Statement

In section 5 of the Alcoholic Liquor Duties Act 1979 (spirits) for “£15.77” there shall be substituted “ £17.35 ”.

In section 36 of that Act (beer) for “£0.90” there shall be substituted “ £0.97 ”.

For the Table of rates of duty in Schedule 1 to that Act (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 “£17.33” there shall be substituted “ £18.66 ”.

This section shall be deemed to have come into force at 6 o’clock in the evening of 20th March 1990.

1. Cigarettes An amount equal to 21 per cent. of the retail price plus £34.91 per thousand cigarettes. 2. Cigars £53.67 per kilogram. 3. Hand-rolling tobacco £56.63 per kilogram. 4. Other smoking tobacco and chewing tobacco £24.95 per kilogram.

This section shall be deemed to have come into force on 23rd March 1990.

In section 6 of the Hydrocarbon Oil Duties Act 1979—

In section 11(1) of that Act, for “£0.0077” (rebate on fuel oil) and “£0.0110” (rebate on gas oil) there shall be substituted “ £0.0083 ” and “ £0.0118 ” respectively.

In section 13A(1) of that Act (rebate on unleaded petrol), for “£0.0272” there shall be substituted “ £0.0299 ”.

In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for “£0.0077” there shall be substituted “ £0.0083 ”.

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Subsections (1) to (4) above shall be deemed to have come into force at 6 o’clock in the evening of 20th March 1990.

In section 7(1) of the Betting and Gaming Duties Act 1981 (which specifies 42½ per cent. as the rate of pool betting duty), for the words “42½ per cent.” there shall be substituted the words “ 40 per cent. ”.

This section shall apply in relation to bets made at any time by reference to an event taking place on or after 6th April 1990.

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Section 4 of each of the Vehicles (Excise) Act 1971 and the Vehicles (Excise) Act (Northern Ireland) 1972 (exemptions) shall be amended as follows.

In subsection (1) the following paragraph shall be inserted after paragraph (c)—.

In subsection (1) the following paragraphs shall be inserted after paragraph (k)—.

The following subsections shall be inserted after subsection (1)—

“ambulance” means a vehicle which— “disabled person” means a person suffering from a physical or mental defect or disability; “veterinary ambulance” means a vehicle which—

This section shall be deemed to have come into force on 21st March 1990.

“methylated spirits” means—

This section shall come into force on 1st January 1991.

Income tax shall be charged for the year 1990-91, and—

In sections 1(5) and 257C(2) of the Taxes Act 1988, for the words from “between” to the end there shall be substituted the words “during the period beginning with 6th April and ending with 17th May in the year of assessment.”

In section 828 of that Act (orders and regulations), in subsection (4), for “257(11)” there shall be substituted “257C”.

Subsections (2) and (3) above shall have effect for the year 1990-91 and subsequent years of assessment.

For the financial year 1990—

In section 13(3) of that Act (limits of marginal relief), in paragraphs (a) and (b)—

Subsection (2) above shall have effect for the financial year 1990 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.

The following section shall be inserted after section 155 of the Taxes Act 1988—

In section 154(2) of the Taxes Act 1988 for the words “section 155” there shall be substituted the words “sections 155 and 155A”.

This section applies for the year 1990-91 and subsequent years of assessment.

In Schedule 6 to the Taxes Act 1988 (taxation of directors and others in respect of cars) for Part I (tables of flat rate cash equivalents) there shall be substituted—

This section shall have effect for the year 1990-91 and subsequent years of assessment.

In section 202(7) of the Taxes Act 1988 (which limits to £480 the deductions attracting relief) for “£480” there shall be substituted “£600”.

This section shall have effect for the year 1990-91 and subsequent years of assessment.

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Section 339 of the Taxes Act 1988 (charges on income: donations to charity) shall be amended as follows.

In subsection (1) after the word “payment” there shall be inserted the words “of a sum of money”.

In subsection (2) the words “and is not a close company” shall be omitted.

The following subsections shall be inserted after subsection (3)—

The following subsection shall be inserted after subsection (7)—

This section applies in relation to payments made on or after 1st October 1990.

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Relief is available under section 33(1) below where each of the seven conditions set out in subsections (2) to (8) below is fulfilled.

The first condition is that a person (the claimant) makes a disposal of shares, or his interest in shares, to the trustees of a trust which—

The second condition is that the shares—

The third condition is that, at any time in the entitlement period, the trustees—

The fourth condition is that the claimant obtains consideration for the disposal and, at any time in the acquisition period, all the amount or value of the consideration is applied by him in making an acquisition of assets or an interest in assets (replacement assets) which— but the preceding provisions of this subsection shall have effect without the words “, at any time in the acquisition period,” if the acquisition is made pursuant to an unconditional contract entered into in the acquisition period.

The fifth condition is that, at all times in the proscribed period, there are no unauthorised arrangements under which the claimant or a person connected with him may be entitled to acquire any of the shares, or an interest in or right deriving from any of the shares, which are the subject of the disposal by the claimant.

The sixth condition is that no chargeable event occurs in relation to the trustees in— and “chargeable period” here means a year of assessment or (if the claimant is a company) an accounting period of the claimant for purposes of corporation tax.

The seventh condition is that the disposal is made on or after 20th March 1990.

This section applies for the purposes of section 31 above.

The entitlement period is the period beginning with the disposal, and ending on the expiry of twelve months beginning with the date of the disposal.

The acquisition period is the period beginning with the disposal, and ending on the expiry of six months beginning with—

The proscribed period is the period beginning with the disposal, and ending on—

All arrangements are unauthorised unless—

An asset is a chargeable asset in relation to the claimant at a particular time if—

An asset is also a chargeable asset in relation to the claimant at a particular time if, were it to be disposed of at that time, any gain accruing to him on the disposal would be a chargeable gain—

But an asset is not a chargeable asset in relation to the claimant at a particular time if, were he to dispose of the asset at that time, he would fall to be regarded for the purposes of any double taxation relief arrangements as not liable in the United Kingdom to tax on any gains accruing to him on the disposal; and “double taxation relief arrangements” means arrangements having effect by virtue of section 788 of the Taxes Act 1988 (as extended to capital gains tax by section 10 of the Capital Gains Tax Act 1979).

The question whether a trust is at a particular time a qualifying employee share ownership trust shall be determined in accordance with Schedule 5 to the Finance Act 1989; and “chargeable event” in relation to trustees has the meaning given by section 69 of that Act.

The expressions “holding company”, “trading company” and “trading group” have the meanings given by paragraph 1 of Schedule 20 to the Finance Act 1985; and “group” (except in the expression “trading group”) shall be construed in accordance with section 272 of the Taxes Act 1970.

“Ordinary share capital” in relation to the founding company means all the issued share capital (by whatever name called) of the company, other than capital the holders of which have a right to a dividend at a fixed rate but have no other right to share in the profits of the company.

Schedule 18 to the Taxes Act 1988 (group relief: equity holders and profits or assets available for distribution) shall apply for the purposes of section 31(4) above as if—

In a case where relief is available under this subsection the claimant shall, on making a claim in the period of two years beginning with the acquisition, be treated for the purposes of the 1979 Act—

Relief is available under subsection (3) below where—

In a case where relief is available under this subsection the claimant shall, on making a claim in the period of two years beginning with the acquisition, be treated for the purposes of the 1979 Act—

Nothing in subsection (1) or (3) above shall affect the treatment for the purposes of the 1979 Act of the other party to the disposal or of the other party to the acquisition.

The provisions of the 1979 Act fixing the amount of the consideration deemed to be given for a disposal or acquisition shall be applied before the preceding provisions of this section are applied.

In this section “the 1979 Act” means the Capital Gains Tax Act 1979.

Subsection (2) below applies where—

In such a case the asset shall be treated as if, immediately after the time of the acquisition mentioned in section 31(5) above, it was not a chargeable asset in relation to the claimant.

Subsection (4) below applies where—

In such a case—

Subsection (6) below applies where—

In such a case the option shall be treated as if, immediately after the time of the acquisition mentioned in section 31(5) above, it was not a chargeable asset in relation to the claimant.

Subsection (8) below applies where—

In such a case—

References in this section to an individual include references to a person entitled to occupy under the terms of a settlement.

Subsection (2) below applies where—

In such a case the asset shall be treated as if, immediately after the time of the acquisition mentioned in section 31(5) above, it was not a chargeable asset in relation to the claimant.

Subsection (4) below applies where—

In such a case the asset shall be treated as if, immediately after the time of the acquisition mentioned in section 31(5) above, it was not a chargeable asset in relation to the claimant and adjustments shall be made accordingly.

Subsection (3) below applies where—

The condition is that, at the time the chargeable event occurs, the claimant or a person then connected with him is beneficially entitled to all the replacement assets.

In a case where this subsection applies, the claimant or connected person (as the case may be) shall be deemed for all purposes of the Capital Gains Tax Act 1979— at the relevant value.

The relevant value is such value as secures on the deemed disposal a chargeable gain equal to—

In a case where subsection (3) above would apply if “all” read “any of” in subsection (2) above, subsection (3) shall nevertheless apply, but as if—

Subsection (7) below applies where—

If in such a case it is just and reasonable for subsection (3) above to apply as follows, it shall apply as if— but paragraph (a) above shall not apply so as to reduce the relevant value below that mentioned in paragraph (b) above.

For the purposes of subsection (6)(b) above the gain carried forward by virtue of section 33(1) or (3) above is the gain represented by the amount which by virtue of either of those provisions falls to be deducted from the expenditure allowable in computing a gain accruing on the disposal of replacement assets (that is, the amount found under subsection (4)(a) or (b) above, as the case may be).

In this section “chargeable event” in relation to trustees has the meaning given by section 69 of the Finance Act 1989.

Subsection (3) below applies where—

The condition is that—

In a case where this subsection applies, the claimant or connected person (as the case may be) shall be deemed for all purposes of the 1979 Act— at the relevant value.

The relevant value is such value as secures on the deemed disposal a chargeable gain equal to—

In a case where subsection (3) above would apply if “all the” in subsection (2) above (in one or more places) read “any of the”, subsection (3) shall nevertheless apply, but as if—

Subsection (7) below applies where—

If in such a case it is just and reasonable for subsection (3) above to apply as follows, it shall apply as if— but paragraph (a) above shall not apply so as to reduce the relevant value below that mentioned in paragraph (b) above.

For the purposes of subsections (2) and (6)(b) above the gain carried forward by virtue of section 33(1) or (3) above is the gain represented by the amount which by virtue of either of those provisions falls to be deducted from the expenditure allowable in computing a gain accruing on the disposal of replacement assets (that is, the amount found under subsection (4)(a) or (b) above, as the case may be).

For the purposes of subsection (2) above a gain is carried forward from assets to other property on a replacement of business assets if, by one or more claims under sections 115 to 121 of the 1979 Act, the chargeable gain accruing on a disposal of the assets is reduced, and as a result an amount falls to be deducted from the expenditure allowable in computing a gain accruing on the disposal of the other property.

In this section “the 1979 Act” means the Capital Gains Tax Act 1979.

Subsection (3) below applies where—

The condition is that—

In a case where this subsection applies, a chargeable gain shall be deemed to have accrued to the claimant or connected person (as the case may be); and the gain shall be deemed to have accrued immediately before the time when the chargeable event occurs and to be of an amount equal to the relevant amount.

The relevant amount is an amount equal to the lesser of—

The first amount is—

The second amount is an amount equal to—

In a case where subsection (3) above would apply if “all the” in subsection (2) above (in one or more places) read “any of the”, subsection (3) shall nevertheless apply, but as if—

Subsection (9) below applies where—

If in such a case it is just and reasonable for subsection (3) above to apply as follows, it shall apply as if—

But nothing in subsection (9) above shall have the effect of reducing the second amount below nil.

For the purposes of subsection (8)(b) above the gain carried forward by virtue of section 33(1) or (3) above is the gain represented by the amount which by virtue of either of those provisions falls to be deducted from the expenditure allowable in computing a gain accruing on the disposal of replacement assets (that is, the amount found under subsection (6)(a) or (b) above, as the case may be).

An inspector may by notice in writing require a return to be made by the trustees of an employee share ownership trust in a case where—

Where he requires such a return to be made the inspector shall specify the information to be contained in it.

The information which may be specified is information the inspector needs for the purposes of sections 36 to 38 above, and may include information about—

The information which may be required under subsection (3)(a) above may include the purpose of the expenditure and the persons receiving any sums.

The information which may be required under subsection (3)(b) above may include the persons from whom the assets were acquired and the consideration furnished by the trustees.

The information which may be required under subsection (3)(c) above may include the persons to whom assets were transferred and the consideration furnished by them.

In a case where section 33(1) or (3) above has been applied, the inspector shall send to the trustees of the employee share ownership trust concerned a certificate stating—

For the purposes of this section, the question whether a trust is an employee share ownership trust shall be determined in accordance with Schedule 5 to the Finance Act 1989.

Section 39 of the Finance Act 1990.

Section 117 of the 1979 Act (roll-over relief: depreciating assets) shall be amended as mentioned in subsections (2) to (4) below.

In subsection (1) after “116 above” there shall be inserted “and section 33 of the Finance Act 1990”.

The following subsection shall be inserted after subsection (2)—

In section 82(1)(a) of the Finance Act 1989 (computation of profits on Case I basis), for the words “, in respect of the period, are allocated to or expended on behalf of policy holders or annuitants” there shall be substituted the words “are allocated to, and any amounts of tax or foreign tax which are expended on behalf of, policy holders or annuitants in respect of the period”.

In section 436(3) of the Taxes Act 1988 (modified application of section 82 in relation to computations of profits of general annuity business or pension business), the words “and of the words “tax or” in section 82(1)(a)” shall be added at the end of paragraph (a).

The Finance Act 1989 shall be deemed always to have had effect with the amendment made by subsection (1) above, and the amendment made by subsection (2) above shall have the same effect as, by virtue of section 84(5)(b) of that Act, it would have had if it had been made by Schedule 8 to that Act.

In section 85(2) of the Finance Act 1989 (receipts excluded from charge under Case VI of Schedule D), after paragraph (c) there shall be inserted—.

In section 86 of the Finance Act 1989 (spreading of relief for expenses), at the end of subsection (1) there shall be added the words “and less any reinsurance commissions falling within section 76(1)(ca) of that Act”.

In section 76(1) of the Taxes Act 1988 (treatment of expenses of management), after paragraph (c) there shall be inserted—.

Sections 85 and 86 of the Finance Act 1989 shall be deemed always to have had effect with the amendments made by subsections (1) and (2) above, and section 76 of the Taxes Act 1988 shall have effect as if the amendment made by subsection (3) above had been included among those made by section 87 of the Finance Act 1989.

Nothing in subsection (2) above applies to commissions in respect of the reinsurance of liabilities assumed by the recipient company in respect of insurances made before 14th March 1989, but without prejudice to the application of that subsection to any reinsurance commission attributable to a variation on or after that date in a policy issued in respect of such an insurance; and for this purpose the exercise of any rights conferred by a policy shall be regarded as a variation of it.

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Where at the end of an accounting period the assets of an insurance company’s long term business fund include— then, subject to the following provisions of this section and to section 47 below, the company shall be deemed for the purposes of corporation tax on capital gains to have disposed of and immediately re-acquired each of the assets concerned at its market value at that time.

Subsection (1) above shall not apply to assets linked solely to pension business or to assets of the overseas life assurance fund, and in relation to other assets (apart from assets linked solely to basic life assurance business) shall apply only to the relevant chargeable fraction of each class of asset.

For the purposes of subsection (2) above “the relevant chargeable fraction” in relation to linked assets is the fraction of which—

For the purposes of subsection (2) above “the relevant chargeable fraction” in relation to assets other than linked assets is the fraction of which—

For the purposes of this section an interest is a “relevant interest in an offshore fund” if—

For the purposes of this section the amount of an investment reserve and the “appropriate part” of it shall be determined in accordance with section 432A(8) and (9) of the Taxes Act 1988.

In this section—

Schedule 8 to this Act (which contains transitional provisions relating to the charge imposed by this section) shall have effect.

Subject to the provisions of Schedule 8, this section shall have effect in relation to accounting periods beginning on or after 1st January 1991 or, where the Treasury by order appoint a later day, in relation to accounting periods beginning on or after that day (and not in relation to any earlier accounting period, even if the order is made after 1st January 1991 and the period has ended before it is made).

Any chargeable gains or allowable losses which would otherwise accrue on disposals deemed by virtue of section 46 above to have been made at the end of a company’s accounting period shall be treated as not accruing to it, but instead—

For any accounting period of less than one year, the fraction of one seventh referred to in subsection (1)(c) above shall be proportionately reduced; and where this subsection has had effect in relation to any accounting period before the last for which subsection (1)(c) above applies, the fraction treated as accruing at the end of that last accounting period shall also be adjusted appropriately.

Where— the net amounts for both the earlier and the later period shall be reduced by the amount in respect of which the claim is made.

Subject to subsection (5) below, where a company ceases to carry on long term business before the end of the last of the accounting periods for which subsection (1)(c) above would apply in relation to a net amount, the fraction of that amount that is treated as accruing at the end of the accounting period ending with the cessation shall be such as to secure that the whole of the net amount has been accounted for.

Where there is a transfer of the whole or part of the long term business of an insurance company (“the transferor”) to another company (“the transferee”) in accordance with a scheme sanctioned by a court under section 49 of the Insurance Companies Act 1982, any chargeable gain or allowable loss which (assuming that the transferor had continued to carry on the business transferred) would have accrued to the transferor by virtue of subsection (1) above after the transfer shall instead be deemed to accrue to the transferee.

Where subsection (5) above has effect, the amount of the gain or loss accruing at the end of the first accounting period of the transferee ending after the day when the transfer takes place shall be calculated as if that accounting period began with the day after the transfer.

Where the transfer is of part only of the transferor’s long term business, subsection (5) above shall apply only to such part of any amount to which it would otherwise apply as is appropriate.

Any question arising as to the operation of subsection (7) above shall be determined by the Special Commissioners who shall determine the question in the same manner as they determine appeals; but both the transferor and transferee shall be entitled to appear and be heard or to make representations in writing.

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In paragraph 3(8)(b)(ii) of Schedule 15 to that Act (amount of premiums to be disregarded in determining whether a policy meets conditions for it to be a qualifying policy), after the word “premiums” there shall be inserted the words “ or, where those premiums are payable otherwise than annually, an amount equal to 10 per cent. of those premiums if that is greater ”.

Section 463 of the Taxes Act 1988 (application to life or endowment business of friendly societies of Corporation Tax Acts as they apply to mutual life assurance business) shall be renumbered as subsection (1) of that section.

After that provision as so renumbered there shall be added—

The Taxes Act 1988 shall have effect subject to the following provisions of this section.

In section 468 (authorised unit trusts) subsection (5) shall not apply as regards a distribution period beginning after 31st December 1990.

Where a particular distribution period is by virtue of subsection (2) above the last distribution period as regards which section 468(5) applies in the case of a trust, the trustees’ liability to income tax in respect of any source of income chargeable under Case III of Schedule D shall be assessed as if they had ceased to possess the source of income on the last day of that distribution period.

But where section 67 of the Taxes Act 1988 applies by virtue of subsection (3) above, it shall apply with the omission from subsection (1)(b) of the words from “and shall” to “this provision”.

Section 468B (certified unit trusts: corporation tax) shall not apply as regards an accounting period ending after 31st December 1990.

Section 468C (certified unit trusts: distributions) shall not apply as regards a distribution period ending after 31st December 1990.

Section 468D (funds of funds: distributions) shall not apply as regards a distribution period ending after 31st December 1990.

In this section “distribution period” has the same meaning as in section 468 of the Taxes Act 1988.

Section 732 of the Taxes Act 1988 (application of bond-washing provisions to dealers in securities) shall have effect, and be deemed always to have had effect, with the insertion of the following subsection after subsection (5)—

Section 472 of the Taxes Act 1970 (corresponding provision of the old law) shall be deemed always to have had effect with the insertion after subsection (5) of the subsection set out in subsection (1) above.

The provisions specified in subsection (2) below (which provide for an indexation allowance on the disposal of assets) shall not apply in the case of a disposal if each of the three conditions set out below is fulfilled.

The provisions are—

The first condition is that the disposal is of rights in property to which collective investment arrangements relate; and—

Subject to subsection (5) below, the second condition is that, at some time in the relevant ownership period, not less than 90 per cent. of the market value (at that time) of the investment property then falling within the arrangements was represented by—

In a case where— subsection (4) above shall have effect as if the reference to the arrangements were to the separate part.

For the purposes of subsection (4) above the relevant ownership period is the period which begins with the later of— and ends with the day on which the disposal is made.

For the purposes of subsection (4) above investment property is all property other than cash awaiting investment.

For the purposes of subsection (4) above an asset is a non-chargeable asset if, were it to be disposed of— any gain accruing on the disposal would not be a chargeable gain.

In subsection (4)(b) above “shares” and “building society” have the same meanings as in the Building Societies Act 1986.

For the purposes of subsection (6) above relevant consideration is consideration which, assuming the application of Chapter II of Part II of the Capital Gains Tax Act 1979 to the disposal of the rights, would fall to be taken into account in determining the amount of the gain or loss accruing on the disposal, whether that consideration was given by or on behalf of the person making the disposal or by or on behalf of a predecessor in title of his whose acquisition cost represents (directly or indirectly) the whole or any part of the acquisition cost of the person making the disposal.

The third condition is that the disposal is made on or after 20th March 1990.

In section 842 of the Taxes Act 1988 (investment trusts) the following subsections shall be inserted after subsection (2)—

This section applies in relation to accounting periods ending on or after the day on which this Act is passed.

In Schedule 11 to the Finance Act 1989 (deep gain securities) paragraph 1 (meaning of deep gain security) shall be amended as follows.

The following sub-paragraph shall be inserted after sub-paragraph (3)—

The amendment made by this section shall be deemed always to have had effect.

In Schedule 11 to the Finance Act 1989 (deep gain securities) paragraph 2 (qualifying indexed securities) shall be amended as follows.

In sub-paragraph (2)(c) for the words from “the security” to “8th June 1989” there shall be substituted the words “the security was quoted in the official list of a recognised stock exchange at the time it was issued”.

If a security was issued before 9th June 1989, was not quoted in the official list of a recognised stock exchange at the time it was issued, but was quoted in such a list on 8th June 1989, for the purposes of sub-paragraph (2)(c) above it shall be deemed to have been quoted in that list at the time it was issued. If a security was issued on or after 9th June 1989, and was quoted in the official list of a recognised stock exchange at a time after it was issued but before the end of the qualifying period, for the purposes of sub-paragraph (2)(c) above it shall be deemed to have been quoted in that list at the time it was issued; and the qualifying period is the period of one month beginning with the day on which the security was issued.

In a case where the terms of issue contain provision for the amount payable on redemption to be not less than a specified percentage of the issue price, the provision shall not prevent the fourth condition being fulfilled if the specified percentage is not greater than 10.

In a case where— the provision shall not prevent the fourth condition being fulfilled.

In sub-paragraph (13)—

The amendments made by this section shall be deemed always to have had effect.

In Schedule 4 to the Taxes Act 1988 (deep discount securities) paragraph 1 (interpretation) shall be amended as follows.

Notwithstanding anything in sub-paragraph (1) above, for the purposes of this Schedule a security is not a deep discount security if—

This section shall come into force on 1st August 1990.

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In Schedule 8 to the Finance Act 1988 (capital gains: assets held on 31st March 1982) in paragraph 12 (certain disposals excluded from elections under section 96(5) of that Act), in sub-paragraph (2) at the end of paragraph (c) there shall be inserted or.

For the purposes of sub-paragraph (2)(d) above,— but nothing in this paragraph affects the operation, in relation to such unquoted shares, of sections 77 to 81 of the Capital Gains Tax Act 1979 (under which, on a reorganisation etc., a new holding may fall to be treated as the same asset as the original shares). In sub-paragraph (2)(d) above— For the purposes of sub-paragraph (2)(d) above an asset is an oil exploration or exploitation asset if either— and, subject to sub-paragraph (2D) below, expressions used in paragraphs (a) and (b) above have the same meaning as if those paragraphs were included in Part I of the Oil Taxation Act 1975. In the preceding provisions of this paragraph “oil exploration or exploitation activities” means activities carried on in connection with— and in this sub-paragraph “oil” has the same meaning as in Part I of the Oil Taxation Act 1975.

The amendments made by subsections (1) and (2) above have effect with respect to disposals on or after 22nd January 1990.

Notwithstanding that, apart from this subsection, an election under section 96(5) of the Finance Act 1988 is irrevocable, where— the election may be revoked by notice in writing given to the inspector before 1st January 1991 by the person by whom the election was made.

This section applies to a disposal of an oil industry asset where the following conditions are fulfilled—

For the purposes of this section, the following are “oil industry assets”—

In the application of sub-paragraph (2C)(b) of paragraph 12 of Schedule 8 to the Finance Act 1988 for the purposes of subsection (2)(c) above, for the words from “the company whose shares” to “that company” there shall be substituted “the person making the disposal or a person connected with him”.

Where this section applies to a disposal, there shall be determined for the purposes of this section the loss or gain which would accrue on the disposal on the following assumptions— and in the following provisions of this section the loss or gain (if any) on the disposal, determined on those assumptions, is referred to as the non-rebased loss or, as the case may be, the non-rebased gain.

If there is a non-rebased loss on a disposal to which this section applies and that loss is less than the loss which accrues on the disposal as mentioned in subsection (1)(c) above, it shall be assumed for the purposes of capital gains tax that the loss which accrues on the disposal is the non-rebased loss.

If there is a non-rebased gain on a disposal to which this section applies, it shall be assumed for the purposes of capital gains tax that the oil industry asset concerned was acquired by the person making the disposal for a consideration such that, on the disposal, neither a gain nor a loss accrues to him.

If, on the determination referred to in subsection (4) above, there is neither a non-rebased loss nor a non-rebased gain on a disposal, subsection (6) above shall apply in relation to the disposal as if there were a non-rebased gain on the disposal.

In section 267 of the Taxes Act 1970 (company reconstructions etc.) after subsection (2) there shall be inserted—

In section 273 of the Taxes Act 1970 (transfers within a group) in subsection (2), after paragraph (d) there shall be inserted or

and in this subsection “the old assets” and “the new assets” have the same meanings as in section 115 of the Capital Gains Tax Act 1979, and “dual resident investing company” has the same meaning as in section 404 of the Taxes Act 1988.

Subsections (1) and (2) above shall apply to disposals on or after 20th March 1990.

Subject to subsection (6) below, subsection (3) above shall apply where the disposal of, or of the interest in, the old assets or the acquisition of, or of the interest in, the new assets (or both) takes place on or after 20th March 1990.

Subsection (3) above shall not apply where the acquisition takes place before 20th March 1990 and the disposal takes place within the period of twelve months beginning with the date of the acquisition or such longer period as the Board may by notice in writing allow.

In sections 742(8) and 745(4) of the Taxes Act 1988, after the words “incorporated outside the United Kingdom” there shall be inserted 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,”.

Subject to subsection (3) below, this section shall apply in relation to transfers of assets and associated operations on or after 20th March 1990.

In so far as the amendment of subsection (4) of section 745 relates to subsections (3)(b) and (5) of that section, it shall come into force on that date.

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In Schedule 25 to that Act—

Subsections (1) and (2) above shall apply on and after 20th March 1990 and subsection (3) above shall apply to dividends paid on or after that date.

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In section 98 of the Taxes Management Act 1970 (penalties for failure to furnish information and for false information)—

This section shall apply to transactions carried out on or after 1st July 1990.

After section 273 of the Taxes Act 1970 there shall be inserted—

In section 272(1) of the Taxes Act 1970—

In section 275 of that Act for subsection (1) there shall be substituted—

In section 281(2) of that Act, after the words “section 273” there shall be inserted the words “or 273A”.

In section 126C(4) of the Capital Gains Tax Act 1979—

In paragraph 10(2)(c) of Schedule 13 to the Finance Act 1984, after the words “section 273(1)” there shall be inserted the words “or 273A”.

In— after “273,” there shall be inserted “273A,”.

In paragraph 5 of Schedule 11 to the Finance Act 1988—

This section shall apply to disposals on or after 20th March 1990.

In Schedule 4 to the Finance Act 1988 (business expansion scheme: private rented housing), in paragraph 13 (exclusion of expensive dwelling-houses)—

This section shall apply where the valuation date is on or after 20th March 1990.

In section 68 of the Finance Act 1988 (which provides for the benefits derived from priority rights in share offers to be disregarded in certain circumstances), after subsection (3) there shall be inserted—

This section applies to offers made on or after the day on which this Act is passed.

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The following section shall be inserted at the end of Part XIV of the Taxes Act 1988 (pension schemes etc.)—

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Section 659 of the Taxes Act 1988 (financial futures and traded options) shall cease to have effect.

Subsections (1) and (2) above apply in relation to income derived after the day on which this Act is passed.

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Insofar as section 659 of the Taxes Act 1988 relates to provisions of that Act, subsection (4) above applies in relation to income derived after the day on which this Act is passed.

Insofar as section 659 of the Taxes Act 1988 relates to section 149B of the Capital Gains Tax Act 1979, subsection (4) above applies in relation to disposals made after the day on which this Act is passed.

In section 663 of the Taxes Act 1988 (child’s income treated as settlor's) in subsection (4) (exception for income not exceeding £5) for “£5” there shall be substituted “£100”.

This section shall have effect for the year 1991-92 and subsequent years of assessment.

Section 136 of the Capital Gains Tax Act 1979 (relief in respect of loans to traders) shall be amended as follows.

The following subsections shall be inserted after subsection (5)—

In subsection (6) for “subsection (5)” there shall be substituted “subsections (5) to (5C)”.

The following subsection shall be inserted after subsection (9)—

This section applies where an amount is recovered on or after 20th March 1990.

In Part II of Schedule 13 to the Finance Act 1984 (qualifying corporate bonds: reorganisations etc.) the following paragraph shall be inserted after paragraph 11—

This section applies whether the relevant transaction occurs before or on or after the day on which this Act is passed.

In subsection (1F) of section 272 of the Taxes Act 1970 (application of Schedule 18 to Taxes Act 1988 for determining membership of groups for capital gains purposes), for the words “paragraph 7(1)(b) were omitted” there shall be substituted the words “paragraphs 5(3) and 7(1)(b) were omitted”.

Subject to subsection (3) below, the amendment made by subsection (1) above shall be deemed always to have had effect.

If a company which (apart from this subsection) is the principal company of a group (within the meaning of section 272) at any time during the period beginning with 14th March 1989 and ending with 25th January 1990 so elects, in determining whether a company is a member of the group at any time during that period subsection (1F) of that section shall apply as if the amendment made by subsection (1) above did not have effect.

An election under subsection (3) above shall be irrevocable and shall be made by notice in writing to the inspector at any time within two years after the end of the first accounting period of the principal company ending after 31st January 1990.

There may be made any such adjustment, whether by way of discharge or repayment of tax, the making of an assessment or otherwise, as is appropriate in consequence of an election under subsection (3) above.

In section 27 of the Capital Allowances Act 1990 (professions, employments, vocations etc.) in subsection (1) for the words “and (3)”there shall be substituted the words “to (3)”.

The following subsections shall be inserted after subsection (2) of that section—

Where— Part II of the Capital Allowances Act 1990 shall have effect as if he had incurred capital expenditure on the provision of the machinery for the purposes of the office or employment in the year 1990-91, the amount of that expenditure being taken as the price which the machinery would have fetched if sold in the open market on 6th April 1990, and the machinery being treated as belonging to him in consequence of his having incurred that expenditure.

This section shall apply for the year 1990-91 and subsequent years of assessment.

The following sections shall be substituted for sections 8 and 9 of the Taxes Management Act 1970 (return of income)—

In section 12 of that Act (information about chargeable gains)—

In section 93 of that Act (penalties) in subsection (1) for the words “9 of this Act (or either” there shall be substituted the words “ 8A or 9 of this Act (or any ”.

In section 95 of that Act (penalties) in subsection (1)(a) for the words “9 of this Act (or either” there shall be substituted the words “ 8A or 9 of this Act (or any ”.

This section applies where a notice to deliver a return was, or falls to be, given after 5th April 1990.

Section 11 of the Taxes Management Act 1970 (return of profits) shall be amended as follows.

In subsection (1), for the words from “the profits” to the end there shall be substituted the words such information as may be required in pursuance of the notice together with such accounts, statements and reports as may be so required.

In subsection (2), for the words “of profits and losses arising in” there shall be substituted the word “for”.

In subsection (3) (return to include declaration that return is correct and complete)—

In subsection (8), the words from “or different” to the end shall be omitted.

The following subsection shall be inserted after subsection (8)—

Subsection (4) above shall apply with respect to any notice served on or after the day on which this Act is passed.

Subsections (2), (3) and (5) to (7) above shall apply with respect to any notice served after the day appointed for the purposes of section 82 of the Finance (No.2) Act 1987.

Section 17 of the Taxes Management Act 1970 (interest paid or credited by banks etc. without deduction of income tax) shall be amended as mentioned in subsections (2) and (3) below.

In subsection (1)—

after the words “without deduction of income tax” there shall be inserted the words “or after deduction of income tax”;

after the words “the amount of the interest” there shall be inserted the words “actually paid or credited and (where the interest was paid or credited after deduction of income tax) the amount of the interest from which the tax was deducted and the amount of the tax deducted”;

paragraph (a) of the proviso shall be omitted.

The following subsections shall be inserted after subsection (4)—

Section 18 of that Act (interest paid without deduction of income tax) shall be amended as mentioned in subsections (5) and (6) below.

In subsection (1)—

The following subsections shall be inserted after subsection (3A)—

Subsections (1) to (3) above shall have effect as regards a case where interest is paid or credited in the year 1991-92 or a subsequent year of assessment.

Subsections (4) to (6) above shall have effect as regards a case where interest is paid in the year 1991-92 or a subsequent year of assessment.

In section 20 of the Taxes Management Act 1970 (powers to call for information), after subsection (7) there shall be inserted—

This section shall apply with respect to notices given on or after the day on which this Act is passed.

The Board may require a charity to produce for inspection by an officer of the Board all such books, documents and other records in the possession, or under the control, of the charity as contain information relating to payments made on or after 1st October 1990 and in respect of which the charity has made a claim to repayment of tax by virtue of section 339 of the Taxes Act 1988 (donations to charity by companies) or section 25 of this Act.

For the purposes of subsection (1) above “charity” has the same meaning as in section 506 of the Taxes Act 1988 and includes—

each of the bodies mentioned in section 507 of that Act, and

any Association of a description specified in section 508 of that Act (scientific research organisations).

Section 94(1) of the Finance Act 1990.

The following sections shall be inserted after section 41 of the Taxes Management Act 1970—

This section applies in relation to accounting periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).

This section applies where—

For the purposes of subsection (1) above, the amount which is, at any time, the relevant amount in relation to relief of any description for an accounting period of a company is—

The surrendering company shall make whatever adjustment of the surrendered amount is necessary in consequence of the determination or direction (“the necessary adjustment”) by reducing or withdrawing consent to surrender before the end of 30 days from the date on which the determination or direction becomes final.

If the surrendering company fails to make the necessary adjustment within the period mentioned in subsection (3) above, it shall be made—

For the purposes of subsection (4)(b) above the relevant period is the period of 30 days beginning with the day on which notice under subsection (4)(a) above is given to the surrendering company.

The power to make an assessment under section 412(3) of the Taxes Act 1988 (power to assess where inspector discovers that group relief which has been given is or has become excessive) shall also be exercisable where group relief which has been given becomes excessive in consequence of the making of the necessary adjustment.

Subsection (8) below applies where any tax to which a company (“the chargeable company”) becomes liable in consequence of the making of the necessary adjustment has been assessed on the company and is unpaid at the end of 6 months from the date on which the assessment becomes final and conclusive (“the relevant date”).

Any other company which has obtained group relief by virtue of a surrender by the surrendering company for the accounting period to which the necessary adjustment relates may, within 2 years from the relevant date, be assessed and charged (in the name of the chargeable company) to an amount not exceeding the lesser of—

A company paying an amount of tax under subsection (8) above shall be entitled to recover from the chargeable company a sum equal to that amount together with any interest on that amount which it has paid under section 87A of the Taxes Management Act 1970.

An assessment by virtue of subsection (6) above shall not be out of time if made within one year from the date on which the determination or direction giving rise to the making of the necessary adjustment becomes final.

In subsection (1)(b) above, the reference to the amount of relief of any description which the surrendering company consents to surrender by way of group relief for the period includes a reference to the amount of relief of that description which the surrendering company consents to surrender for any assumed accounting period under section 409 of the Taxes Act 1988 (companies joining or leaving group or consortium) which is comprised in the period.

In section 87A of the Taxes Management Act 1970 (interest on overdue corporation tax etc.) in subsection (3) after the words “1970” there shall be inserted the words “, section 96(8) of the Finance Act 1990”.

Section 42 of the Taxes Management Act 1970 (claims) shall be amended as follows.

In subsection (5) (form of claims) there shall be inserted at the beginning the words “Subject to subsection (5A) below,”.

The following subsection shall be inserted after subsection (5)—

The following subsection shall be inserted after subsection (10)—

This section applies in relation to claims relating to income of accounting periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).

The Taxes Act 1988 shall be amended as follows.

In section 7(2) (set off against corporation tax of income tax deducted from payments received by resident companies) the words from “and accordingly” to the end shall be omitted.

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In section 11(3) (set off against corporation tax of income tax deducted from payments received by non-resident companies) the words from “and accordingly” to the end shall be omitted.

This section applies in relation to income tax falling to be set off against corporation tax for accounting periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).

The Taxes Act 1988 shall be amended as follows.

In section 393 (relief for trading losses) in subsection (1) (carry forward of losses on the making of a claim)— and in subsection (11) (time limit for claims) the words from the beginning to “of six years; and” shall be omitted.

In section 396 (relief for Case VI losses on the making of a claim)—

This section applies in relation to accounting periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).

The Taxes Act 1988 shall be amended as follows.

In section 412 (group relief: claims and adjustments) the following subsection shall be substituted for subsections (1) and (2)—

The Schedule set out in Schedule 15 to this Act shall be inserted after Schedule 17.

This section has effect as respects claims for group relief for accounting periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).

The following section shall be inserted after section 411 of the Taxes Act 1988—

This section has effect as respects claims for group relief for accounting periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).

The Capital Allowances Act 1990 shall be amended as follows.

The following section shall be inserted after section 145—

The Schedule set out in Schedule 16 to this Act shall be inserted before Schedule 1.

This section has effect as respects claims for allowances falling to be made for accounting periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).

Schedule 17 to this Act (which amends the Capital Allowances Act 1990 for the purpose of assimilating claims by companies to claims by individuals) shall have effect.

This section has effect as respects allowances and charges falling to be made for chargeable periods ending after the day appointed for the purposes of section 10 of the Taxes Act 1988 (pay and file).

In section 1 of the Taxes Management Act 1970 (appointment of inspectors etc.) the following subsections shall be inserted after subsection (2)—

In section 55 of that Act (recovery of tax not postponed)—

The amendment made by subsection (1) above shall be deemed always to have had effect.

The amendments made by subsection (2) above shall apply where notice of appeal is given on or after the day on which this Act is passed.

In section 30 of the Taxes Management Act 1970 (recovery of excessive repayments of tax) the following subsection shall be inserted after subsection (1)—

This section applies in relation to amounts of tax repaid on or after the day on which this Act is passed.