Statement by the Delegation of the United States of America in response to the address by the Minister for Foreign Affairs of Albania, H.E. Ditmir Bushati
The Alcoholic Liquor Duties Act 1979 shall be amended as follows.
In section 1 (the alcoholic liquors dutiable under the Act) in subsections (4) and (5) (definitions of “wine” and “made-wine”) after the words “any liquor” there shall in both cases be inserted “ which is of a strength exceeding 1.2 per cent and which is ”.
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In section 59(1) (prohibition on rendering wine and made-wine sparkling) for paragraph (b) there shall be substituted the following paragraph—.
Subsections (2) and (4) above—
shall apply in relation to liquor imported into, or produced in, the United Kingdom on or after 1st January 1995, and
as regards any provision about liquor removed to the United Kingdom from the Isle of Man, shall also apply in relation to liquor so removed on or after that date.
Subsection (3) above shall apply in relation to liquor imported into, or made in, the United Kingdom on or after 1st January 1995.
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.
This section shall be deemed to have come into force on 1st January 1995.
In section 5 of the Alcoholic Liquor Duties Act 1979 (spirits) for “£19.81” there shall be substituted “ £20.60 ”.
In section 36(1) of that Act (beer) for “£10.45” there shall be substituted “ £10.82 ”.
In section 62(1) of that Act (cider) for “£22.82” there shall be substituted “ £23.78 ”.
This section shall be deemed to have come into force on 1st January 1995.
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Subject to the following provisions of this section, where any person proves to the satisfaction of the Commissioners that any dutiable alcoholic liquor on which duty has been paid has been— he shall be entitled to obtain from the Commissioners the repayment of the duty paid thereon.
used as an ingredient in the production or manufacture of a product falling within subsection (2) below, or
converted into vinegar,
The products falling within this subsection are—
any beverage of an alcoholic strength not exceeding 1.2 per cent.,
chocolates for human consumption which contain alcohol such that 100 kilograms of the chocolates would not contain more than 8.5 litres of alcohol, or
any other food for human consumption which contains alcohol such that 100 kilograms of the food would not contain more than 5 litres of alcohol.
A repayment of duty shall not be made under this section in respect of any liquor except to a person who—
is the person who used the liquor as an ingredient in a product falling within subsection (2) above or, as the case may be, who converted it into vinegar;
carries on a business as a wholesale supplier of products of the applicable description falling within that subsection or, as the case may be, of vinegar;
produced or manufactured the product or vinegar for the purposes of that business;
makes a claim for the repayment in accordance with the following provisions of this section; and
satisfies the Commissioners as to the matters mentioned in paragraphs (a) to (c) above and that the repayment claimed does not relate to any duty which has been repaid or drawn back prior to the making of the claim.
A claim for repayment under this section shall take such form and be made in such manner, and shall contain such particulars, as the Commissioners may direct, either generally or in a particular case.
Except so far as the Commissioners otherwise allow, a person shall not make a claim for a repayment under this section unless—
the claim relates to duty paid on liquor used as an ingredient or, as the case may be, converted into vinegar in the course of a period of three months ending not more than one month before the making of the claim; and
the amount of the repayment which is claimed is not less than £250.
The Commissioners may by order made by statutory instrument increase the amount for the time being specified in subsection (5)(b) above; and a statutory instrument containing an order under this subsection shall be subject to annulment in pursuance of a resolution of the House of Commons.
There may be remitted by the Commissioners any duty charged either—
on any dutiable alcoholic liquor imported into the United Kingdom at a time when it is contained as an ingredient in any chocolates or food falling within subsection (2)(b) or (c) above; or
on any dutiable alcoholic liquor used as an ingredient in the manufacture or production in an excise warehouse of any such chocolates or food.
This section shall be construed as one with the Alcoholic Liquor Duties Act 1979, and references in this section to chocolates or food do not include references to any beverages.
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The liquors on which duty is charged under the Alcoholic Liquor Duties Act 1979 shall not include any denatured alcohol; and any duty so charged on liquor which has become denatured alcohol before the requirement to pay the duty takes effect shall be remitted.
In this section—
“denatured alcohol” means any dutiable alcoholic liquor which has been subjected to the process of being mixed in the prescribed manner with a prescribed substance; and
“prescribed” means prescribed by the Commissioners by regulations made by statutory instrument.
The power of the Commissioners to make regulations defining denatured alcohol for the purposes of this section shall include— and a statutory instrument containing any regulations under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.
power, in prescribing any substance or any manner of mixing a substance with a liquor, to do so by reference to such circumstances or other factors, or to the approval or opinion of such persons (including the authorities of another member State), as they may consider appropriate;
power to make different provision for different cases; and
power to make such supplemental, incidental, consequential and transitional provision as the Commissioners think fit;
Sections 14 to 16 of the Finance Act 1994 (review and appeals) shall have effect in relation to any decision which— as if that decision were a decision specified in Schedule 5 to that Act.
is made under or for the purposes of any regulations under this section, and
is a decision given to any person as to whether a manner of mixing any substance with any liquor is to be, or to continue to be, approved in his case, or as to the conditions subject to which it is so approved,
Schedule 2 to this Act (which contains amendments for or in connection with the application to all denatured alcohol of provisions of the Alcoholic Liquor Duties Act 1979 relating to methylated spirits and also makes a consequential amendment of the Finance Act 1994) shall have effect.
This section and Schedule 2 to this Act 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 purposes.
An order under subsection (6) above may make such transitional provisions and savings as appear to the Commissioners to be appropriate in connection with the bringing into force by such an order of any provision for any purposes.
This section shall be construed as one with the Alcoholic Liquor Duties Act 1979.
In section 6(1) of the Hydrocarbon Oil Duties Act 1979 for “£0.3314” (duty on light oil) and “£0.2770” (duty on heavy oil) there shall be substituted “ £0.3526 ” and “ £0.3044 ” respectively.
In section 8 of that Act (duty on road fuel gas) the following subsection shall be substituted for subsections (3) to (5)—
In section 11(1) of that Act (rebate on heavy oil) for “£0.0116” (fuel oil) and “£0.0164” (gas oil) there shall be substituted “ £0.0166 ” and “ £0.0214 ” respectively.
In section 14(1) of that Act (rebate on light oil for use as furnace fuel) for “£0.0116” there shall be substituted “ £0.0166 ”.
This section shall be deemed to have come into force at 6 o’clock in the evening of 29th November 1994.
In section 6(1) of the Hydrocarbon Oil Duties Act 1979, as amended by section 6 above, for “£0.3526” (duty on light oil) and “£0.3044” (duty on heavy oil) there shall be substituted “ £0.3614 ” and “ £0.3132 ” respectively.
This section shall be deemed to have come into force on 1st January 1995.
In the definition of “road vehicle” in section 27(1) of the Hydrocarbon Oil Duties Act 1979 (road vehicle not to include vehicle of a kind specified in Schedule 1) for the words “of a kind specified in Schedule 1 to this Act” there shall be substituted “ which is an excepted vehicle within the meaning given by Schedule 1 to this Act. ”
The following Schedule shall be substituted for Schedule 1 to that Act—
This section shall come into force on 1st July 1995.
In section 8 of the Hydrocarbon Oil Duties Act 1979 (road fuel gas) subsection (7) (no charge on use of gas if delivered or stocked before 3rd July 1972) shall be omitted.
1. Cigarettes An amount equal to 20 per cent. of the retail price plus £55.58 per thousand cigarettes. 2. Cigars £82.56 per kilogram. 3. Hand-rolling tobacco £85.94 per kilogram. 4. Other smoking tobacco and chewing tobacco £36.30 per kilogram.
This section shall be deemed to have come into force at 6 o’clock in the evening of 29th November 1994.
1. Cigarettes An amount equal to 20 per cent. of the retail price plus £57.64 per thousand cigarettes. 2. Cigars £85.61 per kilogram. 3. Hand-rolling tobacco £85.94 per kilogram. 4. Other smoking tobacco and chewing tobacco £37.64 per kilogram.
This section shall be deemed to have come into force on 1st January 1995.
In section 7(1) of the Betting and Gaming Duties Act 1981 (which specifies 37.50 per cent. as the rate of pool betting duty) for “37.50 per cent.” there shall be substituted “ 32.50 per cent. ”
This section shall apply in relation to any pool betting duty the requirement to pay which takes effect on or after 6th May 1995.
In the Betting and Gaming Duties Act 1981 for the Table set out at the end of section 23 (amount of duty) there shall be substituted— (1) Period (in months) for which licence granted (2) Small prize or five-penny machines (3) Other machines £ £ 1 60 150 2 105 275 3 155 400 4 205 520 5 250 645 6 295 755 7 340 880 8 390 1,005 9 435 1,115 10 480 1,235 11 510 1,305 12 535 1,375
This section shall apply in relation to any gaming machine licence for which an application is made on or after 1st December 1994.
Schedule 3 to this Act (which contains amendments for or in connection with the application of the provisions of the Betting and Gaming Duties Act 1981 relating to gaming machine licence duty to amusement machines that are not gaming machines and also makes a consequential amendment of the Customs and Excise Management Act 1979) shall have effect.
Schedule 3 to this Act shall have effect (subject to subsection (3) below) in relation only to the provision of a machine at a time on or after 1st November 1995 and to licences for periods beginning on or after that date and the duty on such licences.
Where a gaming machine licence has been granted before 1st November 1995 for a period ending on or after that date, that licence shall have effect on and after that date, for so long as it remains in force, as an amusement machine licence authorising the provision, in accordance with the licence, of the machines the provision of which was authorised by the licence immediately before that date.
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Section 30 of the Finance Act 1994 (rate of air passenger duty) shall be deemed to have been enacted with the following modifications.
The following subsection shall be substituted for subsection (2) (£5 if journey ends in member State or territory for whose external relations it is responsible)—
The following subsection shall be inserted after subsection (8)—
In Schedule 6 to the Finance Act 1994 (air passenger duty: administration and enforcement) after paragraph 11 there shall be inserted—
In Schedule 5 to the 1994 Act (decisions subject to review and appeal) in paragraph 9 (decisions under Chapter IV of Part I of that Act) the word “and” immediately preceding sub-paragraph (d) shall be omitted and after that sub-paragraph there shall be inserted—.
In section 16 of the 1994 Act (appeals to a tribunal) at the beginning of subsection (8) (meaning of “ancillary matter” for the purposes of that section) there shall be inserted “ Subject to subsection (9) below ” and after that subsection there shall be inserted—
This section shall apply in relation to accounting periods ending on or after 1st January 1995.
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Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of duty) shall be amended as follows.
In paragraph 1(b) (rate for vehicle constructed after 1946 and for which no other rate is specified) for “£130” there shall be substituted “ £135 ”.
In paragraph 3(1)(a) (rate for hackney carriage with seating capacity under nine) for “£130” there shall be substituted “ £135 ”.
In paragraph 10 (trailer supplement)—
in sub-paragraph (2) for “£130” there shall be substituted “ £135 ”;
in sub-paragraph (3) for “£360” there shall be substituted “ £370 ”.
This section shall apply in relation to licences taken out on or after 30th November 1994.
Schedule 4 to this Act (which contains other provisions relating to vehicle excise and registration) shall have effect.
In Part X of the Customs and Excise Management Act 1979, after section 137 (recovery of duties, &c.) insert—.
Paragraph (b) above does not apply to a claim for repayment under section 137A below.
Section 29 of the Finance Act 1989 (recovery of overpaid excise duty and car tax) shall cease to have effect so far as it relates to excise duty.
In section 14(1) of the Finance Act 1994 (decisions subject to review and appeal), after paragraph (b) insert—.
The provisions of this section have effect in relation to payments made on or after such date as the Commissioners of Customs and Excise may appoint by order made by statutory instrument.
The ci1994 c. 23Value Added Tax Act 1994 shall be amended as follows.
In section 2 (rate of VAT) in subsection (1) the words “and paragraph 7 of Schedule 13” shall be omitted, and the following subsections shall be inserted after that subsection—
The following Schedule shall be inserted immediately before Schedule 1—
In section 97 (orders etc.) in subsection (4) (orders requiring approval) the following paragraph shall be inserted immediately before paragraph (a)—.
In Schedule 13 (transitional provisions and savings) paragraph 7 (fuel and power) shall be omitted.
This section shall apply in relation to any supply made on or after 1st April 1995 and any acquisition or importation taking place on or after that date.
In subsection (1) of section 21 of the Value Added Tax Act 1994 (value of imported goods), for “and (3)” there shall be substituted “ to (4) ”; and after subsection (3) there shall be inserted the following subsections—
This section shall have effect in relation to goods imported at any time on or after the day on which this Act is passed.
In subsection (1) of section 47 of the Value Added Tax Act 1994 (agents etc.), for “the goods may” there shall be substituted “ then, if the taxable person acts in relation to the supply in his own name, the goods shall ”.
After subsection (2) of that section there shall be inserted the following subsection—
In subsection (3) of that section, the words “goods or” shall be omitted.
This section shall have effect—
so far as it amends section 47(1) of that Act, in relation to goods acquired or imported on or after the day on which this Act is passed; and
for other purposes, in relation to any supply taking place on or after that day.
After section 50 of the Value Added Tax Act 1994 there shall be inserted the following section—
Section 32 of that Act (relief on supply of certain second-hand goods) shall cease to have effect on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.
Section 43 of the Value Added Tax Act 1994 (groups of companies) shall be amended as follows.
After subsection (1) there shall be inserted the following subsection—;
unless the Commissioners refuse the application under subsection (5A) below.
After subsection (5) there shall be inserted the following subsection—
Subsection (2) above has effect in relation to— and subsections (3) and (4) above have effect in relation to applications made on or after the day on which this Act is passed.
any supply made on or after 1st March 1995, and
any supply made before that date in the case of which both the body making the supply and the body supplied continued to be members of the group in question until at least that date,
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After section 51 of the Value Added Tax Act 1994 there shall be inserted the following section—
Where the consideration for the grant of an interest in, right over or licence to occupy land is such that its provision is enforceable primarily— that person, and not any person (other than that person) to whom a benefit accrues by virtue of his being a beneficiary under a trust relating to the land, or the proceeds of sale of any land, shall be taken for the purposes of this paragraph to be the person to whom the benefit of the consideration accrues. Sub-paragraph (2) above shall not apply to the extent that the Commissioners, on an application made in the prescribed manner jointly by— may direct that the benefit of the consideration is to be treated for the purposes of this paragraph as a benefit accruing to the persons falling within paragraph (b) above, and not (unless he also falls within paragraph (b) above) to the person falling within paragraph (a) above.
This section shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint, and different days may be appointed under this subsection for different purposes.
Section 81 of the Value Added Tax Act 1994 (which includes provision as to the setting off of credits) shall be amended as follows.
For subsection (4) there shall be substituted the following subsections—
In subsection (5) (definitions), for “subsection (4) above” there shall be substituted “ this section ”.
This section shall have effect in relation to amounts becoming due from the Commissioners of Customs and Excise at times on or after the day on which this Act is passed.
In section 30 of the Value Added Tax Act 1994 (zero-rated supplies) for subsection (5) (transactions described in Schedule 8 to the Act to be treated as supplies) there shall be substituted—
This section shall have effect in relation to transactions occurring on or after the day on which this Act is passed.
In section 18 of the Value Added Tax Act 1994 (place and time of acquisition or supply of goods subject to warehousing regime) for subsection (5) (regulations about payment of VAT on supply of such goods) there shall be substituted the following subsections—
Section 57 of the Value Added Tax Act 1994 (determination of consideration for fuel supplied for private use) shall be amended as follows.
The following subsection shall be inserted after subsection (1)—
In subsection (2) (consideration where prescribed accounting period is period of 3 months) for “second” there shall be substituted “ third ”.
In subsection (3) (consideration where prescribed accounting period is period of one month) for “third” there shall be substituted “ fourth ”.
Description of vehicle (Type of engine and cylinder capacity in cubic centimetres) 12 month period 3 month period 1 month period £ £ £ Diesel engine 2000 or less 605 151 50 More than 2000 780 195 65 Any other type of engine 1400 or less 670 167 55 More than 1400 but not more than 2000 850 212 70 More than 2000 1260 315 105
This section shall apply in relation to prescribed accounting periods beginning on or after 6th April 1995.
Nothing in this section shall be taken to prejudice any practice by which the consideration appropriate to a vehicle is arrived at where a prescribed accounting period beginning before 6th April 1995 is a period of 12 months.
In section 84(2) of the Value Added Tax Act 1994 (appeal not to be entertained unless amounts shown in returns paid, except in certain cases) the words “, except in the case of an appeal against a decision with respect to the matter mentioned in section 83(l),” shall be omitted.
This section shall apply in relation to appeals brought after the day on which this Act is passed.
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In section 67 of the Value Added Tax Act 1994 (failure to notify and unauthorised issue of invoices) in subsection (4) (the specified percentage)—
in paragraph (a) for “10 per cent.” there shall be substituted “5 per cent.”;
in paragraph (b) for “20 per cent.” there shall be substituted “10 per cent.”; and
in paragraph (c) for “30 per cent.” there shall be substituted “15 per cent.”
Section 15(3A) of the Finance Act 1985 (provision which is repealed by the 1994 Act and which corresponds to section 67(4)) shall have effect subject to the amendments made by subsection (1) above.
Subject to subsection (4) below, subsections (1) and (2) above shall apply where a penalty is assessed on or after 1st January 1995.
Subsections (1) and (2) above shall not apply in the case of a supplementary assessment if the original assessment was made before 1st January 1995.
The Value Added Tax Act 1994 shall have effect, and be deemed always to have had effect, as if it had been enacted as follows.
Section 35(1) (refund of VAT to persons constructing certain buildings) shall be deemed to have been enacted with the word “building” substituted for the word “ dwelling ” in each place where it occurs.
Paragraph 5(5) and (6)(b) of Schedule 4 and paragraph 7(b) of Schedule 6 (which contain references to paragraph 5(3) of Schedule 4 which should be references to paragraph 5(4) of that Schedule) shall be deemed to have been enacted—
in the case of paragraph 5(5) and (6)(b), with “sub-paragraph (4) above” substituted for “ sub-paragraph (3) above ”, in each case; and
in the case of paragraph 7(b), with “paragraph 5(4)” substituted for “ paragraph 5(3) ”.
Claims for refunds of VAT shall not be made in accordance with section 36 of this Act in relation to—
In paragraph 13 of Schedule 14 (consequential amendment of the Finance Act 1994), the following sub-paragraph shall be deemed to have been enacted instead of sub-paragraph (a) of that paragraph, that is to say—.
Schedule 5 to this Act (which relates to insurance premium tax) shall have effect.
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Income tax shall be charged for the year 1995-96, 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 1995-96 section 1(2) of the Taxes Act 1988 shall apply as if the amount specified in paragraph (aa) were £3,200 (the lower rate limit); and accordingly section 1(4) of that Act (indexation) so far as relating to that paragraph shall not apply for the year 1995-96.
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the amount specified in subsection (2) (persons of 65 or upwards) were £4,630, and
the amount specified in subsection (3) (persons of 75 or upwards) were £4,800;
Corporation tax shall be charged for the financial year 1995 at the rate of 33 per cent.
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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.
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Section 15 of the Taxes Act 1988 (charge to Schedule A) shall have effect, except for the purpose of being applied by virtue of section 9 of that Act for the purposes of corporation tax, as if the following provisions were substituted for the Schedule A set out in subsection (1) of that section—
For section 21 of that Act (persons chargeable under Schedule A) there shall be substituted the following section—
That Act and the other enactments specified in Schedule 6 to this Act shall have effect with the further modifications set out in that Schedule; and, without prejudice to section 20(2) of the Interpretation Act 1978 (construction of references), a reference in any enactment to another enactment shall have effect, where the other enactment is applied or modified by virtue of this section or that Schedule, as including a reference to that other enactment as so applied or modified.
This section and Schedule 6 to this Act shall have effect, subject to subsection (5) below—
for the year 1995-96 and subsequent years of assessment, and
so far as they make provision having effect for the purposes of corporation tax, in relation to accounting periods ending on or after 31st March 1995.
This section and Schedule 6 to this Act shall not have effect for the year 1995-96 in relation to the profits or gains or losses arising or accruing from any source to any person where— and the provisions of that Schedule relating to the Capital Allowances Act 1990 shall not apply for the year 1995-96 in the case of any person who has a source of income for the whole or any part of that year which is a source falling within paragraphs (a) and (b) above and who is a person to whom paragraph (c) above applies.
that source is a source in respect of the profits or gains from which that person is chargeable to tax for the year 1994-95 under Schedule A or Case VI of Schedule D; and
that source ceases, in the course of the year 1995-96, to be a source from which any such profits or gains arise to that or any other person as would be chargeable to tax under Schedule A or Case VI of Schedule D if the amendments for which this section and Schedule 6 to this Act provide were to be disregarded; and
that person is not a person who sets up and commences a Schedule A business in the course of the year 1995-96;
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Section 43 of the Taxes Act 1988 (payments to non-residents of amounts chargeable under Schedule A) shall not have effect in relation to any payment made on or after 6th April 1996.
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In section 65 of the Taxes Act 1988 (general provision about Cases IV and V assessments), after subsection (2) there shall be inserted the following subsections—; and in subsection (4) of that section for “Subsections (1), (2) and (3)” there shall be substituted “Subsections (1) to (3)”.
After section 65 of that Act there shall be inserted the following section—
In section 161 of the Capital Allowances Act 1990 (interpretative provisions), after subsection (2) there shall be inserted the following subsection—
In Schedule 8 to the Taxation of Chargeable Gains Act 1992 (which contains provision excluding from the charge to capital gains tax premiums taxed under Schedule A), after paragraph 7 there shall be inserted the following paragraph—
Where any income falling within paragraphs (a) and (b) of subsection (2A) of section 65 of the Taxes Act 1988 which is chargeable to tax for any year of assessment under Case V of Schedule D would (apart from this section) be computed, wholly or partly, on an amount of income arising in the year preceding the year of assessment, that subsection shall have effect as if the income chargeable to tax for that year under Schedule A were to be computed, to the same extent, by reference to the year preceding the year of assessment (instead of being computed in accordance with the rule in section 21(2) of that Act), and as if the rules applied by section 65(2A) of that Act had effect accordingly.
Notwithstanding anything in section 21(4) of the Taxes Act 1988, for the years 1995-96 and 1996-97 subsection (2A) of section 65 shall be treated as requiring the rules referred to in that subsection to be applied, in a case where a person is chargeable under Case V of Schedule D in respect of the rents or other receipts from more than one property situated outside the United Kingdom, separately in relation to each property outside the United Kingdom—
as if a separate Schedule A business were carried on in relation to each property, and
in the case of each such business, as if that business were the only Schedule A business carried on by the person chargeable.
Where subsection (5) above applies for the computation of the income from any property for any year of assessment, then for that year no allowance or charge under the Capital Allowances Act 1990 shall be made on any person by virtue of this section for any purpose connected with the taxation of the income from that property.
Section 379A of the Taxes Act 1988 (Schedule A losses) shall not apply by virtue of section 65(2A) of that Act for the computation of any income chargeable to tax under Case V of Schedule D for any year of assessment before the year 1998-99.
Section 65(2A) of the Taxes Act 1988 shall not apply in any case which, if the land in question were in the United Kingdom, would be a case falling within section 39(5) above.
Subject to subsections (5) to (9) above, this section has effect for the year 1995-96 and subsequent years of assessment.
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That Act shall be further amended as follows—
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in subsection (1)(e), for the words from “and would have been” onwards, and
in subsection (2), for the words from “and was such” onwards,
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the profits or gains of any source of income that ceases in the course of the year 1995-96 are taxed, by virtue of section 39(5) or 41(9) above, without reference to the Schedule A that has effect by virtue of section 39(1) above, and
that source of income includes any land, caravan or house-boat with respect to which the condition specified in section 355(1)(b) of the Taxes Act 1988 would be satisfied in the case of any loan,
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After section 157 of the Taxes Act 1988 there shall be inserted—
In section 158 of the Taxes Act 1988 (car fuel) in subsection (1) for the words “which is made available as mentioned in section 157,” there shall be substituted “the benefit of which is chargeable to tax under section 157 as his income,”.
In section 167 of the Taxes Act 1988 (employments to which Chapter II of Part V of that Act applies) at the beginning of subsection (2) (calculation of emoluments) there shall be inserted “Subject to subsection (2B) below” and after that subsection there shall be inserted—
This section shall have effect for the year 1995-96 and subsequent years of assessment.
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At the end of section 168A(11) of the Taxes Act 1988 (mobile telephones not accessories for purpose of determining price of car) there shall be inserted “or equipment which falls within section 168AA”.
After section 168A of the Taxes Act 1988 there shall be inserted—
This section shall have effect for the year 1995-96 and subsequent years of assessment.
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In Chapter II of Part V of the Taxes Act 1988 (benefits in kind, &c.), section 160 (beneficial loan arrangements) is amended as follows.
In subsection (5) (interpretation), paragraph (b) (references to loan to include any replacement loan) shall cease to have effect.
After subsection (3) (deemed continuance of employment to which that Chapter applies) insert—.
Where an employment-related loan is replaced, directly or indirectly— sub-paragraph (1) above applies as if the replacement loan or, as the case may be, each of the replacement loans were the same loan as the first-mentioned employment-related loan. For the purposes of sub-paragraph (2) above “employment-related loan” means a loan the benefit of which is obtained by reason of a person’s employment (and “non-employment-related loan” shall be construed accordingly). The references in sub-paragraph (2) above to a further employment-related loan are to an employment-related loan the benefit of which is obtained by reason of—
The above amendments have effect for the year 1995-96 and subsequent years of assessment and apply to loans whether made before or after the passing of this Act.
Chapter IA of Part V of the Taxation of Chargeable Gains Act 1992 (roll-over relief on re-investment) shall be amended as follows.
In section 164A (relief on re-investment for individuals) the following subsection shall be inserted after subsection (12)—
In section 164F (failure of conditions of relief) the following subsection shall be inserted after subsection (2)—
In section 164I (qualifying trades) the following subsection shall be inserted after subsection (4)—
Chapter IA of Part V of the Taxation of Chargeable Gains Act 1992 (roll-over relief on re-investment) shall be amended as follows.
In section 164A after subsection (13) (inserted by section 46 above) there shall be inserted—
In section 164F after subsection (10B) there shall be inserted—
After section 164F there shall be inserted—
After section 164FF (inserted by subsection (4) above) there shall be inserted—
Subsection (4) above (and subsections (1) to (3) above so far as relating to subsection (4) above) shall apply to a claim as respects a qualifying investment if—
the qualifying investment is acquired on or after 20th June 1994; or
the claim is under section 164A(2) and relates to a disposal on or after that day; or
the claim is under subsection (10A) of section 164F and relates to a gain which (apart from that subsection) would accrue on or after that day.
Subsection (5) above (and subsections (1) to (3) above so far as relating to subsection (5) above) shall apply to a claim as respects a qualifying investment if—
the qualifying investment is acquired on or after 20th June 1994; or
the claim is under section 164A(2) and relates to a disposal on or after that day; or
the claim is under subsection (10A) of section 164F and relates to a gain which (apart from that subsection) would accrue on or after that day; or
there is another claim as respects that qualifying investment which is under section 164A(2) and which relates to a disposal on or after that day; or
there is another claim as respects that qualifying investment which is under subsection (10A) of section 164F and which relates to a gain which (apart from that subsection) would accrue on or after that day.
Any such adjustment as is appropriate in consequence of this section may be made (whether by discharge or repayment of tax, the making of an assessment or otherwise).
In section 175 of the Taxation of Chargeable Gains Act 1992 (replacement of business assets by members of a group), after subsection (2) there shall be inserted the following subsections—
In section 247 of the Taxation of Chargeable Gains Act 1992 (roll-over relief on compulsory acquisition of land), after subsection (5) there shall be inserted the following subsection—
Subject to subsection (4) below—
the subsection inserted into section 175 of the Taxation of Chargeable Gains Act 1992 by subsection (1) above as subsection (2A) shall be deemed always to have had effect; and
the earlier enactments corresponding to that section shall be deemed to have contained provision to the same effect as that subsection (2A).
Paragraph (c) of that subsection (2A) shall not apply unless the claim is made on or after 29th November 1994.
The subsection inserted into section 175 of the Taxation of Chargeable Gains Act 1992 by subsection (1) above as subsection (2B) shall apply where the disposal or the acquisition is on or after 29th November 1994; and the subsection so inserted as subsection (2C) shall apply where the acquisition is on or after that date.
The subsection inserted into section 247 of the Taxation of Chargeable Gains Act 1992 by subsection (2) above shall apply—
so far as it relates to section 175(2A), where the disposal or the acquisition is on or after 29th November 1994; and
so far as it relates to section 175(2C), where the acquisition is on or after that date.
In section 179 of the Taxation of Chargeable Gains Act 1992 (de-grouping charges), after subsection (2) there shall be inserted the following subsections—
After subsection (9) of that section there shall be inserted the following subsection—
This section has effect in relation to a company in any case in which the time of the company’s ceasing to be a member of the second group is on or after 29th November 1994.
In section 117 of the Taxation of Chargeable Gains Act 1992 (qualifying corporate bonds) the following subsection shall be inserted after subsection (2)—
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and in paragraph (b) above “long term business” and “the first long term insurance Directive” have the same meanings as in that Act of 1982.
Subsections (1) to (3) above shall have effect in relation to any accounting period ending after 30th June 1994; and subsection (4) above shall have effect for the purposes of the making, on an anniversary or other occasion after that date, of any charge to tax under section 64 or 65 of the Inheritance Tax Act 1984.
The amendments specified in Schedule 9 to this Act (which relate to enactments referring to the transfer of the whole or part of the long term business of an insurance company) shall have effect.
This section and that Schedule shall have effect in relation to any transfers sanctioned or authorised after 30th June 1994.
Schedule 10 to this Act (which makes provision about friendly societies) shall have effect.
Subject to subsections (2) and (3) below—
paragraph 21 of Schedule 15 to the Taxes Act 1988 (certification of policies and of standard forms etc.) shall not apply, in relation to any time on or after the appointed date, for determining whether a policy is or would be a qualifying policy at that time; and
no certificate may be issued under that paragraph at any time on or after that date except, in the case of a certificate under sub-paragraph (1)(a) of that paragraph, in relation to a time before that date.
Subsection (1) above shall not affect the right of any person to bring or continue with an appeal under paragraph 21(3) of that Schedule against either a refusal before the appointed date to certify any policy or a refusal on or after that date to certify any policy in relation to times before that date.
A certificate issued— shall, in relation to any time on or after that date or, as the case may be, the date on which it is issued, be conclusive evidence that the policy to which it relates is (subject to paragraphs A1(2), B2(2) and B3(3) of that Schedule and to any variation of the policy) a qualifying policy.
before the appointed date in pursuance of paragraph 21(1)(a) of that Schedule, or
in pursuance of a determination on an appeal determined after that date by virtue of subsection (2) above,
Paragraph 22 of that Schedule (certificates from body issuing policy) shall cease to have effect in relation to any time on or after the appointed date.
Paragraph 24 of that Schedule (policies issued by non-resident companies) shall have effect in relation to times on or after the appointed date—
with the substitution of the following sub-paragraphs for sub-paragraph (2)—; and
with the omission, in sub-paragraph (3), of the word “first” and of sub-paragraph (4).
The modifications are the following— and references in this sub-paragraph to being a qualifying policy shall have effect, in relation to any time before the appointed date, as including a reference to being capable of being certified as such a policy.
In paragraph 27(1) of that Schedule, except so far as it has effect for the purposes of any case to which paragraph 21 of that Schedule applies by virtue of the preceding provisions of this section, for “paragraphs 21 and” there shall be substituted “ paragraph ”.
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in subsection (2), for the words from “neither” to “fulfilled” there shall be substituted “the conditions in paragraph 24(3) of Schedule 15 to this Act are not fulfilled”; and
in subsection (7), for “either sub-paragraph (3) or sub-paragraph (4)” there shall be substituted “sub-paragraph (3)”;
In this section “the appointed date” means such date as may be specified for the purpose in an order made by the Board.
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In section 547 of the Taxes Act 1988 (charging of certain gains arising in connection with insurance policies etc.), in subsection (5A), for “subsection (7)” there shall be substituted “subsection (6A) or (7)”; and after subsection (6) of that section there shall be inserted the following subsection—
In section 553 of that Act (non-resident policies and off-shore capital redemption policies), in subsection (6), for “subsection (7)” there shall be substituted “subsections (6A) and (7)”; and after that subsection there shall be inserted the following subsection—
For the purpose of securing that section 547(5) of the Taxes Act 1988 has effect in other cases (in addition to those specified in sections 547(6A) and 553(6A)) where it appears to the Board appropriate for section 547(6) or 553(6) to be disapplied by reference to tax chargeable under the laws of a territory outside the United Kingdom, the Board may by regulations provide that the cases described in subsection (6A) of each of sections 547 and 553 of that Act are to be treated as including cases, being cases which would not otherwise fall within the subsection, where the conditions specified in the regulations are fulfilled in relation to any time (including one before the making of the regulations).
This section shall apply in relation to any gain arising on or after 29th November 1994 and in relation to any gain arising before that date the income tax on which has not been the subject of an assessment that became final and conclusive before that date.
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In section 552 of the Taxes Act 1988 (duties of insurers of life policies etc.), the following subsection shall be inserted after subsection (2) in relation to times on or after the day on which this Act is passed—
In that section, the following subsections shall be inserted after subsection (4)—
section 552(1) to (4);regulations under section 552(4A);
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Part XIV of the Taxes Act 1988 (pension schemes etc.) shall be amended as follows.
In section 591 (discretionary approval of retirement benefits schemes) the following subsection shall be substituted for subsection (3)—
In section 599 (charge to tax: commutation of entire pension in special circumstances) the following subsection shall be substituted for subsection (8)—
“authorised insurance company” has the meaning given by section 659B.
The following sections shall be inserted after section 659A—
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Section 59(2) above and the new section 659B, so far as relating to section 591(2)(g), shall apply in relation to a scheme not approved by virtue of section 591 before the day on which this Act is passed.
Section 59(3) above and the new section 659B, so far as relating to section 599(7), shall apply where tax is charged under section 599 on or after the day on which this Act is passed.
Section 59(4) above and the new section 659B, so far as relating to Chapter IV of Part XIV, shall apply in relation to a scheme not approved under that Chapter before the day on which this Act is passed.
Subsection (5) below applies where—
a scheme is approved under Chapter IV of Part XIV before the day on which this Act is passed,
on or after that day the person who established the scheme proposes to amend it, and
the scheme as proposed to be amended would make provision such that, if the scheme had not been approved before that day, section 59(4) above and the new section 659B (so far as relating to that Chapter) would allow the Board to approve it.
The Board may at their discretion approve the amendment notwithstanding anything in Chapter IV of Part XIV, and if the amendment is made—
section 59(4) above and the new section 659B, so far as relating to that Chapter, shall apply in relation to the scheme, and
any question as to the validity of the Board’s approval of the scheme shall be determined accordingly.
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After section 591B of the Taxes Act 1988 there shall be inserted—
After section 239 of the Taxation of Chargeable Gains Act 1992 there shall be inserted—
This section shall apply in relation to any approval of a retirement benefits scheme which ceases to have effect on or after 2nd November 1994 other than an approval ceasing to have effect by virtue of a notice given before that day under section 591B(1) of the Taxes Act 1988.
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The Taxes Act 1988 shall be amended as follows.
After section 326B there shall be inserted—
In section 326C(1) (regulations about tax-exempt special savings accounts) after paragraph (c) there shall be inserted—.
In section 326C(1)(e) for “and 326B” there shall be substituted “326B and 326BB”.
In section 326C after subsection (1) there shall be inserted—
In section 326C(2) for “section 326B” there shall be substituted “sections 326B and 326BB”.
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Section 326A of the Taxes Act 1988 (tax-exempt special savings accounts) shall be amended as mentioned in subsections (2) and (3) below.
In subsection (4) (account must be with building society or institution authorised under Banking Act 1987) after “1987” there shall be inserted “or a relevant European institution”.
The following subsection shall be inserted after subsection (9)—
The following section shall be inserted after section 326C of the Taxes Act 1988 (regulations about tax-exempt special savings accounts etc.)—
Subsection (2) above shall apply in relation to accounts opened after such day as the Board may by order made by statutory instrument appoint.
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The following section shall be inserted after section 333 of the Taxes Act 1988 (personal equity plans)—
In section 151 of the Taxation of Chargeable Gains Act 1992 (personal equity plans) the following subsection shall be inserted after subsection (2)—
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Chapter III of Part VII of the Taxes Act 1988 as it has effect in relation to shares issued on or after 1st January 1994 (the enterprise investment scheme) shall be amended as follows.
In section 292 (which denies relief where parallel trades are involved) the following subsection shall be inserted after subsection (4)—
In section 293 (qualifying companies) the following subsection shall be inserted after subsection (8A) (which defines “the relevant period” for certain purposes)—
In section 305 (reorganisation of share capital) the following subsections shall be inserted after subsection (4)—
Schedule 13 to this Act (which contains amendments relating to chargeable gains as regards the enterprise investment scheme) shall have effect.
Chapter III of Part VII of the Taxes Act 1988 as it has effect in relation to shares issued before 1st January 1994 (the business expansion scheme) shall be amended as follows.
In section 289 (the relief) the following subsection shall be inserted after subsection (12) (which defines “the relevant period” for the purposes of the Chapter)—
In section 305 (reorganisation of share capital) the following subsections shall be inserted after subsection (4)—
In section 150 of the Taxation of Chargeable Gains Act 1992 (business expansion schemes) the following subsections shall be inserted after subsection (8) (which disapplies provisions about exchanges, reconstructions or amalgamations in certain circumstances)—
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After section 842 of the Taxes Act 1988 (investment trusts) there shall be inserted the following section—
Schedule 14 to this Act (meaning of “qualifying holdings”) shall be inserted, before Schedule 29 to the Taxes Act 1988, as Schedule 28B to that Act, and shall be construed accordingly.
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In Chapter IV of Part VII of the Taxes Act 1988 (special provisions), after section 332 there shall be inserted the following section—
Schedule 15 to this Act (relief in respect of holdings in a venture capital trust) shall be inserted, before Schedule 16 to the Taxes Act 1988, as Schedule 15B to that Act, and shall be construed accordingly.
In the Table in section 98 of the Management Act (penalties in respect of certain information provisions)—
Schedule 15B, paragraph 5(2);
Schedule 15B, paragraph 5(1);
This section has effect for the year 1995-96 and subsequent years of assessment.
The Taxation of Chargeable Gains Act 1992 shall be amended as follows.
In section 100(1) (exemption from charge for gains accruing to authorised unit trusts, investment trusts etc.), after “investment trust” there shall be inserted “ a venture capital trust ”.
In Chapter III of Part IV (miscellaneous provisions relating to securities), after section 151 there shall be inserted the following sections—
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and the disposal is not one in relation to which section 151A(1) has effect.
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“venture capital trust” has the meaning given by section 842AA of the Taxes Act;
Subsection (2) above shall have effect in relation to gains accruing on or after 6th April 1995 and the other provisions of this section have effect for the year 1995-96 and subsequent years of assessment.
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The Treasury may by regulations make such provision as they may consider appropriate for—
giving effect to any relief for which provision is made by Schedule 15B to the Taxes Act 1988 or section 151A of, and Schedule 5C to, the Taxation of Chargeable Gains Act 1992; and
preventing such relief from being given except where a claim is made in accordance with the regulations and where such other requirements as may be imposed by the regulations have been complied with.
Without prejudice to the generality of subsection (1) above, regulations under this section may make provision—
as to the making of applications for approvals under section 842AA of the Taxes Act 1988 and otherwise as to the procedure in relation to any such applications and the giving of such approvals;
as to the procedure to be followed in connection with the withdrawal of any such approval;
as to the manner in which, and the persons by whom, relief is to be claimed;
as to the obligations of a company which is a venture capital trust if it should appear to the company that the conditions for it to continue to be approved as such a trust are not satisfied;
as to the accounts, records, returns and other information to be kept, and furnished or otherwise made available to the Board, by companies which are or have been venture capital trusts and by persons who hold or have held shares in such companies; and
as to the persons liable to account for any tax becoming due where the approval of a company as a venture capital trust is withdrawn.
Regulations under this section may make provision, in relation to tax credits to which any persons are entitled in respect of distributions of venture capital trusts— and any such regulations may provide for sections 234 and 252 of the Taxes Act 1988 (information relating to distributions and rectification of excessive tax credit) to have effect, in relation to the distributions of venture capital trusts or, as the case may be, any provision made by virtue of paragraph (a) or (b) above, with such modifications as may be specified in the regulations.
for the credits not to be set against income tax but to be claimed by and paid to the trusts; and
for amounts equal to the credits to be paid by the trusts to the persons who receive or are entitled to receive the distributions;
Regulations under this section may apply the following provisions of the Management Act, as they have effect in the case of repayments in respect of income tax, in relation to cases where amounts are paid to any person in pursuance of regulations made by virtue of subsection (3) above, that is to say—
section 29(3)(c) (excessive relief);
section 30 (tax repaid in error);
section 88 (interest); and
section 95 (incorrect return or accounts).
regulations under section 73 of the Finance Act 1995;
In this section “venture capital trust” has the meaning given by section 842AA of the Taxes Act 1988.
Schedule 17 to this Act has effect with respect to settlements and the liability of the settlor, as follows— Part I inserts new provisions in place of sections 660 to 676 and 683 to 685 of the Taxes Act 1988, Part II makes minor and consequential amendments of that Act, and Part III contains consequential amendments of other enactments.
The amendments made by Schedule 17 have effect for the year 1995-96 and subsequent years of assessment and apply to every settlement, wherever and whenever it was made or entered into.
Part XVI of the Taxes Act 1988 (deceased persons’ estates) shall have effect with the amendments specified in Schedule 18 to this Act.
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in subsection (1)(c) (case where rights vested in personal representatives), after “gain” there shall be inserted “(so far as it is not otherwise comprised in that income)”; and
after subsection (7) there shall be inserted the following subsection—
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After the section 51A of the Taxes Act 1988 inserted by section 77 above there shall be inserted the following section—
regulations under section 51B;
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In Chapter II of Part XVII of the Taxes Act 1988 (transfers of securities) after section 727 insert—.
In section 728 of the Taxes Act 1988 (information) in subsections (1) and (5) for “sections 710 to 727” substitute “sections 710 to 727A”.
The above amendments have effect where the agreement to sell the securities is entered into on or after the date on which this Act is passed.
If the appointed day for the purposes of section 737A of the Taxes Act 1988 in relation to any description of securities falls after the date on which this Act is passed, the reference in subsection (3) above to the date on which this Act is passed shall be construed in relation to an agreement relating to securities of that description and to which section 737A would apply if it were in force as a reference to that appointed day.
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In section 729 of that Act (sale and repurchase of securities), after subsection (5) there shall be inserted the following subsection—
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After section 263 of the Taxation of Chargeable Gains Act 1992 there shall be inserted the following section—
This section shall have effect where the agreement to sell the securities is entered into on or after the date on which this Act is passed.
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Section 731 of the Taxes Act 1988 (application of sections 732 to 734) is amended as follows.
After subsection (2) insert—.
In consequence of the above amendment—
in subsection (2) for “Subject to subsections (3) to (10) below” substitute “Subject to subsections (2A) to (10)” below, and for “relate” substitute “apply”;
in subsection (3) for “relate to cases” substitute “apply”.
The above amendments have effect where the date on which the payment referred to in the inserted subsection (2A) is required to be made, or treated as required to be made, is after the passing of this Act.
In section 737 of the Taxes Act 1988 (manufactured dividends and interest)—
after subsection (1A) there shall be inserted the following subsection—;
at the beginning of subsections (2) and (5), there shall be inserted, in each case, “Subject to subsection (5AA) below,”;
after subsection (5) there shall be inserted the following subsection—;and
“gilt-edged securities” has the same meaning as in section 51A;
In Schedule 23A to that Act, at the beginning of sub-paragraphs (2) and (3) of paragraph 3, there shall be inserted, in each case, “Subject to paragraph 3A below,”; and after that paragraph there shall be inserted the following paragraph—
In paragraph 5(6) of that Schedule (construction of references to securities in provisions relating to interest passing through the market), after “United Kingdom securities” there shall be inserted “, other than gilt-edged securities (within the meaning of section 51A),”.
This section shall have effect in relation to any payments made on or after such day as the Treasury may by order appoint, and different days may be appointed under this subsection for different purposes.
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In section 182(1) of the Finance Act 1993 and section 229 of the Finance Act 1994 (powers to modify provisions relating to Lloyd’s), the following paragraph shall be inserted, in each case, after paragraph (c)—.
In subsection (1) of section 129 of the Taxes Act 1988 (description of stock lending arrangements)—
for “subsection (4)” there shall be substituted “subsections (2B) and (4)”; and
the words “has contracted to sell securities, and to enable him to fulfil the contract, he” shall be omitted.
In subsection (2A) of that section, for “A to fulfil his contract” there shall be substituted “B to make the transfer to A or his nominee”.
After subsection (2A) of that section there shall be inserted the following subsection—
After subsection (4) of that section there shall be inserted the following subsections—
For subsection (9) of section 271 of the Taxation of Chargeable Gains Act 1992 (exemption for arrangements to which section 129 applies) there shall be substituted the following subsection—
In Chapter VIII of Part IV of the Taxes Act 1988 (provisions relating to the Schedule D charge: miscellaneous and supplementary provisions), after section 129 insert—.
In the Taxes Act 1988 insert as Schedule 5A the provisions set out in Schedule 19 to this Act.
This section and that Schedule apply in relation to approved stock lending arrangements (within the meaning of that Schedule) entered into after the passing of this Act.
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In section 481(4) of the Taxes Act 1988 (meaning of “relevant deposit” for the purposes of provisions relating to the deduction of tax), after paragraph (c) there shall be inserted orand for “subsection (5)” there shall be substituted any of subsections (5) to (5B)
After subsection (4) of section 481 of that Act there shall be inserted the following subsection—
In section 481(5)(k) of that Act (declaration by virtue of which deposit is not a relevant deposit)—
the word “that” before sub-paragraph (i) shall be omitted;
in sub-paragraph (i), at the beginning there shall be inserted “in a case falling within subsection (4)(a) or (b) above, that”;
in sub-paragraph (ii), after “above” there shall be inserted “, that”; and
after sub-paragraph (ii) there shall be inserted the following sub-paragraph—
After subsection (5A) of section 481 of that Act there shall be inserted the following subsection—
In section 482(2) of that Act (contents of declaration under section 481(5)(k)), for paragraph (a) there shall be substituted the following paragraph—.
After subsection (5) of section 482 of that Act there shall be inserted the following subsection—
In section 482(6) of that Act (definitions for the purposes of section 481(5)), in the definition of “appropriate person”, for “as a personal representative in his capacity as such” there shall be substituted “in his capacity as a personal representative or as a trustee of a discretionary or accumulation trust”.
In section 482(11) of that Act (power to make regulations), after paragraph (aa) there shall be inserted the following paragraph—.
In section 482A(1) of that Act (power to make regulations excluding audit requirements in certain cases), after “United Kingdom” there shall be inserted “, or investments of trustees who are not resident in the United Kingdom,”.
The preceding provisions of this section apply in relation to any payments made on or after 6th April 1996.
Notwithstanding the repeal of section 67 of the Taxes Act 1988 by the Finance Act 1994 or anything contained in the transitional provisions relating to that repeal, where— section 67(1) of the Taxes Act 1988 shall apply in respect of payments made before that time as if the deposit were a source of income that the trustees in question ceased to possess at that time.
this section has effect so as to require any deposit made before 6th April 1996 to be treated in relation to payments made after a time falling before 6th April 1998 as a relevant deposit for the purposes of section 480A(1) of the Taxes Act 1988, and
section 67(2) of that Act does not otherwise apply in relation to the liability to deduction of tax that begins at that time,
An officer of the Board may, by notice to any of the trustees of a trust, require the trustees to provide the Board with the following, that is to say— and section 98 of the Management Act (penalties in respect of special returns) shall have effect with a reference to this subsection inserted at the end of the first column of the Table.
information about any notification given by any of the trustees for the purposes of subsection (5B) of section 481 of the Taxes Act 1988; and
such information as the Board may reasonably require for the purposes of themselves giving a notification under that subsection with respect to any income arising to the trustees;
Where a notice given by the Board before the passing of this Act requires any such information as is mentioned in subsection (12) above to be provided to the Board, and the period within which that information was required to be so provided does not expire until at least one month after the passing of this Act, that notice shall have effect as if given after the passing of this Act in accordance with that subsection.
Without prejudice to section 20(2) of the Interpretation Act 1978 (references to other enactments) and subject to any provision to the contrary made in exercise of any power to make, revoke or amend any subordinate legislation, the enactments and subordinate legislation having effect, apart from this section, in relation to any provisions of the Taxes Act 1988 amended by this section shall be assumed, in cases where this section applies, to have the corresponding effect in relation to those provisions as so amended.
In this section “subordinate legislation” has the same meaning as in the Interpretation Act 1978.
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In subsection (2) of section 209 of the Taxes Act 1988 (meaning of “distribution” for the purposes of the Corporation Tax Acts), after paragraph (d) there shall be inserted the following paragraph—.
In paragraph (e) of that subsection— and, in subsection (3) of that section, for “subsection (2)(d)” there shall be substituted “subsection (2)(d), (da)”.
for “paragraph (d)” there shall be substituted “paragraph (d) or (da)”; and
sub-paragraphs (iv) and (v) (distribution in respect of securities of subsidiaries of non-resident companies etc.) shall be omitted;
After subsection (8) of that section there shall be inserted the following subsections—
In section 212 of that Act (exceptions from the definition of a “distribution” for certain interest and other payments)—
in subsection (1), in paragraph (b), after “within” there shall be inserted “paragraph (da) of section 209(2) or”;
in subsection (3)—
at the beginning there shall be inserted “Without prejudice to subsection (4) below,”; and
at the end there shall be inserted “and does not apply in relation to any interest or distribution falling within section 209(2)(da) if that interest or distribution is otherwise outside the matters in respect of which that company is within the charge to corporation tax.”; and
after subsection (3) there shall be inserted the following subsection—
In section 710(3)(a) of that Act (meaning of securities), for “section 209(2)(e)(iv) or (v)” there shall be substituted “section 209(2)(da)”.
In paragraph 5(5) of Schedule 4 to that Act (deep discount securities), for “section 209(2)(d)” there shall be substituted “section 209(2)(d), (da)”.
This section has effect, subject to subsection (8) below, in relation to any interest or other distribution paid on or after 29th November 1994.
This section shall not have effect in relation to any interest or other distribution paid before 1st April 1995 in respect of any security if the security is one in the case of which a notice given before 29th November 1994 under Regulation 2(2) of the Double Taxation Relief (Taxes on Income) (General) Regulations 1970 was in force immediately before 29th November 1994 as regards payments of interest or other distributions made in respect of that security.
In sections 63 to 66 of the Finance Act 1993 (deemed periodic disposal of certain debts), for “the resident company”, wherever occurring, substitute “ the creditor company ”.
After section 62 of that Act insert—.
In section 63 of that Act, omit subsection (12) (meaning of “commencement date”).
The above amendments shall be deemed always to have had effect.
Anything done before the passing of this Act under or by reference to the provisions of sections 63 to 66 of the Finance Act 1993 as originally enacted shall have effect as if done under or by reference to those provisions as amended by this section.
A debt is a qualifying debt for the purposes of sections 63 to 66 of the Finance Act 1993 (deemed periodic disposal of certain debts) at any time if, at that time, the person entitled to the debt is a company which— and the debt is not an exempted debt as defined by the following provisions.
is resident in the United Kingdom, and
is an associated company of a company (whether or not itself resident in the United Kingdom) which carries on a banking business in the United Kingdom,
A debt is an exempted debt for those purposes at any time if at that time it is held by the company entitled to it for the purposes of long term insurance business.
A debt is an exempted debt for those purposes at any time if each of the first, second and third conditions mentioned below—
is fulfilled at that time,
has been fulfilled throughout so much of the period of the debt as falls before that time, and
is likely to be fulfilled throughout so much of that period as falls after that time.
The first condition is that the terms of the debt provide that any interest carried by it shall be at a rate which falls into one, and one only, of the following categories—
a fixed rate which is the same throughout the period of the debt,
a rate which bears to a standard published rate the same fixed relationship throughout that period, and
a rate which bears to a published index of prices the same fixed relationship throughout that period.
The second condition is that those terms provide for any such interest to be payable as it accrues at intervals of 12 months or less.
The third condition is that the terms of the debt are not such— In this subsection “deep discount security” has the same meaning as in Schedule 4 to the Taxes Act 1988 and “deep gain security” has the same meaning as in Schedule 11 to the Finance Act 1989, disregarding paragraph 1(4)(c) of that Schedule.
in the case of a debt on a security, that the security is a deep discount or deep gain security, or
in any other case, that if the debt were a debt on a security it would be a deep discount or deep gain security.
In this section—
and in relation to the winter period beginning with November 1995, sub-paragraph(4) of that paragraph shall have effect as if the references by virtue of this paragraph to an amusement machine licence included references to a gaming machine licence. After paragraph 7 of that Schedule there shall be inserted the following paragraph— Where, in a case where duty is being paid in accordance with arrangements made under paragraph 7A above, the amount of duty actually paid on a licence that is surrendered is less than the amount which would have been paid on that licence if the period for which it was granted had been reduced by the number of complete months in that period which have not expired when the licence is surrendered, the difference between those amounts shall be treated as unpaid duty. Paragraph 13 of that Schedule (labelling and marking of machines) shall cease to have effect. In paragraph 14 of that Schedule (power to enter premises), for the words “for gaming” there shall be substituted “ for play ”. This paragraph does not apply to any contravention or failure to comply with arrangements under paragraph 7A above or to any failure or refusal to comply with a requirement made under or for the purposes of any such arrangements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
“associated company” shall be construed in accordance with section 416 of the Taxes Act 1988;
“basic life assurance and general annuity business” has the meaning given by section 431F;
In sections 63 to 66 of the Finance Act 1993 as they apply by virtue of this section “the creditor company” means the company identified in subsection (1) above as the person entitled to the debt.
In sections 63 to 66 of the Finance Act 1993 as they apply by virtue of this section “the commencement date” means—
in relation to a debt not falling within subsection (10) below, 29th November 1994; and
in relation to a debt falling within that subsection, 1st April 1996.
A debt falls within this subsection if the person liable for it is— and that person was so liable at the end of 28th November 1994.
an institution which is a higher education institution for the purposes of section 65 of the Further and Higher Education Act 1992 or Article 30 of the Education and Libraries (Northern Ireland) Order 1993,
an institution which is an institution within the higher education sector for the purposes of the Further and Higher Education (Scotland) Act 1992, or
a registered housing association within the meaning of the Housing Associations Act 1985 or Part II of the Housing (Northern Ireland) Order 1992,
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In Chapter VI of Part IV of the Taxes Act 1988 (provisions relating to the Schedule D charge: discontinuance, &c.), after section 109 insert—.
Section 109A(1) of the Taxes Act 1988 (inserted by subsection (1) above) has effect as respects the years 1994-95 and 1995-96 with the substitution for the words “twelve months from the 31st January next following” of the words “two years after”.
In section 110(1) of the Taxes Act 1988 (interpretation, &c.) for “sections 103 to 109” substitute “sections 103 to 109A”.
Where under section 109A of the Taxes Act 1988 (inserted by subsection (1) above) a person makes a claim for relief for a year of assessment in respect of an amount which is available for relief under that section, he may in the notice by which the claim is made make a claim to have so much of that amount as cannot be set off against his income for the year (the “excess relief”) treated for the purposes of capital gains tax as an allowable loss accruing to him in that year.
No relief shall be available by virtue of subsection (4) above in respect of so much of the excess relief as exceeds the amount on which the claimant would be chargeable to capital gains tax for that year if the following (and the effect of that subsection) were disregarded—
any allowable losses falling to be carried forward to that year from a previous year for the purposes of section 2(2) of the Taxation of Chargeable Gains Act 1992;
section 3(1) of that Act (the annual exempt amount); and
any relief against capital gains tax under section 72 of the Finance Act 1991 (deduction of trading losses).
In section 105(2) of the Taxes Act 1988 (deductions allowed against post-cessation receipts: exclusion of amounts allowed elsewhere), after “any other provision of the Tax Acts” insert “or by virtue of section 90(4) of the Finance Act 1995”.
This section has effect in relation to payments made or treated as made (see subsection (4) of section 109A of the Taxes Act 1988 inserted by subsection (1) above) on or after 29th November 1994.
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After section 201 of the Taxes Act 1988 there shall be inserted the following section—
In sections 141(3), 142(2), 153(2) and 156(8) of that Act (which make provision, in relation to non-cash vouchers, credit-tokens, expenses and benefits in kind, about amounts which would have been deductible under certain provisions if paid out of a person’s emoluments), after “201”, in each case, there shall be inserted “201AA”.
This section has effect for the year 1995-96 and subsequent years of assessment.
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Subject to the following provisions of this section, where any individual who has held any office or employment (“the former employee”) defrays any amount to which this section applies, he shall be entitled, on making a claim for the purpose, to a deduction of that amount in computing, for income tax purposes, his total income for the year of assessment in which that amount is defrayed.
This section applies to any amount defrayed by the former employee where that amount—
is defrayed by him in the period beginning when he ceased to hold the relevant office or employment and ending with the sixth year of assessment after that in which he ceased to hold it; and
is not deductible in pursuance of section 201AA of the Taxes Act 1988 from the emoluments of that office or employment to be assessed for tax but would be so deductible if—
the former employee had continued to hold that office or employment, and
that amount had been defrayed out of the emoluments of that office or employment for the year of assessment in which it is in fact defrayed.
In determining for the purposes of subsection (2) above whether any amount would be deductible as mentioned in paragraph (b) of that subsection, the assumption in sub-paragraph (i) of that paragraph shall be disregarded when identifying the liabilities which are to be regarded as qualifying liabilities within the meaning of section 201AA of the Taxes Act 1988.
This section shall not apply to any amount defrayed by the former employee in so far as the cost of defraying that amount, without being met out of his relevant retirement benefits or post-employment emoluments, is borne—
by the person under whom he held the relevant office or employment;
by a person for the time being carrying on the whole or any part of the business or other undertaking for the purposes of which the former employee held that office or employment;
by a person who is for the time being subject to any of the liabilities with respect to that business or other undertaking of the person mentioned in paragraph (a) above;
by a person who within the terms of section 839 of the Taxes Act 1988 is connected with a person falling within any of paragraphs (a) to (c) above; or
out of the proceeds of any contract of insurance relating to the matters in respect of which the amount is defrayed.
In so far as the amount of any expenditure which is either— is an amount which falls to be treated as a relevant retirement benefit or post-employment emolument of the former employee, that amount shall be deemed for the purposes of this section to be an amount defrayed by the former employee out of that benefit or emolument.
defrayed by any person mentioned in subsection (4)(a) to (d) above, or
borne as mentioned in subsection (4)(a) to (e) above,
Subject to subsection (7) below, if an amount to which this section applies exceeds by any amount (“the excess relief”) the amount from which it is deductible in accordance with subsection (1) above, the former employee shall be entitled, on making a claim for the purpose, to have the amount of the excess relief treated for the purposes of capital gains tax as an allowable loss accruing to that person for that year of assessment.
No relief shall be available by virtue of this section in respect of so much of the excess relief for any year of assessment as exceeds the maximum amount.
For the purposes of subsection (7) above the maximum amount, in relation to the excess relief for any year of assessment, is the amount on which the claimant would be chargeable to capital gains tax for that year if the following (together with any relief available under this section) were disregarded, that is to say—
any allowable losses falling to be carried forward to that year from a previous year for the purposes of section 2(2) of the Taxation of Chargeable Gains Act 1992;
section 3(1) of that Act (the annual exempt amount); and
any relief against capital gains tax under section 72 of the Finance Act 1991 (deduction of trading losses) or under section 90(4) of this Act.
In this section—
“relevant retirement benefit”, in relation to the former employee, means so much of any amount as, in accordance with section 596A of the Taxes Act 1988, is chargeable to tax as a benefit received by him under a retirement benefits scheme of which he is a member in respect of the relevant office or employment.
Tax shall not be charged under section 148 of the Taxes Act 1988 (payments on retirement or removal from office or employment) in respect of any payment made or treated as made to any individual, or to any individual’s executors or administrators, in so far as the payment is made for meeting the cost of defraying any amount which, without being an amount to which this section applies in relation to that individual, would fall to be treated as such an amount if— and this subsection shall have effect in the case of any valuable consideration that is deemed under section 148(3) to be a payment as if the consideration were deemed, to the extent that it is or represents a benefit equivalent to meeting the cost of defraying such an amount, to be a payment made for meeting such a cost.
subsection (4) of this section were omitted; and
where that individual has died, he had not died but had himself defrayed any amounts defrayed by his executors or administrators;
This section applies for the year 1995-96 and subsequent years of assessment.
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In section 141 of the Taxes Act 1988 (non-cash vouchers), after subsection (6B) there shall be inserted the following subsections—
In section 142 of that Act (credit-tokens), after subsection (3B) there shall be inserted the following subsections—
In section 155 of that Act (exceptions from general charge on benefits in kind for persons in director’s or higher-paid employment), after subsection (1A) there shall be inserted the following subsections—
After section 200 of that Act there shall be inserted the following section—
This section shall have effect for determining what emoluments are received by any person on or after 6th April 1995.
In Chapter II of Part II of the Capital Allowances Act 1990 (ships), after the sections inserted by section 96 above there shall be inserted the following section—
In section 42(7)(c) of the Management Act (procedure for making claims under the Capital Allowances Act 1990 in the case of a partnership), so far as that section has effect as inserted by paragraph 13 of Schedule 19 to the Finance Act 1994 (self-assessment cases), after “33,” there shall be inserted “33A,”.
In the second column of the Table in section 98 of the Management Act (penalties in respect of certain information provisions), in the entry relating to sections 23(2), 48 and 49(2) of the Capital Allowances Act 1990, after “23(2),” there shall be inserted “33F(5),”.
Sections 94 to 97 above shall have effect, subject to the following provisions of this section, in relation to every chargeable period ending on or after 21st April 1994.
Those sections do not apply for the purposes of income tax in relation to a chargeable period if—
that period is a year of assessment as respects which Chapter IV of Part IV of the Finance Act 1994 (changes for facilitating self-assessment) does not apply to the shipowner’s actual trade (“a transitional year”); and
the basis period for that chargeable period ended before 21st April 1994.
Where the relevant period is a transitional year the references in paragraphs (b) and (c) of section 33A(1) of the Capital Allowances Act 1990 (“the 1990 Act”) to the relevant period shall have effect for the purposes of income tax as if they were references to the basis period for the relevant period.
Where the relevant period is a transitional year or any other year of assessment as respects which section 140 of the 1990 Act has effect without the substitution made by section 211 of the Finance Act 1994, section 33A(3)(d) and (7) of the 1990 Act shall have effect for the purposes of income tax—
subject to the assumption for which subsection (5) below provides; and
as if the reference to the shipowner incurring a loss in his actual trade for the relevant period were a reference to his incurring a loss in that trade for the period (“the assessment period”) any profits or gains of which would have been the profits or gains on which income tax chargeable for the relevant period in respect of that trade would finally have fallen to be computed.
That assumption is that in computing the profits or gains of the assessment period which arise from the shipowner’s actual trade, and in computing whether he has incurred a loss in that trade for that period, all such deductions and additions were to be made as would have to be made if—
allowances falling to be made under the 1990 Act for the relevant period in taxing that trade (excluding any allowances carried forward to the relevant period by virtue of section 140(4) of the 1990 Act) were trading expenses of the trade for the assessment period; and
charges falling to be so made (apart from any allowances so carried forward) were charges on amounts falling to be treated as trading receipts of that trade for the assessment period.
In relation to expenditure incurred in the basis period for a transitional year—
the reference in section 33C(2)(a) of the 1990 Act to the chargeable period in which the expenditure is incurred shall have effect as a reference to the chargeable period in the basis period for which it was incurred; and
the reference in section 33F(4) of the 1990 Act to a chargeable period shall include a reference to a basis period.
Section 33F(2) of the 1990 Act shall not apply to any claim under section 33A for the deferment of the whole or any part of any charge for a transitional year, but no such claim shall be allowed for the purposes of income tax unless it is made—
within two years of the end of the relevant period; and
in a case where the shipowner’s actual trade is carried on by two or more persons jointly, by the person required under section 9 of the Management Act (partnership return) to make a return for that period in respect of that trade.
Expressions used in this section and in the provisions inserted by sections 94 to 97 above in the 1990 Act shall have the same meanings in this section as in those provisions.
The Capital Allowances Act 1990 shall be amended as follows.
In section 3(5) (right to charge road tolls deemed to be interest in land for the purposes of writing-down allowance), for “charge tolls” there shall be substituted “a highway concession”.
In subsection (1) of section 4 (events giving rise to balancing allowances or charges), after paragraph (d) there shall be inserted the following paragraph—.
After subsection (2) of section 4 there shall be inserted the following subsections—
In section 18(1)(da) (definition of “industrial building or structure” to include structure in use for the purposes of a toll road undertaking), for “toll road” there shall be substituted “highway”.
In section 20 (meaning of “the relevant interest”)—
in subsection (5), for “a toll road, the right to charge tolls” there shall be substituted “any road, a highway concession”; and
in subsection (6)—
in the words before paragraph (a), for “toll road” there shall be substituted “road”;
in paragraph (b), for “charge tolls” there shall be substituted “a highway concession”; and
in the words after paragraph (b), for “right to charge tolls” there shall be substituted “highway concession”.
After subsection (5) of section 21 (interpretation of Part I) there shall be inserted the following subsection—
In subsections (5A) and (5B) of section 21, for the words “toll road undertaking”, in each place where they occur, there shall be substituted “highway undertaking”; and in subsection (5B) for “toll road comprised in it” there shall be substituted “road in relation to which it is carried on”.
In section 156 (meaning of sale, insurance, salvage or compensation moneys), after paragraph (d) there shall be inserted the following paragraph—
This section has effect in relation to expenditure incurred on or after 6th April 1995.
After section 10C of the Capital Allowances Act 1990 there shall be inserted the following section—
In section 151 of that Act (procedure on apportionments), after subsection (1) there shall be inserted the following subsection—
This section has effect in relation to determinations on or after 29th November 1994 except where the time referred to in subsection (5) of the section 10D inserted in the Capital Allowances Act 1990 by this section would, in relation to the amount to be determined, be the time of the fixing of a sale price which either—
became payable before 29th November 1994; or
being an amount becoming payable before 6th April 1995, was fixed by a contract entered into before 29th November 1994.
Chapter IV of Part IV of the Finance Act 1994 (changes for facilitating self-assessment) shall be deemed to have been enacted with the following modification.
In section 218 (commencement etc. of Chapter IV, sections 213(4) and (8) and 214(4) and (6) of which relate to capital allowances) the following subsection shall be inserted after subsection (1)—
In subsection (2) of section 7 of the Management Act (notice of liability)—
for the words “a person who is” there shall be substituted the words “ persons who are ”; and
for the words “a trustee” there shall be substituted the words “ the relevant trustees ”.
After subsection (8) of that section there shall be inserted the following subsection—
In subsection (1) of section 8A of that Act (trustee’s return)—
for the words “a trustee” there shall be substituted the words “ the relevant trustees ”; and
for the words “the trustee”, in the first place where they occur, there shall be substituted the words “ any relevant trustee ”.
After subsection (4) of that section there shall be inserted the following subsection—
At the beginning of Part XI of that Act (miscellaneous and supplemental) there shall be inserted the following section—
“the relevant trustees”, in relation to a settlement, shall be construed in accordance with section 7(9) of this Act.
Unless the contrary intention appears, this section, sections 104 to 115 below and Schedule 20 to this Act—
so far as they relate to income tax and capital gains tax, have effect as respects the year 1996-97 and subsequent years of assessment, and
so far as they relate to corporation tax, have effect as respects accounting periods ending on or after the appointed day for the purposes of Chapter III of Part IV of the Finance Act 1994.
In each of the following, namely— there shall be inserted at the end the words “ and the amounts referred to in that subsection are net amounts, that is to say, amounts which take into account any relief, allowance or repayment of tax for which a claim is made and give credit for any income tax deducted at source and any tax credit to which section 231 of the principal Act applies ”.
subsection (1A) of section 8 of the Management Act (personal return); and
subsection (1A) of section 8A of that Act (trustee’s return),
In subsection (1B) of section 8 of that Act, for the word “loss” there shall be substituted the words “ loss, tax, credit ”.
After subsection (4) of that section there shall be inserted the following subsection—
In subsection (1) of section 9 of that Act (returns to include self-assessment), for the words “on the basis of the information contained in the return” there shall be substituted the following paragraphs—.
In subsection (1) of section 11AA of that Act (return of profits to include self-assessment), for the words “on the basis of the information contained in the return” there shall be substituted the following paragraphs—.
For subsection (1) of section 12AA of that Act (partnership return) there shall be substituted the following subsections—
For subsection (1) of section 12AB of that Act (partnership return to include partnership statement) there shall be substituted the following subsection—
“section 42(7) claim” means a claim under any of the provisions mentioned in section 42(7) of this Act; “tax credit” means a tax credit to which section 231 of the principal Act applies.
In subsection (1) of section 12B of the Management Act (records to be kept for purposes of returns), for paragraph (b) there shall be substituted the following paragraph—
In subsection (2) of that section, the words from “or, where a return” to the end shall cease to have effect.
After that subsection there shall be inserted the following subsection—
In subsection (3) of that section—
in paragraph (a), after the words “subsection (1)” there shall be inserted the words “ or (2A) ”; and
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In subsection (4) of that section, after the words “subsection (1)” there shall be inserted the words “ or (2A) ”.
In subsection (5) of that section—
at the beginning there shall be inserted the words “ Subject to subsection (5A) below, ”; and
after the words “subsection (1)” there shall be inserted the words “ or (2A) ”.
After that subsection there shall be inserted the following subsection—
For section 15 of the Management Act there shall be substituted the following section—
This section has effect as respects payments made or benefits provided on or after 6th April 1996.
After subsection (1) of section 42 of the Management Act (procedure for making claims etc.) there shall be inserted the following subsection—
In subsection (2) of that section, for the words “subsection (3)” there shall be substituted the words “ subsections (3) and (3A) ”.
In subsection (3) of that section, for the words “Subsection (2)” there shall be substituted the words “ Subsections (1A) and (2) ”.
After subsection (3) of that section there shall be inserted the following subsections—
In subsection (4) of that section, there shall be inserted at the beginning the words “ Subject to subsection (4A) below, ”.
After subsection (4) of that section there shall be inserted the following subsection—
In subsection (5) of that section, for the words “subsections (2) and (4) above” there shall be substituted the words “ this section ”.
In subsection (7)(a) of that section, for the words “sections 84” there shall be substituted the words “ sections 62A, 84 ”.
In subsection (10) of that section, after the words “This section” there shall be inserted the words “ (except subsection (1A) above) ”.
In subsection (11) of that section, paragraph (b) and the word “and” immediately preceding that paragraph shall cease to have effect.
Schedule 1A to that Act (claims etc. not included in returns) shall have effect subject to the amendments specified in Schedule 20 to this Act.
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In subsection (1) of section 59A of the Management Act (payments on account of income tax)—
there shall be inserted at the beginning the words “Subject to subsection (9) below,”; and
in paragraph (a), for the words “has been assessed” there shall be substituted the words “is assessed”.
In subsection (2) of that section, for the words “subsection (4)” there shall be substituted the words “subsections (4) and (4A)”.
After subsection (4) of that section there shall be inserted the following subsection—
In subsection (5) of that section—
after the words “the taxpayer makes a claim under subsection (3) or (4) above” there shall be inserted the words “or subsection (4A) above applies”; and
after the words “whether by the repayment of amounts paid on account” there shall be inserted the words “, by the making of payments or further payments on account”.
For subsection (8) of that section there shall be substituted the following subsections—
In section 59C of the Management Act (surcharges on unpaid income tax and capital gains tax), in subsection (4) (exceptions to surcharge), for the words “or 95” there shall be substituted the words “ , 95 or 95A ”.
That section of that Act shall apply in relation to any income tax or capital gains tax which— as it applies in relation to any income tax or capital gains tax which becomes payable in accordance with section 55 or 59B of that Act and is for the year 1996-97 or a subsequent year of assessment.
is charged by an assessment made on or after 6th April 1998; and
is for the year 1995-96 or an earlier year of assessment,
For section 86 of the Management Act there shall be substituted the following section—
That section of that Act shall apply in relation to any income tax or capital gains tax which— as it applies in relation to any income tax or capital gains tax which becomes due and payable in accordance with section 55 or 59B of that Act and is for the year 1996-97 or a subsequent year of assessment.
is charged by an assessment made on or after 6th April 1998; and
is for the year 1995-96 or an earlier year of assessment,
In that section of that Act as it so applies, “the relevant date” means the 31st January next following the year of assessment.
So far as it relates to partnerships whose trades, professions or businesses were set up and commenced before 6th April 1994, subsection (1) above has effect as respects the year 1997-98 and subsequent years of assessment.
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For section 205 of the Taxes Act 1988 there shall be substituted the following section—
In section 206 of that Act (additional provision for certain assessments) the words “under Schedule E” shall cease to have effect.
After section 374 of the Taxes Act 1988 there shall be inserted the following section—
In subsection (2) of section 375 of that Act (interest ceasing to be relevant loan interest etc.), after paragraph (a) there shall be inserted the following paragraph—.
For subsection (4) of that section there shall be substituted the following subsections—
After subsection (8) of that section there shall be inserted the following subsection—
This section applies in relation to deductions made by borrowers, and payments made by the Board, after the passing of this Act.
After subsection (2) of section 16 of the Taxation of Chargeable Gains Act 1992 (computation of losses) there shall be inserted the following subsection—
Deductions under that Act in respect of allowable losses shall be given preference as follows—
a deduction in respect of a loss accruing to a person in the year 1996-97 or a subsequent year of assessment shall be preferred to a deduction in respect of a loss accruing to him in an earlier year of assessment; and
a deduction in respect of a loss accruing to a company in an accounting period ending on or after the appointed day for the purposes of Chapter III of Part IV of the Finance Act 1994 shall be preferred to a deduction in respect of a loss accruing to the company in an accounting period ending before that day.
For subsection (1) of section 65 of the Taxation of Chargeable Gains Act 1992 (liability for tax of trustees and personal representatives) there shall be substituted the following subsection—
After subsection (2) of that section there shall be inserted the following subsections—
In subsection (7) of section 7 of the Management Act (notice of liability), for the words “income from which” there shall be substituted the words “ income on which ”.
In subsection (3) of section 9 of that Act (returns to include self-assessment), the words “the following provisions of” shall cease to have effect.
Section 11A of that Act (notice of liability to capital gains tax) shall cease to have effect.
In subsection (2) of section 12AA of that Act (partnership return), for the words “such accounts and statements” there shall be substituted the words “ such accounts, statements and documents, relating to information contained in the return, ”.
In subsection (1)(c) of section 30B of that Act (amendment of partnership statement where loss of tax discovered), after the word “relief” there shall be inserted the words “ or allowance ”.
In subsection (6) of section 59B of that Act (payment of income tax and capital gains tax), for the words “under section 29 of this Act shall” there shall be substituted the words “ otherwise than under section 9 of this Act shall, unless otherwise provided, ”.
In subsection (1) of section 100B of that Act (appeals against penalty determinations), after the words “95A of this Act” there shall be inserted the word “ and ”.
In section 103A of that Act (interest on penalties), for the words “Part II or VA” there shall be substituted the words “ Part II, IV or VA ”.
Section 73 of the Taxes Act 1988 (single assessments for purposes of Cases III, IV and V of Schedule D) shall cease to have effect.
In sections 536 and 537B of that Act (taxation of royalties where owner abroad)—
in subsection (2) (exemption from requirement to deduct tax from royalties), the words “are shown on a claim to” shall cease to have effect; and
in subsection (4) (deduction of tax where agent’s commission unknown), the words from “and in that case” to the end shall cease to have effect.
In Schedule 3 to that Act (machinery for assessment, charge and payment of income tax under Schedule C and, in certain cases, Schedule D), in paragraph 6E, sub-paragraphs (1) and (3) shall cease to have effect.
Section 7 of the Taxation of Chargeable Gains Act 1992 (time for payment of capital gains tax) shall cease to have effect.
Subsection (3) above has effect as respects the year 1995-96 and subsequent years of assessment.
The provisions of the Management Act specified in Schedule 21 to this Act shall have effect subject to the transitional provisions contained in that Schedule.
Section 198 of the Finance Act 1994 (which is superseded by this section) shall cease to have effect.
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Section 215 of the Finance Act 1994 (treatment of partnerships) shall have effect, and shall be deemed always to have had effect, as if—
for the section set out in subsection (1) of that section there were substituted the section set out in subsection (2) below;
after the said subsection (1) there were inserted the subsection set out in subsection (3) below;
in subsection (2) of section 215, the word “and” were inserted immediately after paragraph (a), and paragraph (c) and the word “and” immediately preceding that paragraph were omitted; and
in subsection (3) of that section, in paragraph (a), for the words from “in subsection (3)” to the end there were substituted the words “subsections (3) and (4)”.
Subject to subsection (4) below, the section referred to in subsection (1)(a) above is as follows—
The subsection referred to in subsection (1)(b) above is as follows—
As respects the year 1994-95, the section set out in subsection (2) above shall have effect as if, in subsection (2) of that section, paragraph (b) and the word “and” immediately preceding that paragraph were omitted.
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In section 401 of the Taxes Act 1988 (relief for pre-trading expenditure)—
in subsection (1), for the words from “treated” to the end there shall be substituted the words “treated as incurred on the day on which the trade, profession or vocation is first carried on by him”; and
subsection (2) shall cease to have effect.
This section has effect as respects trades, professions and vocations which are set up and commenced on or after 6th April 1995.
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Schedule 20 to the Finance Act 1994 (changes for facilitating self-assessment: transitional provisions and savings) shall be amended as follows.
and (in either case)
In calculating the amount of the profits or gains of the basis period for the year 1997-98 which arise as mentioned in sub-paragraph (4) above, any deduction of a capital allowance and any addition of a balancing charge shall be ignored. Sub-paragraph (4A) above does not apply in the case of a trade or profession carried on by persons who include both an individual and a company.
At the beginning of sub-paragraph (5) of paragraph 10 (double taxation relief) there shall be inserted the words “Subject to sub-paragraph (5A) below,”.
Where the period on the profits or gains of which income tax is chargeable under Case IV or V of Schedule D for the year 1995-96 is that year, sub-paragraph (5) above shall have effect as if for the words from “50 per cent.” to the end there were substituted the words “the amount of foreign tax paid on income arising, or (as the case may require) received in the United Kingdom, in that year”.
Schedule 22 to this Act shall have effect for preventing the exploitation of, and (in certain cases) penalising attempts to exploit, the transitional provisions set out in paragraphs 52 and 53 of Schedule 2 to the Income Tax (Trading and Other Income) Act 2005 (changes for facilitating self-assessment: transitional provisions and savings).
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In Chapter VI of Part IV of the Taxes Act 1988 (discontinuance and change of basis of computation), after section 110 there shall be inserted the following section—
This section shall have effect as respects the year 1997-98 and subsequent years of assessment and also, in relation only to a trade, profession or vocation set up and commenced on or after 6th April 1994, as respects the years 1995-96 and 1996-97.
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The provisions of the Taxes Act 1988 to which sections 215 and 216 of the Finance Act 1994 (partnerships and change of ownership of trade etc.) relate shall have effect as respects the year 1995-96 and subsequent years of assessment as if subsection (5)(b) of section 215 (amendments not to apply until the year 1997-98 to partnerships controlled abroad) were omitted; and the Taxes Act 1988 shall have effect— with the further amendments specified in the following provisions of this section.
as respects the year 1997-98 and subsequent years of assessment, and
in its application with the amendments made by those sections to partnerships whose trades, professions or businesses were set up and commenced on or after 6th April 1994, as respects the years 1995-96 and 1996-97,
For subsections (1) to (3) of section 112 (partnerships controlled abroad) there shall be substituted the following subsections—
In that section—
in subsection (4)(a), for “or is deemed to reside outside the United Kingdom” there shall be substituted “outside the United Kingdom or which carries on any trade, profession or business the control and management of which is situated outside the United Kingdom”; and
in subsection (6), for “this section” there shall be substituted “subsections (4) and (5) above”.
In section 114(1) (partnerships including companies), after the word “company”, in the second place where it occurs, there shall be inserted “and, subject to section 115(4), as if that company were resident in the United Kingdom”.
In section 115 (provisions supplementary to section 114), for subsections (4) and (5) there shall be substituted the following subsections—
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Schedule 23 to this Act shall have effect for imposing obligations and liabilities in relation to income tax, corporation tax and capital gains tax on a branch or agency which, under this section, is the UK representative of a person who is not resident in the United Kingdom (“the non-resident”).
Subject to the following provisions of this section and to section 127 below, a branch or agency in the United Kingdom through which the non-resident carries on (whether solely or in partnership) any trade, profession or vocation shall, for the purposes of this section and Schedule 23 to this Act, be the non-resident’s UK representative in relation to the following amounts, that is to say—
the amount of any such income from the trade, profession or vocation as arises, directly or indirectly, through or from that branch or agency;
the amount of any income from property or rights which are used by, or held by or for, that branch or agency;
amounts which, by reference to that branch or agency, are chargeable to capital gains tax under section 10 of the Taxation of Chargeable Gains Act 1992 (non-residents) or fall under that section to be included in the chargeable profits of the non-resident; and
in a case where the non-resident is an overseas life insurance company, any other amounts which by virtue of paragraph 3 of Schedule 19AC to the Taxes Act 1988 fall by reference to that branch or agency to be included in the company’s chargeable profits for the purposes of corporation tax.
For the purposes of this section and Schedule 23 to this Act, the non-resident’s UK representative in relation to any amount shall continue to be the non-resident’s UK representative in relation to that amount even after ceasing to be a branch or agency through which the non-resident carries on the trade, profession or vocation in question.
For the purposes of this section and Schedule 23 to this Act, the non-resident’s UK representative in relation to any amount shall be treated, where he would not otherwise be so treated, as if he were a separate and distinct person from the non-resident.
Where the branch or agency through which the non-resident carries on the trade, profession or vocation is one carried on by persons in partnership, the partnership, as such, shall be deemed for the purposes of this section and Schedule 23 to this Act to be the non-resident’s UK representative in relation to the amounts mentioned in subsection (2) above.
Where a trade or profession carried on by the non-resident through a branch or agency in the United Kingdom is one carried on by him in partnership, the trade or profession carried on through that branch or agency shall be deemed, for the purposes of this section and Schedule 23 to this Act, to include the deemed trade or profession from which the non-resident’s share in the partnership’s profits, gains or losses is treated for the purposes of section 111 or 114 of the Taxes Act 1988 as deriving.
For the purposes of this section and Schedule 23 to this Act where— the deemed trade or profession from which the non-resident’s share in the partnership’s profits, gains or losses is treated for the purposes of section 111 or 114 of the Taxes Act 1988 as deriving shall be treated (in addition, where subsection (6) above also applies, to being treated as included in a trade or profession carried on through any such branch or agency as is mentioned in that subsection) as a trade carried on in the United Kingdom through the partnership as such.
a trade or profession carried on by the non-resident in the United Kingdom is one carried on by him in partnership, and
any member of that partnership is resident in the United Kingdom,
In this section “branch or agency” has the same meaning as in the Management Act.
This section and Schedule 23 to this Act apply—
for the purposes of income tax and capital gains tax, in relation to the year 1996-97 and subsequent years of assessment; and
for the purposes of corporation tax, in relation to accounting periods beginning after 31st March 1996.
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For the purposes of section 126 above and Schedule 23 to this Act, none of the following persons shall be capable of being the non-resident’s UK representative in relation to income or other amounts falling within paragraphs (a) to (d) of section 126(2) above, that is to say—
where the income arises from, or the other amounts are chargeable by reference to, so much of any business as relates to transactions carried out through a person who (though an agent of the non-resident) does not act in relation to the transactions in the course of carrying on a regular agency for the non-resident, that agent;
where the income arises from, or the other amounts are chargeable by reference to, so much of any business as relates to transactions carried out through a broker and falling within subsection (2) below, that broker;
where the income arises from, or the other amounts are chargeable by reference to, so much of any business as relates to investment transactions carried out through an investment manager and falling within subsection (3) below, that manager; and
where the non-resident is a member of Lloyd’s and the income arises from, or the other amounts are chargeable by reference to, his underwriting business, any person who, in relation to or to matters connected with that income or those amounts, has been the non-resident’s members' agent or the managing agent of the syndicate in question.
For the purposes of subsection (1)(b) above where any income arises from, or other amounts are chargeable by reference to, so much of any business as relates to any transaction carried out through a broker, that transaction shall be taken, in relation to the income or other amounts (“the taxable sums”), to fall within this subsection if—
at the time of the transaction, the broker was carrying on the business of a broker;
the transaction was carried out by the broker on behalf of the non-resident in the ordinary course of that business;
the remuneration which the broker received for the provision of the services of a broker to the non-resident in respect of that transaction was at a rate not less than that which would have been customary for that class of business; and
the non-resident does not fall (apart from this paragraph) to be treated as having the broker as his UK representative in relation to any income or other amounts not included in the taxable sums but chargeable to tax for the same chargeable period.
For the purposes of subsection (1)(c) above where any income arises from, or other amounts are chargeable by reference to, so much of any business as relates to any investment transaction, that transaction shall be taken, in relation to that income or those amounts (“the taxable sums”), to have been carried out through an investment manager and to fall within this subsection if—
the transaction was carried out on behalf of the non-resident by a person (“the manager”) who at the time was carrying on a business of providing investment management services;
the transaction was carried out in the ordinary course of that business;
the manager, when he acted on behalf of the non-resident in relation to the transaction, did so in an independent capacity;
the requirements of subsection (4) below are satisfied in relation to the transaction;
the remuneration which the manager received for the provision to the non-resident of the investment management services in question was at a rate which was not less than that which would have been customary for that class of business; and
the non-resident does not fall (apart from this paragraph) to be treated as having the manager as his UK representative in relation to any income or other amounts not included in the taxable sums but chargeable to tax for the same chargeable period.
Subject to subsections (9) to (11) below, the requirements of this subsection are satisfied in relation to any transaction if—
there is a qualifying period in relation to which it has been or is the intention of the manager and the persons connected with him that the non-resident’s relevant excluded income should, as to at least 80 per cent., consist of amounts to which neither the manager nor any such person has a beneficial entitlement; and
to the extent that there is a failure to fulfil that intention, that failure—
is attributable (directly or indirectly) to matters outside the control of the manager and persons connected with him; and
does not result from a failure by the manager or any of those persons to take such steps as may be reasonable for mitigating the effect of those matters in relation to the fulfilment of that intention.
For the purposes of this section any reference to the relevant excluded income of the non-resident for a qualifying period is a reference to the aggregate of such of the profits and gains of the non-resident for the chargeable periods comprised in the qualifying period as—
derive from transactions carried out by the manager while acting on the non-resident’s behalf; and
for the purposes of section 128 or 129 below would fall (apart from the requirements of subsection (4) above) to be treated as excluded income for any of those chargeable periods.
For the purposes of this section any reference to an amount of relevant excluded income to which a person has a beneficial entitlement is a reference to so much of any amount to which he has or may acquire a beneficial entitlement by virtue of— as is or would be attributable to that income.
any interest of his (whether or not an interest giving a right to an immediate payment of a share in the profits or gains) in property in which the whole or any part of that income is represented, or
any interest of his in or other rights in relation to the non-resident,
For the purposes of subsections (4) to (6) above references to a qualifying period, in relation to any transaction, are references to any period consisting in or including the chargeable period for which the taxable sums are chargeable to tax, being, in a case where it is not that chargeable period, a period of not more than five years comprising two or more complete chargeable periods.
Where there is a transaction which would fall within subsection (3) above but for its being a transaction in relation to which the requirements of subsection (4) above are not satisfied, this section shall have effect as if the transaction did fall within subsection (3) above but only in relation to so much of the amount of the taxable sums as does not represent any amount of the non-resident’s relevant excluded income to which the manager or a person connected with him has or has had any beneficial entitlement.
Subsections (10) and (11) below shall apply, where amounts arise or accrue to the non-resident as a participant in a collective investment scheme, for the purpose of determining whether a transaction carried out for the purposes of that scheme, in so far as it is a transaction in respect of which any such amounts arise or accrue to him, is one in relation to which the requirements of subsection (4) above are satisfied.
Those requirements shall be deemed to be satisfied in relation to the transaction wherever the collective investment scheme is such that, if the following assumptions applied, namely— the assumed company would not, in relation to the chargeable period in which the taxable sums are chargeable to tax, be regarded for tax purposes as a company carrying on a trade in the United Kingdom.
that all transactions carried out for the purposes of the scheme were carried out on behalf of a company constituted for the purposes of the scheme and resident outside the United Kingdom, and
that the participants did not have any rights in respect of the amounts arising or accruing in respect of those transactions other than the rights which, if they held shares in the company on whose behalf the transactions are assumed to be carried out, would be their rights as shareholders,
Where, on those assumptions, the assumed company would be so regarded for tax purposes, subsections (4) to (8) above shall have effect in relation to the transaction as if, applying those assumptions—
references to the non-resident were references to the assumed company; and
the following subsection were substituted for subsection (5) above, namely—
In this section “investment transactions” means— and the power to make regulations for the purposes of paragraph (c) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.
transactions in shares, stock, futures contracts, options contracts or securities of any description not mentioned in this paragraph, but excluding futures contracts or options contracts relating to land,
transactions consisting in the buying or selling of any foreign currency or in the placing of money at interest, and
such other transactions as the Treasury may by regulations designate for the purposes of this section;
For the purposes of subsection (12) above a contract is not prevented from being a futures contract or an options contract by the fact that any party is or may be entitled to receive or liable to make, or entitled to receive and liable to make, only a payment of a sum (as opposed to a transfer of assets other than money) in full settlement of all obligations.
The preceding provisions of this section shall have effect in the case of a person who acts as a broker or provides investment management services as part only of a business as if that part were a separate business.
For the purposes of this section—
a person shall be taken to carry out a transaction on behalf of another where he undertakes the transaction himself, whether on behalf of or to the account of that other, and also where he gives instructions for it to be so carried out by another; and
the references to the income arising from so much of a business as relates to transactions carried out through a branch or agency on behalf of the non-resident shall include references to income from property or rights which, as a result of the transactions, are used by, or held by or for, that branch or agency.
In paragraph (d) of subsection (1) above—
the reference to a member of Lloyd’s is a reference to any person who is a member within the meaning of Chapter III of Part II of the Finance Act 1993 or a corporate member within the meaning of Chapter V of Part IV of the Finance Act 1994, and
the references to a members' agent and to a managing agent shall also be construed in accordance with section 184 of that Act of 1993 or, as the case may be, section 230 of that Act of 1994.
In this section— and section 839 of the Taxes Act 1988 (connected persons) shall apply for the purposes of this section.
“published index of prices” means the retail prices index or any similar general index of prices which is published by, or by an agent of, the government of any territory outside the United Kingdom.
“collective investment scheme” has the same meaning as in the Financial Services Act 1986; and
In Schedule 4 (supplementary provisions in relation to gaming machine licence duty)— In paragraph 1(2) of that Schedule (conditions of exemption for charitable entertainments etc.)— In paragraph 2(2)(c) of that Schedule (conditions of exemption for pleasure fairs), for “and any other provided for gaming” there shall be substituted “ and any other amusement machines provided ”. In paragraph 4 of that Schedule—
For the purposes of this section a person shall not be regarded as acting in an independent capacity when acting on behalf of the non-resident unless, having regard to its legal, financial and commercial characteristics, the relationship between them is a relationship between persons carrying on independent businesses that deal with each other at arm’s length.
This section applies—
for the purposes of income tax and capital gains tax, in relation to the year 1996-97 and subsequent years of assessment; and
for the purposes of corporation tax, in relation to accounting periods beginning after 31st March 1996.
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Subject to subsection (5) below, the income tax chargeable for any year of assessment on the total income of any person who is not resident in the United Kingdom shall not exceed the sum of the following amounts, that is to say—
the amount of tax which, apart from this section, would be chargeable on that total income if— and
the amount of that income were reduced by the amount of any excluded income; and
there were disregarded any relief under Chapter I of Part VII of the Taxes Act 1988 to which that person is entitled for that year by virtue of section 278(2) of that Act or of any arrangements having effect by virtue of section 788 of that Act;
the amount of tax deducted from so much of any excluded income as is income the tax on which is deducted at source.
For the purposes of this section income arising for any year to a person who is not resident in the United Kingdom is excluded income in so far as it—
falls within subsection (3) below; and
is not income in relation to which that person has a UK representative for the purposes of section 126 above and Schedule 23 to this Act.
Income falls within this subsection if— and the power to make regulations for the purposes of paragraph (e) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.
it is chargeable to tax under Schedule C, Case III of Schedule D or Schedule F;
it is chargeable to tax under Case VI of Schedule D by virtue of section 56 of the Taxes Act 1988 (transactions in deposits);
it is chargeable to tax under Schedule E by virtue of section 150 or 617(1) of the Taxes Act 1988 or section 139(1) of the Finance Act 1994 (social security benefits etc.);
without being chargeable as mentioned in paragraphs (a) to (c) above or chargeable in accordance with section 171(2) of the Finance Act 1993 (profits of the underwriting business of a member of Lloyd's), it is income arising as mentioned in subsection (1)(b) or (c) of section 127 above; or
it is income of such other description as the Treasury may by regulations designate for the purposes of this subsection;
In subsection (1)(b) above—
the reference to excluded income the tax on which is deducted at source is a reference to excluded income from which an amount in respect of income tax is or is treated as deducted, on which any such amount is treated as paid or in respect of which there is a tax credit, and
the reference, in relation to any such income, to the amount of income tax deducted shall be construed, accordingly, as a reference to the amount which is or is treated as deducted or which is treated as paid or, as the case may be, to the amount of that credit.
This section shall not apply to the income tax chargeable for any year of assessment on the income of trustees not resident in the United Kingdom if there is a relevant beneficiary of the trust who is either—
an individual ordinarily resident in the United Kingdom, or
a company resident in the United Kingdom.
In subsection (5) above, the reference to a relevant beneficiary, in relation to a trust, is a reference to any person who, as a person falling wholly or partly within any description of actual or potential beneficiaries, is either— and for the purposes of this subsection references, in relation to a trust, to income under the trust shall include references to so much (if any) of any property falling to be treated as capital under the trust as represents amounts originally received by the trustees as income.
a person who is, or will or may become, entitled under the trust to receive the whole or any part of any income under the trust; or
a person to or for the benefit of whom the whole or any part of any such income may be paid or applied in exercise of any discretion conferred by the trust;
This section shall apply, subject to subsections (8) and (9) below, in relation to the year 1995-96 and subsequent years of assessment.
This section shall have effect in relation to the year 1995-96 as if the following paragraphs were substituted for paragraph (b) of subsection (2) above, that is to say—
This section shall have effect in relation to the year 1995-96 as if—
the income falling within paragraphs (a) and (b) of subsection (3) above did not include any income arising otherwise than from a transaction falling within subsection (10) below; and
the reference in paragraph (d) of subsection (3) above to income arising as mentioned in subsection (1)(b) or (c) of section 127 above were a reference to any income which would be such income if that section applied in relation to the year 1995-96.
A transaction falls within this subsection if—
it is either—
a transaction carried out on behalf of the non-resident by a person who, at the time of the transaction, was carrying on the business of a broker; or
an investment transaction carried out on behalf of the non-resident by a person (“the manager”) who at the time was carrying on a business of providing investment management services;
it was carried out by the broker or manager on behalf of the non-resident in the ordinary course of the business referred to in paragraph (a) above; and
the remuneration which the broker or manager received in respect of that transaction for the provision to the non-resident of the services of a broker or, as the case may be, for the provision of the investment management services in question was at a rate not less than that which would have been customary for that class of business.
In this section “investment transaction” has the same meaning as in section 127 above.
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Subject to subsection (4) below, the corporation tax chargeable on the chargeable profits arising in any accounting period to a company which is not resident in the United Kingdom shall not exceed the sum of the following amounts, that is to say—
the amount of tax deducted from so much of any excluded income as is income the tax on which is deducted at source; and
the amount (if any) of corporation tax which would be chargeable on the chargeable profits arising to that company for that period if the excluded income of the company for that period were not included in those profits.
For the purposes of this section income arising for any accounting period to any company is excluded income in so far as it—
is income arising as mentioned in subsection (1)(b) or (c) of section 127 above; and
is not income in relation to which that person has a UK representative for the purposes of section 126 above and Schedule 23 to this Act.
In subsection (1)(a) above—
the reference to excluded income the tax on which is deducted at source is a reference to excluded income from which an amount in respect of tax is or is treated as deducted, on which any such amount is treated as paid or in respect of which there is a tax credit, and
the reference, in relation to any such income, to the amount of tax deducted shall be construed, accordingly, as a reference to the amount which is or is treated as deducted or which is treated as paid or, as the case may be, to the amount of that credit.
This section does not apply in relation to the chargeable profits arising to a company which is a corporate member within the meaning of Chapter V of Part IV of the Finance Act 1994 (corporate Lloyd’s underwriters etc.).
This section applies, subject to subsection (6) below, in relation to any accounting period ending after 5th April 1995.
This section shall have effect in relation to any accounting period beginning before 1st April 1996 as if the following paragraphs were substituted for paragraphs (a) and (b) of subsection (2) above, that is to say—
Schedule 24 to this Act (which amends the provisions of the Finance Act 1993 relating to exchange gains and losses and other provisions connected with exchange gains and losses) shall have effect.
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The provisions specified in subsection (2) below, so far as they require a disposal to be treated, for the purposes of the Taxation of Chargeable Gains Act 1992, as a disposal on which neither a gain nor a loss accrues, shall not apply in relation to any disposal of a qualifying asset which is made—
by one qualifying company to another such company; and
at a time before the commencement day of the company making the disposal and on or after the commencement day of the company to which the disposal is made.
The provisions referred to in subsection (1) above are—
sections 139, 140A, 171, 172, 215, 216 and 217A of the Taxation of Chargeable Gains Act 1992; and
section 486(8) of the Taxes Act 1988.
In this section—
“umbrella scheme” shall have the meaning given by section 619 of the Corporation Tax Act 2010;
“securities” includes stocks and shares.
“open-ended investment company” shall have the meaning given by section 236 of the Financial Services and Markets Act 2000;
This section has effect in relation to any disposal of an asset taking place on or after 1st January 1995.
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Section 175 of the Finance Act 1994 (currency contracts: transitional provisions) shall be deemed to have been enacted with the modifications set out below.
In subsection (1) after paragraph (b) there shall be inserted and.
For subsection (2) there shall be substituted—
Schedule 25 to this Act (which contains amendments of Chapter IV of Part XVII of the Taxes Act 1988 and connected amendments) shall have effect.
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Section 759 of the Taxes Act 1988 (material interests in offshore funds) shall be amended as mentioned in subsections (2) and (3) below.
In subsection (1)—
for the words “of the following, namely” there shall be substituted “collective investment scheme which is constituted by”;
for the word “and” immediately preceding paragraph (c) there shall be substituted “or”; and
for the words “company, unit trust scheme or arrangements” there shall be substituted “collective investment scheme”.
After subsection (1) there shall be inserted—
In Schedule 27 to the Taxes Act 1988 (distributing funds) in Part I (the distribution test) in paragraph 1(2) for paragraphs (a) and (b) there shall be substituted—.
Section 212 of the Taxation of Chargeable Gains Act 1992 (annual deemed disposal of certain holdings, including holdings consisting of a relevant interest in an offshore fund) shall be amended as mentioned in subsections (6) and (7) below.
In subsection (5) (meaning of “relevant interest in an offshore fund”) for paragraph (b) there shall be substituted—
Immediately before subsection (7) there shall be inserted—
Subsections (1) to (3) above shall apply where it falls to be decided—
whether a material interest is, at any time on or after 29th November 1994, a material interest in an offshore fund;
whether a company, unit trust scheme or arrangements in which any person has an interest which is a material interest is, at any time on or after that day, an offshore fund.
Subsection (4) above shall apply in relation to account periods ending on or after 29th November 1994.
Subsections (5) to (7) above shall apply where it falls to be decided whether an interest is, at any time on or after 29th November 1994, a relevant interest in an offshore fund.
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In Schedule 8 to the Taxes Act 1988 (profit-related pay schemes) paragraph 19 (ascertainment of profits) shall be amended in accordance with subsections (2) to (4) below.
In sub-paragraph (6) (cases where scheme may provide for departure from requirements applicable to profit and loss account) paragraphs (g) to (k) (extraordinary items) shall be omitted.
After paragraph (ff) of sub-paragraph (6) there shall be inserted—
After sub-paragraph (6) there shall be inserted—
Subject to subsections (6) to (10) below, subsections (2) to (4) above shall have effect in relation to the preparation, for the purposes of a scheme, of a profit and loss account in respect of a period beginning on or after the day on which this Act is passed.
Subsections (2) to (4) above shall not have effect in relation to an existing scheme unless, before the end of the period of 6 months beginning with the day on which this Act is passed, the scheme is altered to take account of the amendments made by those subsections.
Subsections (8) to (10) below apply where, before the end of the period mentioned in subsection (6) above, an existing scheme is altered as mentioned in that subsection.
The provision made by the scheme in compliance with paragraph 20(1) of Schedule 8 to the Taxes Act 1988 shall not prevent a profit and loss account being prepared in accordance with the alteration.
Where the distributable pool would but for this subsection be determined by reference— then, for the purposes of the determination of the pool, the amount shown in the earlier account shall be recalculated using the same method as that used to calculate the amount mentioned in paragraph (a) above.
to an amount shown in a profit and loss account prepared in accordance with the altered scheme, and
to an amount shown in a profit and loss account (“an earlier account”) prepared in accordance with the scheme in a form in which it stood before the alteration,
The alteration of the existing scheme shall be treated as being within subsection (8) of section 177B of the Taxes Act 1988 (alterations which are registrable and which once registered cannot give rise to Board’s power of cancellation).
In subsections (6) to (10) above “an existing scheme” means a scheme which, immediately before the day on which this Act is passed, is registered under Chapter III of Part V of the Taxes Act 1988.
After paragraph 19 of Schedule 8 to the Taxes Act 1988 there shall be inserted—
In Schedule 8 to the Taxes Act 1988 (profit-related pay schemes) paragraph 8(a) (employees working less than 20 hours a week excluded by scheme from receiving profit-related pay) shall be omitted.
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In Part V of Schedule 9 to the Taxes Act 1988 (profit sharing schemes) in paragraph 36(1)(a) (certain full-time employees and directors must be eligible to participate in scheme on similar terms) for the words “a full-time employee” there shall be substituted “ an employee ”.
In Schedule 5 to the Finance Act 1989 (employee share ownership trusts) in paragraph 4(2)(c) (trust deed must provide that certain persons are beneficiaries if they work at rate of at least 20 hours a week) for the words “at that given time he worked as an employee or” there shall be substituted “ in the case of a director, at that given time he worked as a ”.
Subsection (1) above shall apply in relation to any scheme not registered before the day on which this Act is passed.
Subsection (4) above shall apply in relation to any scheme not approved before the day on which this Act is passed.
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a scheme is approved before the day on which this Act is passed, and
on or after that day the scheme is altered in such a way that paragraph 27 of Schedule 9 to the Taxes Act 1988 would be fulfilled if subsection (3) above applied in relation to the scheme,
Subsection (5) above shall apply in relation to trusts established on or after the day on which this Act is passed; and for this purpose a trust is established when the deed under which it is established is executed.
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In section 505 of the Taxes Act 1988 (charities: general) in subsection (1) (exemptions) after paragraph (e) there shall be inserted—
Subsection (1) above shall apply to chargeable periods beginning—
in the case of a company, after 31st March 1995; and
in any other case, after 5th April 1995.
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Subsection (4) of section 559 of the Taxes Act 1988 (which requires deductions to be made from payments to certain sub-contractors in the construction industry) shall have effect in relation to payments made on or after the appointed day with the substitution for “25 per cent.” of “the relevant percentage”; and after that subsection there shall be inserted the following subsection—
Chapter IV of Part XIII of the Taxes Act 1988 (sub-contractors in the construction industry) shall be further amended in accordance with Schedule 27 to this Act.
In this section and that Schedule “the appointed day” means such day, not being a day before 1st August 1998, as the Treasury may by order made by statutory instrument appoint; and different days may be appointed under this subsection for different purposes.
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In section 100 of the Taxes Act 1988 (valuation of trading stock on discontinuance of trade), in paragraph (a) of subsection (1), for the words from “realised” to the end of the paragraph there shall be substituted “determined in accordance with subsections (1A) to (1C) below; and”; and after that subsection there shall be inserted the following subsections—
This section applies in relation to any case in which a trade is discontinued at a time on or after 29th November 1994.
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Section 139 of the Finance Act 1994 (taxation of incapacity benefit) shall have effect, and be deemed always to have had effect, with the following amendments.
“initial period of incapacity”, in relation to incapacity benefit, means any period for which short-term incapacity benefit is payable otherwise than at the higher rate; and
After that subsection there shall be inserted the following subsection—
The following sections shall be inserted after section 329 of the Taxes Act 1988—
In Schedule 20 to the Finance Act 1993 (Lloyd’s underwriters: special reserve funds) paragraph 2 (general requirements about special reserve funds) shall be deemed to have been enacted with the modification in subsection (2) below.
For sub-paragraphs (2) and (3) there shall be substituted—
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In section 842A of the Taxes Act 1988 (meaning of “local authority” in the Tax Acts) in subsection (2) (England and Wales) after paragraph (g) insert—.
This section shall be deemed to have come into force on 29th November 1994.
In section 119(1) of the Taxes Act 1988 (rent, &c., payable in connection with mines, quarries and similar concerns), the words from “and, subject to subsection (2) below, shall be subject to deduction of income tax” to the end shall cease to have effect.
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The provisions of this section have effect in relation to payments made after the passing of this Act.
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After subsection (4) of that section there shall be inserted—
In Schedule 8 to the Oil Taxation Act 1975 (procedural provisions as to allowance of unrelievable field losses), in paragraph 4 (claims)—
in sub-paragraph (1) (which requires a participator to make a claim to the Board within a time limit), for the words from “and must be made” to “that is to say” there shall be substituted “ at any time after ” and the words from “and the date” to the end of the sub-paragraph shall be omitted; and
in sub-paragraph (2) the words “within the time allowed for making the original claim” shall be omitted.
This section applies to claims made on or after the day on which this Act is passed.
In Schedule 17 to the Finance Act 1980 (transfer of interests in oil fields) paragraph 7 (transfer of unused losses from the old to the new participator) shall be amended as follows.
At the beginning of sub-paragraph (2) there shall be inserted “ Subject to the following provisions of this paragraph ”.
After sub-paragraph (2) there shall be inserted the following sub-paragraphs—
Section 42 of the Finance Act 1930 (relief from transfer stamp duty in case of transfer of property as between associated bodies corporate) shall be amended as mentioned in subsections (2) to (5) below.
In subsection (2) (as substituted by section 27(2) of the Finance Act 1967) for the words from “that the effect” to the end of the subsection there shall be substitutedthat—
The following subsections shall be inserted after subsection (2) (as so substituted)—
In subsection (3) (as so substituted) for “(2)” there shall be substituted “ (2B) ”, and the words from “with the substitution” to the end shall be omitted.
The following subsection shall be inserted after subsection (3) (as so substituted)—
In section 27 of the Finance Act 1967 (which relates to section 42 of the Finance Act 1930) in subsection (3)(c) for the words from “a change” to “third body corporate” there shall be substituted “ the transferor or a third body corporate ceasing to be the transferee’s parent (within the meaning of the said section 42) ”.
This section shall apply in relation to instruments executed on or after the day on which this Act is passed.
Section 11 of the Finance Act (Northern Ireland) 1954 (relief from stamp duty in case of transfer of property between associated bodies corporate) shall be amended as follows.
In subsection (2)(c)(iii) for the words from “a change” to “third body corporate” there shall be substituted “ the transferor or a third body corporate ceasing to be the transferee’s parent ”.
The following subsections shall be substituted for subsection (3)—
In subsection (3A) for the words “paragraphs (i) and (ii) of subsection (3)” there shall be substituted “ subsection (3AA) ”, and the words from “with the substitution” to the end shall be omitted.
The following subsection shall be inserted after subsection (3A)—
This section shall apply in relation to instruments executed on or after the day on which this Act is passed.
Stamp duty under Part II of Schedule 13 to the Finance Act 1999 (lease) shall not be chargeable on an instrument which is— as respects which the condition in subsection (2) below is satisfied. This subsection is subject to subsection (4A) below.
a lease,
an agreement for a lease, or
an agreement with respect to a letting,
The condition is that it is shown to the satisfaction of the Commissioners of Inland Revenue that—
the lessor is a body corporate and the lessee is another body corporate,
those bodies are associated at the time the instrument is executed,
in the case of an agreement, the agreement is for the lease or letting to be granted to the lessee or to a body corporate which is associated with the lessee at the time the instrument is executed, and
the instrument is not executed in pursuance of or in connection with an arrangement falling within subsection (3) below.
An arrangement falls within this subsection if it is one under which— and the relevant time is the time of the execution of the instrument.
the consideration, or any part of the consideration, for the lease or agreement was to be provided or received (directly or indirectly) by a person other than a body corporate which at the relevant time was associated with either the lessor or the lessee, or
the lessor and the lessee were to cease to be associated by reason of the lessor or a third body corporate ceasing to be the lessee’s parent;
Without prejudice to the generality of paragraph (a) of subsection (3) above, an arrangement shall be treated as within that paragraph if it is one under which the lessor or the lessee or a body corporate associated with either at the relevant time was to be enabled to provide any of the consideration, or was to part with any of it, by or in consequence of the carrying out of a transaction which involved (or transactions any of which involved) a payment or other disposition by a person other than a body corporate associated with the lessor or the lessee at the relevant time.
An instrument mentioned in subsection (1) above shall not be treated as duly stamped unless—
it is duly stamped in accordance with the law that would apply but for that subsection, or
it has, in accordance with section 12 of the Stamp Act 1891, been stamped with a particular stamp denoting either that it is not chargeable with any duty or that it is duly stamped.
An instrument shall not be exempt from stamp duty by virtue of subsection (1) above if at the time the instrument is executed arrangements are in existence by virtue of which at that or some later time any person has or could obtain, or any persons together have or could obtain, control of the lessee but not of the lessor.
In this section—
references to the lessor are to the person granting the lease or (in the case of an agreement) agreeing to grant the lease or letting;
references to the lessee are to the person being granted the lease or (in the case of an agreement) agreeing for the lease or letting to be granted to him or another.
For the purposes of this section bodies corporate are associated at a particular time if at that time one is the parent of the other or another body corporate is the parent of each.
For the purposes of this section one body corporate is the parent of another at a particular time if at that time the first body.
is beneficial owner of not less than 75 per cent. of the ordinary share capital of the second body.
is beneficially entitled to not less than 75 per cent of any profits available for distribution to equity holders of the second body; and
would be beneficially entitled to not less than 75 per cent of any assets of the second body available for distribution to its equity holders on a winding-up.
In subsection (8) above “ordinary share capital”, in relation to a body corporate, means all the issued share capital (by whatever name called) of the body corporate, 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 body corporate.
The ownership referred to in paragraph (a) of subsection (8) above is ownership either directly or through another body corporate or other bodies corporate, or partly directly and partly through another body corporate or other bodies corporate; and Part I of Schedule 4 to the Finance Act 1938 (determination of amount of capital held through other bodies corporate) shall apply for the purposes of that paragraph.
This section shall apply in relation to instruments executed on or after the day on which this Act is passed.
Chapter 6 of Part 5 of the Corporation Tax Act 2010 shall apply for the purposes of paragraphs (b) and (c) of subsection (8) as it applies for the purposes of section 151(4)(a) and (b) of that Act; but this is subject to subsection (10B).
In determining for the purposes of this section whether a body corporate is the parent of the lessor, sections 171(1)(b) and (3), 173, 174 and 176 to 178 of the Corporation Tax Act 2010 shall not apply for the purposes of paragraph (b) or (c) of subsection (8) above.
In this section, “control” shall be construed in accordance with section 1124 of the Corporation Tax Act 2010.
The Treasury may, by regulations, make such provision as they consider appropriate for securing that the enactments specified in subsection (2) below have effect in relation to— in a manner corresponding, subject to such modifications as the Treasury consider appropriate, to the manner in which they have effect in relation to unit trusts, to rights under, and the assets subject to, such trusts and to transactions for purposes connected with such trusts.
open-ended investment companies of any such description as may be specified in the regulations,
holdings in, and the assets of, such companies, and
transactions involving such companies,
The enactments referred to in subsection (1) above are—
the Tax Acts and the Taxation of Chargeable Gains Act 1992; and
the enactments relating to stamp duty and stamp duty reserve tax.
The power of the Treasury to make regulations under this section in relation to any such enactments shall include power to make provision which does any one or more of the following, that is to say—
identifies the payments which are or are not to be treated, for the purposes of any prescribed enactment, as the distributions of open-ended investment companies;
modifies the operation in relation to open-ended investment companies, or in relation to payments falling to be treated as the distributions of such companies, of any of the following provisions of Part 23 of the Corporation Tax Act 2010—
any provision of Chapter 2, except section 1000(2),
sections 1030 to 1048,
section 1049(1) and (3),
sections 1059 to 1063, and
Chapter 5.
applies and adapts any of the provisions of the enactments relating to stamp duty or stamp duty reserve tax for the purpose of making in relation to transactions involving open-ended investment companies any provision corresponding (with or without modifications) to that which applies under those enactments in the case of equivalent transactions involving unit trusts;
provides for any or all of the provisions of sections 75 to 77 of the Finance Act 1986 to have effect or not to have effect in relation to open-ended investment companies or the undertakings of, or any shares in, such companies;
so modifies the operation of any prescribed enactment in relation to any such companies as to secure that arrangements for treating the assets of an open-ended investment company as assets comprised in separate pools are given an effect corresponding, in prescribed respects, to that of equivalent arrangements constituting the separate parts of an umbrella scheme;
requires prescribed enactments to have effect in relation to an open-ended investment company as if it were, or were not, a member of the same group of companies as one or more other companies;
identifies the holdings in open-ended investment companies which are, or are not, to be treated for the purposes of any prescribed enactment as comprised in the same class of holdings;
preserves a continuity of tax treatment where, in connection with any scheme of re-organisation, assets of one or more unit trusts become assets of one or more open-ended investment companies, or vice versa;
treats the separate parts of the undertaking of an open-ended investment company in relation to which provision is made by virtue of paragraph (e) above as distinct companies for the purposes of any regulations under this section;
amends, adapts or applies the provisions of any subordinate legislation made under or by reference to any enactment modified by the regulations.
The power to make regulations under this section shall be exercisable by statutory instrument and shall include power—
to make different provision for different cases; and
to make such incidental, supplemental, consequential and transitional provision as the Treasury may think fit.
A statutory instrument containing regulations under this section shall be subject to annulment in pursuance of a resolution of the House of Commons.
In this section— and references in this section to the enactments relating to stamp duty, or to any of them, or to Part IV of the Finance Act 1986 shall have effect as including references to enactments repealed by sections 107 to 110 of the Finance Act 1990.
“overseas life assurance business” has the meaning given by section 431D;
“the enactments relating to stamp duty” means the Stamp Act 1891, and any enactment (including any Northern Ireland legislation) which amends or is required to be construed together with that Act;
“long term insurance business” means insurance business of any of the classes specified in Schedule 1 to the Insurance Companies Act 1982; and
“subordinate legislation” means any subordinate legislation within the meaning of the Interpretation Act 1978 or any order or regulations made by statutory instrument under Northern Ireland legislation; and
“relief” means relief by way of— deduction in computing profits or gains, or deduction or set off against income or total profits; and
“prescribed” means prescribed by regulations under this section;
Any reference in this section to unit trusts has effect—
for the purposes of so much of this section as confers power in relation to the enactments specified in paragraph (a) of subsection (2) above, as a reference to authorised unit trusts (within the meaning of sections 616 and 619(3) of the Corporation Tax Act 2010), and
for the purposes of so much of this section as confers power in relation to the enactments specified in paragraph (b) of that subsection, as a reference to any unit trust scheme (within the meaning given by section 57 of the Finance Act 1946).
For the purposes of this section the enactments which shall be taken to make provision in relation to companies that are members of the same group of companies shall include any enactments which make provision in relation to a case—
where one company has, or in relation to another company is, a subsidiary, or a subsidiary of a particular description, or
where one company controls another or two or more companies are under the same control.
... The cultivation of short rotation coppice shall be regarded for the purposes of ... the Taxation of Chargeable Gains Act 1992 as farming (and, where relevant, as husbandry or agriculture) and not as forestry; and land in the United Kingdom on which the activity is carried on shall accordingly be regarded for those purposes as farm land or agricultural land, as the case may be, and not as woodlands.
For the purposes of the Inheritance Tax Act 1984 the cultivation of short rotation coppice shall be regarded as agriculture; and accordingly for those purposes—
land on which short rotation coppice is cultivated shall be regarded as agricultural land, and
buildings used in connection with the cultivation of short rotation coppice shall be regarded as farm buildings.
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In subsections (1) and (2) “short rotation coppice” means a perennial crop of tree species planted at high density, the stems of which are harvested above ground level at intervals of less than ten years.
Subsection (1) and subsection (3) so far as relating to subsection (1) shall be deemed to have come into force on 29th November 1994.
Subsection (2) and subsection (3) so far as relating to subsection (2) shall have effect in relation to transfers of value or other events occuring on or after 6th April 1995.
In section 116 of the Inheritance Tax Act 1984 (relief for transfers of agricultural property) in subsection (2) (rate of relief) the word “either” shall be omitted and at the end of paragraph (b) there shall be insertedor .
After subsection (2) of that section there shall be inserted the following subsection—
Subsections (1) and (2) above shall apply in relation to transfers of value made, and other events occurring, on or after 1st September 1995.
Section 67 of the Taxes Management Act 1970 (proceedings for tax in sheriff court) shall be amended as follows.
In subsection (1) (tax not exceeding a specified sum recoverable in sheriff court) for the words from “where” to “the tax” there shall be substituted “ tax due and payable under any assessment ”.
The following subsection shall be inserted after subsection (1)—
This section shall apply in relation to proceedings commenced after the day on which this Act is passed.
If, whether before or after the passing of this Act— the depositor shall be entitled to receive compensation under this section from the Board.
any person (“the depositor”) has received any sum on the making, on or after 6th April 1990, of a withdrawal for cash of a tax deposit made before that date,
the whole or any part of any qualifying tax liability has been discharged by any payment made otherwise than by the application of a tax deposit, and
that payment was made in the period beginning one month before the withdrawal and ending one month afterwards,
In this section “qualifying tax liability”, in relation to a tax deposit, means so much of any liability as is—
a liability of any person for any tax for the year 1990-91 or any subsequent year of assessment, or for interest on such tax;
a liability that relates to tax for a year of assessment during the whole or any part of which that person was married to the depositor; and
a liability of such a description that, if it had been a liability of the depositor (and the withdrawal were to be disregarded), the whole or any part of it could have been discharged, immediately before the time of the payment mentioned in subsection (1)(b) above, by the application of that deposit and of accrued interest thereon.
Subject to the following provisions of this section, the amount of the compensation to which the depositor is entitled under this section in the case of any deposit withdrawn for cash shall be equal to the difference between—
the sum received as mentioned in subsection (1)(a) above on the withdrawal; and
the sum that would have been received if interest had accrued on the relevant part of the sum received at the rate applicable under the relevant terms to sums applied in the payment of tax, instead of at the rate applicable to a withdrawal for cash.
In subsection (3) above, the reference to the relevant part of the sum received on the withdrawal of a deposit is a reference to the following amount, that is to say—
in a case where the sum received on the withdrawal is equal to or smaller than the amount of the liability discharged by the payment mentioned in subsection (1)(b) above, the amount equal to such part of the sum actually received as does not represent interest that has accrued under the relevant terms; and
in any other case, to the amount which would have been the amount specified in paragraph (a) above if the sum actually received on the withdrawal had been equal to the amount of qualifying tax liability so discharged.
The amount of compensation to which any person is entitled under this section shall also include an amount equal to interest, for the period from the withdrawal mentioned in subsection (1)(a) above until the payment of the compensation, on the amount determined in accordance with subsection (3) above; and a liability to compensation under this section shall not bear interest apart from in accordance with this subsection.
Section 178 of the Finance Act 1989 (interest rates) shall apply to subsection (5) above for determining the rate of the interest treated, by virtue of that subsection, as included in any compensation under this section; and any regulations under that section which are in force at the passing of this Act shall be deemed, subject to the powers of the Treasury under that section, to have effect in relation to this section as they have effect in relation to the enactments specified in subsection (2)(f) of that section (interest on overdue tax).
The part of any compensation under this section that represents interest under subsection (5) above shall not be treated as included in the income of the depositor for the purposes of income tax; but the remainder shall be chargeable to income tax under Chapter 2 of Part 4 of the Income Tax (Trading and Other Income) Act 2005 (interest).
No compensation shall be paid under this section unless a claim for it has been made to the Board.
Where any claim is made under this section with respect to any withdrawal for cash of a tax deposit—
this section shall have effect if there is, in the period mentioned in subsection (1)(c) above, more than one such payment as is mentioned in subsection (1)(b) above as if (subject to paragraph (b) below) all the payments in that period were, for the purposes of that claim, to be aggregated and treated as one such payment; and
the amount of compensation payable under this section on that claim shall be computed without regard to so much of any payment discharging a qualifying tax liability as, in pursuance of any claim under this section, has been or is to be so taken into account as to affect the amount of compensation payable in the case of any other withdrawal.
Sums required by the Board for paying compensation under this section shall be issued to the Board by the Treasury out of the National Loans Fund.
A withdrawal for cash of a tax deposit shall be taken for the purposes of this section to occur at the same time as, under the relevant terms, it is deemed to occur for the purposes of the calculation of interest on the amount withdrawn.
This section shall be construed as one with the Tax Acts, and in this section—
references to a tax deposit are references to the whole or any part of any deposit in respect of which a certificate of tax deposit has been issued by the Treasury under section 12 of the National Loans Act 1968; and
references to the relevant terms, in relation to a tax deposit, are references to the terms applicable to that deposit and to the certificate issued in respect of it.
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payments in respect of any actual or deemed credits relating to any tax or duty; and
payments of any interest on sums which are or are deemed to be repayments for the purposes of that section.
In Part I of the Ports Act 1991 (transfer of statutory port undertakings), after section 15 (duty to provide information for purposes of levy) insert—.
Sections 115 to 120 of the Finance Act 1990 (levy on privatisation of certain ports) shall cease to have effect.
An Order in Council under paragraph 1(1)(b) of Schedule 1 to the Northern Ireland Act 1974 (legislation for Northern Ireland in the interim period) which states that it is made only for purposes corresponding to those of subsection (1) above—
shall not be subject to paragraph 1(4) and (5) of that Schedule (affirmative resolution of both Houses of Parliament), but
shall be subject to annulment in pursuance of a resolution of either House of Parliament.
The Inland Revenue shall prepare and present to Treasury Ministers a report on tax simplification.
The report shall be laid before Parliament and published before 31st December 1995.
The report shall give—
an account of recent tax legislation history;
full details of recent annual additions to both primary and secondary legislation;
a summary of recent criticism of both the complexity of tax legislation and of parliamentary procedure; and
the advantages and disadvantages of possible solutions including a Royal Commission on taxation and a tax law commission.
In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988.
In Part III of this Act “the Management Act” means the Taxes Management Act 1970.
Part V of this Act shall be construed as one with the Stamp Act 1891.
The provisions specified in Schedule 29 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 1995.
Section 2.
Description of wine or made-wine Rates of duty per hectolitre £ Wine or made-wine of a strength not exceeding 4 per cent. 23.41 Wine or made-wine of a strength exceeding 4 per cent. but not exceeding 5.5 per cent. 42.14 Wine or made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent. and not being sparkling 140.44 Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent. 200.64 Wine or made-wine of a strength exceeding 15 per cent. but not exceeding 22 per cent. 200.64
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. 20.60
Section 5.
In section 4(1) of the Alcoholic Liquor Duties Act 1979 (interpretation)—
“authorised denaturer” means a person authorised under section 75(1) below to denature dutiable alcoholic liquor;
in the definition of “British compounded spirits”, for “methylated spirits” there shall be substituted “ denatured alcohol ”;
“denatured alcohol” means denatured alcohol within the meaning of section 5 of the Finance Act 1995, and references to denaturing a liquor are references to subjecting it to any process by which it becomes denatured alcohol;
“licensed denaturer” means a person holding a licence under section 75(2) below;
Section 9 of that Act (remission of duty on spirits for methylation) shall cease to have effect.
In section 10 of that Act (remission of duty on spirits), for “methylated spirits” there shall be substituted “ denatured alcohol ”.
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In sections 75, 77, 79 and 80 of that Act (which contain provisions regulating methylation)—
for the words “methylate”, “methylates”, “methylator” and “methylators”, wherever they occur, and for the word “methylated”, where it occurs outside the expression “methylated spirits”, there shall be substituted, respectively, “ denature ”, “ denatures ”, “ denaturer ”, “ denaturers ” and “ denatured ”;
for the words “methylation” and “methylating”, wherever they occur, there shall be substituted, in each case, “ denaturing ”;
for the word “spirits”, wherever it occurs outside the expression “methylated spirits”, there shall be substituted “ dutiable alcoholic liquor ”;
for the words “methylated spirits”, wherever they occur, there shall be substituted “ denatured alcohol ”.
In section 77(2) of that Act (provisions supplemental to powers to make regulations), after paragraph (a) there shall be inserted the following paragraph—.
For section 78 of that Act (additional provisions relating to methylated spirits) there shall be substituted the following section—
In paragraph 3(1)(d) of Schedule 5 to the Finance Act 1994 (decisions under or for the purposes of section 9 or 10 of the Alcoholic Liquor Duties Act 1979 to be subject to review and appeal), for “section 9 or 10 (remission of duty on spirits for methylation or” there shall be substituted “ section 10 (remission of duty on spirits ”.
Section 14.
The Betting and Gaming Duties Act 1981 shall be amended in accordance with paragraphs 2 to 11 below.
In section 21 (gaming machine licences)— In subsection (3A) of that section (excepted machines), for paragraph (b) there shall be substituted the following paragraphs—
In subsection (1) of section 22 (duty on gaming machine licences), for “gaming machine” there shall be substituted “ amusement machine ”. In subsection (2) of that section (meaning of “small-prize machine”), for “a gaming machine is a small-prize machine if” there shall be substituted “ an amusement machine is a small-prize machine if it is a prize machine and ”.
In subsection (1) of section 23 (determination of rate of duty by reference to Table), for “a gaming machine licence” there shall be substituted “ an amusement machine licence ”. In subsection (2) of that section— (1) Period (in months) for which licence granted (2) Machines that are not gaming machines (3) Gaming machines that are small-prize machines or are five-penny machines without being small-prize machines (4) Other machines £ £ £ 1 30 60 150 2 50 105 275 3 75 155 400 4 95 205 520 5 120 250 645 6 140 295 755 7 160 340 880 8 185 390 1,005 9 205 435 1,115 10 225 480 1,235 11 240 510 1,305 12 250 535 1,375
In section 24 (restrictions on provision of gaming machines)—
for the words “Gaming machines”, “gaming machines” and “gaming machine”, wherever they occur, there shall be substituted, respectively, “ Amusement machines ”, “ amusement machines ” and “ amusement machine ”;
for the word “a”, where it occurs before “gaming machine” in subsection (5)(f), there shall be substituted “ an ”; and
for the words “for gaming”, wherever they occur, there shall be substituted “ for play ”.
For subsections (1) to (3) of section 25 (meaning of “gaming machine”) there shall be substituted the following subsections— In subsection (4) of that section (machines playable by more than one person), for “a gaming machine” there shall be substituted “ a machine of any description ”. For subsections (5) to (9) of that section there shall be substituted the following subsections—
After section 25 there shall be inserted the following section—
In section 26 (supplementary provisions)— In subsection (2) of that section— After subsection (2) of that section there shall be inserted the following subsection—
In sections 31 and 33(2) (protection of officers and savings for prohibitions of gaming etc.), for the words “gaming machine licences”, in each case, there shall be substituted “ amusement machine licences ”. In section 32(3) (orders subject to affirmative procedure), for “or 14(3)” there shall be substituted “ , 14(3) or 25A ”. In section 33(1) (interpretation), in the definition of “gaming”, the words “(except where it refers to a machine provided for gaming)” shall be omitted.
In Schedule 3 (bingo duty)—
in paragraph 5(1)(b), for “a gaming machine licence” there shall be substituted “ an amusement machine licence ”; and
in paragraph 6, for “a gaming machine” there shall be substituted “ an amusement machine ”.
In section 102(3)(a) of the Customs and Excise Management Act 1979 (penalty for failure to deliver up a licence), for “a gaming machine licence” there shall be substituted “ an amusement machine licence ”.
Section 19.
In this Schedule “the 1994 Act” means the Vehicle Excise and Registration Act 1994.
The following paragraphs of Schedule 2 to the 1994 Act (exempt vehicles) shall be omitted—
paragraph 1 (electrically propelled vehicles);
paragraph 12 (road construction vehicles);
paragraph 13 (road rollers);
paragraph 14 (snow clearing vehicles);
paragraph 15 (gritting vehicles);
paragraph 16 (street cleansing vehicles);
paragraph 17 (tower wagons used solely in connection with street lighting);
paragraph 21 (vehicles used for short journeys between different parts of person’s land).
In Schedule 2 to the 1994 Act the following shall be inserted after paragraph 3—
In Schedule 2 to the 1994 Act the following shall be inserted after paragraph 20—
This Part of this Schedule shall come into force on 1st July 1995.
In Schedule 1 to the 1994 Act (annual rates of duty) the following paragraph shall be substituted for paragraph 1 (annual rate of duty where no other rate specified)— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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In Schedule 1 to the 1994 Act the following shall be substituted for Part III (hackney carriages)—
Part IV of Schedule 1 to the 1994 Act (special machines) shall be amended as follows. For the heading “SPECIAL MACHINES” there shall be substituted “ SPECIAL VEHICLES ”. In paragraph 4(1) (annual rate of £35) for the words “special machine is £35” there shall be substituted “ special vehicle is the same as the basic goods vehicle rate ”. In paragraph 4(2) (definition of “special machine”)— Paragraph 4(3) (definition of “tractor”) shall be omitted. The following sub-paragraph shall be inserted after sub-paragraph (6) of paragraph 4—
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Paragraph 5 of Schedule 1 to the 1994 Act (recovery vehicles) shall be amended as follows. In sub-paragraph (1) (annual rate of duty of £85) for the words “is £85” there shall be substitutedis— The following sub-paragraphs shall be inserted after sub-paragraph (5)—
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Paragraph 7 of Schedule 1 to the 1994 Act (haulage vehicles) shall be amended as follows. In sub-paragraph (1) for paragraphs (a) and (b) (rate of £100 for showmen’s vehicles and of £330 for other haulage vehicles) there shall be substituted— The following sub-paragraphs shall be inserted after sub-paragraph (2)—
Part VIII of Schedule 1 to the 1994 Act (goods vehicles) shall be amended as follows. Paragraph 8 (basic rate) shall be omitted. In paragraph 9(1) (rates of duty for rigid goods vehicles)— Revenue weight of vehicle Rate (1) (2) (3) (4) (5) Exceeding Not Exceeding Two axle vehicle Three axle vehicle Four or more axle vehicle kgs 3,500 7,500 12,000 13,000 14,000 15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 kgs 7,500 12,000 13,000 14,000 15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 44,000 £ 150 290 450 630 810 1,280 1,280 1,280 1,280 1,280 1,280 1,280 1,280 1,280 £ 150 290 470 470 470 470 820 990 1,420 2,160 2,260 2,260 2,260 2,260 £ 150 290 340 340 340 340 340 340 490 800 1,420 2,240 3,250 4,250 For sub-paragraph (2) of paragraph 9 there shall be substituted the following sub-paragraphs— In paragraph 10(1) (trailer supplement) for the words “plated gross weight (or relevant maximum weight)”— In paragraph 10(2) (lower rate of trailer supplement)— In paragraph 10(3) (higher rate of trailer supplement)— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paragraph 10(4) (reference to paragraph 12) shall be omitted. In paragraph 11(1) (rates of duty for tractive units)— Revenue weight of tractive unit Rate for tractive unit with two axles Rate for tractive unit with three or more axles (1) (2) (3) (4) (5) (6) (7) (8) Exceeding Not exceeding Any no. of semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles Any no. of semi-trailer axles 2 or more semi-trailer axles 3 or more semi-trailer axles kgs 3,500 7,500 12,000 16,000 20,000 23,000 26,000 28,000 31,000 33,000 34,000 36,000 38,000 kgs 7,500 12,000 16,000 20,000 23,000 26,000 28,000 31,000 33,000 34,000 36,000 38,000 44,000 £ 150 290 440 500 780 1,150 1,150 1,680 2,450 5,000 5,000 5,000 5,000 £ 150 290 440 440 440 570 1,090 1,680 2,450 5,000 5,000 5,000 5,000 £ 150 290 440 440 440 440 440 1,050 1,680 1,680 2,750 3,100 3,100 £ 150 290 440 440 440 570 1,090 1,680 2,450 2,450 2,450 2,730 2,730 £ 150 290 440 440 440 440 440 640 970 1,420 2,030 2,730 2,730 £ 150 290 440 440 440 440 440 440 440 550 830 1,240 1,240 For sub-paragraph (2) of paragraph 11 there shall be substituted the following sub-paragraphs— Paragraph 12 (farmers’ goods vehicles and showmen’s goods vehicles) shall be omitted. In paragraph 13(1) (regulations for reducing plated weights) for the words from “its plated gross weight” to “weight specified” there shall be substituted “ its revenue weight were such lower weight as may be specified ”. In paragraph 14 (vehicles for conveying machines) sub-paragraphs (b) and (c) shall be omitted. In paragraph 17(1) (meaning of “trailer”)— Paragraph 17(2) (interpretation of paragraph 17(1)(e)) shall be omitted. The following shall be inserted after paragraph 17—
In section 17 of the 1994 Act (exceptions from charge at higher rate) the following provisions shall be omitted—
subsections (3) to (5) (provisions about farmers’ goods vehicles);
subsections (6) and (7) (agricultural tractors and farmers’ goods vehicles in Northern Ireland).
This Part of this Schedule shall apply in relation to licences taken out on or after 1st July 1995. This Part of this Schedule shall also apply in relation to any use after 30th June 1995 of a vehicle which—
This Part of this Schedule (which supplements provisions of Part III of this Schedule) makes—
provision for determining the revenue weight of a vehicle, and
consequential amendments.
In section 7(3) of the 1994 Act (matters that may be contained in declarations and particulars to be made or furnished by applicants for licences) for paragraph (b) there shall be substituted—.
In section 15(4) of the 1994 Act (exchange of licences where higher rate becomes chargeable) at the beginning there shall be inserted “ Subject to section 7(5), ”.
In section 16 of the 1994 Act (exceptions from charge at higher rate) in each of subsections (2)(b)(i), (4)(b)(i) and (6)(b)(i) for the words “a plated train weight (or, in Northern Ireland, a relevant maximum train weight)” there shall be substituted “ a revenue weight ”.
In section 20 of the 1994 Act (combined road and rail transport) for subsection (3) there shall be substituted the following subsection—
In section 39 of the 1994 Act (relevant higher rate used in calculating penalty)—
in subsection (2)(a) for the words “plated gross weight or plated train weight (or, in Northern Ireland, a relevant maximum weight or relevant maximum train weight)” there shall be substituted “ revenue weight ”;
in each of subsections (4)(a) and (5)(a) for the words “plated gross weight or plated train weight (or, in Northern Ireland, relevant maximum weight or relevant maximum train weight)” there shall be substituted “ revenue weight ”;
in the words after paragraph (b) of each of subsections (4) and (5) for the words “plated gross weight or plated train weight (or relevant maximum weight or relevant maximum train weight)” there shall be substituted “ revenue weight ”.
In section 40(2) of the 1994 Act (relevant period used in calculating penalty)—
for the words “plated gross weight or a plated train weight (or, in Northern Ireland, a relevant maximum weight or relevant maximum train weight)” there shall be substituted “ revenue weight ”;
for the words “was plated with (or rated at) the higher weight” there shall be substituted “ became a vehicle with a higher revenue weight ”.
In section 45 of the 1994 Act (false or misleading information) after subsection (3) there shall be inserted the following subsections—
In section 60(2) of the 1994 Act (orders subject to annulment), after “section 3(3)” there shall be inserted “ , paragraph 18(4) of Schedule 1 ”.
Immediately before section 61 of the 1994 Act there shall be inserted the following section—
In subsection (3) of section 61 of the 1994 Act (meaning of “appropriate plate”)— After subsection (3) of that section there shall be inserted the following subsection— Subsections (4), (5) and (7) of that section (relevant weights in Northern Ireland and definition of “design weight”) shall be omitted.
After section 61 of the 1994 Act there shall be inserted the following section—
Paragraph 16 above shall apply for the purposes of this Part of this Schedule as it applies for the purposes of Part III of this Schedule.
In section 7 of the 1994 Act (issue of vehicle licences)— In section 11 of the 1994 Act (issue of trade licences) in subsection (1) (regulations about applications)— This paragraph shall apply in relation to applications made after the day on which this Act is passed.
In section 13 of the 1994 Act (duration of trade licences) in subsection (1) at the end of paragraph (c) there shall be inserted “ and ending no later than the relevant date. ” After subsection (1) of that section there shall be inserted— This paragraph shall apply in relation to licences taken out after the day on which this Act is passed.
The following section shall be inserted after section 19 of the 1994 Act— The following section shall be inserted after section 35 of the 1994 Act— In section 36 of the 1994 Act (dishonoured cheques: additional liability) in subsection (1) for the words from “102” to “cheque)” there shall be substituted “ 35A ”. This paragraph shall apply in relation to licences taken out after the day on which this Act is passed.
In section 21 of the 1994 Act (registration of vehicles) at the beginning of subsections (1) and (2) there shall be inserted “ Subject to subsection (3) ” and after subsection (2) there shall be inserted—
Section 22 of the 1994 Act (registration regulations) shall be amended as follows. In subsection (1) the following paragraph shall be inserted after paragraph (d)— The following subsections shall be inserted after subsection (1)—
In section 31 of the 1994 Act (relevant period for purposes of additional liability) in subsection (5)(b) (case where duty or amount equal to duty has been paid) the words “(or an amount equal to the duty due)” shall be omitted. This paragraph shall apply in relation to offences committed after the day on which this Act is passed.
The following section shall be inserted after section 32 of the 1994 Act— The following Schedule shall be inserted after Schedule 2 to the 1994 Act—
In section 37(2) of the 1994 Act (penalty where duty at higher rate is not paid) the following shall be omitted— In section 41(1)(b) of the 1994 Act (order in Scotland in case of offence under section 37) the words “182 or” and “183 or” shall be omitted. This paragraph shall apply in relation to proceedings begun after the day on which this Act is passed.
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This paragraph applies where a vehicle licence is taken out— While the licence is in force duty shall not, by virtue of any provision contained in Part III or IV of this Schedule other than paragraph 16(2) above, become chargeable under section 15 of the 1994 Act (vehicle used in manner attracting higher rate).
This paragraph applies where regulations to determine the seating capacity of a hackney carriage are made, or have effect as if made, under sub-paragraph (2) of paragraph 3 of Schedule 1 to the 1994 Act (as that paragraph has effect apart from the substitution made by paragraph 8 above). The regulations shall have effect as if made under sub-paragraph (5) of paragraph 3 of that Schedule (as substituted by paragraph 8 above) to determine the seating capacity of a vehicle. This paragraph shall apply in relation to licences taken out on or after 1st July 1995.
This paragraph applies where— In such a case the amount of vehicle excise duty to be paid on the licence shall be £1,000. This paragraph shall be construed in accordance with the 1994 Act.
This paragraph applies where paragraph 41 above does not apply and— In such a case the amount of vehicle excise duty to be paid on the licence shall be an amount equal to £1,000 plus the old amount of duty. The provisions falling within this sub-paragraph are— For the purposes of this paragraph— This paragraph shall be construed in accordance with the 1994 Act.
Section 34.
Part III of the Finance Act 1994 (insurance premium tax) shall be amended as provided by this Schedule.
Section 53 (registration of insurers) shall be amended as follows. In subsection (5) (Commissioners to cancel registration of person who ceases to receive premiums)— The following subsection shall be inserted after subsection (5)— Sub-paragraph (2) above shall apply in relation to notifications made under section 53(3) on or after the day on which this Act is passed.
Section 53 shall be further amended by inserting the following subsection after subsection (1)—
The following section shall be inserted after section 53—
Section 59 (review of Commissioners’ decisions) shall be amended as follows. In subsection (1)(d) (review of decision with respect to assessment) for the words “under section 56 above” there shall be substituted “ falling within subsection (1A) below ”. The following subsection shall be inserted after subsection (1)— This paragraph shall apply in relation to assessments made on or after the day on which this Act is passed.
“insurance business” means a business which consists of or includes the provision of insurance;
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In Schedule 7 the following shall be inserted after paragraph 4— In paragraph 5(1) of Schedule 7 (duty to provide record of anything removed in exercise of power) after the words “paragraph 4” there shall be inserted “ or 4A ”.
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Section 39.
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Sections 22 and 23 of that Act (assessments to income tax under Schedule A and collection from lessees and agents) shall cease to have effect.
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sections 25 and 28 (deductions from rent);
section 29 (sporting rights);
section 31 (supplementary provisions);
section 33 (allowance for excess expenditure in relation to agricultural land);
sections 33A and 33B (rents and receipts received by connected persons and payments made by connected persons);
subsection (5) of section 40 (application of Schedule A rules as to receipts and outgoings on sale of land); and
section 41 (relief for rent not paid).
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for “for the purposes of sections 25, 28 and 31” there were substituted “for the purpose of computing the profits or gains, or losses, of any Schedule A business carried on in relation to those premises”; and
for “in respect of dilapidation attributable to the year” there were substituted “as an expense of the business for that year”.
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for “the vendor shall be chargeable to tax under Case VI of Schedule D on” there were substituted “the following amount shall be deemed to have been received as income by the vendor and to have been received by him in consequence of his having entered into a transaction falling to be treated as mentioned in paragraph 1(2) of Schedule A, that is to say”; and
for “on that excess” there were substituted “the amount of the excess”.
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In section 692(1) of that Act (reimbursement of settlor), for the words from “the profits” onwards there shall be substituted “ either the profits of a trade carried on by the settlor or the profits of a Schedule A business so carried on ”.
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In subsection (6) of section 338 of the Taxes Act 1988 (charges on income), for paragraph (d) and the words after that paragraph (allowance of interest as a charge on income in a case where it would be eligible for relief in the case of an individual) there shall be substituted the following paragraph—
After section 338 of that Act there shall be inserted the following section—
Section 51.
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“pension business” has the meaning given by section 431B;
“life reinsurance business” has the meaning given by section 431C;
“reinsurance business” includes retrocession business.
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for “242” substitute “section 242”, and
for “444D” substitute “paragraph 5B of Schedule 19AC”.
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after “UK distribution income of” insert “, or foreign income dividends arising to,”; and
for the words from “as part of the profit” to the end substitute——.
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in the first column after the entry relating to regulations under section 333 of the Taxes Act 1988, and
in the second column after the entry relating to section 375(5) of that Act.
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Section 53.
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In subsection (5) of section 213 of the Taxation of Chargeable Gains Act 1992 (spreading of gains and losses under section 212 where there is a transfer of long term business), at the beginning there shall be inserted “Subject to subsections (5A) to (7) below”; and after that subsection there shall be inserted the following subsection—
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Section 54.
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In paragraph 3 of Schedule 15 to that Act (friendly society policies that are qualifying policies), sub-paragraph (2)(c) (condition limiting consideration for early surrender) shall cease to have effect.
This paragraph applies to any policy which— Where— Schedule 15 to that Act, in its application to the policy, shall have effect, in relation to that variation, with the omission of paragraph 4(3)(a) and the insertion at the end of paragraph 18(2) of the words set out in sub-paragraph (3) below. Those words are as follows, that is to say, “ and as if for paragraph 3(2)(b) above there were substituted— ””
Section 58.
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Section 65.
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Section 67.
The Taxation of Chargeable Gains Act 1992 shall be amended as mentioned in this Schedule.
Section 150A (enterprise investment scheme) shall be amended as mentioned in sub-paragraphs (2) to (4) below; and the amendments made by sub-paragraphs (2) and (3) below shall apply in relation to shares issued on or after 1st January 1994. The following subsection shall be inserted after subsection (2)— In subsection (3) (reduction of relief) the following paragraph shall be inserted after paragraph (a)—. The following subsections shall be inserted after subsection (8) (which disapplies provisions about exchanges, reconstructions or amalgamations in certain circumstances)—
The following section shall be inserted after section 150A—
The following section shall be inserted after section 150B— . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The following Schedule shall be inserted after Schedule 5A— This paragraph has effect in relation to gains accruing and events occurring on or after 29th November 1994.
Section 70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
This Schedule applies, where any shares in or securities of any company (“the relevant company”) are at any time held by another company (“the trust company”), for determining whether and to what extent those shares or securities (“the relevant holding”) are, for the purposes of section 842AA, to be regarded as at that time comprised in the trust company’s qualifying holdings. The relevant holding shall be regarded as comprised in the trust company’s qualifying holdings at any time if— Subject to paragraph 6(3) below, where the requirements of paragraph 6 or 7 below would be satisfied as to only part of the money raised by the issue of the relevant holding and that holding is not otherwise capable of being treated as comprising separate holdings, this Schedule shall have effect in relation to that holding as if it were two holdings consisting of— and section 842AA shall have effect as if the value of the holding were to be apportioned accordingly between the two holdings which are deemed to exist in pursuance of this sub-paragraph.
The requirement of this paragraph is that the relevant company (whether or not it is resident in the United Kingdom) must be an unquoted company. In this paragraph “unquoted company” means a company none of whose shares, stocks, debentures or other securities is marketed to the general public. For the purposes of this paragraph shares, stocks, debentures or other securities are marketed to the general public if they are— In sub-paragraph (3) above “designated” means designated by an order made by the Board for the purposes of that sub-paragraph; and an order made for the purposes of paragraph (b) of that sub-paragraph may designate an exchange by name, or by reference to any class or description of exchanges, including a class or description framed by reference to any authority or approval given in a country outside the United Kingdom. Section 828(1) does not apply to an order made for the purposes of sub-paragraph (3) above. Where a company any shares in or securities of which are included in the qualifying holdings of the trust company ceases at any time while the trust company is approved as a venture capital trust to be an unquoted company, the requirements of this paragraph shall be deemed, in relation to shares or securities acquired by the trust company before that time, to continue to be satisfied for a period of five years after that time.
The requirements of this paragraph are as follows. The relevant company must be one of the following, that is to say— Subject to sub-paragraph (4) below, the relevant company or a qualifying subsidiary of that company must, when the relevant holding was issued and at all times since, have been either— The requirements of sub-paragraph (3) above shall not be capable of being satisfied by virtue of paragraph (b) of that sub-paragraph at any time after the end of the period of two years beginning with the issue of the relevant holding unless— The requirements of that sub-paragraph shall also be incapable of being so satisfied at any time after the abandonment, within the period mentioned in sub-paragraph (4) above, of the intention in question.
For the purposes of this Schedule— Subject to sub-paragraphs (3) to (9) below, a trade complies with this paragraph if neither that trade nor a substantial part of it consists in one or more of the following activities, that is to say— For the purposes of sub-paragraph (2)(b) above— In determining for the purposes of this paragraph whether a trade carried on by any person is an ordinary trade of wholesale or retail distribution, regard shall be had to the extent to which it has the following features, that is to say— and for the purposes of this sub-paragraph the features specified in paragraphs (a) to (c) above shall be regarded as indications that the trade is such an ordinary trade and those in paragraphs (d) to (h) above shall be regarded as indications of the contrary. A trade shall not be treated as failing to comply with this paragraph by reason only of its consisting, to a substantial extent, in the receiving of royalties or licence fees if— A trade shall not be treated as failing to comply with this paragraph by reason only of its consisting, to a substantial extent, in the receiving of royalties or licence fees if— A trade shall not be treated as failing to comply with this paragraph by reason only of its consisting in letting ships, other than oil rigs or pleasure craft, on charter if— but where any of the requirements mentioned in paragraphs (a) to (d) above are not satisfied in relation to any lettings, the trade shall not thereby be treated as failing to comply with this paragraph if those lettings and any other activity of a kind falling within sub-paragraph (2) above do not, when taken together, amount to a substantial part of the trade. The conditions are that— but this sub-paragraph shall have effect, in relation to any letting between one company and another where one of those companies is the relevant company and the other is a qualifying subsidiary of that company, or where both companies are qualifying subsidiaries of the relevant company, as if paragraph (c) were omitted. A trade shall not comply with this paragraph unless it is conducted on a commercial basis and with a view to the realisation of profits.
In paragraph 4 above— For the purposes of paragraph 4 above, in the case of a trade carried on by a company, a person has a controlling interest in that trade if— and, in any other case, a person has a controlling interest in a trade if he is entitled to not less than half of the assets used for, or of the income arising from, the trade. For the purposes of sub-paragraph (2) above there shall be attributed to any person any rights or powers of any other person who is an associate of his. References in paragraph 4 above or this paragraph to a trade, except the references in paragraph 4(2)(f) to the trade for which services or facilities are provided, shall be construed without reference to so much of the definition of trade in section 832(1) as relates to adventures or concerns in the nature of trade; and those references in paragraph 4(2)(f) above to a trade shall have effect, in relation to cases in which what is carried on is carried on by a person other than a company, as including references to any business, profession or vocation. In this paragraph—
The requirements of this paragraph are that the money raised by the issue of the relevant holding must— The requirements of sub-paragraph (1) above shall not be capable of being satisfied by virtue of paragraph (b) of that sub-paragraph at any time after twelve months have expired from whichever is applicable of the following, that is to say— For the purposes of this paragraph money shall not be treated as employed otherwise than wholly for the purposes of a trade if the only amount employed for other purposes is an amount which is not a significant amount; and nothing in paragraph 1(3) above shall require any money whose use is disregarded by virtue of this sub-paragraph to be treated as raised by a different holding. References in this paragraph to employing money for the purposes of a trade shall include references to employing it for the purpose of preparing for the carrying on of the trade.
The requirement of this paragraph is that the relevant holding did not, when it was issued, represent an investment in excess of the maximum qualifying investment for the relevant period. Subject to sub-paragraph (4) below, the maximum qualifying investment for any period is exceeded to the extent that the aggregate amount of money raised in that period by the issue to the trust company during that period of shares in or securities of the relevant company exceeds £1 million. Any question for the purposes of this paragraph as to whether any shares in or securities of the relevant company which are for the time being held by the trust company represent an investment in excess of the maximum qualifying investment for any period shall be determined on the assumption, in relation to disposals by the trust company, that, as between shares or securities of the same description, those representing the whole or any part of the excess are disposed of before those which do not. Where— this paragraph shall have effect in relation to the relevant company as if the sum of money for the time being specified in sub-paragraph (2) above were to be divided by the number of companies (including the relevant company) which, at the time when the relevant holding was issued, were members of the partnership or, as the case may be, parties to the joint venture. For the purposes of this paragraph the relevant period is the period beginning with whichever is the earlier of—
The requirement of this paragraph is that the value of the relevant assets— Subject to sub-paragraph (3) below, the reference in sub-paragraph (1) above to the value of the relevant assets is a reference— For the purposes of this paragraph assets of any member of the relevant company’s group that consist in rights against, or in shares in or securities of, another member of the group shall be disregarded. In this paragraph references, in relation to any time, to the relevant company’s group are references to the relevant company and its qualifying subsidiaries at that time.
The requirements of this paragraph are that, subject to sub-paragraph (2) below, the relevant company must not be— and arrangements must not be in existence by virtue of which the relevant company could fall within paragraph (a) or (b) above. A company shall not fall within sub-paragraph (1)(b) above where—
Subject to the following provisions of this paragraph, a company is a qualifying subsidiary of the relevant company for the purposes of this Schedule if— is a company falling within each of sub-paragraphs (2) and (3) below. The subsidiary falls within this sub-paragraph if— The subsidiary falls within this sub-paragraph if— The subsidiary shall not be regarded, at a time when it is being wound up, as having ceased on that account to be a company falling within sub-paragraphs (2) and (3) above if it is shown— The subsidiary shall not be regarded, at any time when arrangements are in existence for the disposal by the relevant company, or (as the case may be) by another subsidiary of that company, of all its interest in the subsidiary in question, as having ceased on that account to be a company falling within sub-paragraphs (2) and (3) above if it is shown that the disposal is to be for bona fide commercial reasons and not part of a scheme or arrangement the main purpose of which, or one of the main purposes of which, is the avoidance of tax. For the purposes of this paragraph the persons who are equity holders of the subsidiary and the percentage of the assets of the subsidiary to which an equity holder would be entitled shall be determined in accordance with paragraphs 1 and 3 of Schedule 18, taking references in paragraph 3 to the first company as references to an equity holder, and references to a winding up as including references to any other circumstances in which assets of the subsidiary are available for distribution to its equity holders.
None of the requirements of this Schedule shall be regarded, at a time when the relevant company is being wound up, as being, on that account, a requirement that is not satisfied in relation to that company if it is shown—
that the requirements of this Schedule would be satisfied in relation to that company apart from the winding up; and
that the winding up is for bona fide commercial reasons and not part of a scheme or arrangement the main purpose of which, or one of the main purposes of which, is the avoidance of tax.
The Treasury may by order amend this Schedule for any or all of the following purposes, that is to say—
to make such modifications of paragraphs 4 and 5 above as they may consider expedient;
to substitute different sums for the sums of money for the time being specified in paragraphs 7(2) and 8(1) above.
In this Schedule— and references in this Schedule to the issue of any securities, in relation to any security consisting in a liability in respect of an unsecured loan, shall have effect as references to the making of the loan. Section 839 applies for the purposes of this Schedule. For the purposes of paragraphs 5(2) and 9 above a person shall be taken to have control of a company if he would be so taken for the purposes of Part XI by virtue of section 416(2) to (6).
Section 71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subject to the following provisions of this Schedule, an individual shall, for any year of assessment, be entitled under this Part of this Schedule to claim relief in respect of an amount equal to the aggregate of the amounts (if any) which, by reference to eligible shares issued to him by venture capital trusts in the course of that year, are amounts on which he is eligible for relief in accordance with sub-paragraph (2) below. The amounts on which an individual shall be taken for the purposes of sub-paragraph (1) above to be eligible for relief shall be any amounts subscribed by him on his own behalf for eligible shares issued by a venture capital trust for raising money. An individual shall not be entitled under this Part of this Schedule to claim relief for any given year of assessment in respect of an amount of more than £100,000. An individual shall not be entitled under this Schedule to claim any relief to which he is eligible by reference to any shares unless he had attained the age of eighteen years before those shares were issued. Where an individual makes a claim for any relief to which he is entitled under this Part of this Schedule for any year of assessment, the amount of his liability for that year to income tax on his total income shall be equal to the amount to which he would be so liable apart from this Part of this Schedule less whichever is the smaller of— In determining for the purposes of sub-paragraph (5) above the amount of income tax to which a person would be liable apart from this Part of this Schedule, no account shall be taken of— Where, in the case of any claim for relief under this Part of this Schedule in respect of any shares issued in any year of assessment, effect is given to the claim by repayment of tax, section 824 shall have effect in relation to the repayment as if the time from which the twelve months mentioned in subsections (1)(a) and (3)(a) of that section are to be calculated were the end of the year of assessment in which the shares were issued. A person shall not be entitled to be given any relief under this Part of this Schedule by reference to any shares if circumstances have arisen which would have resulted, had that relief already been given, in the withdrawal or reduction of the relief. A person shall not under this Part of this Schedule be eligible for any relief on any amount by reference to any shares unless the shares are both subscribed for and issued for bona fide commercial purposes and not as part of a scheme or arrangement the main purpose of which, or one of the main purposes of which, is the avoidance of tax.
An individual shall not be entitled to relief under this Part of this Schedule in respect of any shares if— References in this paragraph to the making by any person of a loan to any individual or an associate of his include references— In this paragraph—
This paragraph applies, subject to sub-paragraph (5) below, where— If the disposal is made otherwise than by way of a bargain made at arm’s length, any relief given under this Part of this Schedule by reference to the shares which are disposed of shall be withdrawn. Where the disposal was made by way of a bargain made at arm’s length— The amount referred to in sub-paragraph (3) above is an amount equal to tax at the lower rate for the year of assessment for which the relief was given on the amount or value of the consideration which the individual receives for the shares. This paragraph shall not apply in the case of any disposal of shares which is made by a married man to his wife or by a married woman to her husband if it is made, in either case, at a time when they are living together. Where any eligible shares issued to any individual (“the transferor”), being shares by reference to which any amount of relief under this Part of this Schedule has been given, are transferred to the transferor’s spouse (“the transferee”) by a disposal such as is mentioned in sub-paragraph (5) above, this paragraph shall have effect, in relation to any subsequent disposal or other event, as if— Any assessment for withdrawing or reducing relief by reason of a disposal or other event falling within sub-paragraph (6) above shall be made on the transferee. In determining for the purposes of this paragraph any question whether any disposal relates to shares by reference to which any relief under this Part of this Schedule has been given, it shall be assumed, in relation to any disposal by any person of any eligible shares in a venture capital trust, that— Where— any person who, at the time when the withdrawal takes effect, is holding any shares by reference to which relief under this Part of this Schedule has been given shall be deemed for the purposes of this paragraph to have disposed of those shares immediately before that time and otherwise than by way of a bargain made at arm’s length.
Any relief given under this Part of this Schedule which is subsequently found not to have been due shall be withdrawn by the making of an assessment to tax under Case VI of Schedule D for the year of assessment for which the relief was given. An assessment for withdrawing or reducing relief in pursuance of paragraph 3 above shall also be made as an assessment to tax under Case VI of Schedule D for the year of assessment for which the relief was given. No assessment for withdrawing or reducing relief given by reference to shares issued to any person shall be made by reason of any event occurring after his death.
Where an event occurs by reason of which any relief under this Part of this Schedule falls to be withdrawn or reduced, the individual to whom the relief was given shall, within 60 days of his coming to know of the event, give a notice to the inspector containing particulars of the event. If the inspector has reason to believe that a person has not given a notice which he is required to give under sub-paragraph (1) above in respect of any event, the inspector may by notice require that person to furnish him within such time (not being less than 60 days) as may be specified in the notice with such information relating to the event as the inspector may reasonably require for the purposes of this Part of this Schedule. No obligation as to secrecy imposed by statute or otherwise shall preclude the inspector from disclosing to a venture capital trust that relief given by reference to a particular number or proportion of its shares has been given or claimed under this Part of this Schedule.
In this Part of this Schedule “eligible shares”, in relation to a company which is a venture capital trust, means new ordinary shares in that trust which, throughout the period of five years beginning with the date on which they are issued, carry no present or future preferential right to dividends or to a company’s assets on its winding up and no present or future preferential right to be redeemed. In this Part of this Schedule “ordinary shares”, in relation to a company, means shares forming part of a company’s ordinary share capital. In this Part of this Schedule references to a disposal of shares shall include references to a disposal of an interest or right in or over the shares.
A relevant distribution of a venture capital trust shall not be regarded as income for any income tax purposes if the person beneficially entitled to it is a qualifying investor. For the purposes of this paragraph a person is a qualifying investor, in relation to any distribution, if he is an individual who has attained the age of eighteen years and is beneficially entitled to the distribution— In this paragraph “relevant distribution”, in relation to a company which is a venture capital trust, means any distribution which—
For the purposes of this Part of this Schedule shares in a venture capital trust shall be treated, in relation to any individual, as acquired in excess of the permitted maximum for any year of assessment to the extent that the value of the shares comprised in the relevant acquisitions of that individual for that year exceeds £100,000. The reference in sub-paragraph (1) above to the relevant acquisitions of an individual for a year of assessment is a reference to all shares which— Sub-paragraph (4) below applies where— Where this sub-paragraph applies— For the purposes of this paragraph the value of any shares acquired by or on behalf of any individual shall be taken to be their market value (within the meaning of the 1992 Act) at the time of their acquisition. Where any shares in a venture capital trust are acquired in excess of the permitted maximum for any year of assessment, the shares representing the excess shall be identified for the purposes of this Part of this Schedule—
In this Part of this Schedule “ordinary shares”, in relation to a company, means shares forming part of the company’s ordinary share capital. In this Part of this Schedule “nominee”, in relation to any individual, includes the trustees of a bare trust of which that individual is the only beneficiary.
This Schedule applies where— The investor makes a qualifying investment for the purposes of this Schedule if— and in this Schedule “relevant shares”, in relation to a case to which this Schedule applies, means any of the shares in a venture capital trust which are acquired by the investor in making the qualifying investment. In this Schedule “a qualifying time”, in relation to any shares subscribed for by the investor, means— This sub-paragraph applies to an individual in relation to a qualifying investment if—
On the making of a claim by the investor for the purposes of this Schedule, so much of the investor’s unused qualifying expenditure on relevant shares as— shall be set against a corresponding amount of the original gain. Where the amount of any qualifying expenditure on any relevant shares is set under this Schedule against the whole or any part of the original gain— For the purposes of this Schedule, but subject to the following provisions of this paragraph— For the purposes of this paragraph the original gain is unmatched, in relation to any qualifying expenditure on relevant shares, to the extent that it has not had any other amount set against it under this Schedule or Schedule 5B.
Subject to the following provisions of this paragraph, there is for the purposes of this Schedule a chargeable event in relation to any relevant shares if, after the making of the qualifying investment— In sub-paragraph (1) above— For the purposes of sub-paragraph (1) above there shall not be a chargeable event by virtue of sub-paragraph (1)(d) or (e) above in relation to any shares if— and, accordingly, no assessment shall be made by virtue of sub-paragraph (1)(d) or (e) above before the end of that period in any case where the condition in paragraph (a) above is satisfied and the condition in paragraph (b) above may be satisfied. For the purposes of sub-paragraph (3) above a person shall be taken to have disposed of any shares if and only if there has been such a disposal as would, if the person making the disposal had been resident in the United Kingdom, have been a chargeable event in relation to those shares. Where in any case— that event shall not be chargeable event in relation to the shares so held. Without prejudice to the operation of paragraphs 4 and 5 below in a case falling within sub-paragraph (1)(f) above, the references in this paragraph to a disposal shall not include references to the disposal which by virtue of section 151B(6) is deemed to take place in such a case.
On the occurrence of a chargeable event in relation to any relevant shares in relation to which there has not been a previous chargeable event— In determining for the purposes of this Schedule any question whether any shares to which a chargeable event relates are shares the expenditure on which has under this Schedule been set against the whole or any part of any gain, the assumptions in sub-paragraph (3) below shall apply and, in a case where the shares are not (within the meaning of section 151B) eligible for relief under section 151A(1), shall apply notwithstanding anything in any of sections 104, 105 and 107. Those assumptions are that— Where at the time of a chargeable event any relevant shares are treated for the purposes of this Act as represented by assets which consist of or include assets other than the relevant shares—
The chargeable gain which accrues in accordance with paragraph 4 above on the occurrence in relation to any relevant shares of a chargeable event shall be treated as accruing, as the case may be— Where— the amount of the chargeable gain accruing by virtue of paragraph 4 above shall be computed separately in relation to the investor and that person without reference to the shares held by the other.
In this Schedule “non-resident” means a person who is neither resident nor ordinarily resident in the United Kingdom. In this Schedule references to a disposal within marriage are references to any disposal to which section 58 applies. Notwithstanding anything in section 288(5), shares shall not for the purposes of this Schedule be treated as issued by reason only of being comprised in a letter of allotment or similar instrument.
Section 74.
In Part XV of the Taxes Act 1988 (settlements) the following provisions are inserted (in place of sections 660 to 676 and 683 to 685) as Chapter IA—
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In section 505(6) of the Taxes Act 1988, for “section 660(3)” substitute “ section 347A(7) ”.
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In section 678 of the Taxes Act 1988, omit subsection (7).
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For the heading before section 686 of the Taxes Act 1988 substitute—.
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Omit section 689 of the Taxes Act 1988 (recovery from trustees of discretionary trusts of higher rate tax due from beneficiaries).
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In section 31(3) of the Taxes Management Act 1970 (including that provision as proposed to be substituted by paragraph 7 of Schedule 19 to the Finance Act 1994), for “sections 660 to 685” substitute “ sections 660A to 660G or 677 to 682A ”.
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In section 60 of the Finance Act 1989, omit subsection (3) and in subsection (4) for “subsections (2) and (3)” substitute “ subsection (2) ”.
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In this subsection “settlement” and “settlor” have the same meaning as in Chapter IA of Part XV of the Taxes Act (see section 660G(1) and (2) of that Act).
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Section 75.
Part XVI of the Taxes Act 1988 shall be amended as follows.
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In section 696 (absolute interests in residue), for subsection (3) there shall be substituted the following subsections— For subsection (5) of that section there shall be substituted the following subsection— Sub-paragraph (1) above has effect, subject to sub-paragraph (4) below, in relation to any payment made on or after 6th April 1995; and sub-paragraph (2) above shall have effect in relation to any estate the administration of which is completed on or after 6th April 1995. Where any sum is deemed by virtue of subsection (3) of section 696 of the Taxes Act 1988 (as it has effect apart from this Schedule) and sections 652, 660 and 665 of the Income Tax (Trading and Other Income) Act 2005 to have been paid to any person as income for the year 1994-95 or any previous year of assessment, that sum shall be treated for the purposes of subsections (3A) and (5) of that section (as they have effect by virtue of this Schedule) as a sum actually paid in respect of that person’s absolute interest in that year of assessment.
After subsection (1) of section 697 (calculation of residuary income) there shall be inserted the following subsection— In subsection (2) of that section (reduction of residuary income where benefits received are less than aggregate of residuary income), for the words from “his residuary income for” onwards there shall be substituted “ section 696 shall have effect as if the amount of the deficiency were to be applied in reducing the amount taken to be his residuary income for the year in which the administration of the estate is completed and, in so far as the deficiency exceeds that income, in reducing the amount taken to be his residuary income for the previous year, and so on. ” Sub-paragraph (1) above has effect for ascertaining the residuary income of an estate for the year 1995-96 or any subsequent year of assessment; and sub-paragraph (2) above has effect in relation to any estate the administration of which is completed on or after 6th April 1995.
For subsection (2) of section 698 (special provisions as to successive interests in residue) there shall be substituted the following subsections— This paragraph has effect in relation to any payment made on or after 6th April 1995 and, so far as it relates to the operation of section 695(3) or 696(5) of the Taxes Act 1988, in relation to any estate the administration of which is completed on or after that date.
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Subsection (14) of section 701 (cases where residuary income has borne income tax at the additional rate) shall cease to have effect.
In this Schedule— References in this Schedule to the borrower or lender under an approved stock lending arrangement include any person acting as the nominee of the borrower or lender.
This paragraph applies where in connection with an approved stock lending arrangement— Where this paragraph applies— This paragraph does not apply unless the amount of the rebate interest is identified as such by the parties separately from any fee or other amount payable in connection with the arrangement.
Where the lender under one or more approved stock lending arrangements (“the lending arrangements”) is also the borrower under one or more other such arrangements (“the borrowing arrangements”) entered into to enable him to fulfil his obligations under the former arrangements, the interest which by virtue of paragraph 2(2)(a) above as it applies in relation to the borrowing arrangements is treated as his (the “attributed interest”) shall be treated for the purposes of that paragraph as it applies in relation to the lending arrangements as interest earned by him on the cash collateral provided under those arrangements, as follows. Where the aggregate amount of the cash collateral provided under the borrowing arrangements equals that provided under the lending arrangements, the whole of the attributed interest shall be so treated. Where the aggregate amount of the cash collateral provided under the borrowing arrangements exceeds that provided under the lending arrangements, a part of the attributed interest shall be so treated. That part shall be the proportion of the attributed interest which the aggregate amount of the cash collateral provided under the lending arrangements bears to that provided under the borrowing arrangements. Where the aggregate amount of the cash collateral provided under the borrowing arrangements is less than that provided under the lending arrangements, the attributed interest shall be treated as earned by him on a part of the cash collateral provided under the lending arrangements. That part shall be an amount equal to the aggregate amount of the cash collateral provided under the borrowing arrangements.
In this Schedule—
Section 107(11).
In Schedule 1A to the Management Act (claims etc. not included in returns), in sub-paragraph (5) of paragraph 2 (making of claims), for paragraph (b) there shall be substituted the following paragraphs—.
After paragraph 2 of that Schedule there shall be inserted the following paragraph—
In paragraph 3 of that Schedule (amendments of claims), in sub-paragraph (1)(a), for the word “return” there shall be substituted the word “ claim ”.
At the beginning of sub-paragraph (1) of paragraph 4 of that Schedule (giving effect to claims and amendments) there shall be inserted the words “ Subject to sub-paragraphs (1A) and (3) below and to any other provision in the Taxes Acts which otherwise provides, ”. After that sub-paragraph there shall be inserted the following sub-paragraph— At the beginning of sub-paragraph (2) of that paragraph there shall be inserted the words “ Subject to sub-paragraph (3) below, ”. After the said sub-paragraph (2) there shall be inserted the following sub-paragraph—
The period referred to in sub-paragraph (1) above is whichever of the following ends the latest, namely— and the quarter days for the purposes of this sub-paragraph are 31st January, 30th April, 31st July and 31st October. A claim or amendment which has been enquired into under sub-paragraph (1) above shall not be the subject of—
Section 116(1).
Section 7 of the Management Act (notice of liability) shall have effect as respects the year 1995-96 as if the reference in subsection (7) to a self-assessment made under section 9 of that Act in respect of that year were a reference to assessments made more than six months after the end of that year.
Section 59A of that Act (payments on account of income tax) shall have effect as respects the year 1996-97 with the modifications made by sub-paragraphs (2) to (7) below. The references in subsections (1)(a) and (4A) to a person being assessed to income tax under section 9 of that Act shall be construed as references to his being assessed to income tax under section 29 of that Act. The reference in subsection (1)(b) to the assessed amount shall be construed as a reference to the difference between that amount and the aggregate of the following, namely— The reference in subsection (1)(c) to the relevant amount shall be construed as a reference to the difference between that amount and the amount of any income tax charged under Schedule E which— Subsection (2) shall have effect as if it required— Subsection (4) shall have effect as if it provided that, in the circumstances there mentioned— Subsection (4A) shall have effect as if it provided that, in the circumstances and subject as there mentioned— In this paragraph “higher rate” means a rate other than the basic rate or the lower rate.
This paragraph applies in the case of a partnership whose trade, profession or business is set up and commenced before 6th April 1994. Section 32 of the Management Act (relief for double assessments to tax) shall have effect, as respects each partner and the year 1996-97, as if the partnership had not been assessed to income tax for that year. Section 59B of that Act (payment of income tax and capital gains tax) shall have effect, as respects each partner and that year, 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.
Section 123.
This paragraph applies where, in the case of a trade, profession or vocation carried on by any person— Subject to sub-paragraph (3) below, the said paragraph 2(2) shall have effect as if the reference to the appropriate percentage of the aggregate of the amounts there mentioned were a reference to the aggregate of— Sub-paragraph (2) above does not apply where— and regulations under this sub-paragraph may make as respects trades or professions carried on by persons in partnership provision different from that made as respects trades, professions or vocations carried on by individuals. In this paragraph—
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This paragraph applies where, in the case of a trade, profession or vocation carried on by any person— Subject to sub-paragraph (3) below, paragraph 52 of that Schedule shall have effect as if the reference to the transitional overlap profit were a reference to the amount (if any) by which that profit exceeds 1.25 times the aggregate of the amounts falling within sub-paragraph (1)(b) above. Sub-paragraph (3) of paragraph 1 above shall apply for the purposes of this paragraph as it applies for the purposes of that paragraph but subject to the following modifications, namely— In this paragraph—
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This paragraph applies where, in the case of a trade or profession carried on by any person in partnership with other persons— This sub-paragraph applies to money so contributed or advanced unless it was contributed or advanced wholly or mainly— Subject to sub-paragraph (4) below, paragraph 52 of Schedule 2 to ITTOIA 2005 shall have effect as if the reference to the transitional overlap profit were a reference to the difference between that profit and the amount of interest paid by the partner in respect of the transitional overlap period on money to which sub-paragraph (2) above applies. Sub-paragraph (3) above does not apply where— In this paragraph—
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This paragraph applies where, in the case of any income derived by any person from the carrying on by him of a trade, profession or vocation— Subject to sub-paragraph (3) below, paragraph 53 of that Schedule shall have effect as if the reference to the transitional overlap profit were a reference to the amount (if any) by which that profit exceeds 1.25 times the aggregate of the amounts falling within sub-paragraph (1)(b) above. Sub-paragraph (3) of paragraph 1 above shall apply for the purposes of this paragraph as it applies for the purposes of that paragraph but subject to the following modifications, namely— In this paragraph—
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Nothing in subsection (2) or (3) of section 29 of the Management Act (as substituted by section 191 of the Finance Act 1994) shall prevent an assessment being made under subsection (1) of that section in any case where— Nothing in subsection (3) or (4) of section 30B of the Management Act (amendment of partnership return where loss of tax discovered) shall prevent an amendment being made under subsection (1) of that section in any case where— The condition referred to in sub-paragraphs (1) and (2) above is that either—
An officer of the Board shall not so amend a return under section 8 or 8A of the Management Act (personal or trustee return) as to give effect to paragraph 3, 5 or 7 above unless a notice stating— is given by such an officer at a time when the condition mentioned in sub-paragraph (2) below is fulfilled. The condition referred to in sub-paragraph (1) above is that either— Subject to sub-paragraph (4) below, a notice under sub-paragraph (1) above shall be conclusive of the matters stated in it. An appeal may be brought against a notice under sub-paragraph (1) above at any time within the period of 30 days beginning with the date on which the notice is given. Subject to sub-paragraph (6) below, the provisions of the Management Act relating to appeals shall have effect in relation to an appeal under sub-paragraph (4) above as they have effect in relation to an appeal against an assessment to tax. On an appeal under sub-paragraph (4) above, section 50(6) to (8) of the Management Act (procedure on appeals) shall not apply but the Commissioners may—
Where a relevant return (as originally made) states— sub-paragraph (2) of that paragraph shall have effect, in its application to any amounts stated in the return (as so made) to fall within sub-paragraph (1)(b) of that paragraph or, in the case of paragraph 4 or 8 above, to be amounts which would have fallen within sub-paragraph (1)(b) of the preceding paragraph, as if the words “1.25 times” were omitted. Where a relevant return (as originally made) states— sub-paragraph (2) of that paragraph shall have effect, in its application to any amounts stated in the return (as so made) to fall within sub-paragraph (1)(b) of that paragraph, as if for the words “62.5 per cent.” there were substituted the words “ 50 per cent ”. In this paragraph—
Any accounting change or change of business practice is a relevant change for the purposes of paragraphs 1, 3 and 7 above unless— In this paragraph “accounting change”— In this paragraph “change of business practice” means any change in an established practice of trade, profession or vocation carried on by any person—
Any self-cancelling transaction or transaction with a connected person is a relevant transaction for the purposes of paragraphs 1, 3 and 7 above unless—
the transaction is entered into exclusively for bona fide commercial reasons; or
the obtaining of a tax advantage is not the main benefit that could reasonably be expected to arise from the entering into of the transaction.
An agreement by which the person by whom a trade, profession or vocation is carried on agrees to sell or transfer trading stock or work in progress is a self-cancelling transaction for the purposes of paragraph 15 above if by the same or any collateral agreement that person— In sub-paragraph (1) above— and references in that sub-paragraph to the sale or transfer of work in progress shall include references to the sale or transfer of any benefits and rights which accrue, or might reasonably be expected to accrue, from the carrying out of the work.
For the purposes of paragraph 15 above, any question whether the person by whom a trade, profession or vocation is carried on is connected with another person shall be determined in accordance with sub-paragraphs (2) to (5) below. An individual carrying on a trade, profession or vocation is connected with another person if they are connected with each other within the meaning of section 993 of the Income Tax Act 2007 (but as if, in subsection (4) of that section, the words from “But this subsection” to the end were omitted). Persons carrying on a trade or profession in partnership are connected with an individual if he controls the partnership. Persons carrying on a trade or profession in partnership are connected with a company if the company controls the partnership or the same person controls both the company and the partnership. Persons carrying on a trade or profession in partnership are connected with persons carrying on another trade or profession in partnership if the same person controls both partnerships. In this paragraph—
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the arrangements are made exclusively for bona fide commercial reasons; or
the obtaining of a tax advantage is not the main benefit that could reasonably be expected to arise from the making of the arrangements.
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In this Schedule “turnover”, in relation to a trade, profession or vocation, means the amounts derived from the provision of goods or services falling within its ordinary activities, after deduction of trade discounts and value added tax. Obtaining a tax advantage shall not be regarded as a bona fide commercial reason for the purposes of this Schedule.
Section 126.
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the discharge by the non-resident’s UK representative or by the non-resident himself of an obligation or liability which is or corresponds to one to which that representative is subject under this Schedule shall be treated as discharging the corresponding obligation or liability to which the other is subject; and
the non-resident shall be bound, as if they were his own, by any acts or omissions of his UK representative in the discharge of the obligations and liabilities imposed on that representative by this Schedule.
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to be indemnified in respect of the amount of any liability of the non-resident which is discharged by that agent by virtue of paragraph 2 above; and
to retain, out of any sums otherwise due from that agent to the non-resident, or received by that agent on behalf of the non-resident, amounts sufficient for meeting any liabilities by virtue of that paragraph which have been discharged by the agent, or to which he is subject.
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Section 130.
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Paragraphs 8 to 12 below shall be deemed to have come into force on 23rd March 1995
In section 87A of the Taxes Management Act 1970 (interest on overdue tax) in subsection (4A) (claims under section 131(5) or (6) of the Finance Act 1993)—
for paragraph (c) there shall be substituted—, and
for the words from “then” to the end there shall be substituted “ then, for the purposes of the determination at any time of whether any interest is payable under this section or of the amount of interest so payable, the amount mentioned in paragraph (c) above shall be taken to be an amount of unpaid corporation tax for the earlier period except so far as concerns interest for any time after the date on which any corporation tax for the later period became (or, as the case may be, would have become) due and payable as mentioned in subsection (1) above. ”
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In section 91 of the Taxes Management Act 1970 (effect on interest of reliefs) in subsection (1B) (provisions to which section 91(1A) is subject) after the words “section 87A(4)” there shall be inserted “ , (4A), (4B), ”.
In section 826 of the Taxes Act 1988 (interest on tax overpaid) in subsection (7C) (claims under section 131(5) or (6) of the Finance Act 1993)—
at the end of paragraph (c) there shall be inserted “ or of income tax in respect of a payment received by the company in that accounting period ”, and
for the words from “repayment of corporation tax” to “resulting from” there shall be substituted “ repayment referred to in paragraph (c) above, no account shall be taken of so much of the amount of the repayment as falls to be made as a result of ”.
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Section 133.
In this Schedule—
paragraph 2 contains an amendment designed to secure that in certain cases the chargeable profits of a company resident outside the United Kingdom are to be computed and expressed in the currency used in its accounts;
the other paragraphs contain amendments connected with that amendment.
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Schedule 24 to the Taxes Act 1988 (assumptions for calculating chargeable profits etc.) shall be amended as mentioned in sub-paragraphs (2) to (5) below; and— In paragraph 1 (general assumptions for calculating chargeable profits etc.) in sub-paragraph (4) (assumption for certain purposes that a direction has been given) before the words “it shall be assumed” there shall be inserted “ in determining the chargeable profits of the company for the accounting period mentioned in paragraph (a) above ”. Paragraph 4A (computation of basic profits or losses of a trade) shall be deemed never to have been inserted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Section 135.
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Section 139.
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In the Taxes Management Act 1970 after section 115 there shall be inserted—
After Schedule 3 to that Act there shall be inserted—
Section 162.
Chapter Short title Extent of repeal 1979 c. 4. The Alcoholic Liquor Duties Act 1979. In section 55A(1), the words “exceeding 1.2 per cent, but”. Section 60(1A). Section 63(2). 1988 c. 39. The Finance Act 1988. In Schedule 1, in Part II, paragraph 8 and in paragraph 9 the words from “and after” to the end. These repeals have effect in accordance with section 1 of this Act. Chapter or Number Citation Extent of repeal 1979 c. 4. The Alcoholic Liquor Duties Act 1979. Section 6A. Section 45. Section 60(1) and (2). Section 63(1). 1988 c. 39. The Finance Act 1988. In Schedule 1, paragraph 2. 1991 c. 31. The Finance Act 1991. In Schedule 2, paragraph 12. SI 1992/3158. The Excise Duty (Amendment of the Alcoholic Liquor Duties Act 1979 and the Hydrocarbon Oil Duties Act 1979) Regulations 1992. Regulation 2(4). Chapter Short title Extent of repeal 1979 c. 4. The Alcoholic Liquor Duties Act 1979. In section 1(2), the words “but does not include methylated spirits”. In section 2— (a) in subsection (1), the words “methylated spirits”; (b) in subsection (7), the words “or in any methylated spirits” and the words “or methylated spirits”; and (c) in subsection (8), the words “or methylated spirits”. In section 4(1), the definition of “methylated spirits”. Section 9. Section 77(1)(b). 1979 c. 5. The Hydrocarbon Oil Duties Act 1979. In section 27(3), in the Table, the words “ “methylated spirits””. 1990 c. 29. The Finance Act 1990. Section 8. 1993 c. 34. The Finance Act 1993. Section 8. 1994 c. 9. The Finance Act 1994. In Schedule 4, paragraph 47. In Schedule 5, in paragraph 3— (a) in sub-paragraph (1)(o), the words “methylated spirits and”; and (b) in sub-paragraph (2), the words “methylated spirits”. The powers in section 5(6) and (7) of this Act shall apply in relation to these repeals as they apply in relation to the provisions of that section and Schedule 2 to this Act.
Chapter Short title Extent of repeal 1979 c. 5. The Hydrocarbon Oil Duties Act 1979. Section 8(7).
Chapter Short title Extent of repeal 1981 c. 63. The Betting and Gaming Duties Act 1981. Sections 28(4) and 29(4). In section 33(1), in the definition of “gaming”, the words “(except where it refers to a machine provided for gaming)”. In Schedule 4, paragraph 13. 1993 c. 34. The Finance Act 1993. Section 16(8). 1994 c. 9. The Finance Act 1994. In Schedule 3, paragraph 3(8). 1.These repeals, except the repeals of sections 28(4) and 29(4) of the Betting and Gaming Duties Act 1981, have effect in accordance with section 14 of this Act. 2.The repeals of sections 28(4) and 29(4) of that Act come into force with the passing of this Act.
Chapter Short title Extent of repeal 1994 c. 9. The Finance Act 1994. In Schedule 5, in paragraph 9, the word “and” immediately preceding sub-paragraph (d). This repeal has effect in accordance with section 16 of this Act.
Chapter Short title Extent of repeal 1994 c. 22. The Vehicle Excise and Registration Act 1994. In Schedule 2, paragraphs 1, 12, 13, 14, 15, 16, 17 and 21. 1968 c. xxxii. The Port of London Act 1968. In section 199, paragraph (a) of the proviso to each of subsections (3) and (5). These repeals come into force on 1st July 1995. Chapter Short title Extent of repeal 1994 c. 22. The Vehicle Excise and Registration Act 1994. Section 17(3) to (7). In section 61, in subsection (3), paragraph (c) and the word “and” immediately preceding it, and subsections (4), (5) and (7). In section 62(1) the definitions of “built-in road construction machinery”, “farmer’s goods vehicle”, “road construction machinery” and “road construction vehicle” In Schedule 1— (a) paragraph 4(2)(a), (b) and (f) and (3); (b) paragraph 8; (c) in paragraph 10, in each of sub-paragraphs (2) and (3), the words “(or relevant maximum weight)”, and sub-paragraph (4); (d) paragraphs 12, 14(b) and (c) and 17(1)(c) to (e) and (2). These repeals have effect in accordance with Parts III, IV and IX of Schedule 4 to this Act. Chapter Short title Extent of repeal 1994 c. 22. The Vehicle Excise and Registration Act 1994. In section 31(5)(b) the words “(or an amount equal to the duty due)”. In section 37(2) the words “(or, in Scotland, on indictment or on summary conviction)” and “(or, in Scotland, the statutory maximum)”. In section 41(1)(b) the words “182 or” and “183 or”. 1.The repeal in section 31(5)(b) applies in relation to offences committed after the day on which this Act is passed. 2.The repeals in sections 37(2) and 41(1)(b) apply in relation to proceedings begun after the day on which this Act is passed.
Chapter Short title Extent of repeal 1994 c. 23. The Value Added Tax Act 1994. In Schedule 13, paragraph 7. This repeal has effect in accordance with section 21 of this Act. Chapter Short title Extent of repeal 1994 c. 23. The Value Added Tax Act 1994. In section 47(3), the words “goods or”. This repeal has effect in accordance with section 23(4)(b) of this Act. Chapter Short title Extent of repeal 1994 c. 23. The Value Added Tax Act 1994. Section 32. This repeal comes into force on the day appointed by an order under section 24(2) of this Act. Chapter Short title Extent of repeal 1994 c. 23. The Value Added Tax Act 1994. In section 84(2) the words “, except in the case of an appeal against a decision with respect to the matter mentioned in section 83(l),”. This repeal has effect in accordance with section 31 of this Act.
Chapter Short title Extent of repeal 1994 c. 9. The Finance Act 1994. In section 53(5), paragraph (c) and the word “and” immediately preceding it. This repeal has effect in accordance with paragraph 2 of Schedule 5 to this Act.
Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. Sections 22 and 23. Section 34(9). In section 354(2)(a), the words “or any of the other payments mentioned in section 25(1)”. In section 779(13)(a), the words “allowable by virtue of sections 25, 26 and 28 to 31 and Schedule 1”. 1989 c. 26. The Finance Act 1989. Section 170(1). 1990 c. 1. The Capital Allowances Act 1990. In section 9(6), paragraph (a) and, in paragraph (b), the words “if it is a charge to corporation tax”. In section 92(2), paragraph (a) and, in paragraph (b), the words “if it is a charge to corporation tax”. In section 132(4), paragraph (a) and, in paragraph (b), the words “if it is a charge to corporation tax”. 1991 c. 31. The Finance Act 1991. In Schedule 15, paragraph 18. These repeals come into force in accordance with section 39(4) and (5) of this Act. Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 353— (a) in subsection (1A), paragraph (b) and the word “and” immediately preceding that paragraph; (b) in subsection (1B), paragraph (b) and the word “or” immediately preceding that paragraph; (c) subsections (1C) and (1D); and (d) in subsection (1E), the words “the following factors, that is to say”, and paragraph (b) and the word “and” immediately preceding that paragraph. Section 354(4). In section 355— (a) in subsection (1), the words from “or” at the end of paragraph (a) to the end of the subsection; and (b) subsection (4). In section 356A(3), the words “or but for section 353(1C)(a) would be”. In section 356D(1), the words from “in a case” to “358”. In section 357(1), the words from “in a case” to “358”. Section 358(4A). In section 366(1)(c), the words “355(4) or”. In section 370— (a) in subsection (6), in paragraph (a), the words “in paragraph (a)”, and paragraph (b) and the word “and” immediately preceding it; (b) subsection (6A); and (c) in subsection (7), in paragraph (a), the words from “and paragraph (b)” to “omitted”, and in paragraph (aa), sub-paragraph (ii). 1994 c. 9. The Finance Act 1994. In Schedule 9, paragraphs 4 to 6, 7(2) to (4) and 8. These repeals come into force in accordance with section 42(3) to (5) of this Act. Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. Section 160(5)(b). This repeal has effect in accordance with section 45(5) of this Act. Chapter Short title Extent of repeal 1992 c. 12. The Taxation of Chargeable Gains Act 1992. In section 175(1), the words from “(unless” to the end. This repeal has effect where the acquisition of, or of the interest in, the new assets is on or after 29th November 1994. Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 75(4), the words “and insurance”. In section 241(5), the words from “(that is to say,” to “otherwise be liable)”. In section 242(1)(b), the words “for purposes of section 241(3)”. In section 242(9), the words “by virtue of section 241(5)”. In section 431(2), the definitions of “general annuity business” and “pension business”, “annuity fund”, “basic life assurance business”, “basic life assurance and general annuity business”, “offshore income gain” and “overseas life assurance business”, the word “and” following the definition of “overseas life insurance company” and the definition of “UK distribution income”. Section 431(2A) to (6). Section 431AA. Section 432C(5)(a). Section 434(2) and (7). In section 436(3)(d), from the word “and” following sub-paragraph (i) to the end of the paragraph. Section 437(6). In section 441, in subsection (1), the words “resident in the United Kingdom” and subsection (7). Sections 444C to 444E. In section 474(1), paragraph (b) and the word “and” immediately preceding it. In section 475(2)(a), the words from “or,” to “life assurance business”. In Schedule 19AC, paragraphs 2(2), 3(4), 4(2), 5(2), 6(3), (4) and (6), 7(3), 8(4), 9(2) and (3), 10(3), 11(2) and (6), 12(2), 13(3), 14(3) and 15(2). In Schedule 28, in Part I, paragraph 3(4). 1989 c. 26. The Finance Act 1989. In Schedule 6, paragraph 2. In Schedule 8, paragraph 4. In Schedule 8A, paragraph 2(11). 1990 c. 29. The Finance Act 1990. Section 45(8). In Schedule 6— (a) paragraph 1(2)(a); (b) in paragraph 1(2)(b), the definitions of “basic life assurance business”, “linked assets” and “overseas life assurance business”; and (c) paragraph 1(3) and (4). In Schedule 7, paragraph 7. 1991 c. 31. The Finance Act 1991. In Schedule 7, paragraphs 2, 3, 6 and 10. 1992 c. 12. The Taxation of Chargeable Gains Act 1992. In Schedule 10, paragraph 14(63)(b)(iv). 1993 c. 34. The Finance Act 1993. Section 99. Section 100(1) and (2)(a). 1994 c. 9. The Finance Act 1994. Section 143. Section 176(1). In Schedule 16, paragraph 5(2) and (3). In Schedule 17, paragraph 4. 1.The following repeals have effect in accordance with paragraph 55 of Schedule 8 to this Act— the repeal of the definitions of “offshore income gain” and “overseas life assurance business” in section 431(2) of the Taxes Act 1988, the repeal in section 441(1) of that Act, the repeal of section 444C of that Act so far as it relates to subsection (2)(a) of that section, the repeals in sections 474 and 475 of that Act, the repeals of paragraphs 6(3) and (4) and 11(2) of Schedule 19AC to that Act, the repeal in Schedule 28 to that Act, the repeal of the definition of “overseas life assurance business” in paragraph 1(2)(b) of Schedule 6 to the Finance Act 1990 and the repeal in Schedule 7 to that Act, the repeal of paragraph 10 of Schedule 7 to the Finance Act 1991, and the repeal in the Taxation of Chargeable Gains Act 1992. 2.The repeals other than those listed above have effect in accordance with paragraph 57 of Schedule 8 to this Act. 3.The repeal of the definitions of “general annuity business” and “basic life assurance business” in Chapter I of Part XII of the Taxes Act 1988 does not affect the meaning of those expressions in paragraph 16 or 17 of Schedule 7 to the Finance Act 1991 or section 214 of the Taxation of Chargeable Gains Act 1992 (transitional provisions relating to changes in 1991). Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In Schedule 15, paragraph 3(2)(c). 1992 c. 48. The Finance (No. 2) Act 1992. In Schedule 9, paragraph 19(3). Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In Schedule 14, in paragraph 7(1), the words “and paragraphs 9 and 10 of Schedule 15”. In Schedule 15, paragraphs 21, 22 and, in paragraph 24, in sub-paragraph (3), the word “first” and sub-paragraph (4). These repeals come into force, in accordance with section 55(1) to (5) of this Act, on 5th May 1996. Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 347A(2)(b), the words “within the meaning given by section 660(3)”. Sections 660 to 676. Section 678(7). Sections 679 to 681. Sections 683 to 685. Section 689. In Schedule 29, in paragraph 32, the entry relating to section 27(2) of the Taxes Management Act 1970. In Schedule 30, paragraphs 10 to 12. 1988 c. 39. The Finance Act 1988. In Schedule 3, paragraph 20. 1989 c. 26. The Finance Act 1989. Section 60(3). Sections 108 and 109(1) to (3). 1990 c. 29. The Finance Act 1990. Section 82. 1991 c. 50. The Age of Legal Capacity (Scotland) Act 1991. In Schedule 1, paragraph 48. 1992 c. 12. The Taxation of Chargeable Gains Act 1992. Section 6(1) and (2)(b). In section 79(2), paragraph (b) and the word “and” preceding it. Section 79(4). In section 79(5)(a), the words “or income” wherever occurring. 1992 c. 48. The Finance (No. 2) Act 1992. In section 19(3), the words “683(2), 684(2), 689(2)”. Section 23(2). Section 27. 1993 c. 34. The Finance Act 1993. In Schedule 6— (a) in paragraph 1, the words “683(2), 684(2)”; (b) in paragraph 6, the word “689(2)”; (c) paragraph 24. These repeals have effect for the year 1995-96 and subsequent years of assessment. Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 129(1), the words “has contracted to sell securities, and to enable him to fulfil the contract, he”. Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 695, in subsection (2), the words “subject to subsection (3) below”. In section 701, subsection (14). Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 481(5)(k), the word “that” before sub-paragraph (i). This repeal comes into force in accordance with section 86 of this Act. Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In section 209(2)(e), sub-paragraphs (iv) and (v). These repeals come into force in accordance with section 87(7) and (8) of this Act. Chapter Short title Extent of repeal 1993 c. 34. The Finance Act 1993. Section 63(12). This repeal has effect in accordance with section 88(4) and (5) of this Act. Chapter Short title Extent of repeal 1970 c. 9. The Taxes Management Act 1970. In section 9(3), the words “the following provisions of”. Section 11A. In section 12B(2), the words from “or, where a return” to the end. In section 42(11), paragraph (b) and the word “and” immediately preceding that paragraph. 1988 c. 1. The Income and Corporation Taxes Act 1988. Section 73. In section 206, the words “under Schedule E”. In section 536, in subsection (2), the words “are shown on a claim to” and, in subsection (4), the words from “and in that case” to the end. In section 537B, in subsection (2), the words “are shown on a claim to” and, in subsection (4), the words from “and in that case” to the end. In Schedule 3, in paragraph 6E, sub-paragraphs (1) and (3). 1992 c. 12. The Taxation of Chargeable Gains Act 1992. Section 7. 1994 c. 9. The Finance Act 1994. Section 198. 1.The repeal of section 11A of the Taxes Management Act 1970 has effect in accordance with section 115(13) of this Act. 2.The other repeals, except that in the Finance Act 1994, have effect in accordance with section 103(7) of this Act. Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. Section 114(3). Section 401(2). 1.The repeal of section 114(3) has effect in accordance with section 218(1) of the Finance Act 1994. 2.The other repeal has effect in accordance with section 120(2) of this Act. Chapter Short title Extent of repeal 1970 c. 9. The Taxes Management Act 1970. Sections 78 to 85. 1985 c. 54. The Finance Act 1985. Section 50. 1987 c. 51. The Finance (No. 2) Act 1987. In Schedule 6, paragraph 7. 1988 c. 1. The Income and Corporation Taxes Act 1988. Section 43. In section 115(7), the words “this section and”. In section 510A, in subsection (6), the words “Subject to subsection (7) below”, and subsections (7) and (8). In Schedule 29, in the Table in paragraph 32, the entries relating to section 78(1) and (5) of the Taxes Management Act 1970. 1989 c. 26. The Finance Act 1989. In section 182(3)(c), the words “for the purposes of section 80(3) of the Taxes Management Act 1970 or”. 1991 c. 31. The Finance Act 1991. Section 81. 1992 c. 12. The Taxation of Chargeable Gains Act 1992. In section 59, paragraph (c) and the word “and” immediately preceding it. In Schedule 10, paragraph 2(2), the words “78(3)(b)”. 1994 c. 9. The Finance Act 1994. In section 215(5), paragraph (b), and the word “and” immediately preceding it. 1.The repeal of section 43 of the Taxes Act 1988 comes into force in accordance with section 40(3) of this Act. 2. The repeals in sections 115(7) of the Taxes Act 1988 and of section 59(c) of the Taxation of Chargeable Gains Act 1992 shall have effect in relation to any cases in relation to which section 112 of the Taxes Act 1988 has effect as amended by section 125 of this Act. 3.The repeals in section 510A of the Taxes Act 1988 have effect as respects the year 1997-98 and subsequent years of assessment and also, in relation to groupings whose trades or professions were set up and commenced on or after 6th April 1994, as respects the years 1995-96 and 1996-97. 4.The repeal of section 215(5)(b) of the Finance Act 1994 has effect in accordance with section 125(1) of this Act for the year 1995-96 and subsequent years of assessment. 5.The other repeals come into force— (a) for the purposes of income tax and capital gains tax, in relation to the year 1996-97 and subsequent years of assessment, and (b) for the purposes of corporation tax, in relation to accounting periods beginning after 31st March 1996. Chapter Short title Extent of repeal 1993 c. 34. The Finance Act 1993. In section 129(8)(b) the words “or the circumstances are such that a charge would be so allowed if the duty were settled”. This repeal has effect in accordance with Schedule 24 to this Act. Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In Schedule 24, paragraph 4A. 1993 c. 34. The Finance Act 1993. Section 96. Paragraph 4A of Schedule 24 to the Taxes Act 1988 is deemed never to have been inserted, and section 96 of the Finance Act 1993 is deemed never to have been enacted. Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In Schedule 8, in paragraph 19(6), paragraphs (g) to (k). This repeal has effect in accordance with section 136 of this Act. Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. In Schedule 8, paragraph 8(a). In Schedule 9, in paragraph 27(4) the words from “who is required” to the end. These repeals have effect in accordance with section 137 of this Act. Chapter Short title Extent of repeal 1988 c. 1. The Income and Corporation Taxes Act 1988. Section 559(3). In section 561— (a) in subsection (1), the words “subsection (5) below or”; (b) in subsection (3), the words “563”; (c) subsections (4) and (5); (d) in subsection (6), the words from “(not being” to “apply).”; and (e) subsection (12). In section 562— (a) in subsection (1), the words “(otherwise than as a partner in a firm)”; and (b) subsections (3) to (7). Section 563. 1988 c. 39. The Finance Act 1988. Section 28. 1.The repeal of sections 559(3) and 561(4) and (5) of the Taxes Act 1988, and the repeal in section 561(1) of that Act, have effect in relation to payments made to a person in any case where that person’s certificate under section 561 of that Act is one issued or renewed with respect to a period beginning on or after the appointed day. 2.The repeal of section 561(12) of the Taxes Act 1988 comes into force in accordance with paragraph 8(2) of Schedule 27 to this Act. 3.The other repeals in the Taxes Act 1988 have effect in relation to any application for the issue or renewal of a certificate under section 561 of that Act which is made with respect to a period beginning on or after the appointed day. 4.The repeal of section 28 of the Finance Act 1988 has effect in relation to payments made on or after the appointed day. 5.In Notes 1, 3 and 4 above, “the appointed day” has the same meaning as in section 139 of this Act. Chapter Short title Extent of repeal 1988 c. 1. Income and Corporation Taxes Act 1988. In section 3(1)(c), the words “119 or”. In section 74(1)(q), the words “119 or”. In section 119(1), the words from “and, subject to subsection (2) below, shall be subject to deduction of income tax” to the end. In section 119(2), the words from “instead of” to “subsection (1) above”. In section 122(1), the words from “but without prejudice” to the end. In section 348(2)(b), the words “119 or”. In section 349(1)(c), the words “119 or”. In section 821(3)(c), the words “119 or”. 1992 c. 12. Taxation of Chargeable Gains Act 1992. In section 201(2), the words from “but without prejudice” to the end. These repeals have effect in relation to payments made after the passing of this Act.
Chapter Short title Extent of repeal 1975 c. 22. The Oil Taxation Act 1975. In Schedule 8, in paragraph 4, in sub-paragraph (1), the words from “and the date” to the end of the sub-paragraph and, in sub-paragraph (2), the words “within the time allowed for making the original claim”. These repeals have effect in accordance with section 147 of this Act.
Chapter Short title Extent of repeal 1930 c. 28. The Finance Act 1930. In section 42(3) the words from “with the substitution” to the end. 1954 c. 23 (N.I.). The Finance Act (Northern Ireland) 1954. In section 11(3A) the words from “with the substitution” to the end. These repeals have effect in accordance with sections 149 and 150 of this Act.
Chapter Short title Extent of repeal 1984 c. 51. The Inheritance Tax Act 1984. In section 116(2) the word “either”. This repeal has effect in accordance with section 155 of this Act.
Chapter Short title Extent of repeal 1989 c. 26. The Finance Act 1989. Section 178(2)(n). 1990 c. 29. The Finance Act 1990. Sections 115 to 120. 1991 c. 52. The Ports Act 1991. Section 41(3).