of any other premium received by the insurer under the contract at or before the relevant time, and
the amount of any premium that, at the relevant time, the insurer has a present or future right to receive under the contract.
In applying subsection (2)(b), any amount that is included in a premium as being referable to tax (whether or not the amount corresponds to the actual amount of tax payable in respect of the premium) shall be taken to be wholly attributable to a non-exempt matter.
Subject to that, any attribution under subsection (2)(b) is to be made on such basis as is just and reasonable.
For the purposes of this section—
an “exempt matter” is any matter such that, if it were the only matter for which the contract provided cover, the contract would not be a taxable insurance contract, and
a “non-exempt matter” is a matter which is not an exempt matter.
In this Part—
“part-exempt contract” means an insurance contract that provides–
This section applies if—
an insurer at any time—
receives a premium under a part-exempt contract that is not an excepted premium, or
acquires a present or future right to receive a premium under a part-exempt contract that, on receipt, will not be an excepted premium,
one or more excepted premiums were previously received by the insurer under the contract, and
this section has not already applied in relation to the contract.
The insurer is deemed for the purposes of this Part to have received, at the time mentioned in subsection (1)(a), premiums under the contract of the same amounts, and attributable to the same matters, as the excepted premiums mentioned in subsection (1)(b).
If the condition in subsection (2) is met, a registrable person may apply in writing to the Commissioners for an exemption under this section.
The condition is that the person has not received, and does not expect to receive, at any time after the beginning of a specified accounting period, any premium under a taxable insurance contract that is not an excepted premium.
In subsection (2) “specified” means specified in the application.
The application must contain such information as the Commissioners may direct.
The Commissioners must grant the application unless it appears to them that the condition in subsection (2) is not met.
Where an exemption has effect the applicant—
is exempt from any requirement imposed under section 54 to make returns in relation to the accounting period specified in the application or subsequent accounting periods, and
must ensure that any records that the applicant is required to keep by virtue of paragraph 1(1) of Schedule 7 are, so far as they relate to premiums received, kept in a form enabling records relating to excepted premiums to be readily distinguished from records relating to other premiums.
The Commissioners may by notice withdraw an exemption if it appears to them that—
the condition in section 69C(2) is no longer met, or
the person is not keeping, or has not kept, records as required by section 69C(6)(b).
Where an exemption is withdrawn under subsection (1), the exemption ceases to have effect in relation to the accounting period in which the notice is given and subsequent accounting periods.
If, during an accounting period in relation to which an exemption has effect, a person receives a premium under a taxable insurance contract that is not an excepted premium, the exemption ceases to have effect in relation to that and subsequent accounting periods.
References in this section to an exemption are to an exemption granted under section 69C.
Subject to subsection (1A) below, any contract of insurance is a taxable insurance contract.
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the contract is a contract of reinsurance;
the contract is one whose effecting and carrying out constitutes business of one or more of the classes specified in Schedule 1 to the Insurance Companies Act 1982 (long term business) and constitutes only such business;
the contract relates only to a motor vehicle where the conditions mentioned in subsection (3) below are satisfied;
the contract relates only to a commercial ship and is a contract whose effecting and carrying out constitutes business of one or more of the relevant classes and constitutes only such business;
the contract relates only to a lifeboat and is a contract whose effecting and carrying out constitutes business of one or more of the relevant classes and constitutes only such business;
the contract relates only to a lifeboat and lifeboat equipment and is such that, if it related only to a lifeboat, it would fall within paragraph (e) above;
the contract relates only to a commercial aircraft and is a contract whose effecting and carrying out constitutes business of one or more of the relevant classes and constitutes only such business;
the contract relates to one risk which is situated outside the United Kingdom;
the contract relates to two or more risks each of which is situated outside the United Kingdom;
the contract relates only to loss of or damage to foreign or international railway rolling stock;
the contract relates only to loss of or damage to goods in foreign or international transit and the insured enters into the contract in the course of a business carried on by him;
the contract relates only to credit granted in relation to relevant supplies falling within section 1(1) of the Export and Investment Guarantees Act 1991.
A contract is not a taxable insurance contract if it falls within one or more of the paragraphs of Part I of Schedule 7A to this Act.
Part II of Schedule 7A to this Act (interpretation of certain provisions of Part I) shall have effect.
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the vehicle is used, or intended for use, by a handicapped person in receipt of a disability living allowance by virtue of entitlement to the mobility component or of a mobility supplement,
the insured lets such vehicles on hire to such persons in the course of a business consisting predominantly of the provision of motor vehicles to such persons, and
the insured does not in the course of the business let such vehicles on hire to such persons on terms other than qualifying terms.
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the Department of Social Security,
the Department of Health and Social Services for Northern Ireland, or
the Ministry of Defence,
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any supply of goods where the supply is to be made outside the United Kingdom or where the goods are to be exported from the United Kingdom;
any supply of services where the services are to be performed outside the United Kingdom.
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the place where a supply of goods is to be regarded as made;
the place where services are to be regarded as performed.
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“handicapped” means chronically sick or disabled;
“disability living allowance” means a disability living allowance within the meaning of section 71 of the Social Security Contributions and Benefits Act 1992 or section 71 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992;
“mobility supplement” means a mobility supplement within the meaning of article 26A of the Naval, Military and Air Forces etc. (Disablement and Death) Service Pensions Order 1983, article 25A of the Personal Injuries (Civilians) Scheme 1983, article 3 of the Motor Vehicles (Exemption from Vehicles Excise Duty) Order 1985 or article 3 of the Motor Vehicles (Exemption from Vehicles Excise Duty) (Northern Ireland) Order 1985.
This section has effect subject to section 71 below.
This section and section 71 below have effect for the purposes of this Part.
Provision may be made by order that—
a contract of insurance that would otherwise not be a taxable insurance contract shall be a taxable insurance contract if it falls within a particular description;
a contract of insurance that would otherwise be a taxable insurance contract shall not be a taxable insurance contract if it falls within a particular description.
A description referred to in subsection (1) above may be by reference to the nature of the insured or by reference to such other factors as the Treasury think fit.
Provision under this section may be made in such way as the Treasury think fit, and in particular may be made by amending this Part.
An order under this section may amend or modify the effect of section 69 above in such way as the Treasury think fit.
In relation to a taxable insurance contract, a premium is any payment received under the contract by the insurer, and in particular includes any payment wholly or partly referable to—
any risk,
costs of administration,
commission,
any facility for paying in instalments or making deferred payment (whether or not payment for the facility is called interest), or
tax.
A premium may consist wholly or partly of anything other than money, and references to payment in subsection (1) above shall be construed accordingly.
Where a premium is to any extent received in a form other than money, its amount shall be taken to be—
an amount equal to the value of whatever is received in a form other than money, or
if money is also received, the aggregate of the amount found under paragraph (a) above and the amount received in the form of money.
The value to be taken for the purposes of subsection (3) above is open market value at the time of the receipt by the insurer.
The open market value of anything at any time shall be taken to be an amount equal to such consideration in money as would be payable on a sale of it at that time to a person standing in no such relationship with any person as would affect that consideration.
Where (apart from this subsection) anything received under a contract by the insurer would be taken to be an instalment of a premium, it shall be taken to be a separate premium.
Where anything is received by any person on behalf of the insurer—
it shall be treated as received by the insurer when it is received by the other person, and
the later receipt of the whole or any part of it by the insurer shall be disregarded.
In a case where—
a payment under a taxable insurance contract is made to a person (the intermediary) by or on behalf of the insured, and
the whole or part of the payment is referable to commission to which the intermediary is entitled,
References in subsection (8) above to a payment include references to a payment in a form other than money.
This section has effect for the purposes of this Part.
Unless the context otherwise requires—
does not include a mortgage, charge or lien on any property for securing money or money’s worth,
Where an amount is charged to the insured by any person in connection with a taxable insurance contract, any payment in respect of that amount is to be regarded as a payment received under that contract by the insurer unless—
the payment is chargeable to tax at the higher rate by virtue of section 52A above; or
the amount is charged under a separate contract and is identified in writing to the insured as a separate amount so charged.
A contract (“the relevant contract”) is not to be regarded as a separate contract for the purposes of subsection (1A) above if conditions A to D are met.
Condition A is that the insured is an individual (“I”) and enters into the taxable insurance contract in a personal capacity.
Condition B is that I—
is required to enter into the relevant contract by, or as a condition of entering into, the taxable insurance contract, or
would be unlikely to enter into the relevant contract without also entering into the taxable insurance contract.
Condition C is that—
the amount charged to I under the relevant contract in respect of any particular services is not open to negotiation by I, or
the other terms on which particular services are to be provided to I under the relevant contract are not open to such negotiation.
Condition D is that the amount charged to I under the taxable insurance contract is arrived at without a comprehensive assessment having been undertaken of the individual circumstances of I which might affect the level of risk.
Where— the payment is to be regarded as a payment received under that contract by the insurer unless it is chargeable to tax at the higher rate by virtue of section 52A above.
an amount is charged (to the insured or any other person) in respect of the acquisition of a right (whether of the insured or any other person) to require the insurer to provide, or offer to provide, any of the cover included in a taxable insurance contract, and
any payment in respect of that amount is not regarded as a payment received under that contract by the insurer by virtue of subsection (1A) above,
Where any person is authorised by or on behalf of an employee to deduct from anything due to the employee under his contract of employment an amount in respect of a payment due under a taxable insurance contract, subsection (7) above shall not apply to the receipt on behalf of the insurer by the person so authorised of the amount deducted.
“qualifying contract” has the meaning given by section 147(1) above;
“prescribed” means prescribed by regulations, and
the person registered as a managing agent at Lloyd’s who was acting as such an agent for the syndicate at the end of that year, or
“syndicate” means a syndicate of underwriting members of Lloyd’s formed for an underwriting year;
A risk is situated in the United Kingdom if, by virtue of section 96A(3) of the Insurance Companies Act 1982, it is situated in the United Kingdom for the purposes of that Act.
Subject to subsection (3A) below, a registrable person is a person who—
is registered under section 53 above, or
is liable to be registered under that section.
A commercial ship is a ship which is—
of a gross tonnage of 15 tons or more, and
not designed or adapted for use for recreation or pleasure.
References in sections 53A and 54 above and paragraphs 1, 9 and 12 of Schedule 7 to this Act to a registrable person include a reference to a person who—
is registered under section 53AA above; or
is liable to be registered under that section.
A commercial aircraft is an aircraft which is—
of a weight of 8,000 kilogrammes or more, and
not designed or adapted for use for recreation or pleasure.
A lifeboat is a vessel used or to be used solely for rescue or assistance at sea; and lifeboat equipment is anything used or to be used solely in connection with a lifeboat.
Foreign or international railway rolling stock is railway rolling stock used principally for journeys taking place wholly or partly outside the United Kingdom.
Goods in foreign or international transit are goods in transit where their carriage—
begins and ends outside the United Kingdom,
begins outside but ends in the United Kingdom, or
ends outside but begins in the United Kingdom.
A reference to this Part includes a reference to any order or regulations made under it and a reference to a provision of this Part includes a reference to any order or regulations made under the provision, unless otherwise required by the context or any order or regulations.
This section has effect for the purposes of this Part.
The power to make an order under section 61 above shall be exercisable by the Commissioners, and the power to make an order under any other provision of this Part shall be exercisable by the Treasury.
Any power to make regulations under this Part shall be exercisable by the Commissioners.
Any power to make an order or regulations under this Part shall be exercisable by statutory instrument.
An order under section 51A , 71 or 72 above shall be laid before the House of Commons; and unless it is approved by that House before the expiration of a period of 28 days beginning with the date on which it was made it shall cease to have effect on the expiration of that period, but without prejudice to anything previously done under the order or to the making of a new order.
In reckoning any such period as is mentioned in subsection (4) above no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than four days.
A statutory instrument containing an order or regulations under this Part (other than an order under section 51A , 71 or 72 above) shall be subject to annulment in pursuance of a resolution of the House of Commons.
Any power to make an order or regulations under this Part—
may be exercised as regards prescribed cases or descriptions of case;
may be exercised differently in relation to different cases or descriptions of case.
Regulations under this Part making provision as to the form and manner in which a notification is to be made, or as to the information to be contained in or provided with a notification, may make such provision by reference to a notice published by the Commissioners from time to time.
An order or regulations under this Part may include such supplementary, incidental, consequential or transitional provisions as appear to the Treasury or the Commissioners (as the case may be) to be necessary or expedient.
No specific provision of this Part about an order or regulations shall prejudice the generality of subsections (6A) to (8) above.
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Income tax shall be charged for the year 1994-95, and for that year—
the lower rate shall be 20 per cent.,
the basic rate shall be 25 per cent., and
the higher rate shall be 40 per cent.
For the year 1994-95 section 1(2) of the Taxes Act 1988 shall apply as if— and accordingly section 1(4) of that Act (indexation) shall not apply for the year 1994-95.
the amount specified in paragraph (aa) were £3,000 (the lower rate limit), and
the amount specified in paragraph (b) were £23,700 (the basic rate limit);
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in subsection (1), for the words from “to a deduction” onwards there shall be substituted “for that year to an income tax reduction calculated by reference to £1,720”;
in subsection (2), for the words from “to a deduction” to “the deduction” there shall be substituted “for that year to an income tax reduction calculated by reference to £2,665 (instead of to the reduction”; and
in subsection (3), for the words from “to a deduction” to “the deduction” there shall be substituted “for that year to an income tax reduction calculated by reference to £2,705 (instead of to the reduction”.
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in paragraph (a), for “to a deduction from her total income of” there shall be substituted “to an income tax reduction calculated by reference to”; and
in paragraph (b), for “to a deduction of” there shall be substituted “to an income tax reduction calculated by reference to”.
The Taxes Act 1988 and the Taxes Management Act 1970 shall have effect with the amendments specified in Schedule 8 to this Act (which supplements the provisions of this section).
This section and Schedule 8 to this Act shall have effect for the year 1994-95 and, subject to the following provisions of this section, for subsequent years of assessment.
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as if the same amount (namely £1,720) were specified in subsection (1) as is specified in that subsection as it applies for the year 1994-95;
as if the amount specified in subsection (2) were “£2,995”; and
as if the amount specified in subsection (3) were “£3,035”.
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Sections 347A and 347B of the Taxes Act 1988 . . . (which contain provision with respect to the deductions from income allowed on account of maintenance payments) shall have effect in relation to payments becoming due on or after 6th April 1994 with the following modifications.
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in pursuance of any obligation which falls within paragraphs (a) to (c) of subsection (4) of section 36 of the Finance Act 1988 (existing obligations) and is an obligation under an order made by a court, a written or oral agreement or a deed executed for giving effect to an agreement, and
for the benefit, maintenance or education of a person (whether or not the person to whom the payment is made) who attained the age of 21 on or before the day on which the payment became due but after 5th April 1994,
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the words “Notwithstanding section 347A(1)(a) but” shall be omitted; and
for the words from “in computing” to “to deduct” there shall be substituted “for a year of assessment to an income tax reduction calculated by reference to”.
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For each of the years 1994-95 and 1995-96 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.
For subsection (1) of section 353 of the Taxes Act 1988 (general provision for relief for interest payments) there shall be substituted the following subsection—
After that subsection there shall be inserted the following subsections—
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For subsections (3) to (5B) of section 369 of that Act (provisions balancing deduction of relevant loan interest from income against charge to tax) there shall be substituted the following subsection—
Schedule 9 to this Act (which for the purposes of or in connection with the provisions of this section makes further modifications of certain enactments in relation to tax relief on interest payments) shall have effect.
The preceding provisions of this section and that Schedule—
shall have effect in relation to payments of interest made on or after 6th April 1994 (whenever falling due); and
shall also have effect, so far as they relate to relevant loan interest, in relation to any payments of interest becoming due on or after 6th April 1994 which have been made at any time before that date but on or after 30th November 1993.
Any provision made before the passing of this Act by reference to the basic rate of income tax and contained in any instrument or agreement under or in accordance with which payments of relevant loan interest have been or are to be made shall be taken, in relation to any such payment as is mentioned in subsection (6)(a) or (b) above, to have been made, instead, by reference to a rate which, in the case of that payment, is the applicable percentage for the purposes of subsection (1) of section 369 of the Taxes Act 1988.
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as if the references in subsections (3), (4) and (7) of that section to a change in the basic rate of income tax included references to the amendments having effect by virtue of this section and to any change in the applicable percentage for the time being specified in section 369(1A) of that Act; and
in relation to any notice under section 377(2)(a) of that Act the effective date of which is on or after 6th April 1994, as if the reference to tax at the basic rate for the year of assessment in which that date falls, were a reference to tax at a rate equal to the percentage which is the applicable percentage for the purposes of section 369(1) of that Act in relation to payments becoming due in that year of assessment.
In this section “relevant loan interest” has the same meaning as in Part IX of the Taxes Act 1988.
In section 265(1) of the Taxes Act 1988 (blind person’s allowance) for “£1,080” there shall be substituted “ £1,200 ”.
This section shall apply for the year 1994-95 and subsequent years of assessment.
In subsection (1) of section 32 of the Finance Act 1991 (relief for vocational training), after paragraph (c) there shall be inserted the following paragraphs—.
In subsection (10) of that section, the words after paragraph (b) (which exclude from the qualifying courses those programmes of activity capable of counting towards a qualification at the highest defined level) shall be omitted.
After subsection (10) of that section there shall be inserted the following subsection—
This section has effect in relation to payments made on or after 1st January 1994.
Corporation tax shall be charged for the financial year 1994 at the rate of 33 per cent.
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For the financial year 1994—
the small companies' rate shall be 25 per cent., and
the fraction mentioned in section 13(2) of the Taxes Act 1988 (marginal relief for small companies) shall be one fiftieth.
In section 13(3) of that Act (limits of marginal relief) in paragraphs (a) and (b)—
for “£250,000” there shall be substituted “£300,000”, and
for “£1,250,000” there shall be substituted “£1,500,000”.
Subsection (2) above shall have effect for the financial year 1994 and subsequent financial years; and where by virtue of that subsection section 13 of the Taxes Act 1988 has effect with different relevant maximum amounts in relation to different parts of a company’s accounting period, then for the purposes of that section those parts shall be treated as if they were separate accounting periods and the profits and basic profits of the company for that period shall be apportioned between those parts.
TABLE A Cylinder capacity of car in cubic centimetres Cash equivalent 1,400 or less £640 More than 1,400 but not more than 2,000 £810 More than 2,000 £1,200 TABLE AB Cylinder capacity of car in cubic centimetres Cash equivalent 2,000 or less £580 More than 2,000 £750 TABLE B Description of car Cash equivalent Any car £1,200
This section shall have effect for the year 1994-95 and subsequent years of assessment.
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an amount equal to whatever is the cash equivalent of the benefit of the loan for that year shall, subject to the provisions of this Chapter, be treated as emoluments of the employment, and accordingly chargeable to tax under Schedule E; and where that amount is so treated, the employee is to be treated as having paid interest on the loan in that year of the same amount.
At the end of section 160(5) of that Act (interpretation, including “official rate of interest”) there shall be added—and, without prejudice to the generality of section 178 of the Finance Act 1989, regulations under that section may make different provision in relation to a loan outstanding for the whole or part of a year if—.
For section 161(1) of that Act (exemption for loans the cash equivalent of which does not exceed £300) there shall be substituted—
In Schedule 7 to that Act (beneficial loan arrangements)—
in paragraph 1(5) for “Sub-paragraph (2) above does” there shall be substituted “Sub-paragraphs (2) and (4) above do” and the words “his employer, being” shall cease to have effect, and
Parts III to V shall cease to have effect.
In determining for the purposes of section 161(1A) and (1B) of that Act (inserted by this section) whether any loans made by any person before 1st June 1994 are made or held on the same terms or conditions, there shall be left out of account any amounts, by way of fees, commission or other incidental expenses, incurred for the purpose of obtaining any of those loans by the persons to whom they are made.
This section shall have effect for the year 1994-95 and subsequent years of assessment.
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Section 141 of the Taxes Act 1988 (non-cash vouchers) shall be amended as follows.
In subsection (1)—
in paragraph (a), for the words from “the expense incurred” to “exchanged;” there shall be substituted the expense incurred (“the chargeable expense”)—and
the words following paragraph (b) shall be omitted.
In subsection (6B), in paragraph (a) for the words “the person providing the non-cash voucher” there shall be substituted “the person at whose cost the voucher and the entertainment are provided”.
Section 142 of the Taxes Act 1988 (credit-tokens) shall be amended as follows.
In subsection (1)(a), for the words from “the expense incurred” to “obtained;” there shall be substituted the expense incurred—.
In subsection (3) for the words “providing the credit-token as mentioned in subsection (1)(a) above” there shall be substituted “mentioned in subsection (1)(a)(i) above”.
In subsection (3B), in paragraph (a) for the words “providing the credit-token” there shall be substituted “mentioned in subsection (1)(a)(i) above”.
Section 143 of the Taxes Act 1988 (cash vouchers) shall be amended as follows.
In subsection (1) for the words from “(and in particular section 203)” to “paid by his employer” there shall be substituted—.
In subsection (3) for the words “in providing the voucher by the person who provides it” there shall be substituted “by the person at whose cost the voucher is provided”.
In subsection (4)—
in paragraph (a) for the words “in providing the voucher by the person who provides it” there shall be substituted “by the person at whose cost the voucher, stamp or similar document is provided”; and
in the words following paragraph (b) for the words from “the expense incurred” to the end there shall be substituted “the expense incurred by the person mentioned in paragraph (a) above shall be treated as reduced by the difference or part of the difference mentioned in paragraph (b) above.”
Section 144 of the Taxes Act 1988 (supplementary provisions relating to sections 141 to 143) shall be amended as follows.
In subsection (1)—
for the words “or credit-tokens” there shall be substituted “, credit-tokens or cash vouchers”; and
for the words “141 or 142” there shall be substituted “141, 142 or 143”.
In subsection (3)—
for the words “141 and 142” there shall be substituted “141, 142 and 143”; and
for the words “by him of non-cash” there shall be substituted “of”.
For the year 1994-95 section 3 of the Taxation of Chargeable Gains Act 1992 (annual exempt amount) shall have effect as if the amount specified in subsection (2) were £5,800, and accordingly subsection (3) of that section (indexation) shall not apply for that year.
Schedule 11 to this Act (which extends the relief on re-investment for individuals and trustees provided by Chapter IA of Part V of the Taxation of Chargeable Gains Act 1992) shall have effect.
That Schedule shall have effect in relation to disposals made on or after 30th November 1993.
In section 164H(1) of that Act—
for “is greater than” there shall be substituted “ exceeds ”, and
at the end there shall be added “ or half the value of the company’s assets as a whole (whichever is the greater); and section 294(3) and (4) of the Taxes Act (meaning of value of company’s assets as a whole) applies for the purposes of this subsection as it applies for the purposes of section 294 of that Act ”.
Subsection (3) above shall apply to determine whether a company is a qualifying company on or after 30th November 1993.
In paragraph 13(1) of Schedule 6 to the Taxation of Chargeable Gains Act 1992 (amount available for relief on retirement)—
in paragraph (a) (gains not exceeding appropriate percentage of £150,000) for “£150,000” there shall be substituted “£250,000”, and
in paragraph (b) (half gains not exceeding that percentage of £150,000 to £600,000) for “£150,000” and “£600,000” there shall be substituted respectively “£250,000” and “£1 million”.
This section shall have effect in relation to disposals made on or after 30th November 1993.
In section 53 of the Taxation of Chargeable Gains Act 1992 (indexation allowance), in subsection (1), for the words following “contrary” to the end of paragraph (c) there shall be substitutedif on the disposal of an asset there is an unindexed gain, an allowance (“the indexation allowance”) shall be allowed against the unindexed gain— .
In subsection (2) of that section—
for “subsection (1) above” there shall be substituted “ this Chapter ”,
for paragraph (a) there shall be substituted—, and
in paragraph (b), for “gain or loss” there shall be substituted “ gain ”.
After that subsection there shall be inserted—
In section 55 of that Act (assets acquired on a no gain/no loss disposal), after subsection (6) there shall be inserted—
In section 56 of that Act (amount of consideration on no gain/no loss disposals)—
in subsection (2) for the words preceding paragraph (a) there shall be substituted “ On a no gain/no loss disposal by any person (“the transferor”) ”, and
after that subsection there shall be added—
In section 110 of that Act (indexation allowance for share pools), after subsection (6) there shall be inserted—
Sections 103 (collective investment schemes, etc.), 111 (building society etc. shares), 182 to 184 (groups and associated companies) and 200 (oil industry assets) of that Act (all of which relate to indexation allowance) shall cease to have effect.
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B is the amount of the item of relevant allowable expenditure for which an amount falls to be determined under this paragraph; C is the total amount of all the relevant allowable expenditure
in sub-paragraph (4), “except in relation to the calculation of any indexed rise” shall cease to have effect,
Where by virtue of section 55(8) the allowable loss accruing on the disposal of a pre-entry asset, or any part of the loss, is attributable to an amount (“the rolled-up amount”) of rolled-up indexation (as defined in section 55(9) to (11)), then, for the purposes of this paragraph— Where— the amount of each item of relevant allowable expenditure shall be treated for the purposes of this paragraph as reduced by so much (if any) of the global reduction as is attributable to that item
in sub-paragraph (9), the definition of “indexed rise” shall cease to have effect.
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in sub-paragraph (12) the words from “together” to the end, and
sub-paragraph (13),
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This section shall have effect in relation to disposals made on or after 30th November 1993 and Schedule 12 to this Act (which gives transitional relief) shall have effect for the years 1993–94 and 1994–95.
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Schedule 7A to the Taxation of Chargeable Gains Act 1992 (set off of pre-entry losses) shall be amended as follows.
Notwithstanding anything in section 56(2), where in the case of the disposal of any pre-entry asset— the items of relevant allowable expenditure and the times when those items shall be treated as having been incurred shall be determined for the purposes of this paragraph on the assumptions specified in sub-paragraph (6B) below. Those assumptions are that— were the same person and, accordingly, that the pre-entry asset had been acquired by the company disposing of it at the time when it or the equivalent asset would have been treated for the purposes of this paragraph as acquired by the company mentioned in paragraph (a) above. In sub-paragraphs (5) to (6B) above the references to the equivalent asset, in relation to another asset acquired or disposed of by any company, are references to any asset which falls in relation to that company to be treated (whether by virtue of paragraph 1(8) above or otherwise) as the same as the other asset or which would fall to be so treated after applying, as respects other assets, the assumptions for which those sub-paragraphs provide.
In paragraph 9(2)(c) (cases where a group is relevant if a company was a member of it in the accounting period in which it joined another relevant group), after “paragraph (a)” there shall be inserted “or (b)”.
This section shall apply in relation to the making in respect of any loss of any deduction from a chargeable gain where either the gain or the loss is one accruing on or after 11th March 1994.
In section 143 of the Taxation of Chargeable Gains Act 1992 (commodity and financial futures and qualifying options), subsection (4) shall cease to have effect and for subsection (6) there shall be substituted the following subsections—
This section shall apply in relation to contracts entered into on or after 30th November 1993.
After section 144 of the Taxation of Chargeable Gains Act 1992 (options and forfeited deposits) there shall be inserted the following section—
This section shall apply in relation to options granted on or after 30th November 1993.
The Taxation of Chargeable Gains Act 1992 shall be amended as mentioned in subsections (2) to (4) below.
In Chapter II of Part III (settlements) the following section shall be inserted after section 98—
The following Schedule shall be inserted after Schedule 5—
In Schedule 5, paragraphs 11 to 14 (information) shall be omitted.
Subsection (4) above shall have effect where the relevant day falls on or after the day on which this Act is passed.
In the Table in section 98 of the Taxes Management Act 1970 (penalties) at the end of the second column there shall be inserted— “ Paragraphs 2 to 6 of Schedule 5A to the 1992 Act. ”
Schedule 8 to the Taxes Act 1988 (profit-related pay schemes: conditions for registration) shall be amended as follows.
After paragraph 13 (determination of distributable pool by method A) there shall be inserted—
After paragraph 14 (determination of distributable pool by method B) there shall be inserted—
This section shall have effect in relation to any scheme not registered before 1st December 1993.
Schedule 8 to the Taxes Act 1988 shall also be amended by inserting the following paragraphs after paragraph 22 (which, with paragraph 21, applies to schemes relating to parts of undertakings)—
This section shall have effect in relation to any scheme not registered before 1st December 1993.
Schedule 10 to the Taxes Act 1988 (profit sharing schemes) shall be amended as follows.
In paragraph 3 (the appropriate percentage for purposes of tax charge) the words from “In this paragraph” to the end of the paragraph shall be omitted.
The following paragraph shall be inserted after paragraph 3—
Schedule 10 to the Taxes Act 1988 (profit sharing schemes) shall be amended as mentioned in subsections (2) to (4) below.
In paragraph 1 (limitations on contractual obligations of participants) in sub-paragraph (1) the following paragraph shall be inserted after paragraph (c)—.
In paragraph 1 the following sub-paragraph shall be inserted after sub-paragraph (3)—
The following paragraph shall be inserted after paragraph 5 (company reconstructions)—
In paragraph 32(1) of Schedule 9 to the Taxes Act 1988 (requirements applicable to profit sharing schemes) for “or (c)” there shall be substituted “ , (c) or (cc) ”.
In paragraph 33(a) of Schedule 9 to the Taxes Act 1988 (which provides that the trust instrument must contain certain provision by reference to new shares within the meaning of paragraph 5 of Schedule 10) the reference to paragraph 5 of Schedule 10 shall be construed as including a reference to that paragraph as applied by paragraph 5A.
Subsections (2) and (3) above shall have effect where a direction is made on or after the day on which this Act is passed.
Subsection (4) above shall have effect where what would be the new holding comes into being on or after the day on which this Act is passed; but this is subject to subsection (13) below.
Subsection (5) above shall have effect in relation to any scheme not approved before the day on which this Act is passed.
In a case where— subsection (5) above shall apply in relation to the scheme with effect from the time the alteration is made.
a scheme is approved before the day on which this Act is passed, and
on or after that day the trust instrument is altered in such a way that paragraph 32(1) of Schedule 9 to the Taxes Act 1988 would be fulfilled if subsection (5) above applied in relation to the scheme,
Subsection (6) above shall have effect in relation to any scheme not approved before the day on which this Act is passed.
In a case where— subsection (6) above shall apply in relation to the scheme with effect from the time the alteration is made.
a scheme is approved before the day on which this Act is passed, and
on or after that day the trust instrument is altered in such a way that paragraph 33(a) of Schedule 9 to the Taxes Act 1988 would be fulfilled if subsection (6) above applied in relation to the scheme,
In a case where— subsection (4) above shall not apply in relation to the scheme.
a scheme is approved before the day on which this Act is passed,
subsection (4) above would apply in relation to the scheme by virtue of subsection (8) above and apart from this subsection, and
the trust instrument is not altered as mentioned in subsection (12)(b) above before what would be the new holding comes into being,
Subsection (6) above shall not imply a contrary intention for the purposes of section 20(2) of the Interpretation Act 1978 in its application to other references to paragraph 5 of Schedule 10 to the Taxes Act 1988.
Schedule 13 to this Act (which contains provisions about employee share ownership trusts) shall have effect.
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The following section shall be inserted after section 611 of the Taxes Act 1988—
In consequence of subsection (1) above, in section 612(1) of the Taxes Act 1988 (interpretation of Chapter I of Part XIV) the definition of “administrator” shall cease to have effect.
This section—
so far as it relates to section 591B(1) of the Taxes Act 1988, shall apply in relation to notices given on or after the day on which this Act is passed;
so far as it relates to section 593(3) of that Act, shall apply in relation to contributions paid on or after that day;
so far as it relates to section 596A(3) of that Act, shall apply in relation to benefits received on or after that day;
so far as it relates to sections 598(2) and (4), 599(3) and 599A(2) of that Act, shall apply in relation to payments made on or after that day;
so far as it relates to section 602(1) and (2) of that Act and regulations made under section 602, shall apply in relation to amounts becoming recoverable on or after that day;
so far as it relates to section 604(1) of that Act, shall apply in relation to applications made on or after that day;
so far as it relates to section 605(1) and (4) of that Act, shall apply in relation to notices given on or after that day.
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The following section shall be substituted for section 606 of the Taxes Act 1988—
In consequence of subsection (1) above, in section 607(3)(b)(iii) of the Taxes Act 1988 for the words “section 606(1) and (3)” there shall be substituted “section 606(2)(b), (4)(b), (7), (8) and (13)”.
This section shall apply where the time in question falls on or after the day on which this Act is passed.
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The Taxes Act 1988 shall be amended in accordance with subsections (2) and (3) below.
In section 605 (information) at the beginning there shall be inserted the following subsections—
Subsections (1) and (2) of section 605 shall cease to have effect.
In section 98 of the Taxes Management Act 1970 (penalties for failure to provide information etc.)—
in the first column of the Table after the entry “regulations under section 602;” there shall be inserted the entry “regulations under section 605(1A)(b) to (d);”;
in the first column of the Table for the entry “section 605(1), (2), (3)(b) and (4);” there shall be substituted the entry “section 605(3)(b) and (4);”;
in the second column of the Table after the entry “regulations under section 602;” there shall be inserted the entry “regulations under section 605(1A)(a);”.
Subsections (3) and (4)(b) above shall come into force on such day as the Treasury may by order appoint.
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The following section shall be inserted after section 605 of the Taxes Act 1988—
This section shall apply in relation to things done or omitted after the day on which this Act is passed.
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Section 591 of the Taxes Act 1988 (discretionary approval of retirement benefits schemes) shall be amended as follows.
In subsection (2)(g) (annuity contracts)—
after “relevant benefits” there shall be inserted “falling within subsection (2A) below”;
the words “approved by the Board and” shall be omitted.
The following subsection shall be inserted after subsection (2)—
This section shall apply in relation to a scheme not approved by virtue of section 591 of the Taxes Act 1988 before 1st July 1994.
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for the words “by virtue of section 19(1)1”, in the first place where they occur, there shall be substituted “as mentioned in subsection (6)(a) above”;
in paragraph (a), for the words “subsection (6) above” there shall be substituted “subsection (6)(a) above”; and
in paragraph (b) for the words “section 19(1)1” there shall be substituted “section 19(1)”.
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entered into on or after 1st December 1993, or
entered into before that day if the scheme is varied on or after that day with a view to the provision of the benefit.
Subject to subsection (8) below, in the Taxes Act 1988— (exemption from tax where recipient of benefit or lump sum chargeable to tax in respect of sums paid or treated as paid with a view to the provision of the benefit or lump sum) shall cease to have effect in relation to any benefit provided or lump sum paid on or after 1st December 1993.
in section 188(1), paragraph (c), and
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The repeals made by subsection (7) above shall not have effect in relation to any benefit provided or lump sum paid on or after 1st December 1993 in pursuance of a scheme or arrangement entered into before that day unless the scheme or arrangement is varied on or after that day with a view to the provision of the benefit or lump sum.
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In Chapter IV of Part XIV of the Taxes Act 1988 (personal pension schemes) the following shall be inserted after section 648—
This section shall apply in relation to payments which are made under annuities on or after 6th April 1995.
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In section 597 of the Taxes Act 1988 (pensions paid under retirement benefits schemes generally charged under Schedule E) the following subsection shall be inserted after subsection (2)—
This section shall apply in relation to payments which are made under annuities on or after the day on which this Act is passed.
In section 468E of the Taxes Act 1988 (authorised unit trusts: corporation tax), for subsection (2) (deemed rate of corporation tax) there shall be substituted—
After that section there shall be inserted—
Schedule 14 to this Act (distributions of authorised unit trusts) shall have effect.
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In section 468 of the Taxes Act 1988 (authorised unit trusts), in subsection (6) (definitions) at the beginning there shall be inserted “Subject to subsections (7) to (9) below”.
After that subsection there shall be added—
In section 469 of the Taxes Act 1988 (other unit trusts)—
in subsection (1)(a) (application of section) for the words “that is not an authorised unit trust” there shall be substituted “that is neither an authorised unit trust nor an umbrella scheme”; and
after subsection (6) there shall be inserted—
Subject to what follows, the amendments made by subsections (1) to (3) above shall have effect on and after 1st April 1994 in relation to unit trust schemes and their participants.
Nothing in those amendments shall have effect before the relevant date in relation to a unit trust scheme which immediately before 1st April 1994 falls within the definition of an umbrella scheme contained in those amendments.
In this section “the relevant date”, means, in relation to a unit trust scheme, the day after the end of the last distribution period of the scheme which commences before 1st April 1994.
On and after the relevant date, the amendments made by subsections (1) to (3) above shall have effect in relation to a scheme— subject to subsections (8) to (10) below.
to which subsection (5) above applies, and
which immediately before the relevant date falls within the definition of an umbrella scheme contained in those amendments,
The amendments made by subsections (1) to (3) above shall not prevent the trustees of the scheme on and after the relevant date—
making a claim under section 239(3) of the Taxes Act 1988 (carry back of surplus advance corporation tax) in respect of accounting periods of the scheme ending before the relevant date; or
continuing anything which immediately before that date was in the process of being done for the purposes of tax in relation to such accounting periods.
Where immediately before the relevant date the trustees of the scheme are entitled to carry forward an excess under— then, on the relevant date, that right shall be translated into a right in each successor company to carry forward a proportionate part of that excess.
section 75(3) of the Taxes Act 1988 (carry forward of management expenses and sums treated as management expenses), or
section 241 of that Act (carry forward of franked investment income),
Where immediately before the relevant date the trustees of the scheme have an amount of surplus advance corporation tax which— then, on and after the relevant date, a proportionate part of that amount shall be treated as paid under subsection (4) of that section by each successor company in its first accounting period.
has not been dealt with under subsection (3) of section 239 of the Taxes Act 1988, and
is due to be treated under subsection (4) of that section as if it were advance corporation tax paid by them in their next accounting period,
In subsections (9) and (10) above “successor company” means, in relation to a scheme, each part of the scheme which on the relevant date becomes an authorised unit trust.
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In section 154 of the Finance Act 1993 (definitions connected with assets) the following subsections shall be inserted after subsection (5)—
In that section the following subsections shall be inserted after subsection (13)—
In section 155 of that Act (definitions connected with liabilities) the following subsections shall be inserted after subsection (4)—
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In section 126 of the Finance Act 1993 (accrual on currency contracts) the following subsection shall be inserted after subsection (1)—
In section 146 of that Act (early termination of currency contract) the following subsection shall be inserted after subsection (1)—
In section 164(2) of that Act (definition of currency contract for purposes of the Chapter) after “(1)” there shall be inserted “and (1A)”.
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Schedule 15 to the Finance Act 1993 (alternative calculation) shall be amended as follows.
The following shall be inserted after paragraph 4—
The following paragraph shall be inserted after paragraph 5—
In paragraph 6—
for “paragraphs 2 to 5 above” there shall be substituted “the relevant paragraphs”;
at the end there shall be inserted “; and the relevant paragraphs are paragraphs 2, 3, 4 and 5 above.”
In paragraph 7 for “5” there shall be substituted “5A”.
At the end of section 83 of the Capital Allowances Act 1990 (interpretation of Part II, which relates to machinery and plant) there shall be added—and before Schedule A1 to that Act there shall be inserted—
This section shall have effect in relation to expenditure incurred on or after 30th November 1993 unless—
it is incurred before 6th April 1996 in pursuance of a contract entered into before 30th November 1993, or
it is incurred before 6th April 1996 in pursuance of a contract entered into, for the purpose of securing that the obligations under a contract entered into before 30th November 1993 are complied with, on or after 30th November 1993.
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section 22 of the Capital Allowances Act 1990 (first-year allowances in respect of expenditure on machinery or plant), or
section 41 of the Finance Act 1971 (provision corresponding to section 22 applicable to earlier chargeable periods),
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section 25(1) of the 1990 Act (meaning of qualifying expenditure for the purposes of writing-down allowances for expenditure on machinery or plant), and
section 44(4) of the 1971 Act (provision corresponding to section 25(1) applicable to earlier chargeable periods),
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the expenditure was included in a computation which—
was required to be made for any tax purpose,
was given before that date to an inspector, and
was not contained in a document prepared primarily for a purpose which was not a tax purpose; or
notice of the expenditure is given to the inspector, in such form as the Board may require, not later than three years after the end of that period; or
if the chargeable period ends on or after 1st December 1990, notice of the expenditure is so given before the passing of this Act.
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For the purposes of— expenditure which has not formed part of a person’s qualifying expenditure for a previous chargeable period may not form part of his qualifying expenditure for a subsequent chargeable period unless the machinery or plant on which the expenditure was incurred belongs to that person at some time in that subsequent period . . .
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section 44(4) of the Finance Act 1971 (provision corresponding to section 25(1) applicable to earlier chargeable periods),
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Paragraph 4(2) of Schedule 7 to the Capital Allowances Act 1968 (provision corresponding to section 158(2)) shall be assumed always to have had effect subject to amendments corresponding to those made to section 158(2) of the 1990 Act by section 117(2) and (3) of the Finance Act 1993.
The Capital Allowances Act 1990 shall be amended as follows:
In section 4 (balancing adjustments)—
in subsection (1) (events giving rise to an adjustment), after “or” at the end of paragraph (d) there is inserted—, and for “subsection (2)” there is substituted “subsections (2) and (9A)”, and
after subsection (9) there is inserted—.
After that section there is inserted—
In section 5 (restriction of balancing allowance where interest has been sold subject to subordinate interest), after subsection (2) there is inserted—.
In section 6 (buildings, etc. in enterprise zones), in subsection (4), after “4(1)” there is inserted “4A(1)”.
In section 8 (writing off expenditure)—
after subsection (12A) there is inserted—, and
in subsection (13), for “(12A)” there is substituted “(12B)”.
Subject to subsection (8) below, this section applies— and “relevant contract” means a contract entered into on or after 13th January 1994 or a conditional contract entered into before that date which becomes unconditional after 25th February 1994.
where capital expenditure has been incurred under a relevant contract, or
where capital expenditure is deemed for the purposes of sections 1 to 8 to have been incurred by a person who under a relevant contract acquires the relevant interest;
This section applies to capital expenditure on the construction of a building or structure only if the expenditure, or, in the case of expenditure falling within subsection (7)(b) above, the actual expenditure on the construction of the building or structure to which the expenditure so falling relates, is incurred, or is incurred under a contract entered into, at a time when the site of the building or structure is wholly or mainly in an enterprise zone, being a time not more than 10 years after the site was first included in the zone.
Where— paragraphs (c) and (d) of section 10B(1) of the Capital Allowances Act 1990 (purchaser of building etc. in enterprise zone within two years of first use eligible for allowances) shall have effect as if the period there referred to were the period beginning with the date on which the building or structure was first used and ending with 31st August 1994.
the relevant interest in a building or structure is sold on a date falling after the expiry of the period of two years beginning with the date on which the building or structure was first used, and
that period ends, and the date on which the relevant interest is sold falls, within the period beginning with 13th January 1994 and ending with 31st August 1994,
Expressions used in this section and in Part I of the Capital Allowances Act 1990 have the same meaning as in that Part.
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After section 203B of the Taxes Act 1988 (which is inserted by section 125 above) there shall be inserted—
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Regulation 4 of the 1993 Regulations (intermediate employers) is hereby revoked; but in relation to any time before its revocation it shall be deemed to have been validly made.
Regulation 3 of the 1973 Regulations (intermediate employers) shall, in relation to any time before its revocation, be deemed to have been validly made.
Where, at any time before the passing of this Act— then the treatment of that payment or that proportion of the payment as being a payment to which the regulations applied shall be deemed to have been lawful.
a payment has been made of, or on account of, any income of an employee not resident or, if resident, not ordinarily resident in the United Kingdom,
at the time when the payment was made it appeared that some of the income would be assessable to income tax under Case II of Schedule E, but that some of the income might prove not to be assessable to income tax under that Schedule, and
the payment or any proportion of it was treated for the purposes of the 1993 Regulations or the 1973 Regulations as a payment to which the regulations applied,
In this section—
“employee” means a person holding an office or employment under or with any other person;
“the 1993 Regulations” means the Income Tax (Employments) Regulations 1993; and
“the 1973 Regulations” means the Income Tax (Employments) Regulations 1973.
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In Schedule 25 to the Taxes Act 1988, Part I (acceptable distribution policy) shall be amended as follows.
In paragraph 2 (acceptable distribution policies for both trading and non-trading companies)—
in sub-paragraph (1)—
for “sub-paragraph (2)” there is substituted “paragraph 2A”,
in paragraph (a), “or for some other period which, in whole or in part, falls within that accounting period” is omitted,
in paragraph (b), for “the period for which it is paid” there is substituted “that period”,
in paragraph (d) for “proportion” there is substituted “amount” and for “represents at least” there is substituted “is not less than”, and
the words following paragraph (d) are omitted,
sub-paragraph (2) is omitted, and
For the purposes of this paragraph and paragraph 2A below, a dividend which is not paid for the period or periods the profits of which are, in relation to the dividend, the relevant profits for the purposes of section 799 shall be treated (subject to sub-paragraph (3A) below) as so paid. For the purposes of this paragraph and paragraph 2A below—
After that paragraph there is inserted—
In paragraph 3 of that Schedule (available profits)—
Subject to sub-paragraph (5) below, for the purposes of this Part of this Schedule, the net chargeable profits of a controlled foreign company for any accounting period are— and for the purposes of this sub-paragraph “unrestricted creditable tax” in relation to a company’s accounting period means the amount which would be its creditable tax for that period if the reference in section 751(6)(a) to Part XVIII did not include section 797
in sub-paragraph (5), after “available profits” there is inserted “or, where the company is not a trading company, the chargeable profits”.
This section shall apply to determine whether a controlled foreign company pursues an acceptable distribution policy in respect of accounting periods ending on or after 30th November 1993.
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In the Taxes Act 1988, immediately before section 768 there shall be inserted—
Section 769 (rules for ascertaining change of ownership of company) shall be amended as follows.
In subsections (1), (2) and (5) for the words “sections 768”, in each place where they occur, there shall be substituted “sections 767A, 768”.
After subsection (2) there shall be inserted—
After subsection (8) there shall be inserted—
The amendments made by this section shall have effect in relation to any change in ownership occurring on or after 30th November 1993 other than a change occurring in pursuance of a contract entered into before that day.
The following section shall be inserted after section 94 of the Finance Act 1993 (computations in different currencies for different parts of trades)—
In section 95(6) of the Finance Act 1993 (commencement of provisions about currency to be used for computations) for “94” there shall be substituted “ 94A ”.
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The Taxation of Chargeable Gains Act 1992 shall have effect with the amendments made by that Schedule.
Schedule 16 to this Act (which contains provisions about foreign income dividends) shall have effect.
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For the year 1995-96 and subsequent years of assessment incapacity benefit, except— shall be treated as income for the purposes of the Income Tax Acts and charged to income tax under Schedule E.
benefit payable for an initial period of incapacity, and
so much of any benefit as is attributable in any case to an increase in respect of a child,
Subsection (1) above shall not apply to incapacity benefit to which a person is entitled for any day of incapacity for work falling in a period of incapacity for work which is treated for the purposes of that benefit as having begun before 13th April 1995 if the part of that period which is treated as having fallen before that date includes a day for which that person was entitled to invalidity benefit.
Incapacity benefit shall for the purposes of this section be a benefit in relation to which section 41 of the Finance Act 1989 (year of assessment in which benefit to be charged) applies.
Enactments relating to the payment of incapacity benefit shall have effect subject to such provision as may be contained for the purposes of this section in regulations under section 203 of the Taxes Act 1988 (PAYE regulations).
In this section—
“mutual trading company” means a company carrying on any business of mutual trading or mutual insurance or other mutual business;
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Section 808 of the Taxes Act 1988 (restriction on deduction of interest or dividends from trading income) shall be amended as follows—
for “a banking business, an insurance business or a business consisting wholly or partly in dealing in securities” there shall be substituted “a business”;
for “or dividend” there shall be substituted “, dividend or royalties”;
the words “In this section “securities” includes stocks and shares” shall be omitted.
This section shall apply where it is sought to exclude receipts from income or profits of an accounting period beginning on or after 30th November 1993.
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Section 577A of the Taxes Act 1988 (certain expenditure involving crime not to be deducted and not to be included in expenses of management) shall be amended as follows.
After subsection (1) there shall be inserted—
In subsection (2) for “Such expenditure” there shall be substituted “Any expenditure mentioned in subsection (1) or (1A) above”.
This section shall apply in relation to expenditure incurred on or after 30th November 1993.
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in subsection (4)(p), for “prescribed under subsection (5) below” there shall be substituted “for the time being registered under section 376A below” and for “Treasury” there shall be substituted “Board”; and
subsection (5) shall be omitted.
The following section shall be inserted in the Taxes Act 1988 after section 376—
Any body which is, immediately before the date on which this Act is passed, a prescribed body for the purposes of section 376 of the Taxes Act 1988 (by virtue of an order made under subsection (5) of that section) shall be entitled to be entered in the register maintained under section 376A of that Act as a qualifying lender except that if it was, immediately before that date, a qualifying lender only in relation to such description of loan as was specified in the order, it shall be entitled to be entered in the register as a qualifying lender only in relation to that description of loan.
Until such time as the Board enter any such body in the register, that body shall be deemed to have been registered in accordance with its entitlement.
The Taxes Act 1988 shall be amended as follows.
In section 431(4) (insurance companies: premiums to be referred to pension business) in paragraph (d) (annuity contracts)—
the words “approved by the Board and” shall be omitted;
after “as defined by section 612(1)” there shall be inserted “and falling within section 431AA”.
In section 431(4) in paragraph (e) (annuity contracts entered into in substitution)—
the words “approved by the Board” shall be omitted;
after “paragraph (d) above” there shall be inserted “and by means of which relevant benefits as defined by section 612(1) and falling within section 431AA (but no other benefits) are secured”.
The following section shall be inserted after section 431—
This section shall apply in relation to an annuity contract entered into on or after 1st July 1994; and in the case of an annuity contract entered into in substitution for another it is immaterial when that other was entered into.
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In the Taxes Act 1988, in section 74 (general rules as to deductions not allowable), for paragraph (j) (debts not allowable except in certain circumstances) there shall be substituted—.
The provisions of that section shall become subsection (1) of that section and after that subsection there shall be inserted—
In the Taxes Act 1988— there shall be inserted “otherwise than as part of a relevant arrangement or compromise”.
in section 94 (debts deducted and subsequently released) after the word “released” where it first occurs, and
in section 103(4)(b) (debts deducted before, but released after, discontinuance of trade, etc.) after the word “released”,
The provisions of section 94 of the Taxes Act 1988 shall become subsection (1) of that section and after that subsection there shall be inserted—
After section 103(4) of the Taxes Act 1988 there shall be inserted—
Subsection (1) above shall have effect, for the purposes of determining (in computing the amount of profits or gains to be charged under Case I or Case II of Schedule D) whether any sum should be deducted in respect of any debt, in relation to debts— if the proof, release or estimation occurs on or after 30th November 1993.
proved to be bad,
released as part of—
a voluntary arrangement which has taken effect under or by virtue of the Insolvency Act 1986 or the Insolvency (Northern Ireland) Order 1989, or,
a compromise or arrangement which has taken effect under section 425 of the Companies Act 1985 or Article 418 of the Companies (Northern Ireland) Order 1986, and
estimated to be bad,
Subsection (3) above shall have effect in relation to the release on or after 30th November 1993 of the whole or any part of any debt.
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In sections 79(11) and 79A(7) of the Taxes Act 1988 (contributions to local enterprise agencies, training and enterprise councils and local enterprise companies made before 1st April 1995 to be deductible as expenses), for “1995” (in both places) there shall be substituted “2000”.
Section 79A of that Act shall be amended as follows.
In subsection (1), after “training and enterprise council” there shall be inserted “business link organisation” and in subsection (3) after “council” there shall be inserted “organisation”.
In subsection (5), before paragraph (a) there shall be inserted—.
In subsection (7), after “1st April 1990” there shall be inserted “or, in the case of a contribution to a business link organisation, 30th November 1993”.
Schedule 17 to this Act (which corrects various mistakes made in or introduced into the Taxes Act 1988) shall have effect.
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For the purposes of this Chapter— is a qualifying contract as regards a qualifying company if the company becomes entitled to rights or subject to duties under the contract or option on or after its commencement day.
an interest rate contract or option, or
a currency contract or option,
Where both immediately before and at the beginning of its commencement day— for the purposes of this Chapter the company shall be treated as becoming entitled or subject to them at the beginning of that day.
a company to which this paragraph applies is entitled to rights or subject to duties under an interest rate contract or option, or
a qualifying company is entitled to rights or subject to duties under a currency contract or option,
A qualifying company is a company to which paragraph (a) of subsection (2) above applies if its commencement day falls outside the period of twelve months beginning with the appointed day.
For the purposes of this Chapter—
a company’s commencement day is the first day of its first accounting period to begin after the day preceding the appointed day; and
the appointed day is such day as the Treasury may by order appoint.
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A qualifying company is a company to which this section applies if its commencement day falls within the period of twelve months beginning with the appointed day.
Subject to subsection (3) below, all quasi-qualifying contracts which, at the end of the period of six years beginning with its commencement day, are held by a company to which this section applies shall be treated for the purposes of this Chapter as if the company became entitled to rights or subject to duties under them on the first day of its first accounting period beginning after the end of the period of six years.
Subject to subsection (5) below, if a company to which this section applies so elects, all quasi-qualifying contracts held by the company on its commencement day shall be treated for the purposes of this Chapter as if the company became entitled to rights or subject to duties under them on that day.
An election by a company under subsection (3) above shall be irrevocable and shall be made by notice served on the inspector before the end of the period of three months beginning with its commencement day.
A company may not make an election under subsection (3) above at a time when it is a member but not the principal company of a group unless the company did not become a member of the group until after the relevant day.
An election under subsection (3) above by a company which is the principal company of a group shall have effect also as an election by any other company to which this section applies and which on the relevant day is a member of the group.
Subsection (6) above shall apply in relation to a company notwithstanding that the company ceases to be a member of the group at any time after the relevant day except where—
the company is an outgoing company in relation to the group, and
the election relating to the group is made after the company ceases to be a member of the group.
In this section—
“apportioned part”, in relation to any insurance money or other amount, means a part apportioned under section 52 of the Corporation Tax Act 2009 ;
Section 170 of the Taxation of Chargeable Gains Act 1992 (groups of companies) shall have effect for the purposes of this section as for those of sections 171 to 181 of that Act.
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A contract is an interest rate contract for the purposes of this Chapter if—
the condition mentioned below is fulfilled, and
the only transfers of money or money’s worth for which the contract provides are payments falling within subsection (2), (3) or (4) or section 151 below.
The condition is that under the contract, whether unconditionally or subject to conditions being fulfilled, a qualifying company becomes entitled to a right to receive, or becomes subject to a duty to make, at a time specified in the contract a variable rate payment.
An interest rate contract may include provision under which, as the consideration or part of the consideration for a payment falling within subsection (2) above, the qualifying company becomes subject to a duty to make, or (as the case may be) becomes entitled to a right to receive, at a time specified in the contract a fixed or fixed rate payment.
In so far as the rights and duties mentioned in subsections (2) and (3) above relate to two payments— it is immaterial for the purposes of this section that those rights and duties may be exercised and discharged by a payment made to or, as the case may require, by the company of an amount equal to the difference between the amounts of those payments.
which fall to be made at the same time, and
of which one falls to be made to and the other by the qualifying company,
Each of the following, namely— is an interest rate option for the purposes of this Chapter if the only transfers of money or money’s worth for which it provides are payments falling within section 151 below.
an option to enter into an interest rate contract, and
an option to enter into such an option,
In this section—
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A contract is a currency contract for the purposes of this Chapter if—
the condition mentioned below is fulfilled, and
the only transfers of money or money’s worth for which the contract provides are payments falling within subsection (2), (3), (4) or (9) or section 151 below.
The condition is that under the contract a qualifying company—
becomes entitled to a right and subject to a duty to receive payment at a specified time of a specified amount of one currency (the first currency), and
becomes entitled to a right and subject to a duty to pay in exchange and at the same time a specified amount of another currency (the second currency).
A currency contract may include provision under which the qualifying company—
becomes entitled to a right to receive at a time specified in the contract a payment the amount of which falls to be determined (wholly or mainly) by applying a specified rate of interest to a specified amount of the first currency, and
becomes subject to a duty to make at a time so specified a payment the amount of which falls to be determined (wholly or mainly) by applying a specified rate of interest to a specified amount of the second currency.
A currency contract may also include provision under which the qualifying company—
becomes entitled to a right and subject to a duty to receive payment at a specified time of a specified amount of the second currency, and
becomes entitled to a right and subject to a duty to pay in exchange and at the same time a specified amount of the first currency.
In subsections (3) and (4) above—
any reference to a time is a reference to a time earlier than that specified in the contract for the purposes of subsection (2) above, and
any reference to a specified rate of interest is a reference to a rate the value of which at any time is the same as that of the specified rate of interest.
Each of the following, namely— is a currency option for the purposes of this Chapter if the only transfers of money or money’s worth for which it provides are payments falling within section 151 below.
an option to enter into a currency contract, and
an option to enter into such an option,
An option the exercise of which at any time would result in a qualifying company— is a currency option for the purposes of this Chapter if the only transfers of money or money’s worth for which it provides are payments falling within this subsection and section 151 below.
becoming entitled to a right and subject to a duty to receive payment at that time of a specified amount of one currency, and
becoming entitled to a right and subject to a duty to pay in exchange and at that time a specified amount of another currency,
Where, in the case of a contract which is subject to a condition precedent, the fulfilment of the condition at any time would result in a qualifying company becoming entitled and subject as mentioned in paragraphs (a) and (b) of subsection (7) above, that subsection and the following provisions of this Chapter shall have effect as if—
the contract before the fulfilment of the condition were such an option as is mentioned in that subsection,
the fulfilment of the condition were the exercise of the option, and
the contract after the fulfilment of the condition were the contract resulting from the exercise of the option.
It is immaterial for the purposes of this section that the rights and duties mentioned in subsection (2), (4) or (7) above may be exercised and discharged by a payment made to or, as the case may require, by the qualifying company of an amount (in whatever currency) which, at the specified time or the time when the option is exercised, is equivalent in value to the difference between—
the local currency equivalent at that time of one of the payments there mentioned, and
the local currency equivalent at that time of the other of those payments.
Subsection (9) above shall be read as applying equally to such of the rights and duties mentioned in subsection (3) above as fall to be exercised and discharged at the same time, and for that purpose shall have effect with such modifications as may be requisite.
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An interest rate contract or option, or a currency contract or option, may include provision under which the qualifying company—
becomes entitled to a right to receive a payment in consideration of its entering into the contract or option, or
becomes subject to a duty to make a payment in consideration of another person’s entering into the contract or option.
An interest rate contract or option, or a currency contract or option, may also include provision for all or any of the following—
a payment of a reasonable fee for arranging the contract or option;
a payment of reasonable costs incurred in respect of the contract or option;
a payment for securing, or made in consequence of, the variation or termination of the contract or option; and
a payment by way of compensation for, or made in consequence of, a failure to comply with the contract or option.
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Where— the contract or option shall be treated for the purposes of section 149 or, as the case may be, section 150 above as if those provisions were not included in it.
but for the inclusion in a contract or option of provisions for one or more transfers of money or money’s worth, the contract or option would be a qualifying contract; and
as regards the qualifying company and the relevant time, the present value of the transfer, or the aggregate of the present values of the transfers, is small when compared with the aggregate of the present values of all relevant payments,
For the purposes of subsection (1) above—
any present value of a relevant payment which is a negative value shall be treated as if it were the equivalent positive value; and
any relevant payment the amount of which represents the difference between two other amounts shall be treated as if it were a payment of an amount equal to the aggregate of those amounts.
In this section—
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Subject to subsections (2) to (5) below, in this Chapter “qualifying payment” means—
in relation to a qualifying contract which is an interest rate contract, a payment falling within section 149(2), (3) or (4) above;
in relation to a qualifying contract which is a currency contract, a payment falling within subsection (3) or (9) of section 150 above;
in relation to a qualifying contract which is a currency option, a payment falling within subsection (9) of that section; and
in relation to any qualifying contract, a payment falling within section 151 above.
In this Chapter “qualifying payment” includes, in relation to a qualifying contract—
a payment which, if it were a payment under the contract, would be a payment falling within section 151 above; and
a payment for securing the acquisition or disposal of the contract.
Where a qualifying company closes out a qualifying contract which is an interest rate or currency contract by entering into another contract with obligations which are reciprocal to those of the qualifying contract—
any payment received by the company in consideration of its entering into the reciprocal contract, or paid by the company in consideration of another person’s entering into that contract, is for the purposes of this Chapter a qualifying payment in relation to the qualifying contract; and
all other payments under the reciprocal contract, and all subsequent payments under the qualifying contract, shall be ignored for all purposes of the Tax Acts.
Subsection (5) below applies where, in the case of a qualifying contract which is a currency contract, there is a difference between—
the local currency equivalent, at the time immediately after the qualifying company becomes entitled to rights and subject to duties under the contract, of the amount of the first currency (the first currency equivalent), and
the local currency equivalent, at that time, of the amount of the second currency (the second currency equivalent).
The amount of the difference shall be treated for the purposes of this Chapter—
where the first currency equivalent exceeds the second currency equivalent, as a qualifying payment received by the qualifying company at the time specified in the contract for the purposes of section 150(2) above, and
where the first currency equivalent is less than the second currency equivalent, as a qualifying payment made by the qualifying company at that time.
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Subject to subsections (2) and (3) below, any company is a qualifying company for the purposes of this Chapter.
Where a unit trust scheme is an authorised unit trust as respects an accounting period the trustees (who are deemed to be a company for certain purposes by section 468(1) of the Taxes Act 1988) are not, as regards that period, a qualifying company for the purposes of this Chapter.
A company which is approved for the purposes of section 842 of the Taxes Act 1988 (investment trusts) for an accounting period is not, as regards that period, a qualifying company for the purposes of this Chapter so far as it relates to currency contracts and options.
In this section—
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Where, as regards a qualifying contract held by a qualifying company and an accounting period, amount A exceeds amount B, a profit on the contract of an amount equal to the excess accrues to the company for the period.
Where, as regards a qualifying contract held by a qualifying company and an accounting period, amount B exceeds amount A, a loss on the contract of an amount equal to the excess accrues to the company for the period.
Subsections (4) and (5) below have effect for the purposes of this section, sections 158 and 161 to 167 below and paragraph 2 of Schedule 18 to this Act; and any reference in any of those sections or that paragraph to amount A or amount B is a reference to that amount after the making of any adjustments under such of those sections as precede that section or paragraph.
Where as regards a qualifying contract a qualifying company’s profit or loss for an accounting period falls to be computed on a mark to market basis incorporating a particular method of valuation—
amount A is the aggregate of—
the amount or aggregate amount of the qualifying payment or payments becoming due and payable to the company in the period, and
any increase for the period, or the part of the period for which the contract is held by the company, in the value of the contract as determined by that method, and
amount B is the aggregate of—
the amount or aggregate amount of the qualifying payment or payments becoming due and payable by the company in the period, and
any reduction for the period, or the part of the period for which the contract is held by the company, in the value of the contract as so determined.
Where as regards a qualifying contract a qualifying company’s profit or loss for an accounting period falls to be computed on a particular accruals basis—
amount A is so much of the qualifying payment or payments received or falling to be received by the company as is allocated to the period on that basis, and
amount B is so much of the qualifying payment or payments made or falling to be made by the company as is so allocated.
Where a qualifying contract is such a contract by reason of being treated, by virtue of section 152 above, as if any provisions for one or more transfers of money or money’s worth were not included in it—
so much of any qualifying payment as relates to the transfer or transfers shall be ignored for the purposes of subsections (4) and (5) above, and
so much of any such increase or reduction as is mentioned in paragraph (a) or (b) of subsection (4) above as so relates shall be ignored for the purposes of that subsection.
Subject to subsection (8) below, where a qualifying contract— it shall be assumed for the purposes of subsection (4) above that its value is nil immediately after it becomes so held or, as the case may be, immediately before it ceases to be so held.
becomes held by a qualifying company at any time in an accounting period, or
ceases to be so held at any such time,
Subsection (7)(b) above does not apply where a qualifying contract is discharged by the making of payments none of which is a qualifying payment for the purposes of this Chapter.
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Where, for the purposes of a qualifying company’s accounts, profits and losses for an accounting period on a qualifying contract held by the company are computed on— profits and losses for the period on the contract shall be computed on that basis for the purposes of this Chapter.
a mark to market basis of accounting which satisfies the requirements of this section, or
an accruals basis of accounting which satisfies those requirements,
Where subsection (1) above does not apply in the case of a qualifying contract held by a qualifying company and an accounting period, profits and losses for the period on the contract shall be computed for the purposes of this Chapter on a mark to market or accruals basis of accounting which—
satisfies the requirements of this section, and
is specified in an agreement between the company and the inspector or, in default of such an agreement, in a notice served on the company by the inspector.
A mark to market basis of accounting satisfies the requirements of this section as regards a qualifying contract if—
computing the profits or losses on the contract on that basis is in accordance with normal accountancy practice;
all relevant payments under the contract are allocated to the accounting periods in which they become due and payable; and
the method of valuation adopted is such as to secure the contract is brought into account at a fair value.
An accruals basis of accounting satisfies the requirements of this section as regards a qualifying contract if—
computing the profits or losses on the contract on that basis is in accordance with normal accountancy practice;
all relevant payments under the contract are allocated to the accounting periods to which they relate, without regard to the accounting periods in which they are made or received, or become due and payable; and
where such payments relate to two or more such periods, they are apportioned between those periods on a just and reasonable basis.
In determining whether, as regards a qualifying contract, a relevant payment is dealt with as mentioned in subsection (4) above—
regard shall be had to the accounting period or periods to which any reciprocal payment or payments are allocated, and to the basis on which any such payment or payments are apportioned between two or more such periods, but
no regard shall be had to the accounting period or periods to which any other payment or payments are allocated, or to the basis on which any such payment or payments are so apportioned.
References in this section to a qualifying company’s accounts shall be construed as follows— and for the purposes of paragraph (c) above the home State of a company is the country or territory under whose law the company is incorporated.
in the case of a company formed and registered under the Companies Act 1985, as references to its accounts drawn up in accordance with the requirements of that Act;
in the case of a company formed and registered under the Companies (Northern Ireland) Order 1986, as references to its accounts drawn up in accordance with the requirements of that Order;
in any other case, as references to the accounts which it is required to keep under the law of its home State or, if it is not so required to keep accounts, such of its accounts as most closely correspond to the accounts mentioned in paragraph (a) above;
In this section—
in relation to an underwriting year, means the underwriting year next but one following that year; and
In the above definition of “reciprocal payment”, the second reference to a relevant payment includes a reference to any payment which—
is subject to a condition precedent, and
would be a relevant payment if the condition were fulfilled.
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As regards a qualifying contract which is a linked currency option, a qualifying company’s profit or loss for an accounting period shall be computed on a mark to market basis of accounting.
Accordingly if, as regards such an option, a qualifying company’s profit or loss for an accounting period would, apart from subsection (1) above, fall to be computed on an accruals basis of accounting, that profit or loss shall be computed for the purposes of this Chapter on a mark to market basis of accounting which—
satisfies the requirements of section 156 above, or would satisfy those requirements if paragraph (a) of subsection (3) of that section were omitted, and
is specified in an agreement between the company and the inspector or, in default of such an agreement, in a notice served on the company by the inspector.
A currency option is a linked currency option for the purposes of this section if each of the conditions mentioned below is fulfilled.
The first condition is that—
in the case of an option exercisable by the qualifying company against the other party, another currency option is exercisable by that party against the company; or
in the case of an option exercisable by the other party against the qualifying company, another currency option is exercisable by the company against that party.
For the purposes of subsection (4) above, another currency option which is exercisable by or against an associated company of the qualifying company, or by or against an associated company of the other party to the currency option in question, shall be treated as exercisable by or against the qualifying company or that party.
The second condition is that the terms of the two options are such that—
they must be exercised (if at all) at the same, or substantially the same, time, and
the rights and duties under the contract which would arise if the one option were exercised are the same, or substantially the same, as those under the contract which would arise if the other option were exercised.
Where the currency option in question is such an option by virtue of section 150(8) above, subsections (4) and (5) above shall be construed as if—
any reference to an option being exercisable by any person were a reference to a contract subject to a condition precedent the fulfilment of which would result in a transfer of value to that person, and
any reference to an option being exercisable against any person were a reference to a contract subject to a condition precedent the fulfilment of which would result in a transfer of value by that person.
For the purposes of subsection (7) above there is a transfer of value to or by any person if, immediately after the fulfilment of the condition, the value of that person’s net assets is more or, as the case may be, less than it would have been but for the fulfilment of the condition.
Any reference in subsection (8) above to the value of a person’s net assets being more or less than it would have been but for the fulfilment of the condition includes a reference to the value of that person’s net liabilities being less or, as the case may be, more than it would have been but for the fulfilment of the condition.
In this section “associated company” shall be construed in accordance with section 416 of the Taxes Act 1988 and any reference to a currency option is a reference to one which is a qualifying contract.
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Subsections (2) to (5) below apply where, as regards a qualifying contract and an accounting period, a qualifying company’s profit or loss is computed on a basis of accounting (the new basis) other than that adopted for the immediately preceding accounting period.
There shall be added to amount A an amount equal to any amount, or the aggregate of any amounts—
which have not been included in amount A for a preceding accounting period, and
which would have been so included if the new basis had been adopted for that period.
There shall be deducted from amount A or, as the case may require, added to amount B an amount equal to any amount, or the aggregate of any amounts—
which have been included in amount A for a preceding accounting period, and
which would not have been so included if the new basis had been adopted for that period.
There shall be added to amount B an amount equal to any amount, or the aggregate of any amounts—
which have not been included in amount B for a preceding accounting period, and
which would have been so included if the new basis had been adopted for that period.
There shall be deducted from amount B or, as the case may require, added to amount A an amount equal to any amount, or the aggregate of any amounts—
which have been included in amount B for a preceding accounting period, and
which would not have been so included if the new basis had been adopted for that period.
Subject to subsection (7) below, subsections (2) to (5) above also apply where a contract or option becomes a qualifying contract by virtue of section 147(2) or 148(2) or (3) above at the beginning of the first day of an accounting period of a qualifying company.
Where subsections (2) to (5) above apply by virtue of subsection (6) above, they shall have effect as if—
any reference to the new basis were a reference to the basis of accounting on which, as regards the qualifying contract, the company’s profit or loss for the accounting period is calculated,
any reference to being or not being included in amount A for a preceding accounting period were a reference to being or not being taken into account as receipts or increases in value in computing the company’s profits or losses for such a period, and
any reference to being or not being included in amount B for a preceding accounting period were a reference to being or not being taken into account as deductions or reductions in value in computing the company’s profits or losses for such a period.
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Subsections (2) and (3) below apply where—
as regards a qualifying contract a profit or loss accrues to a qualifying company for an accounting period, and
the qualifying contract was at any time in the period held by the company for the purposes of a trade or part of a trade carried on by it.
If throughout the accounting period the qualifying contract was held by the company solely for the purposes of the trade or part, the whole of the profit or loss shall be treated for the purposes of the Tax Acts as a profit or loss of the trade or part for the period.
In any other case the profit or loss shall be apportioned on a just and reasonable basis and so much as is attributable to the trade or part shall be treated for the purposes of the Tax Acts as a profit or loss of the trade or part for the period.
The preceding provisions of this section apply notwithstanding anything in section 74 of the Taxes Act 1988 (general rules as to deductions not allowable).
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In a case where— the whole or part (as the case may be) shall be treated for the purposes of this section as a non-trading profit or loss of the company for the period.
as regards a qualifying contract a profit or loss accrues to a qualifying company for an accounting period, and
the whole or part of the profit or loss does not fall to be treated for the purposes of the Tax Acts as a profit or loss of a trade or part of a trade for the period,
Subsections (5), (6) and (9) of section 129 and sections 130 to 133 of the Finance Act 1993 (non-trading exchange gains and losses) shall have effect as if— and (unless the contrary intention appears) any reference in the following provisions of this Chapter to any of those provisions of that Act is a reference to that provision so far as it has effect in relation to such non-trading profits or losses.
any reference to an amount which a company is treated as receiving in an accounting period by virtue of section 129 included a reference to an amount equal to any non-trading profit of the company for the period, and
any reference to a loss which a company is treated as incurring in an accounting period by virtue of that section included a reference to an amount equal to any non-trading loss of the company for the period;
For the purposes of subsection (2) above, any reference in the provisions there mentioned which falls to be construed as a reference to a qualifying company for the purposes of Chapter II of Part II of the Finance Act 1993 (exchange gains and losses) shall be construed as including a reference to a qualifying company for the purposes of this Chapter.
Case VI of Schedule D shall for the purposes of corporation tax extend to companies not resident in the United Kingdom, so far as those companies are chargeable to tax on profits which, in the case of companies resident in the United Kingdom, fall within that Case by virtue of section 130 of the Finance Act 1993.
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This section applies where at any time (the relevant time) in an accounting period of a qualifying company—
a qualifying contract held by the company is terminated,
such a contract is disposed of by the company, or
a contract held by the company is so varied as to cease to be such a contract.
If, as regards the contract and the period, amounts A and B fall to be determined under section 155(5) above—
there shall be deducted from amount A or, as the case may require, added to amount B so much of any qualifying payment as has not become due and payable to the company before the relevant time but has been included in amount A for the period or any previous accounting period, and
there shall be deducted from amount B or, as the case may require, added to amount A so much of any qualifying payment as has not become due and payable by the company before the relevant time but has been included in amount B for the period or any previous accounting period.
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the amount of any exchange gain which as regards the contract accrues to the company for the period shall be deducted from amount A or, as the case may require, added to amount B; and
the amount of any exchange loss which as regards the contract accrues to the company for the period shall be deducted from amount B or, as the case may require, added to amount A.
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Subsections (2) and (3) below apply in any case where—
a qualifying company is entitled to a right to receive a qualifying payment, and
the inspector is satisfied, on a claim made within two years after the end of an accounting period of the company, that the whole or any part of the payment outstanding immediately before the end of that period could at that time reasonably have been regarded as having become irrecoverable in that period.
If, as regards the contract and the period, amounts A and B fall to be determined under section 155(4) above, an amount equal to so much of the payment as— shall be deducted from amount A, or as the case may require, added to amount B.
is considered to have become irrecoverable in the period, and
became due and payable in the period or any previous accounting period,
If, as regards the contract and the period, amounts A and B fall to be determined under section 155(5) above, an amount equal to so much of the payment as— shall be deducted from amount A, or as the case may require, added to amount B.
is considered to have become irrecoverable in the period, and
was allocated to the period or any previous accounting period,
In any case where— an amount equal to so much of the payment as is so recovered shall, as regards the qualifying contract and the later accounting period, be deducted from amount B, or as the case may require, added to amount A.
as regards a qualifying contract and an accounting period of a qualifying company, an amount has been deducted or added as mentioned in subsection (2) or (3) above, and
the whole or any part of so much of the qualifying payment as was considered irrecoverable is recovered in a later accounting period of the company,
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Subsections (2) and (3) below apply in any case where—
a qualifying company is subject to a duty to make a qualifying payment, and
at any time in an accounting period of the company, the whole or any part of the payment then outstanding is released by the person to whom the duty is owed.
If, as regards the contract and the period, amounts A and B fall to be determined under section 155(4) above, an amount equal to so much of the payment as— shall be deducted from amount B, or as the case may require, added to amount A.
is released in the period, and
became due and payable in the period or any previous accounting period,
If, as regards the contract and the period, amounts A and B fall to be determined under section 155(5) above, an amount equal to so much of the payment as— shall be deducted from amount B, or as the case may require, added to amount A.
is released in the period, and
was allocated to the period or any previous accounting period,
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Subsection (2) below applies where, as a result of— there is a transfer of value by the qualifying company to an associated company or an associated third party.
a qualifying company entering into a relevant transaction on or after its commencement day, or
the expiry on or after a qualifying company’s commencement day of an option held by the company which, until its expiry, was a qualifying contract,
For the accounting period of the qualifying company in which the transaction was entered into or the option expired, there shall be deducted from amount B or, as the case may require, added to amount A an amount equal to the value transferred by that company.
For the purposes of subsection (1) above there is a transfer of value by the qualifying company to an associated company or an associated third party if, immediately after the transaction or expiry— than it would have been but for the transaction or expiry; and the amount by which the value mentioned in paragraph (a) above is less is the value transferred by the qualifying company for the purposes of subsection (2) above.
the value of the qualifying company’s net assets is less, and
the value of the associated company’s or associated third party’s net assets is more,
Any reference in subsection (3) above to the value of a person’s net assets being less or more than it would have been but for the transaction or expiry includes a reference to the value of that person’s net liabilities being more or, as the case may be, less than it would have been but for the transaction or expiry.
In applying subsection (3) above, no account shall be taken of any such payment as is mentioned in section 151(2)(a) or (b) above.
A third party, that is to say, a person who is not an associated company, is an associated third party for the purposes of this section at the time when the relevant transaction is entered or the option expires if, at that time, each of the two conditions mentioned below is fulfilled.
The first condition is that the relevant transaction is entered into or the option is allowed to expire in pursuance of arrangements made with the third party.
The second condition is that, in pursuance of those arrangements, a transfer of value has been or will be made to an associated company (directly or indirectly) by the third party or by a company which was at the time when the arrangements were made an associated company of that party.
Where it appears to the inspector that there is a transfer of value by the qualifying company to a third party, he may by notice in writing require the company, within such time (which shall not be less than 30 days) as may be specified in the notice, to furnish to the inspector such information—
as is in its possession or power, and
as the inspector reasonably requires for the purpose of determining whether the third party is an associated third party for the purposes of this section.
Subsection (3) above shall (with the necessary modifications) apply for the purposes of subsections (7) to (9) above as it applies for the purposes of subsection (1) above.
In this section—
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Subsection (2) below applies where subsection (2) of section 165 above applies and either—
the transfer of value by the qualifying company is to an associated company which is itself a qualifying company; or
the transfer of value by the qualifying company is to an associated third party, and the transfer of value mentioned in subsection (8) of that section—
is to an associated company which is itself a qualifying company, and
results from that company entering into a relevant transaction.
For the corresponding accounting period or periods of the associated company, there shall be deducted from amount A or, as the case may require, added to amount B an amount equal to the value transferred to the associated company.
Subsection (3) of section 165 above shall (with the necessary modifications) apply for the purposes of subsection (2) above as it applies for the purposes of subsection (2) of that section.
In subsection (2) above “corresponding accounting period or periods”, in relation to the associated company, means the accounting period or periods of that company comprising or together comprising the accounting period of the qualifying company in which the transaction was entered into or the option expired, and any necessary apportionment shall be made between corresponding accounting periods if more than one.
In this section any expressions which are also used in section 165 above shall be construed in accordance with the provisions of that section.
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A transaction entered into on or after a qualifying company’s commencement day is a relevant transaction for the purposes of this section if as a result of the transaction—
the qualifying company becomes party to a qualifying contract, or
the terms of a qualifying contract to which the qualifying company is party are varied.
Subsections (3) to (5) below apply where— but subject, in a case falling within paragraph (a)(ii) above, to the modifications made by subsection (7) below.
if the parties to a relevant transaction had been dealing at arm’s length, the transaction—
would not have been entered into at all, or
would have been entered into on different terms, and
the Board direct that those subsections shall apply,
For each relevant accounting period for the whole of which the other party is a qualifying company, the following deductions shall be made—
from amount B, a deduction of such amount as may be necessary to reduce amount B to nil, and
from amount A, a deduction of such amount as may be necessary to reduce amount A to nil.
For each relevant accounting period for any part of which the other party is not a qualifying company, the following deductions shall be made—
from amount B, a deduction of such amount as may be necessary to reduce amount B to nil, and
from amount A, a deduction of the same amount or (where that amount exceeds amount A) a deduction of so much of that amount as may be necessary to reduce amount A to nil.
For each relevant accounting period (except the first) for any part of which the other party is not a qualifying company, there shall also be deducted from amount A or, as the case may require, added to amount B such amount as may be necessary to secure that amount C does not exceed amount D where—
amount C is any amount by which the aggregate of adjusted amounts A exceeds the aggregate of adjusted amounts B, and
amount D is any amount by which the aggregate of unadjusted amounts A exceeds the aggregate of unadjusted amounts B.
In subsection (5) above—
In a case falling within subsection (2)(a)(ii) above— and in this subsection “the relevant proportion” means such proportion as may be just and reasonable having regard to the differences between the terms mentioned in subsection (2)(a)(ii) above and the terms on which the relevant transaction was actually entered into.
subsections (3) to (5) above shall have effect as if any reference to amount A or amount B were a reference to the relevant proportion of that amount; and
the definitions in subsection (6) above of “the aggregate of adjusted amounts A” and similar expressions shall have effect as if any reference to adjusted amount A were a reference to the adjusted relevant proportion of amount A;
In applying subsections (2) and (7) above—
no account shall be taken of any transfer of value in respect of which an adjustment is made under section 165 or 166 above, but
subject to that, all factors shall be taken into account.
The factors which may be so taken into account include—
in a case where the qualifying contract is an interest rate contract or option, any notional principal amounts and rates of interest that would have been involved;
in a case where the qualifying contract is a currency contract or option, any currencies and amounts that would have been involved; and
in either case, any transactions which are related to the relevant transaction.
In this section “relevant accounting period”, in relation to a relevant transaction, means—
the accounting period of the qualifying company in which the transaction was entered into, and
each subsequent accounting period of that company for the whole or part of which it is party to the contract.
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Subject to subsections (3) to (5) below, subsections (4) and (5) of section 167 above (“the relevant subsections”) also apply where, as a result of any transaction entered into on or after a qualifying company’s commencement day—
the qualifying company and a non-resident, that is, a person who is not resident in the United Kingdom, both become party to a qualifying contract;
the qualifying company becomes party to a qualifying contract to which a non-resident is party; or
a non-resident becomes party to a qualifying contract to which the qualifying company is party.
For the purposes of the relevant subsections as so applied, the definition of “relevant accounting period” in subsection (10) of that section shall have effect as if—
any reference to a relevant transaction were a reference to the transaction mentioned in subsection (1) above; and
in paragraph (b), for the words “it is” there were substituted the words “both it and the non-resident are”.
The relevant subsections shall not apply where the qualifying company is a bank, building society or financial trader and—
it holds the qualifying contract solely for the purposes of a trade or part of a trade carried on by it in the United Kingdom, and
it is party to the contract otherwise than as agent or nominee of another person.
The relevant subsections shall not apply where—
the non-resident holds the qualifying contract solely for the purposes of a trade or part of a trade carried on by him in the United Kingdom through a branch or agency, and
he is party to the contract otherwise than as agent or nominee of another person.
The relevant subsections shall not apply where arrangements made with the government of the territory in which the non-resident is resident—
have effect by virtue of section 788 of the Taxes Act 1988, and
make provision, whether for relief or otherwise, in relation to interest (as defined in the arrangements).
Where the non-resident is party to the contract as agent or nominee of another person, subsection (5) above shall have effect as if the reference to the territory in which the non-resident is resident were a reference to the territory in which that other person is resident.
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Subject to the provisions of Schedule 18 to this Act and subsection (2) below, this Chapter shall apply in relation to insurance companies and mutual trading companies as it applies in relation to other qualifying companies.
The Treasury may by regulations provide that this Chapter shall have effect in relation to currency contracts held by insurance companies with such modifications as may be specified in the regulations.
Regulations under subsection (2) above may make different provision as respects contracts held for different purposes or in different circumstances.
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For the purpose of determining whether a qualifying company may be approved for the purposes of section 842 of the Taxes Act 1988 (investment trusts) for any accounting period, any non-trading profits which the company is treated for the purposes of section 160 above as having for that period shall be treated as income derived from shares or securities.
In this section “shares” has the same meaning as in section 842 of the Taxes Act 1988.
Section 505 of the Taxes Act 1988 (charities: general) shall have effect, in relation to any qualifying company established for charitable purposes only, as if the reference in subsection (1)(c)(ii) to any yearly interest or other annual payment included a reference to any annual profits or gains which the company is treated as receiving in any accounting period by virtue of section 130 of the Finance Act 1993 (non-trading exchange gains: charge to tax).
As regards a qualifying company so established, no part of the relievable amount for any accounting period may be set off against any income which, if it had been applied for charitable purposes only, would have been exempt by virtue of section 505 of the Taxes Act 1988.
In subsection (2) above “the relievable amount” has the same meaning as in section 131 of the Finance Act 1993 (relief for non-trading exchange losses).
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Subject to the provisions of this section, this Chapter shall have effect as if qualifying partnerships were qualifying companies.
A partnership is a qualifying partnership for the purposes of this section if one or more of the partners are qualifying companies.
Subsections (4) to (6) below apply where—
one or more of the members of a qualifying partnership are not qualifying companies, and
as regards one or more qualifying contracts, one or more profits or losses accrue to the partnership for an accounting period.
Two computations of the profits and losses for the period shall be made under subsection (1) of section 114 of the Taxes Act 1988 (partnerships involving companies: special rules for computing profits and losses)—
one (the first computation) on the basis that the partnership is a qualifying partnership, and
the other (the second computation) on the basis that the partnership is not such a partnership.
The first computation shall be used for the purpose of determining, under subsection (2) of that section, the share or shares of such of the partners as are qualifying companies.
The second computation shall be used for the purpose of determining, under that subsection, the share or shares of such of the partners as are not qualifying companies.
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Subsection (2) below applies to any amount—
which under or by virtue of this Chapter is chargeable to corporation tax as profits of a qualifying company, or
which falls to be taken into account as a receipt in computing for the purposes of this Chapter the profits or losses of such a company.
An amount to which this subsection applies—
shall not otherwise than under or by virtue of this Chapter be chargeable to corporation tax as profits of the company,
shall not be taken into account as a receipt in computing for other purposes of the Tax Acts the profits or losses of the company, and
for the purposes of the Taxation of Chargeable Gains Act 1992, shall be excluded from the consideration for a disposal of assets taken into account in the computation of the gain.
Subsection (4) below applies to any amount— and that subsection applies to any such amount irrespective of whether effect is or would be given to the deduction in computing the amount of tax chargeable or by discharge or repayment of tax or in any other way.
which is allowable as a deduction in computing for the purposes of this Chapter the profits or losses of a qualifying company, or
which under or by virtue of this Chapter is allowable as a deduction in computing any other income or profits or gains or losses of such a company for the purposes of the Tax Acts, or
which, although not so allowable as a deduction in computing any losses, would be so allowable but for an insufficiency of income or profits or gains;
An amount to which this subsection applies—
shall not be allowable as a deduction in computing for other purposes of the Tax Acts the profits or losses of the company,
shall not otherwise than under or by virtue of this Chapter be allowable as a deduction in computing any other income or profits or gains or losses of the company for the purposes of the Tax Acts,
shall not be treated as a charge on income for the purposes of corporation tax, and
shall be excluded from the sums allowable under section 38 of the Taxation of Chargeable Gains Act 1992 as a deduction in the computation of the gain.
In this section—
references to the purposes of this Chapter include references to the purposes of subsections (5), (6) and (9) of section 129 and sections 130 to 133 of the Finance Act 1993 (non-trading exchange gains and losses), and
references to other purposes of the Tax Acts are references to the purposes of those Acts other than those of this Chapter.
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In a case where— subsection (4) of section 153 above shall have effect in relation to the contract and the company as if section 147(2) above applied for the purposes of this Chapter except those of that subsection.
at any time, a currency contract held by a qualifying company becomes a qualifying contract by virtue of section 147(2) above, and
at that time, it is held for the purposes of a trade or part of a trade carried on by the company,
In a case where— section 158 above shall have effect in relation to the contract and the period as if subsections (2) and (4) were omitted.
at any time in an accounting period of a qualifying company, a currency contract held by the company becomes a qualifying contract by virtue of section 147(2) above, and
at all times in the period when the contract is so held, it is held otherwise than for the purposes of a trade or part of a trade carried on by the company,
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In this Chapter—
For the purposes of this Chapter— and it is immaterial for the purposes of paragraph (b) above when the rights or duties fall to be exercised or performed.
a company becomes entitled to rights or subject to duties under an interest rate contract or option, or a currency contract or option, when it becomes party to the contract or option; and
a company holds such a contract or option at a particular time if it is then entitled to rights or subject to duties under it;
Any provision of this Chapter other than section 167 above which requires any amount (the relevant amount) to be deducted from amount A or, as the case may require, added to amount B shall be construed as requiring the following deductions or additions to be made—
where amount A is not less than the relevant amount, a deduction from amount A of an amount equal to the relevant amount;
where amount A is less than the relevant amount but is more than nil—
a deduction from amount A of an amount equal to so much of the relevant amount as may be necessary to reduce amount A to nil, and
an addition to amount B of an amount equal to the remainder of the relevant amount;
where amount A is nil, an addition to amount B of an amount equal to the relevant amount.
Subsection (3) above shall be read as applying equally to any such provision which requires any amount to be deducted from amount B or, as the case may be, added to amount A, and for that purpose shall have effect with such modifications as may be requisite.
In this Chapter expressions which are not defined or otherwise explained but are used in Chapter II of Part II of the Finance Act 1993 (exchange gains and losses) have the same meanings as in that Chapter.
The Treasury may by order amend any of sections 149 to 153 above; and any such order may—
make corresponding amendments to section 126 of the Finance Act 1993;
make consequential amendments to such of the provisions of this Chapter or Chapter II of Part II of that Act as relate to currency contracts; and
contain such other consequential provisions, and such supplementary, incidental or transitional provisions, as appear to the Treasury to be necessary or expedient.
For subsection (1) of section 8 of the Management Act (personal return) there shall be substituted the following subsections—
For subsection (1) of section 8A of the Management Act (trustee’s return) there shall be substituted the following subsections—
For section 9 of the Management Act there shall be substituted the following section—
In subsection (1) of section 11 of the Management Act (return of profits), after the words “as may”, in both places where they occur, there shall be inserted the word “reasonably”.
In subsection (1A) of that section, after the words “a company may”, in both places where they occur, there shall be inserted the word “reasonably”.
After subsection (2) of that section there shall be inserted the following subsections—
After section 12 of the Management Act there shall be inserted the following section—
After section 12AA of the Management Act there shall be inserted the following section—
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After section 28B of the Management Act there shall be inserted the following section—
For section 29 of the Management Act there shall be substituted the following section—
This section, so far as it relates to partnerships whose trades, professions or businesses are set up and commenced before 6th April 1994, has effect as respects the year 1997-98 and subsequent years of assessment.
After Part V of the Management Act there shall be inserted the following section—
After section 59A of the Management Act there shall be inserted the following section—
After section 59B of the Management Act there shall be inserted the following section—
Schedule 19 to this Act (which makes other amendments relating to the management of tax) shall have effect.
In the Tax Acts and the Gains Tax Acts, any reference (however expressed) to a person being assessed to tax, or being charged to tax by an assessment, shall be construed as including a reference to his being so assessed, or being so charged—
by a self-assessment under section 9 or 11AA of the Management Act, or
by a determination under section 28C of that Act (which, until superseded by such a self-assessment, has effect as if it were one).
In this section “the Gains Tax Acts” means the Taxation of Chargeable Gains Act 1992 and all other enactments relating to capital gains tax.
Section 59A of the Management Act shall have effect as regards the year 1996-97 as if—
the reference in subsection (1)(a) to a person being assessed to income tax under section 9 of that Act were a reference to his being assessed to income tax under section 29 of that Act;
the reference in subsection (1)(b) to the assessed amount were a reference to the difference between that amount and the amount of any income tax charged at a rate other than the basic rate on any income—
from which tax has been deducted otherwise than under section 203 of the Taxes Act 1988,
from or on which income tax is treated as having been deducted or paid, or
which is chargeable under Schedule F;
subsection (2) required—
the first payment on account to be of an amount equal to the aggregate of the relevant proportion of the relevant amount and 50 per cent. of the difference between the relevant amount and that proportion of that amount, and
the second payment on account to be of an amount equal to 50 per cent. of that difference; and
subsection (4) provided that, in the circumstances there mentioned—
the amount of the first payment on account required to be made should be, and should be deemed always to have been, equal to the aggregate of the relevant proportion of the stated amount and 50 per cent. of the difference between the stated amount and that proportion of that amount, and
the amount of second payment on account required to be made should be, and should be deemed always to have been, equal to 50 per cent. of that difference.
In subsection (1) above “relevant proportion” means the proportion which the amount of tax charged under Schedule A or any of Cases III to VI of Schedule D for the year 1995-96 bears to the assessed amount.
In the case of a partnership whose trade, profession or business is set up and commenced before 6th April 1994, section 59B of the Management Act shall have effect, as respects each partner and the year 1996-97, as if his share of any income tax to which the partnership is assessed for that year were income tax which in respect of that year had been deducted at source.
In this Chapter “the Management Act” means the Taxes Management Act 1970.
Unless the contrary intention appears, this Chapter—
so far as it relates to income tax and capital gains tax, has effect as respects the year 1996-97 and subsequent years of assessment, and
so far as it relates to corporation tax, has effect as respects accounting periods ending on or after the appointed day.
For the purposes of this Chapter the appointed day is such day, not earlier than 1st April 1996, as the Treasury may by order appoint.
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In subsection (1) of section 65 of that Act (Case IV and V assessments: general), the words “and sections 66 and 67” and the words “the year preceding” shall cease to have effect.
In subsection (3) of that section—
after the words “Cases I and II of Schedule D” there shall be inserted the words “(including sections 60 to 63A and 113)”; and
the words from “Nothing in this subsection” to the end shall cease to have effect.
In subsection (5) of that section, the words “subject to sections 66 and 67” and the words “the year preceding”, in each place where they occur, shall cease to have effect.
Sections 66 and 67 of that Act (special rules for fresh income and special rules where source of income disposed of or yield ceases) shall cease to have effect.
In subsection (1) of section 68 of that Act (special rules where property etc. situated in Republic of Ireland), for the words “sections 65 or 66” there shall be substituted the words “section 65”.
In its application to trades, professions or vocations set up and commenced before 6th April 1994, subsection (2) above has effect as respects the year 1997-98 and subsequent years of assessment.
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For subsections (1) and (2) of section 380 of the Taxes Act 1988 (set-off against general income) there shall be substituted the following subsections—
In subsection (2) of section 381 of that Act (further relief for individuals for losses in early years of trade), for the words “an amount of the claimant’s income equal to the amount of the loss” there shall be substituted the words “so much of the claimant’s income as is equal to the amount of the loss or, where it is less than that amount, the whole of that income”.
For subsections (3) and (4) of section 382 of that Act (provisions supplementary to sections 380 and 381) there shall be substituted the following subsections—
For subsection (1) of section 385 of that Act (carry-forward against subsequent profits) there shall be substituted the following subsection—
Subsections (3) and (8) of that section shall cease to have effect.
In subsection (1) of section 388 of that Act (carry-back of terminal losses) for the words “the three years of assessment last preceding that in which the discontinuance occurs” there shall be substituted the words “the year of assessment in which the discontinuance occurs and the three years last preceding it”.
In their application to trades, professions or vocations set up and commenced before 6th April 1994, subsections (3) to (5) above have effect as respects the year 1997-98 and subsequent years of assessment.
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For subsections (1) and (2) of section 574 of the Taxes Act 1988 (relief for individuals for losses on unquoted shares) there shall be substituted the following subsections—
This section has effect as respects the year 1994-95 and subsequent years of assessment.
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Subject to section 214(7) below, this section and sections 212 to 214 below, in their application to trades, professions or vocations set up and commenced before 6th April 1994 or employments or offices entered into before that date, have effect as respects the year 1997-98 and subsequent years of assessment.
For section 160 of the Capital Allowances Act 1990 there shall be substituted the following section—
“chargeable period” means an accounting period of a company or a period of account, and a reference to a “chargeable period related to” the incurring of expenditure, or a sale or other event, is a reference to the chargeable period in which the expenditure is incurred, or the sale or other event takes place;
In the Capital Allowances Act 1990 the following words, in each place where they occur, shall cease to have effect, namely— “or its basis period”; “or of which the basis periods end on or before that date”; “or, as the case may be, in its basis period”; “or in the basis period for which”; “or, as the case may be, its basis period”; and “or the basis periods for which”.
In subsection (2) of section 3 of that Act (writing down allowances for industrial buildings and structures), after the word “less” there shall be inserted the words “or more” and after the word “reduced” there shall be inserted the words “or increased”.
In section 8 of that Act (writing off of expenditure on industrial buildings and structures)—
in subsection (5), in paragraph (a), the words from “or” to the end shall cease to have effect; and
in subsection (13), for paragraph (d) there shall be substituted the following paragraph—
In subsection (2)(a) of section 24 of that Act (writing-down allowances and balancing adjustments), for sub-paragraph (ii) there shall be substituted the following sub-paragraph—.
In subsection (3) of section 34 of that Act (writing-down allowances etc. for expensive motor cars), for paragraphs (a) and (b) there shall be substituted the following paragraphs—
In subsection (1)(b) of section 35 of that Act (contributions to expenditure on expensive motor cars), for the words “or, if the chargeable period is part only of a year, that amount proportionately reduced” there shall be substituted the words “or, if the chargeable period is a period of less or more than a year, that amount proportionately reduced or, as the case may require, increased”.
In subsection (2) of section 85 of that Act (writing down allowances), after the word “less” there shall be inserted the words “or more” and after the word “reduced” there shall be inserted the words “or increased”.
For subsection (6) of section 98 of that Act (mineral extraction: writing down and balancing allowances), there shall be substituted the following subsection—
In subsection (1) of section 134 of that Act (allowances for expenditure on dredging), the words from “but where a writing-down allowance” to the end shall cease to have effect.
For subsections (5) to (7) of section 137 of that Act (allowances for capital expenditure on scientific research) there shall be substituted the following subsection—
In subsection (5) of section 161 of that Act (other interpretative provisions), for the words from “or in charging” to the end there shall be substituted the words “or income tax.”
In the Taxes Act 1988, the following provisions shall cease to have effect, namely—
in section 96 (farming and market gardening: relief for fluctuating profits), in subsection (7), paragraph (b);
section 383 (extension of right to set-off to capital allowances);
in section 384 (restrictions on right of set-off), in subsection (1), the words “(including any amount in respect of capital allowances which, by virtue of section 383, is to be treated as a loss)”, and in subsection (2), the words “or an allowance in respect of expenditure incurred”, paragraph (b) and the word “or” immediately preceding that paragraph;
in section 388 (carry-back of terminal losses), in subsection (6), paragraphs (b) and (d) and the word “and” immediately preceding paragraph (d), and in subsection (7), the words from the beginning to “an earlier year: and”; and
in section 389 (supplementary provisions relating to carry-back of terminal losses), subsections (5) to (7).
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for the words “There shall be disregarded for the purposes of section 383 any allowances” there shall be substituted the words “There shall be disregarded for the purposes of sections 380 and 381 so much of any loss as derives from any allowances”; and
for the words “the year of the loss (as defined in section 383)” there shall be substituted the words “the year of assessment in which the loss was sustained”.
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after the word “loss”, in the second place where it occurs, there shall be inserted the words “, computed without regard to capital allowances,”; and
the words from “and where” to the end shall cease to have effect.
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section 521 (provisions supplementary to section 520);
section 528 (manner of making allowances and charges); and
section 530 (disposal of know-how),
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Subsection (1)(a) above—
except in its application to a trade set up and commenced on or after 6th April 1994, has effect where the first of the two years of assessment to which the claim relates is the year 1996-97 or any subsequent year, and
in its application to a trade so set up and commenced, has effect where the first of those two years of assessment is the year 1995-96 or any subsequent year.
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For section 111 of the Taxes Act 1988 there shall be substituted the following section—
In section 114 of that Act (special rules for computing profits or losses), after the word “trade”— there shall be inserted the words “profession or business”.
in subsection (1), in each place where it occurs;
in subsection (2); and
in subsection (3), in the first place where it occurs,
The following provisions of that Act shall cease to have effect, namely—
in section 114, in subsection (3), the words from “except that” to the end, and subsection (4);
in section 115 (provisions supplementary to section 114), subsections (1) to (3) and (6); and
in section 277 (personal reliefs: partnerships), in subsection (1), the words “Subject to subsection (2) below”, paragraph (c) and the word “and” immediately preceding that paragraph, and subsection (2).
This section and section 216 below—
except in their application to partnerships mentioned in subsection (5) below, have effect as respects the year 1997-98 and subsequent years of assessment, and
in its application to partnerships so mentioned, have effect as respects the year 1994-95 and subsequent years of assessment.
The partnerships referred to in subsection (4) above are partnerships—
whose trades, professions or businesses are set up and commenced on or after 6th April 1994; and
which are not partnership firms to which section 112(3) of the Taxes Act 1988 (partnerships controlled abroad) applies.
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Subsections (3) to (5) of that section and, in subsection (6) of that section, the words from “and where” to the end shall cease to have effect.
The following provisions of that Act shall cease to have effect, namely—
in section 96 (farming and market gardening: relief for fluctuating profits), in subsection (6) the words from “except that” to the end;
in section 380 (set-off against general income), subsection (3);
in section 381 (further relief in early years of trade), subsection (6);
in section 384 (restrictions on right of set-off), subsection (5);
in section 385 (carry-forward against subsequent profits), subsections (2) and (5);
in section 386 (carry-forward where business transferred to a company), subsection (4); and
in section 389 (supplementary provisions relating to carry-back of terminal losses), subsection (3).
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Subsection (3)(a) above—
except in its application to a trade set up and commenced on or after 6th April 1994, has effect where the first of the two years of assessment to which the claim relates is the year 1996-97 or any subsequent year, and
in its application to a trade so set up and commenced, has effect where the first of those two years of assessment is the year 1995-96 or any subsequent year.
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In subsection (1) of section 804 of the Taxes Act 1988 (relief against income tax in respect of income arising in years of commencement), for the words “any income arising in the years of commencement” there shall be substituted the words “any income which is an overlap profit”.
For subsection (5) of that section there shall be substituted the following subsections—
In subsection (8) of that section—
“overlap profit” means an amount of profits or gains which, by virtue of sections 60 to 62, is included in the computations for two successive years of assessment;
the definitions of “non-basis period” and “years of commencement” and the words “references to the enactments relating to cessation are references to sections 63, 67 and 113” shall cease to have effect.
Unless the contrary intention appears, this Chapter—
except in its application to a trade set up and commenced on or after 6th April 1994 or income from a source arising to a person on or after that date, has effect as respects the year 1996-97 and subsequent years of assessment, and
in its application to a trade so set up and commenced or income from a source so arising, has effect as respects the year 1994-95 and subsequent years of assessment.
Any reference in subsection (1) above to a trade includes a reference to a profession, vocation, employment or office.
In a case where— sections 213(4) and (8) and 214(4) and (6) have effect only if it is set up and commenced on or after 6th April 1995.
a trade is set up and commenced by a company, and
it is not set up and commenced before 6th April 1994,
Where the first underwriting year of the underwriting business of a member of Lloyd’s is the year 1994, subsection (1) above shall have effect in relation to that business as if it had been set up and commenced on 6th April 1994.
Where, as respects income from any source, income tax is to be charged under Case IV or V of Schedule D by reference to the amounts of income received in the United Kingdom, the source shall be treated for the purposes of subsection (1) above as arising on the date on which the first amount of income is so received.
This Chapter shall have effect subject to the transitional provisions and savings contained in Schedule 20 to this Act.
Corporation tax for any accounting period on the profits arising from a corporate member’s underwriting business shall be computed on the profits of that accounting period.
As respects the profits arising to a corporate member for any accounting period directly from its membership of one or more syndicates, or from assets forming part of a premium trust fund—
the aggregate of those profits shall be computed for tax purposes under Part 3 of the Corporation Tax Act 2009 ; and
accordingly, no part of those profits shall be computed for those purposes otherwise than under Part 3 of the Corporation Tax Act 2009 .
... The profits arising to a corporate member for any accounting period— shall be computed for tax purposes under Part 3 of the Corporation Tax Act 2009 if, and to the extent that, they do not fall to be computed for those purposes otherwise than under Part 3 of that Act .
from assets forming part of an ancillary trust fund; or
from assets employed by it in, or in connection with, its underwriting business,
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For the purposes of section 219 above and all other purposes of the Corporation Tax Acts, the profits or losses arising to a corporate member in any accounting period directly from its membership of one or more syndicates, or from assets forming part of a premium trust fund, shall be taken to be—
if two underwriting years each fall partly within that period, the aggregate of the apportioned parts of those profits or losses in those years; and
if a single underwriting year falls wholly or partly within that period, those profits or losses or (as the case may be) the apportioned part of those profits or losses in that year.
Subject to the provisions of this Chapter, for the purposes of subsection (1) above and all other purposes of the Corporation Tax Acts—
the profits or losses arising to a corporate member in any underwriting year directly from its membership of one or more syndicates shall be taken to be those of any previous year or years which are declared in that year; and
the profits or losses arising to a corporate member from assets forming part of a premium trust fund which shall be taken to be profits or losses of any underwriting year are—
those allocated under the rules or practice of Lloyd’s to any previous year or years the profits or losses of which are declared in that year, and
those arising in that year and not so allocated to any previous year or years.
In this section “apportioned part”, in relation to the profits or losses of an underwriting year, means a part apportioned under section 52 of the Corporation Tax Act 2009 .
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Subject to subsection (2) below, Schedule 19 (Lloyd’s underwriters: assessment and collection of tax) to the Finance Act 1993 (“the 1993 Act”) shall apply in relation to corporate members as it applies in relation to other members.
In its application to a corporate member, paragraph 13 of that Schedule shall have effect as if—
in sub-paragraph (3)(b), the reference to the members' agent of each member were a reference to each corporate member itself;
after sub-paragraph (3A) there were inserted the following sub-paragraph—;
in sub-paragraph (4), the reference to section 824 of the Taxes Act 1988 were a reference to section 826 of that Act (interest on tax overpaid); and
in sub-paragraph (4A), the reference to the members' agent of a member were a reference to a corporate member itself, the reference to section 171 of the 1993 Act were a reference to section 219 of this Act and each reference to the Income Tax Acts were a reference to the Corporation Tax Acts.
For the purposes of the Corporation Tax Acts—
a corporate member shall be treated as absolutely entitled as against the trustees to the assets forming part of a premium trust fund belonging to it; and
where a deposit required by a regulatory authority in a country or territory outside the United Kingdom is paid out of such a fund, the money so paid shall be treated as still forming part of that fund.
Where an asset forms part of a corporate member’s premium trust fund at the beginning of any underwriting year, for the purposes of the Corporation Tax Acts—
the trustees of the fund shall be treated as acquiring it on that day, and
they shall be treated as paying in respect of the acquisition an amount equal to the value of the asset at the time of the acquisition.
Where an asset forms part of a corporate member’s premium trust fund at the end of any underwriting year, for the purposes of the Corporation Tax Acts—
the trustees of the fund shall be treated as disposing of it on that day, and
they shall be treated as obtaining in respect of the disposal an amount equal to the value of the asset at the time of the disposal.
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securities have been transferred by the trustees of a corporate member’s premiums trust fund in pursuance of an arrangement mentioned in section 129(1), (2) or (2A) of the Taxes Act 1988,
the transfer was made to enable another person to fulfil a contract or to make a transfer,
securities have not been transferred in return, and
section 129(3) of that Act applies to the transfer made by the trustees.
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“stop-loss insurance” means any insurance taken out by a corporate member against losses in its underwriting business , except insurance taken out by entering a quota share contract (within the meaning of section 225 above);
A corporate member shall be treated for the purposes of the Corporation Tax Acts as absolutely entitled as against the trustees to the assets forming part of an ancillary trust fund belonging to it.
Subject to subsection (2) below, section 177 of the 1993 Act (reinsurance to close) shall apply for the purposes of this Chapter as it applies for the purposes of Chapter III of Part II of that Act (Lloyd’s underwriters: individuals).
That section as so applied shall have effect as if—
the member by whom the premium is payable were required to be a corporate member;
the member to whom the premium is payable might, but need not, be such a member; and
any reference to the purposes of income tax were a reference to the purposes of corporation tax.
In computing for the purposes of corporation tax the profits of a corporate member’s underwriting business, each of the following shall be deductible as an expense, namely—
any premium payable by it under a stop-loss insurance, and any repayment of insurance money paid to it under such an insurance; and
where an amount is payable by it under a quota share contract—
so much of that amount as exceeds the amount of transferred losses that are declared on or before the date the contract takes effect (“the declared amount”), or
if the contract does not take effect, the amount so payable under the contract.
Subject to subsection (3) below, the following provisions apply where any insurance money is payable to a corporate member under a stop-loss insurance in respect of a loss in its underwriting business—
if the underwriting year in which the loss is declared falls within two or more accounting periods, the apportioned part of the insurance money shall be treated as a trading receipt in computing the profits arising from the business for each of those periods; and
if the underwriting year in which the loss is declared falls within a single accounting period, the insurance money shall be treated as a trading receipt in computing the profits arising from the business for that period.
Where, as respects the payment of any such insurance money as is mentioned in subsection (2) above— that subsection shall have effect in relation to the apportioned part of that insurance money or (as the case may be) that insurance money as if, instead of that accounting period, it referred to the accounting period in which the payment is made.
the inspector is not notified of the payment at least 30 days before the time after which any assessment or further assessment of profits for any of the accounting periods or (as the case may be) the accounting period is precluded by section 34 of the Management Act (ordinary time limit), and
the inspector is not entitled, after that time, to make any such assessment or further assessment by virtue of section 36 ( loss of tax brought about carelessly or deliberately ) of that Act,
In this section—
Where the amount payable by a corporate member under a quota share contract is less than the declared amount—
if the underwriting year in which the contract takes effect falls within a single accounting period, the difference between the two amounts (“the surplus”) shall be treated as a trading receipt in computing the profits arising from the member’s underwriting business for that period, and
if that underwriting year falls within two or more accounting periods, the apportioned part of the surplus shall be treated as a trading receipt in computing the profits arising from the member’s underwriting business for each of those periods.
Where a corporate member has entered a quota share contract, any amount paid by it to cover a cash call in respect of transferred losses that are not declared at the time the contract takes effect shall be treated, for the purposes of subsections (1)(b)(i) and (3A) above, as an amount payable under the contract at that time.
Subsection (3D) applies to any premium which is payable by a corporate member under a stop-loss insurance taken out in respect of its underwriting business and in relation to which section 220(2)(a) does not apply.
The premium is to be treated for the purposes of the Corporation Tax Acts—
as an amount that arises to the member directly from its membership of the syndicate or syndicates in relation to the activities of which the stop-loss insurance was taken out, and
as if it were payable in the underwriting year in which the profits or losses arising to the member directly from its membership of the syndicate or syndicates concerned are declared.
If a premium is payable under a stop-loss insurance in respect of two or more underwriting years, the amount of the premium treated, as a result of subsection (3D)(b), as payable in each of those years is to be determined on a just and reasonable basis.
If— the contract is treated for the purposes of subsections (3C) to (3E) as if it were a stop-loss insurance (and, accordingly, the amounts payable under it are treated for those purposes as premiums).
a corporate member enters into a quota share contract, and
the main purpose, or one of the main purposes, of entering into it was to secure that amounts payable by the member under the contract were not dealt with on the basis set out in subsection (3G),
Amounts are dealt with on the basis set out in this subsection if they are treated as payable in the underwriting year in which the profits or losses arising to a corporate member directly from its membership of one or more syndicates are declared.
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No relevant contract (within the meaning of Part 7 of the Corporation Tax Act 2009 ) forming part of a premium trust fund of a corporate member shall be a derivative contract.
This section applies where a corporate member ceases to carry on its underwriting business, whether by reason of being wound up or otherwise.
Subject to the provisions of any regulations made by the Board—
the member’s final underwriting year shall be that in which its deposit at Lloyd’s is paid over to it or its liquidator, and
the member’s underwriting business shall be treated as continuing until the end of that year.
Chapter III of Part II of the 1993 Act (Lloyd’s underwriters: individuals) shall have effect subject to the amendments specified in Schedule 21 to this Act.
The following provisions shall cease to have effect, namely—
section 627 of the Taxes Act 1988 (elections by Lloyd’s underwriters with respect to retirement annuities);
in section 641 of that Act, subsection (2) (elections by Lloyd’s underwriters with respect to carry-back of contributions); and
in section 183 of the 1993 Act, subsection (3) (amendments of sections 627(5) and 641(2) of the Taxes Act 1988).
Subject to any provision to the contrary, the provisions of Schedule 21 to this Act have effect for the year 1994-95 and subsequent years of assessment.
Subsection (2) above has effect for the year 1997-98 and subsequent years of assessment.
Losses of the last active underwriting year of a corporate member are not eligible for surrender by the corporate member as group relief to another company unless the group-relief continuity condition is satisfied.
In this section “last active underwriting year”, in relation to a corporate member, means—
if the corporate member writes insurance business in only one underwriting year, that underwriting year, and
otherwise, the last underwriting year in which the corporate member writes insurance business.
Where in an underwriting year— the underwriting year is not to be regarded for the purposes of subsection (2)(b) above as an underwriting year in which the corporate member writes insurance business.
the corporate member writes an amount of insurance business which is insignificant when compared with that written by it in the preceding underwriting year, or
the only insurance business written by the corporate member consists of the acceptance of reinsurance to close premiums,
In subsection (3)(b) above “reinsurance to close premium” means a premium or other consideration under a contract in pursuance of which, in accordance with the rules or practice of Lloyd's, one underwriting member agrees with another to meet liabilities arising from the latter's underwriting business in an underwriting year so that the accounts of the business for that year may be closed.
The group-relief continuity condition is satisfied if the corporate member (as the surrendering company) and the other company (as the claimant company) meet the conditions in section 131 (the group condition), section 132 (consortium condition 1) or section 133 (consortium conditions 2 and 3) of the Corporation Tax Act 2010 throughout the period—
beginning with the last day of the last active underwriting year of the corporate member, and
ending with the first day of the first underwriting year in which losses of the last active underwriting year are declared.
This section applies where, in accordance with the rules or practice of Lloyd's, a corporate member (“the successor”) has taken up the syndicate capacity of another corporate member (“the predecessor”).
Chapter 1 of Part 22 of the Corporation Tax Act 2010 (transfers of trade without a change of ownership) applies as if—
the transferred trade referred to in that Chapter were the underwriting business of the predecessor,
the predecessor ceases to carry it on, and the successor begins to carry it on, at the end of the first underwriting year in which profits or losses of the predecessor's last active underwriting year are declared, and
sections 951 and 952 were omitted.
For the purposes of subsection (1) above the successor has taken up the predecessor's syndicate capacity if it has taken up the rights to participate in syndicates which were (or otherwise would be) offered to the predecessor.
In subsection (2)(b) above “last active underwriting year” has the same meaning as in section 227A above (see subsections (2) to (4) of that section).
This section applies for the purposes of section 18A(6) and (7) of the Corporation Tax Act 2009 (exemption for profits or losses of foreign permanent establishments: “relevant profits amount” and “relevant losses amount”).
Any regulations made under section 229(1)(d) below are to be ignored.
Profits or losses which are taken to arise to a corporate member in an underwriting year from its membership of one or more syndicates are to be left out of account in relation to any relevant accounting period so far as they are profits or losses of a previous underwriting year which began before the relevant day (as defined in section 18F of the 2009 Act (effect of election under section 18A)).
Profits or losses arising to a corporate member from assets forming part of a premium trust fund which are taken to be profits or losses of an underwriting year are to be left out of account in relation to any relevant accounting period so far as they are allocated under the rules or practice of Lloyds to a previous underwriting year which began before the relevant day (as defined in section 18F of the 2009 Act).
for the assessment and collection of tax charged in accordance with section 219 above ...;
The Board may by regulations provide—
for modifying the application of this Chapter in relation to cases where assets forming part of a premium trust fund are the subject of—
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arrangements involving repos (within the meaning given by section 554(4) of the Corporation Tax Act 2009); or
arrangements meeting the conditions in section 554(2) of that Act (redemption arrangements);
Any power to make regulations conferred by this section includes power to make—
different provision for different cases or different purposes, and
incidental, supplemental or transitional provision and savings.
for making, in the event of any changes in the rules or practice of Lloyd’s, such amendments of this Chapter as appear to the Board to be expedient having regard to those changes;
for modifying the application of this Chapter in cases where a syndicate continues after the end of its closing year or a corporate member becomes insolvent or otherwise ceases to carry on its underwriting business;
for giving credit for foreign tax.
In this Chapter, unless the context otherwise requires—
For the purposes of this Chapter, unless the contrary intention appears—
the profits or losses of a corporate member’s underwriting business include profits or losses arising to it—
from assets forming part of a premium trust fund or an ancillary trust fund; or
from assets employed by it in, or in connection with, its underwriting business; and
any charge made on a corporate member by the managing agent of a syndicate of which it is a member, and any expense incurred on its behalf by the managing agent of such a syndicate, shall be treated as expenses arising directly from its membership of that syndicate.
Subject to any provision to the contrary, the provisions of this Chapter have effect for accounting periods ending on or after 1st January 1994 or, as the case may require, for the underwriting year 1994 and subsequent underwriting years.
The provisions of this Chapter apply where, on or before 1st January 1996, a participator in a taxable field makes, in accordance with Part I of Schedule 22 to this Act, an election with respect to that field by reference to a pipe-line—
which is a qualifying asset;
which is used or intended to be used for transporting oil in circumstances which give rise or are expected to give rise to tariff receipts;
which, at the date of the election, is at least 25 kilometres in length; and
for which the initial usage fraction does not exceed one-half.
A participator may not make an election— and for the purposes of paragraph (c) above no account shall be taken of the operation of section 113 of the Finance Act 1981 (loss following net profit period).
unless the field to which the election applies is (or, as the case may be, is intended to be) the chargeable field in relation to the tariff receipts referred to in subsection (1)(b) above; or
if the first chargeable period of that field ended on or before 30th June 1982; or
if the participator’s net profit period with respect to that field ended on or before 30th June 1993;
If there is more than one pipe-line by reference to which the electing participator could, apart from this subsection, make an election (with respect to the same field) he may make an election only by reference to that pipe-line which is the longer or longest.
In this Chapter, in relation to a pipe-line or an election made by reference to a pipe-line, “the initial usage fraction” means the fraction of which—
the numerator is the daily contracted and production throughput of oil in relation to the pipe-line on 16th March 1993; and
the denominator is the design capacity of the pipe-line, expressed on a daily basis.
Subject to subsection (6) below, where an election is in operation it shall apply to all those assets which, by reference to the field to which the election applies, are at the date of the election or subsequently become—
qualifying assets in relation to the electing participator; and
assets to which are or are expected to be referable any tariff receipts of the electing participator attributable to that field.
If the electing participator specifies in his election that the election is to be limited to oil which is, or is expected to be, transported by the pipe-line by reference to which the election is made, the election shall apply only to such of the assets referred to in subsection (5) above as, in whole or in part, are or subsequently become used in connection with that oil.
For the purposes of this Chapter, unless it is just and reasonable to determine some other quantity of oil, the daily contracted and production throughput of oil in relation to a pipe-line on 16th March 1993 is the aggregate of—
the maximum daily capacity specified in contracts then in force for the use of the pipe-line (whether at that date or in the future) for transporting oil won from any taxable field (including the field to which the election applies); and
the maximum expected daily throughput, otherwise than pursuant to such contracts, of oil transported by the pipe-line and won from the field to which the election applies or any other taxable field, being the throughput ascertained by reference to what was at that date the most recent development plan applicable to the field to which the election applies or, as the case may be, the other taxable field.
For the purposes of this Chapter, unless it is just and reasonable to determine some other capacity, the design capacity of a pipe-line is that which is specified for the pipe-line as a whole in what was, on 16th March 1993, the most recent development plan applicable to the field to which the election applies or, as the case may be, the pipe-line itself.
This section has effect in relation to expenditure which is incurred on an asset to which an election applies; and in this section “allowable or allowed”, in relation to any expenditure, means allowable or allowed under any of the expenditure relief provisions.
Subject to the following provisions of this section, in the case of expenditure incurred before the date of the election, the amount which, apart from this section, would be allowable or allowed in the case of the electing participator shall be reduced by multiplying it by the initial usage fraction.
Subject to subsection (5) below, in the case of expenditure incurred on or after the date of the election, the amount which, apart from this section, would be allowable or allowed in the case of the electing participator shall be reduced to nil.
Where, after 30th November 1993 and before the date of the election, expenditure was incurred on an asset to which the election applies and— that expenditure shall be treated for the purposes of the application of subsections (2) and (3) above as if it had been incurred after the date of the election.
apart from this section, that expenditure would have qualified for supplement by virtue of paragraph (c) or paragraph (d) of subsection (5) of section 3 of the principal Act, and
the effect of the expenditure is to increase the maximum capacity of the pipe-line by reference to which the election was made above its design capacity or to increase the capacity of any asset used or to be used for the initial treatment or initial storage of oil transported by the pipe-line above its development plan capacity,
Where, at the date of the election, an asset to which the election applies is for the time being leased or hired under a contract which was entered into before 16th March 1993, any expenditure— shall be treated for the purposes of the application of subsections (2) and (3) above as if it had been incurred before the date of the election.
which is incurred on or after the date of the election on the leasing or hiring of the asset under the contract, and
which is not of a description falling within paragraphs (a) and (b) of subsection (4) above,
For the purposes of subsection (4)(b) above, the development plan capacity of any asset used or to be used for the initial treatment or initial storage of oil transported by a pipe-line is—
the maximum capacity of that asset as specified in what, on 16th March 1993, was the most recent development plan applicable to the field to which the election applies or, as the case may be, to the asset itself; or
if no such maximum capacity was so specified in relation to an asset, its actual maximum capacity on that date or, if there was no such capacity on that date, nil.
Where a claim under Schedule 5 or Schedule 6 to the principal Act relates to the allowance of any expenditure to which subsection (2) above applies, the amount claimed shall take account of the operation of that subsection; and where subsection (3) above applies to any expenditure, no such claim shall be made with respect to it.
Where a claim has been made under Schedule 5 or Schedule 6 to the principal Act with respect to any expenditure and, subsequently, an election is made which has the effect of altering the amount of expenditure which is allowable or allowed,—
a notice of variation such as is mentioned in paragraph 9 of Schedule 5 to the principal Act may be served after the end of the period referred to in sub-paragraph (1) of that paragraph if it is served before the expiry of the period of three years beginning on the date of the election; and
if the effect of such a notice is that the net profit period with respect to the field to which the election applies is changed, the change shall not (by virtue of section 231(2) above) affect the validity of the election.
Nothing in this section affects the determination of the question whether an asset is a qualifying asset for the purposes of the 1983 Act and, accordingly, for that purpose, the preceding provisions of this section shall be disregarded in determining whether any expenditure is allowable or allowed.
If any sum— that sum shall not be regarded as a tariff receipt for the purposes of the Oil Taxation Acts.
is received or receivable by the electing participator on or after the date of an election, and
is so received or receivable from any person in respect of the use, otherwise than in connection with a taxable field, of an asset to which the election applies or the provision of services or other business facilities of whatever kind in connection with that use, and
would, apart from this section, constitute a tariff receipt attributable to the field to which the election applies,
If any sum— that sum shall, for the purposes of the Oil Taxation Acts, be taken to be reduced in accordance with subsection (4) below.
is received or receivable by the electing participator on or after the date of an election, and
is so received or receivable in respect of the disposal of an asset to which the election applies or of an interest in such an asset, and
constitutes a disposal receipt of the electing participator attributable to the field to which to the election applies,
Any reference in subsection (1) or subsection (2) above to a sum received or receivable includes a reference to an amount which (apart from this section) would be treated as a tariff receipt or disposal receipt by virtue of paragraph 5 of Schedule 2 to the 1983 Act (acquisition and disposal of qualifying assets otherwise than at arm’s length).
Unless it is just and reasonable to make a different reduction, the reduction referred to in subsection (2) above shall be determined by reference to that applicable under subsection (2) or subsection (3) of section 232 above to the expenditure incurred on the asset concerned so that if, for the purposes of determining under those subsections the amount of that expenditure which was allowed or allowable,— a similar reduction shall apply to the whole or, as the case may require, to each correspondingly proportionate part of any sum falling within subsection (2) above.
the whole or any part of that expenditure was reduced by multiplying it by the initial usage fraction, or
the whole or any part of that expenditure was reduced to nil,
In this section “the Oil Taxation Acts” means Parts I and III of the principal Act, the 1983 Act and any other enactment relating to petroleum revenue tax.
In this Chapter “the 1983 Act” means the Oil Taxation Act 1983 and expressions used in this Chapter have the same meaning as in that Act.
In this Chapter—
“election” means an election under section 231 above and “electing participator” means a participator who makes or has made an election;
“the expenditure relief provisions” means sections 3 and 4 of the principal Act and section 3 of the 1983 Act; and
“the initial usage fraction” shall be construed in accordance with section 231(4) above.
In this Chapter—
any reference to the assets to which an election applies is a reference to the pipe-line by reference to which the election is made together with the assets determined in accordance with subsections (5) and (6) of section 231 above;
any reference to the net profit period is a reference to the chargeable period which is the net profit period for the purposes of section 111 of the Finance Act 1981 (restriction of expenditure supplement); and
any reference to a development plan is a reference to a consent for, or programme of, development granted, served or approved by the Secretary of State.
Any reference in this Chapter to expenditure incurred on an asset is a reference to expenditure (whether or not of a capital nature) which— other than expenditure which, in the hands of the recipient, constitutes a tariff receipt.
is incurred in acquiring, bringing into existence or enhancing the value of the asset, or
is incurred (for any of the purposes mentioned in section 3(1) of the principal Act) by reference to the use of the asset in connection with a taxable field,
For the purposes of this Chapter—
an election is “in operation” if it has been accepted by the Board; and
the date of an election which is in operation is the date on which the election was received by the Board.
The provisions of Part II of Schedule 22 to this Act shall have effect for supplementing the preceding provisions of this Chapter.
The Board may make all such amendments of assessments or determinations or of decisions on claims as may be necessary in consequence of the provisions of this Chapter.
With respect to chargeable periods ending after 31st December 1993, subsection (5A) of section 2 of the Oil Taxation Act 1975 (special rules for valuation of oil consisting of gas which is disposed of in a sale at arm’s length on terms including transportation costs etc.) shall be amended as follows—
for the words “oil consisting of gas” there shall be substituted “ oil ”;
for the word “gas”, in each place where it subsequently occurs, there shall be substituted “ oil ”;
for the words “for delivery at a place” there shall be substituted “ or another country for delivery at another place in or ”; and
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In Schedule 10 to the Finance Act 1987 (nomination scheme for disposals and appropriations of oil), in paragraph 4 (timing of nominations)—
in sub-paragraph (1) for the words “sub-paragraph (2)” there shall be substituted “ sub-paragraphs (2) and (2A) ”; and
after sub-paragraph (2) there shall be inserted—
In paragraph 11 of that Schedule (a participator’s aggregate nominated proceeds for a month), in sub-paragraph (2) for the words “sub-paragraph (2A)” there shall be substituted “ sub-paragraphs (2A) and (2B) ” and after sub-paragraph (2A) there shall be inserted the following sub-paragraph—
Subject to subsection (2) below, the principal Act shall have effect subject to the amendments in Schedule 23 to this Act, being—
amendments altering the rules for determining the market value of certain light gases for the purposes of petroleum revenue tax; and
amendments consequential upon, or incidental to, those amendments.
The amendments in Schedule 23 to this Act do not have effect in relation to any light gases if, before 1st January 1994, an election was made under section 134 of the Finance Act 1982 (alternative valuation of certain ethane) or section 109 of the Finance Act 1986 (alternative valuation of certain light gases) and the election applies to those gases.
No election may be made after 31st December 1993 under section 134 of the Finance Act 1982 or section 109 of the Finance Act 1986; and, accordingly—
in subsection (2) of the said section 134, after the word “section” there shall be inserted “ must be made before 1st January 1994 and ”; and
in subsection (1) of the said section 109, after the word “section” there shall be inserted “ before 1st January 1994 ”.
“light gases”, except in relation to an election under section 134 of the Finance Act 1982 or section 109 of the Finance Act 1986, means oil consisting of gas of which the largest component by volume over any chargeable period, measured at a temperature of 15 degrees centigrade and a pressure of one atmosphere, is methane or ethane or a combination of those gases
In section 5 of the principal Act (allowance of abortive exploration expenditure incurred before 16th March 1983), after subsection (2) there shall be inserted the following subsection—
Subsection (1) above shall be deemed to have come into force at the same time as Part III of the Finance Act 1993 (27th July 1993).
The Board may make all such amendments of assessments or determinations or of decisions on claims as may be necessary in consequence of the preceding provisions of this section.
With respect to disposals made after 30th November 1993, paragraph 5 of Schedule 2 to the Oil Taxation Act 1983 (acquisition and disposal of qualifying assets otherwise than at arm’s length: limit on tariff and disposal receipts) shall be amended in accordance with subsections (2) and (3) below; and in this subsection “disposal” has the same meaning as in that paragraph.
In sub-paragraph (1) of paragraph 5, at the end of paragraph (c), and in place of the amendment made by section 190(5)(b) of the Finance Act 1993, there shall be insertedand ; and for the words “those receipts”, where they next occur, there shall be substituted “ the receipts referred to in paragraphs (b) and (c) above ”.
In sub-paragraph (3) of paragraph 5, for paragraph (b) there shall be substituted the following paragraph—.
The Board may make all such amendments of assessments or determinations or of decisions on claims as may be necessary in consequence of the preceding provisions of this section.
In section 122 of the Stamp Act 1891 (definitions)—
after subsection (1) there shall be inserted—, and
at the end of the definition of “executed” and “execution” in subsection (1) there shall be added “ (but subject to subsection (1A) of this section) ”.
In section 27 of the Stamp Duties Management Act 1891 (definitions), in the definition of “executed” and “execution”, for the words following “execution” there shall be substituted “ have the same meaning as in the Stamp Act 1891 ”.
This section shall apply to any instrument except one which, on or before 7th December 1993, has been executed for the purposes of the Stamp Act 1891 as that Act has effect before amendment by this section.
This section applies if there are presented for stamping at the same time in pursuance of Schedule 13 to the Finance Act 1999— and the duty (if any) chargeable on the agreement is paid.
an agreement for a lease, and
the lease which gives effect to the agreement,
Section 15A of that Act (interest payable on late stamping) applies in relation to the agreement as if the reference to the day on which the instrument was executed were to the day on which the lease was executed.
it contains a certificate that there is no agreement to which it gives effect, or
it is stamped with a stamp denoting—
that there is an agreement to which it gives effect which is not chargeable with duty, or
the duty paid on the agreement to which it gives effect.
For the purposes of section 15B of that Act (penalty on late stamping) the agreement is treated—
as if it had been executed at the same time and place as the lease, and
where the lease was executed outside the United Kingdom, as if it had been first received in the United Kingdom at the same time as the lease.
For the purposes of this section a lease gives effect to an agreement if the lease is granted subsequent to the agreement and either is in conformity with the agreement or relates to substantially the same property and term as the agreement.
References in this section to an agreement for a lease include missives of let in Scotland.
Where— then, for those purposes, the consideration or, as the case may be, the consideration so far as relating to that property shall be taken to be the market value of the property immediately before the instrument in question is executed and accordingly the instrument shall be charged with ad valorem duty under that heading.
the consideration for the transfer or vesting of any estate or interest in land or the grant of any lease consists of or includes any property, and
for the purposes of stamp duty chargeable under or by reference to Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) no amount or value is, apart from this section, attributed to that property on that transfer, vesting or grant,
For the purposes of this section the market value of property at any time is the price which that property might reasonably be expected to fetch on a sale at that time in the open market.
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This section shall apply to instruments executed after 7th December 1993, not being instruments executed in pursuance of a contract made before 30th November 1993.
A lease shall not be treated as duly stamped unless—
it contains a certificate that there is no agreement to which it gives effect, or
it is stamped with a stamp denoting—
that there is an agreement to which it gives effect which is not chargeable with duty, or
the duty paid on the agreement to which it gives effect.
For the purposes of this section a lease gives effect to an agreement if the lease is granted subsequent to the agreement and either is in conformity with the agreement or relates to substantially the same property and term as the agreement.
References in this section to a lease do not include, and references in this section to an agreement do include, missives of let in Scotland.
Where, for the purposes of stamp duty chargeable under or by reference to Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale), the consideration, or any part of the consideration, for— cannot, apart from this subsection, be ascertained at the time the instrument in question is executed, the consideration for the transfer, vesting or grant shall for those purposes be taken to be the market value immediately before the instrument is executed of the estate or interest transferred or vested or, as the case may be, the lease granted.
the transfer or vesting of any estate or interest in land, or
the grant of any lease,
Where, for the purposes of stamp duty chargeable under paragraph 12 of Schedule 13 to the Finance Act 1999, the rent, or any part of the rent, payable under any lease cannot, apart from this subsection, be ascertained at the time it is executed, the rent shall for those purposes be taken to be the market rent at that time.
For the purposes of this section— and in this section “market value” has the same meaning as in section 241 above.
the cases where consideration or rent cannot be ascertained at any time do not include cases where the consideration or rent could be ascertained on the assumption that any future event mentioned in the instrument in question were or were not to occur, and
the market rent of a lease at any time is the rent which the lease might reasonably be expected to fetch at that time in the open market,
This section shall apply to instruments executed after 7th December 1993.
Where, in pursuance of any agreement, any lease is surrendered (or, in Scotland, renounced) at any time otherwise than by deed, the agreement shall be treated for the purposes of stamp duty as if it were a deed executed at that time effecting the surrender (or, as the case may be, renunciation).
This section shall apply to any agreement made after 7th December 1993.
Subject to section 245 below, on the occasion of— the transferee, lessee or proposed lessee shall produce to the Commissioners the instrument by means of which the transfer is effected or the lease granted or agreed to be granted, as the case may be.
any transfer on sale of any freehold interest in land in Northern Ireland, or
the grant, or any transfer on sale, of any lease of such land,
Any transferee, lessee or proposed lessee required to produce any instrument under subsection (1) above shall produce with it a document (signed by him or by some person on his behalf and showing his address) giving such particulars as may be prescribed.
Any person who, within thirty days— fails to comply with that subsection or subsection (2) above shall be liable on summary conviction to a fine not exceeding level 1 on the standard scale.
after the execution of an instrument which he is required under subsection (1) above to produce, or
in the case of such an instrument executed at a place outside Northern Ireland, after it is first received in Northern Ireland,
Where any agreement for any lease of land in Northern Ireland is produced to the Commissioners together with a document (signed as mentioned in subsection (2) above) giving such particulars as may be prescribed—
it shall not be necessary to produce to them the instrument granting the lease, or any further such document as is referred to in that subsection, unless that instrument is inconsistent with the agreement, but
the Commissioners shall, if any such instrument is produced to them and application is made for that purpose, denote on the instrument that it has been produced to them.
Notwithstanding anything in section 12 of the Stamp Act 1891, no instrument required by this section to be produced to the Commissioners shall be deemed, for the purposes of section 14 of that Act, to be duly stamped unless it is stamped with a stamp denoting that the instrument has been so produced.
Section 244 above shall not apply to any instrument (an “exempt instrument”) falling within any prescribed class; but regulations may, in respect of exempt instruments or such descriptions of exempt instruments as may be prescribed, require such a document as is mentioned in subsection (2) of that section to be furnished in accordance with the regulations to the Commissioner of Valuation for Northern Ireland.
The information contained in any document produced to the Commissioners under section 244(2) above shall be available for use by the Commissioner of Valuation for Northern Ireland.
Any person who fails to comply with any requirement imposed by virtue of subsection (1) above shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale.
Section 244 above shall also not apply to any instrument which relates solely to—
incorporeal hereditaments or to a grave or right of burial, ...
land subject to land purchase annuities which are registered in the Land Registry in Northern Ireland. or
an SDLT transaction within the meaning of paragraph 1(2) of Schedule 19 to the Finance Act 2003.
In this section and section 244 above—
“excepted premium” means a premium under an insurance contract in relation to which, by virtue of subsection (1), the chargeable amount is nil;
The power to make regulations under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.
Regulations under this section may make different provision for different cases.
This section and section 244 above shall come into force on such day as the Treasury may by order made by statutory instrument appoint.
The Table substituted by section 72(1) of the Finance (No. 2) Act 1992 shall apply to chargeable transfers made in the year beginning 6th April 1994, and accordingly section 8(1) of the Inheritance Tax Act 1984 (indexation of rate bands) shall not apply to such transfers.
In section 113B of the Inheritance Tax Act 1984 (replacement business property)—
in subsections (2)(a) and (5)(b), for “twelve months” substitute, in each case, “ the allowed period ”; and
in subsection (8), at the end add “ and “allowed period” means the period of three years or such longer period as the Board may allow ”.
In section 124B of the Act of 1984 (replacement agricultural property)—
in subsections (2)(a) and (5)(b), for “twelve months” substitute, in each case, “ the allowed period ”; and
in subsection (8), at the end add “ and “allowed period” means the period of three years or such longer period as the Board may allow ”.
This section applies in relation to transfers of value made, and other events occurring, on or after 30th November 1993.
No property forming part of a premiums trust fund or ancillary trust fund of a corporate member shall be relevant property for the purposes of Chapter III of Part III of the Inheritance Tax Act 1984 (settlements without interests in possession).
In this section “ancillary trust fund”, “corporate member” and “premiums trust fund” have the same meanings as in Chapter V of Part IV of this Act (Lloyd’s underwriters: corporations etc.).
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A company which— shall be treated for the purposes of the Taxes Acts as resident outside the United Kingdom and not resident in the United Kingdom.
would (apart from this section) be regarded as resident in the United Kingdom for the purposes of the Taxes Acts, and
is regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom and not resident in the United Kingdom,
For the purpose of deciding whether the company is regarded as mentioned in subsection (1)(b) above it shall be assumed that—
the company has made a claim for relief under the arrangements, and
in consequence of the claim it falls to be decided whether the company is to be regarded as mentioned in subsection (1)(b) above.
This section shall apply whether the company would otherwise be regarded as resident in the United Kingdom for the purposes of the Taxes Acts by virtue of section 66(1) of the Finance Act 1988 (company incorporated in UK to be regarded as resident there) or by virtue of some other rule of law.
In this section—
“double taxation relief arrangements” means arrangements having effect by virtue of section 788 of the Taxes Act 1988;
“the Taxes Acts” has the same meaning as in the Taxes Management Act 1970.
This section shall be deemed to have come into force on 30th November 1993.
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Sections 130(1) to (6) and 131(1) to (5) of the Finance Act 1988 (securing payment of outstanding tax) shall not apply where the company concerned ceases to be resident in the United Kingdom on 30th November 1993 solely by virtue of the coming into force of section 249 above.
References in section 179 of the Taxation of Chargeable Gains Act 1992 to a company ceasing to be a member of a group of companies do not apply to cases where a company ceases to be a member of a group by virtue of that company, or another company, ceasing to be resident in the United Kingdom on 30th November 1993 solely by virtue of the coming into force of section 249 above.
Subsection (4) below applies where—
a company ceases to be resident in the United Kingdom on 30th November 1993 solely by virtue of the coming into force of section 249 above, and
by virtue of section 185(2) of the Taxation of Chargeable Gains Act 1992 it is deemed to have disposed of assets immediately before the time it so ceases.
In such a case—
if the company makes an actual disposal of the assets on or before the day when (apart from this subsection) corporation tax is due and payable in respect of the deemed disposal, the tax shall be due and payable on that day;
in any other case the tax shall be due and payable on the day the company makes an actual disposal of the assets or on 30th November 1999 (whichever falls first).
Where subsection (4) above applies, for the purposes of section 87A of the Taxes Management Act 1970 (interest on overdue corporation tax) the tax shall be treated as becoming due and payable on the relevant day in accordance with section 10 of the Taxes Act 1988; and the relevant day is the day on which the tax is due and payable by virtue of subsection (4) above.
If the company makes an actual disposal of part of the assets subsections (4) and (5) above shall be applied separately as regards the different parts and the tax shall be apportioned (and carry interest) accordingly.
For the purposes of this section—
the relevant date is 30th November 1993;
the 1992 Act is the Taxation of Chargeable Gains Act 1992.
In section 468F of the Taxes Act 1988 the following shall be omitted— and this subsection shall have effect where the date of payment is the relevant date or later.
in subsection (1)(c) the words “and not a dual resident”;
in subsection (8) the definition of “dual resident”;
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subject to paragraph (b) below, the omissions shall apply in relation to transfers of assets and associated operations on or after the relevant date;
in so far as the omission in subsection (4) of section 745 relates to subsections (3)(b) and (5) of that section, it shall be deemed to have come into force on the relevant date.
Sections 749(4A) and 751(2)(bb) of the Taxes Act 1988 shall be omitted; and this subsection shall be deemed to have come into force on the relevant date.
Section 139(3) of the 1992 Act shall be omitted; and this subsection shall have effect in relation to acquisitions on or after the relevant date.
Section 160 of the 1992 Act shall be omitted; and this subsection shall have effect where the disposal of the old assets (or of the interest in them) is made on or after the relevant date or the acquisition of the new assets is made (or the acquisition of the interest in them is made or the unconditional contract for their acquisition is entered into) on or after the relevant date.
The following provisions shall be omitted— and this subsection shall have effect in relation to disposals on or after the relevant date.
in section 166(2) of the 1992 Act the words “or a company” and the words “or company”;
in section 171(2) of that Act, paragraph (e) and the word “or” immediately preceding it;
section 172(3)(a) of that Act;
In section 175(2) of the 1992 Act the words from “or a company which” to the end of paragraph (b) shall be omitted; and this subsection shall have effect where the disposal of the old assets (or of the interest in them) or the acquisition of the new assets (or of the interest in them) is made on or after the relevant date.
Section 186 of the 1992 Act shall be omitted together with the following in section 187— and this subsection shall have effect where the company concerned becomes on or after the relevant date a company which falls to be regarded as mentioned in section 186(1) .
in subsection (1)(a) the words “or 186”;
in subsection (6) the words “or, as the case may be, section 186(2),” and the words “or, as the case may be, section 186(1)”;
Section 188 of the 1992 Act shall be omitted; and this subsection shall be deemed to have come into force on the relevant date.
In section 211(3) of the 1992 Act the words “(and would not be a gain on which, under any double taxation relief arrangements, it would not be liable to tax)” shall be omitted; and this subsection shall have effect where the transfer is made on or after the relevant date.
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Schedule 24 to this Act (which makes provision in connection with transfers and other disposals under or by virtue of the Railways Act 1993) shall have effect.
Paragraphs 4(1) and 17 of that Schedule, and this section so far as relating to those provisions, shall be taken to have come into force on 5th November 1993 (the date on which the Railways Act 1993 was passed).
Subject to subsection (2) above, this section and that Schedule shall be taken to have come into force on 11th January 1994.
Schedule 25 to this Act (which makes provision in connection with the transfer of the undertaking of Northern Ireland Airports Limited) shall have effect.
Section 56B of the Taxes Management Act 1970 (regulations about practice and procedure in connection with appeals) shall be amended as follows.
In subsection (2)(b) (documents to be made available for inspection by Commissioners or by officers of the Board) for “the Commissioners or by officers of the Board” there shall be substituted “ specified persons ”.
The following subsection shall be inserted after subsection (2)—
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Section 20 of the Taxes Management Act 1970 (power to call for documents) shall be amended as follows.
The following subsections shall be inserted after subsection (7A)—
The following subsections shall be inserted after subsection (8D)—
The provisions mentioned in subsection (2) below (which enable revenue traders and taxable persons to be required to keep records) shall be amended in accordance with subsections (3) and (4) below (which correct minor errors in those provisions so far as they relate to the admissibility in evidence of the recorded information).
The provisions are—
in the Customs and Excise Management Act 1979, section 118A; and
in Schedule 7 to the Value Added Tax Act 1983, paragraph 7.
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in paragraph (c) for the words “sections 13 and 14 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1968” there shall be substituted “sections 5 and 6 of the Civil Evidence (Scotland) Act 1988”; and
in paragraph (d), for the words “except in accordance with the said sections 13 and 14” to the end there shall be substituted “except in accordance with Schedule 3 to the Prisoners and Criminal Proceedings (Scotland) Act 1993”.
Subsection (7) and sub-paragraph (6) of those provisions shall be omitted.
In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988.
Part V of this Act shall be construed as one with Part I of the Oil Taxation Act 1975, and in Part V that Act is referred to as “the principal Act”.
Part VI of this Act shall be construed as one with the Stamp Act 1891.
The enactments specified in Schedule 26 to this Act (which include provisions which are already spent) are hereby repealed to the extent specified in the third column of that Schedule, but subject to any provision of that Schedule.
This Act may be cited as the Finance Act 1994.
Albania Finland Latvia Portugal (including Madeira) Algeria France (including Corsica) Libya Romania Andorra Germany Liechtenstein Russian Federation, west of the Urals Austria Gibraltar Lithuania San Marino Azores Greece Luxembourg Serbia Belarus Greenland North Macedonia Slovak Republic Belgium Guernsey Malta Slovenia Bosnia and Herzegovina Hungary Moldova Spain (including the Balearic Islands and the Canary Islands) Bulgaria Iceland Monaco Sweden Croatia Republic of Ireland Montenegro Switzerland Cyprus Isle of Man Morocco Tunisia Czechia Italy (including Sicily and Sardinia) Netherlands Turkey Denmark (including the Faroe Islands) Jersey Norway (including Svalbard) Ukraine Estonia Republic of Kosovo Poland Western Sahara
Afghanistan Cuba Kyrgyzstan Senegal Angola Curacao Lebanon Seychelles Anguilla Djibouti Liberia Sierra Leone Antigua and Barbuda Dominica Macau Sint Eustatius Armenia Dominican Republic Malawi Sint Maarten Aruba Egypt Maldives Somalia Azerbaijan El Salvador Mali South Korea Bahrain Equatorial Guinea Martinique South Sudan Bangladesh Eritrea Mauritania Sri Lanka Barbados Ethiopia Mayotte St Helena, Ascension and Tristan da Cunha Belize French Guiana Mongolia St Kitts and Nevis Benin Gabon Montserrat Sudan Bermuda Georgia Namibia Suriname Bhutan Ghana Nepal Syria Bonaire Grenada Nicaragua Tajikistan Botswana Guadeloupe Niger Tanzania Brazil Guatemala Nigeria The Bahamas British Virgin Islands Guinea North Korea The Gambia Burkina Faso Guinea-Bissau Oman Togo Burundi Guyana Pakistan Trinidad and Tobago Cameroon Haiti Panama Turkmenistan Canada Honduras Qatar Turks and Caicos Islands Cape Verde India Russian Federation, east of the Ural Mountains Uganda Cayman Islands Iran Rwanda United Arab Emirates Central African Republic Iraq Saba United States (including Puerto Rico and U.S. Virgin Islands) Chad Israel Saint Barthélemy Uzbekistan China Ivory Coast Saint Lucia Venezuela Colombia Jamaica Saint Martin Yemen Comoros Jordan Saint Pierre and Miquelon Zambia Congo Kazakhstan Saint Vincent and the Grenadines Zimbabwe Congo (Democratic Republic) Kenya Sao Tome and Principe Costa Rica Kuwait Saudi Arabia
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Section 51A.
In this Schedule— For the purposes of this Schedule, any question whether a person is connected with another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010 .
Subject to paragraph 5, a premium under a taxable insurance contract relating to a motor car or motor cycle falls within this paragraph if— unless the insurance is provided to the insured free of charge. A person falls within this sub-paragraph if— A premium does not fall within this paragraph if it is— Where a taxable insurance contract relating to a motor car or motor cycle is arranged through a person who is connected with a supplier of motor cars or motor cycles, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to a motor car or motor cycle supplied by a supplier of motor cars or motor cycles with whom that person is connected. Where the insurer under a taxable insurance contract relating to a motor car or motor cycle is connected with a supplier of motor cars or motor cycles, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to a motor car or motor cycle supplied by a supplier of motor cars or motor cycles with whom the insurer is connected. For the purposes of this paragraph, the cases where insurance is provided to the insured free of charge are those cases where no charge (whether by way of premium or otherwise) is made— by any person falling within sub-paragraph (2) above to any person who is or becomes the insured (or one of the insured) under the contract or to any person who acts, otherwise than in the course of a business, for or on behalf of such a person. In this paragraph—
Subject to paragraph 5, a premium under a taxable insurance contract relating to relevant goods falls within this paragraph if— unless the insurance is provided to the insured free of charge. A person falls within this sub-paragraph if— Where a taxable insurance contract relating to relevant goods is arranged through a person who is connected with a supplier of relevant goods, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to relevant goods supplied by a supplier of relevant goods with whom that person is connected. Where the insurer under a taxable insurance contract relating to relevant goods is connected with a supplier of relevant goods, the premium does not fall within this paragraph by virtue only of sub-paragraph (2)(b) above except to the extent that the premium is attributable to cover for a risk which relates to relevant goods supplied by a supplier of relevant goods with whom the insurer is connected. For the purposes of this paragraph, the cases where insurance is provided to the insured free of charge are those cases where no charge (whether by way of premium or otherwise) is made— by any person falling within sub-paragraph (2) above to any person who is or becomes the insured (or one of the insured) under the contract or to any person who acts, otherwise than in the course of a business, for or on behalf of such a person. In this paragraph— In sub-paragraph (6) above—
A premium under a taxable insurance contract relating to a motor car or motor cycle also falls within paragraph 2 above if— A premium under a taxable insurance contract relating to relevant goods also falls within paragraph 3 above if— Sub-paragraph (1) or (2) above does not apply if the insurance is provided to the insured free of charge. A premium falls within paragraph 2 above by virtue of this paragraph only to the extent that it is attributable to cover for a risk which relates to a motor car or motor cycle supplied by a supplier of motor cars or motor cycles with whom the division in question would, if it were a separate company, be connected. A premium falls within paragraph 3 above by virtue of this paragraph only to the extent that it is attributable to cover for a risk which relates to relevant goods supplied by a supplier of relevant goods with whom the division would, if it were a separate company, be connected. For the purposes of this paragraph— In this paragraph “provided to the insured free of charge” has the meaning given by sub-paragraph (5) of paragraph 2 or 3 above. In determining for this purpose whether a divided company by whom insurance is provided is a person falling within sub-paragraph (2) of paragraph 2 or 3 above, the company shall be treated as connected with any person with whom a division of that company would be connected if it were a separate company. Other expressions defined for the purposes of paragraph 2 or 3 above have the same meaning in this paragraph.
A premium under a taxable insurance contract falls within this paragraph if it is in respect of the provision of cover against travel risks for a person travelling. Where— the premium, so far as attributable to the cover against travel risks, does not fall within this paragraph by virtue of sub-paragraph (1) above. The travel risks mentioned in sub-paragraph (2)(c) above are— A premium does not fall within this paragraph by virtue of sub-paragraph (1) above if it is payable under a taxable insurance contract relating to a motor vehicle and is attributable to cover of the kind generally known as— or if it is payable under a taxable insurance contract relating to a caravan, boat or aircraft and is attributable to cover of a description broadly corresponding to any of those set out in paragraphs (a) to (d) above (so far as applicable) provided in respect of the caravan, boat or aircraft for a period of at least one month for the person travelling. In this paragraph—
This paragraph applies where (apart from this paragraph) a premium would fall within paragraph 2 or 3 but the insurance is provided to the insured at less than its full cost. For the purposes of this paragraph the cases where the insurance is provided to the insured at less than its full cost are those cases where the amount charged in respect of the taxable insurance contract by any person falling within sub-paragraph (2) of paragraph 2 or 3 to any person who is or becomes the insured under the contract is less than the premium. Only so much of the premium as does not exceed the amount charged falls within paragraph 2 or 3.
A contract falls within this paragraph if it is a contract of reinsurance.
Subject to sub-paragraph (3) below, a contract falls within this paragraph if it is exclusively a contract of long-term insurance. In deciding whether a contract is exclusively a contract of long-term insurance, as is mentioned in sub-paragraph (1) above, where— the inclusion of such cover shall be ignored. A contract which would otherwise fall within this paragraph does not do so if it is for medical insurance. Subject to sub-paragraph (5) below, for the purposes of this paragraph a contract is a contract for medical insurance if it provides one or more of the following benefits, whether or not their provision is subject to conditions or limitations— A benefit which would apart from this sub-paragraph fall within sub-paragraph (4) above shall not do so if, before he can become entitled to the benefit, the insured is required— This sub-paragraph applies to a payment of a specified sum if the contract under which it is payable provides that only one such payment in relation to each specified medical procedure will be made in respect of each person in relation to whom benefit is payable under the contract.
A contract falls within this paragraph if it relates only to a motor vehicle and— “Relevant benefit terms” is to be construed in accordance with paragraph (2) of item 15 in Group 12 in Schedule 8 to the Value Added Tax Act 1994 (zero-rating).
A contract falls within this paragraph if it relates only to a commercial ship and is a contract of general insurance of a relevant class. For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to— (and no other risks). For the purposes of this paragraph a commercial ship is a ship which is—
A contract falls within this paragraph if it relates only to a lifeboat and is a contract of general insurance of a relevant class. For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to— (and no other risks). For the purposes of this paragraph a lifeboat is a vessel used or to be used solely for rescue or assistance at sea.
A contract falls within this paragraph if it relates only to a lifeboat and lifeboat equipment and is such that, if it related only to a lifeboat, it would fall within paragraph 5 above. In deciding whether a contract relates to lifeboat equipment the nature of the risks concerned is immaterial, and they may (for example) be risks of dying or sustaining injury or of loss or damage. For the purposes of this paragraph—
A contract falls within this paragraph if it relates only to a commercial aircraft and is a contract of general insurance of a relevant class. For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to— (and no other risks). For the purposes of this paragraph a commercial aircraft is an aircraft which is—
A contract falls within this paragraph if it relates only to the operation of a spacecraft and is a contract of general insurance of a relevant class. For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to— (and no other risks). For the purposes of this paragraph—
A contract falls within this paragraph if it relates only to a risk which is situated outside the United Kingdom. The question of whether a risk is situated in the United Kingdom shall be determined in accordance with the Table in sub-paragraph (3). This is the Table referred to in sub-paragraph (2)— Where— The risk is situated in— the contract relates to a building, to some or all of the contents of a building or to a building and some or all of its contents the country or territory in which the building is situated the contract relates to vehicles of any type the country or territory in which the vehicle is registered the contract covers travel or holiday risks and has a duration of four months or less the country or territory in which the policyholder entered into the contract the contract does not fall within any of the previous entries and the policyholder is an individual the country or territory in which the policyholder is habitually resident on the date on which the contract is entered into the contract does not fall within any of the previous entries the country or territory in which the establishment of the policyholder to which the contract relates is situated on the date on which the contract is entered into. For the purposes of the last entry in the Table, “establishment”, in relation to a policyholder (“P”), means—
A contract falls within this paragraph if it relates only to foreign or international railway rolling stock and is a contract of general insurance of a relevant class. For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to— (and no other risks). For the purposes of this paragraph foreign or international railway rolling stock is railway rolling stock used principally for journeys taking place wholly or partly outside the United Kingdom.
A contract falls within this paragraph if it relates only to the Channel tunnel system and is a contract of general insurance of a relevant class. For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to— (and no other risks). For the purposes of this paragraph “the Channel tunnel system” means—
A contract falls within this paragraph if it relates only to relevant Channel tunnel equipment and is a contract of general insurance of a relevant class. For the purposes of this paragraph, a contract of general insurance is of a relevant class if it insures against risks arising from or in relation to— (and no other risks). For the purposes of this paragraph “the Channel tunnel system” has the meaning given by paragraph 10(3) above. For the purposes of this paragraph “relevant Channel tunnel equipment” means, subject to sub-paragraph (5) below, the fixed or movable equipment needed for the operation of the Channel tunnel system or for the operation of trains through any tunnel forming part of it and in particular includes— Equipment which consists of or forms part of— is not relevant Channel tunnel equipment for the purposes of this paragraph.
A contract falls within this paragraph if it relates only to loss of or damage to goods in foreign or international transit and the insured enters into the contract in the course of a business carried on by him. For the purposes of this paragraph goods in foreign or international transit are goods in transit, and any container in which they are carried, where their carriage— For the purposes of sub-paragraph (2) above “container” has the same meaning as in regulation 38(3) of the Value Added Tax (General) Regulations 1985 .
A contract falls within this paragraph if it relates only to credit granted in relation to goods or services supplied under a relevant contract by a person carrying on business in the United Kingdom. For the purposes of this paragraph a relevant contract is— The condition referred to in sub-paragraph (2)(b) and (c) above is that the goods to be exported are to be exported in order that the person exporting them may comply with a legally binding obligation to make a relevant supply of goods to an overseas customer. For the purposes of this paragraph— Where a contract relates to— the contract shall be treated for the purposes of sub-paragraph (1) above as if it did not relate to loss of the description in paragraph (b) above.
A contract falls within this paragraph if— The conditions referred to in sub-paragraph (1) above are that— Where the contract relates to— the contract shall be treated for the purposes of sub-paragraphs (1) and (2) above as if it did not relate to loss of the description in paragraph (b) above.
A contract falls within this paragraph if it relates only to the provision of a relevant financial facility and the conditions mentioned in sub-paragraph (2) below are satisfied. The conditions referred to in sub-paragraph (1) above are that— For the purposes of this paragraph a relevant financial facility is—
This Part of this Schedule applies for the purposes of Part I of this Schedule. A relevant supply of goods is any supply of goods where the supply is to be made outside the United Kingdom or where the goods are to be exported from the United Kingdom. An overseas customer, in relation to a supply of goods or services, is a person who—
Paragraphs 2, 4, 5, 7, 7A, 8, 9, 10, 11 and 15 must be read with—
section 22 of the Financial Services and Markets Act 2000;
any relevant order under that section; and
Schedule 2 to that Act.