Журнал 1114-го пленарного заседания Постоянного совета

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In section 13A of that Act (rebate on unleaded petrol), for “£0.0202” there shall be substituted “£0.0272”.

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This section shall be deemed to have come into force at 6 o’clock in the evening of 14th March 1989.

The following section shall be inserted after section 20A of the Hydrocarbon Oil Duties Act 1979—

In consequence of subsection (1) above, in paragraph 6 of Schedule 5 to the Hydrocarbon Oil Duties Act 1979 after “section” there shall be inserted “20AA or”.

In section 3(5) of the Alcoholic Liquor Duties Act 1979 (under which the gravity of worts as ascertained by the proper officer is relevant for certain purposes) for the words from “proper officer” to the end there shall be substituted the words “brewer in accordance with subsection (2) above and recorded by him in pursuance of regulations made under section 49 below.”

This section applies to worts if the brewer ascertains their gravity in accordance with section 3(2) of the Alcoholic Liquor Duties Act 1979, for the purpose of the record kept by him in pursuance of regulations under section 49 of that Act, on or after the day on which this Act is passed.

Section 55 of the Alcoholic Liquor Duties Act 1979 (charge of excise duty on made-wine) shall be amended as follows.

so as to produce made-wine the rate of duty applicable to which is higher than the rate applicable to at least one of the constituent liquors.

After subsection (5) there shall be inserted—

This section shall have effect in relation to the blending or other mixing of made-wines, or of made-wines and wines, on or after the day on which this Act is passed.

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The Tables set out in Part II of Schedule 1 to this Act shall also be substituted for Tables A, A(1) and A(2) in Part II of Schedule 4 to the 1972 Act, but modified for that purpose by the substitution for any reference to a plated gross weight of a reference to a relevant maximum weight.

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Section 38(1) of the Vehicles (Excise) Act 1971 shall be amended as follows.

“community bus” means a vehicle used on public roads solely in accordance with a community bus permit (within the meaning of section 22 of the Transport Act 1985), and not used for providing a service under an agreement providing for service subsidies (within the meaning of section 63(10)(b) of that Act);

In the definition of “hackney carriage”, there shall be added at the end the words “but does not include a community bus”.

The amendments of the Vehicles (Excise) Act 1971 and the Vehicles (Excise) Act (Northern Ireland) 1972 set out in Schedule 2 to this Act shall have effect for the purpose of, or in connection with, replacing certain existing classes of vehicles chargeable with duty under Schedule 3 to each of those Acts with a single class of vehicles, namely that of special machines; and shall so have effect in relation to licences taken out after 14th March 1989.

As from 15th March 1989, paragraph 2 of Schedule 1 to the Hydrocarbon Oil Duties Act 1979 (vehicles which are not road vehicles within the meaning of that Act) shall have effect with the substitution of the following sub-paragraph for sub-paragraph (b)—.

Section 19 of each of the Vehicles (Excise) Act 1971 and the Vehicles (Excise) Act (Northern Ireland) 1972 (registration and registration marks) shall be amended as follows.

After subsection (1) there shall be inserted—

In subsection (2), after the words “registration mark” there shall be inserted the words “for the time being”.

Nothing in this section shall be construed as affecting the operation of— in relation to any time before the day on which this Act is passed.

The Secretary of State may by regulations provide for a person in whose name a vehicle is registered to be granted a right, exercisable on a single occasion falling within a specified period, to have the registration mark for the time being assigned to the vehicle assigned to some other vehicle, being a vehicle registered—

Regulations under this section may, in particular, make provision—

Regulations under this section may make different provision for different cases or circumstances.

The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

The assignment by the Secretary of State of any registration mark to a vehicle in pursuance of a right of retention shall be without prejudice to the subsequent exercise by him, in relation to the mark, of any of his powers under subsection (1A) of the principal section (as amended by section 10 above).

In this section—

Expressions used in this section or in section 12 below which are also used in the principal section have the same meaning as in that section.

This section shall apply to such registration marks that either— as the Secretary of State may from time to time determine.

The Secretary of State may by regulations make a scheme providing for registration marks to which this section applies to be assigned to vehicles registered in the names of, or of the nominees of, persons who have acquired rights under the scheme to have the marks in question so assigned.

Regulations under this section may, in particular, make provision—

Without prejudice to the generality of subsection (3)(b) above, regulations under this section may make provision for authorising the Secretary of State to make arrangements with other persons whereby such persons—

Regulations under this section may make different provision for different cases or circumstances, and may, in particular, exempt assignments of any specified class or description from any charge payable by virtue of subsection (3)(j) above.

The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

Any sums received by the Secretary of State in respect of the sale of relevant rights shall be paid into the Consolidated Fund.

Section 11(5) above shall apply for the purposes of this section as if the reference to a right of retention were a reference to a relevant right.

In this section—

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Section 116A of the Customs and Excise Management Act 1979 (power to estimate excise duties) shall be amended as mentioned in subsections (2) and (3) below.

In subsection (1)—

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

After section 146 of the Customs and Excise Management Act 1979 there shall be inserted—

Section 147(1) of that Act shall cease to have effect.

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This section shall have effect in relation to offences committed on or after the day on which this Act is passed.

Group 2 (sewerage services and water) of Schedule 5 (zero-rating) to the Value Added Tax Act 1983 shall be amended as follows.

In item 1, there shall be substituted for paragraph (b)—

In item 2, there shall be inserted at the beginning the words “The supply, for use otherwise than in connection with the carrying on in the course of a business of a relevant industrial activity, of”.

The following shall be inserted at the end—

This section shall have effect in relation to supplies made on or after 1st July 1990.

In Schedule 5 to the Value Added Tax Act 1983 Group 6 (news services) shall be omitted.

This section shall have effect in relation to supplies made on or after 1st April 1989.

For Group 7 (fuel and power) of Schedule 5 to the Value Added Tax Act 1983 there shall be substituted—

This section shall have effect in relation to supplies made on or after lst July 1990.

In item 2 of Group 17 (protective boots and helmets) of Schedule 5 to the Value Added Tax Act 1983 there shall be inserted at the beginning the words “The supply to a person for use otherwise than by employees of his of”.

In Note (5) to that Group (supply of certain goods to include supply of certain services in respect of such goods) there shall be inserted at the end the words “, but, in the case of goods comprised in item 2, only if the goods are for use otherwise than by employees of the person to whom the services are supplied.”

This section shall have effect in relation to supplies made on or after 1st April 1989.

The following section shall be inserted in the Finance Act 1985 after section 13—

This section shall have effect in relation to certificates given on or after the day on which this Act is passed.

Where a person has paid an amount to the Commissioners by way of value added tax which was not tax due to them, they shall be liable to repay the amount to him.

The Commissioners shall only be liable to repay an amount under this section on a claim being made for the purpose.

It shall be a defence, in relation to a claim under this section, that repayment of an amount would unjustly enrich the claimant.

No amount may be claimed under this section after the expiry of 6 years from the date on which it was paid, except where subsection (5) below applies.

Where an amount has been paid to the Commissioners by reason of a mistake, a claim for the repayment of the amount under this section may be made at any time before the expiry of 6 years from the date on which the claimant discovered the mistake or could with reasonable diligence have discovered it.

A claim under this section shall be made in such form and manner and shall be supported by such documentary evidence as the Commissioners prescribe by regulations; and regulations under this subsection may make different provision for different cases.

Except as provided by this section, the Commissioners shall not be liable to repay an amount paid to them by way of value added tax by virtue of the fact that it was not tax due to them.

The preceding provisions of this section apply to an amount paid before, as well as to an amount paid after, the day on which this section comes into force, except where the Commissioners have received a claim for repayment of the amount before that day.

The following paragraph shall be inserted at the end of section 40(1) of the Value Added Tax Act 1983 (appeals)—

This section shall come into force on such day as the Treasury may by order made by statutory instrument appoint.

Section 45 of the Value Added Tax Act 1983 (orders) shall not apply to subsection (10) above.

Schedule 7 to the Value Added Tax Act 1983 (administration, collection and enforcement) shall be amended as follows.

In paragraph 2 (accounting for and payment of tax) for paragraphs (b) and (c) of sub-paragraph (4) there shall be substituted—

In paragraph 7(1) (power to require the keeping of records) after the word “may” there shall be inserted the words “by regulations”.

Regulations under sub-paragraph (1) above may make different provision for different cases and may be framed by reference to such records as may be specified in any notice published by the Commissioners in pursuance of the regulations and not withdrawn by a further notice.

This section shall come into force on such day as the Treasury may by order made by statutory instrument appoint.

Section 45 of the Value Added Tax Act 1983 (orders) shall not apply to subsection (5) above.

Income tax shall be charged for the year 1989-90, and the basic rate of tax shall be 25 per cent.

The higher rate at which income tax is charged for the year 1989-90 in respect of so much of an individual’s total income as exceeds the basic rate limit (£20,700) shall be 40 per cent.

In section 257 of the Taxes Act 1988—

This section shall have effect for the year 1989-90.

Sections 257 to 257F and 265 of the Taxes Act 1988,as inserted for the year 1990-91 and subsequent years by the Finance Act 1988,shall be amended as follows.

In section 257(1) for “£2,605” there shall be substituted “£2,785”.

In section 257(2) for “£3,180” there shall be substituted “£3,400”.

In section 257(3)—

In section 257(5)—

In section 257A(1) for “£1,490” there shall be substituted “£1,590”.

In section 257A(2) for “£1,855” there shall be substituted “£1,985”.

In section 257A(3)—

In section 257A(5)—

In sections . . . 257D(8) and 265(3) after paragraph (b) there shall be insertedor .

In section 257E(1)(b) for “80” there shall be substituted “75”.

In section 257E(2)(a) for “£3,180” there shall be substituted “£3,400”.

In section 257E(2)(b) for “£3,310” there shall be substituted “£3,540”.

For the financial year 1989—

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

Subsection (2) above shall have effect for the financial year 1989 and subsequent financial years; and where by virtue of that subsection section 13 of the Taxes Act 1988 has effect with different relevant maximum amounts in relation to different parts of a company’s accounting period, then for the purposes of that section those parts shall be treated as if they were separate accounting periods and the profits and basic profits of the company for that period shall be apportioned between those parts.

The Taxes Act 1988 shall be amended as follows.

Case I: any emoluments for any year of assessment in which the person holding the office or employment is resident and ordinarily resident in the United Kingdom, subject however to section 192 if the emoluments are foreign emoluments (within the meaning of that section) and to section 193(1) if in the year of assessment concerned he performs the duties of the office or employment wholly or partly outside the United Kingdom; Case II: any emoluments, in respect of duties performed in the United Kingdom, for any year of assessment in which the person holding the office or employment is not resident (or, if resident, not ordinarily resident) in the United Kingdom, subject however to section 192 if the emoluments are foreign emoluments (within the meaning of that section); Case III: any emoluments for any year of assessment in which the person holding the office or employment is resident in the United Kingdom (whether or not ordinarily resident there) so far as the emoluments are received in the United Kingdom;

The following paragraph shall be inserted after paragraph 4 of section 19(1)—

Subsection (2) above shall apply where the year of assessment mentioned in the substituted Case I, II or III is 1989-90 or a subsequent year of assessment.

Subsection (3) above shall apply where each of the years mentioned in the new paragraph 4A(a) or (b) (as the case may be) is 1989-90 or a subsequent year of assessment.

The following sections shall be inserted immediately before section 203 of the Taxes Act 1988—

This section shall apply where the year of assessment mentioned in the new section 202A(1) is 1989-90 or a subsequent year of assessment even if the emoluments concerned are for a year of assessment before 1989-90.

This section shall not apply in the case of emoluments of an office or employment held by a person who died before 6th April 1989.

This section applies to emoluments of an office or employment if— and section 202B of the Taxes Act 1988 shall apply for the purposes of paragraph (d) above as it applies for the purposes of section 202A(1)(a) of that Act.

The emoluments shall be charged to income tax only by reference to the year of assessment in which they are received.

Any adjustments consequential on this section (such as the amendment of assessments or the repayment or setting-off of tax paid) shall be made.

This section shall not apply to emoluments of an office or employment held by a person who died before 6th April 1989.

This section shall not apply if the only emoluments of the office or employment not paid before 6th April 1989 are emoluments for a period consisting of or falling within the period beginning with 5th March 1989 and ending with 5th April 1989.

This section shall not apply unless—

Subsection (8) below applies where emoluments of an office or employment have been or fall to be computed by reference to the accounts basis as regards the year 1987-88 or years of assessment including that year.

In deciding for the purposes of subsection (1)(a) above whether emoluments are emoluments for a particular year, the emoluments of the office or employment for the year or (as the case may be) years mentioned in subsection (7) above, and for the year 1988-89, shall be computed by reference to that basis.

In deciding whether subsection (8) above applies in a particular case, any request to revoke the application of the accounts basis shall be ignored if—

In the application of this section to emoluments of an office or employment under or with a person carrying on business as an authorised Lloyd’s underwriting agent, the references in subsections (1)(d) and (6)(a) above to 6th April 1991 shall be construed as references to 6th April 1994.

Subsection (10) above shall not apply unless the duties of the office or employment relate wholly or mainly to the underwriting agency business.

The reference in subsection (10) above to an authorised Lloyd’s underwriting agent is to a person permitted by the Council of Lloyd’s to act as an underwriting agent at Lloyd's.

If in a particular case it appears to the Board reasonable to do so they may direct that subsections (1)(d) and (6)(a) above shall have effect in relation to that case as if for the references to 6th April 1991 or (as the case may be) 6th April 1994 there were substituted references to such later date as they may specify in the direction.

In this section “the accounts basis” means the basis commonly so called (under which emoluments for a year of assessment are computed by reference to the emoluments for a period other than the year of assessment).

This section applies to emoluments of an office or employment if—

The emoluments shall be treated as if they were not emoluments for the relevant year.

But they shall be treated as if they were emoluments for the year of assessment in which they are received in the United Kingdom and as if they fell within Case III as substituted by section 36 above; and accordingly income tax shall be charged, in accordance with section 202A of the Taxes Act 1988, by reference to the year of assessment in which the emoluments are received in the United Kingdom.

Subsection (2) below applies to emoluments of an office or employment if—

The emoluments shall be treated as if they were received, within the meaning of section 202B of the Taxes Act 1988, on 6th April 1989; and accordingly income tax shall be charged, in accordance with section 202A of that Act, by reference to the year 1989-90.

Subsection (4) below applies to emoluments of an office or employment if—

The emoluments shall be treated as if they were received in the United Kingdom on 6th April 1989; and accordingly income tax shall be charged, in accordance with section 202A of the Taxes Act 1988, by reference to the year 1989-90.

This section applies in relation to the following pensions and other benefits—

As regards any particular year of assessment income tax shall be charged on the amount of the pension or other benefit accruing in respect of the year; and this shall apply irrespective of when any amount is actually paid in respect of the pension or other benefit.

This section shall apply where the year of assessment mentioned in subsection (2) above is 1989-90 or a subsequent year of assessment.

The Taxes Act 1988 shall be amended as follows.

In section 131(2) (interaction of Cases) the words “for the same or another chargeable period” shall be omitted.

In section 149(1) (sick pay chargeable as emoluments of employment for a certain period) the words “for that period” and the words “for that or any other period” shall be omitted.

Section 170 (profit-related pay charged for year of assessment in which it is paid) shall cease to have effect.

In paragraph 2(2) of Schedule 12 (foreign earnings) for the words from “emoluments from” to “year of assessment” there shall be substituted the words “emoluments for the year of assessment from the relevant employment in respect of which such a deduction is allowed”.

This section shall apply for the year 1989-90 and subsequent years of assessment.

Subsection (2) below applies where—

The emoluments—

Subsections (4) and (5) below apply where—

It shall be assumed for the purpose of making the calculation that the emoluments will not be paid before the end of that period of nine months.

But the calculation shall be adjusted if—

In the application of this section to the calculation of a person’s profits or gains as an authorised Lloyd’s underwriting agent—

The reference in subsection (6) above to an authorised Lloyd’s underwriting agent is to a person permitted by the Council of Lloyd’s to act as an underwriting agent at Lloyd's.

In a case where the period of account mentioned in subsection (1)(a) above begins before 6th April 1989 and ends before 6th April 1990, the references in subsections (1)(c), (3)(b), (4) and (5)(a) above to nine months shall be construed as references to eighteen months.

In this section “period of account” means a period for which an account is made up.

For the purposes of this section “relevant emoluments” are emoluments for a period after 5th April 1989 allocated either—

This section applies in relation to potential emoluments as it applies in relation to relevant emoluments, and for this purpose—

In deciding for the purposes of this section whether emoluments are paid at any time after 5th April 1989, section 202B of the Taxes Act 1988 (time when emoluments are treated as received) shall apply as it applies for the purposes of section 202A(1)(a) of that Act, but reading “paid” for “received” throughout.

In section 436(1)(b) of the Taxes Act 1988 (profits to be computed in accordance with provisions of that Act applicable to Case I of Schedule D) the reference to that Act shall be deemed to include a reference to this section.

Subsection (2) below applies where—

The emoluments—

Subsections (4) and (5) below apply where—

It shall be assumed for the purpose of making the calculation that the emoluments will not be paid before the end of that period of nine months.

But the calculation shall be adjusted if—

In a case where the accounting period mentioned in subsection (1)(a) above begins before 6th April 1989 and ends before 6th April 1990, the references in subsections (1)(c), (3)(b), (4) and (5)(a) above to nine months shall be construed as references to eighteen months.

In this section “investment company” has the same meaning as in Part IV of the Taxes Act 1988.

For the purposes of this section “relevant emoluments” are emoluments for a period after 5th April 1989 allocated either—

This section applies in relation to potential emoluments as it applies in relation to relevant emoluments, and for this purpose—

For the purpose of this section the relevant period of account is the period of account which—

In deciding for the purposes of this section whether emoluments are paid at any time after 5th April 1989, section 202B of the Taxes Act 1988 (time when emoluments are treated as received) shall apply as it applies for the purposes of section 202A(1)(a) of that Act, but reading “paid” for “received” throughout.

Where the profits of a company carrying on life assurance business are not charged under Case I of Schedule D, this section shall apply in calculating the profits as it applies in calculating the profits of an investment company; but the effect of section 86 below shall be ignored in construing subsection (1)(b) above.

In a case where, apart from this subsection and by virtue of subsection (2)(b) above as it applies by virtue of subsection (12) above, emoluments fall to be deducted in calculating profits for a particular accounting period—

The Taxes Act 1988 shall be amended as follows.

The following section shall be inserted after section 203—

Section 203(4) (regulations may define payment) shall cease to have effect.

Subsection (2) above shall have effect to determine whether anything occurring on or after the day on which this Act is passed constitutes a payment for the purposes mentioned in the new section 203A.

But if an event occurring before the day on which this Act is passed constituted a payment of or on account of income for the purposes mentioned in the new section 203A, nothing occurring on or after that day shall constitute a payment of or on account of the same income for those purposes.

In section 360 of the Taxes Act 1988 for subsection (4) there shall be substituted—

The following section shall be inserted after that section—

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

This section shall have effect for the year 1989-90 and subsequent years of assessment.

For the purposes of this section a security asset is an asset which improves personal security, and a security service is a service which improves personal security.

In a case where— in charging tax under Schedule E on the emoluments from the employment a deduction shall be allowed of an amount equal to so much of the cost so borne as falls to be included in the emoluments of the employment.

In a case where— in charging tax under Schedule E on the emoluments from the employment a deduction shall be allowed of an amount equal to the amount of the expenses.

Subsection (2) or (3) above shall not apply unless the asset or service is provided for or used by the employee to meet a threat which—

Subsection (2) or (3) above shall not apply unless the provider has the meeting of that threat as his sole object in wholly or partly bearing the cost or reimbursing the expenses (as the case may be).

Subsection (2) or (3) above shall not apply in the case of a service unless the benefit resulting to the employee consists wholly or mainly of an improvement of his personal physical security.

Subsection (2) or (3) above shall not apply in the case of an asset unless the provider intends the asset to be used solely to improve personal physical security.

In a case where— section 50(2) shall nevertheless apply, but only so as to allow a deduction of the appropriate proportion of the amount there mentioned.

For the purposes of subsection (1) above the appropriate proportion of the amount mentioned in section 50(2) above is such proportion of that amount as is attributable to the provider’s intention that the asset be used to improve personal physical security.

In a case where— section 50(3) shall nevertheless apply, but only so as to allow a deduction of the appropriate proportion of the amount there mentioned.

For the purposes of subsection (3) above the appropriate proportion of the amount mentioned in section 50(3) above is such proportion of that amount as is attributable to the provider’s intention that the asset be used to improve personal physical security.

If the provider intends the asset to be used solely to improve personal physical security, but there is another use for the asset which is incidental to improving personal physical security, that other use shall be ignored in construing section 50(7) above.

The fact that an asset or service improves the personal physical security of any member of the employee’s family or household, as well as that of the employee, shall not prevent section 50(2) or (3) above from applying.

In sections 50 and 51 above and this section—

For the purposes of sections 50 and 51 above and this section in their application to an asset, it is immaterial whether or not the asset becomes affixed to land (whether constituting a dwelling or otherwise).

For the purposes of sections 50 and 51 above and this section in their application to an asset, it is immaterial whether or not the employee is or becomes entitled to the property in the asset or (in the case of a fixture) an estate or interest in the land concerned.

Sections 50 and 51 above and this section apply where expenditure is incurred on or after 6th April 1989 in or towards bearing a cost or in reimbursing expenses (as the case may be).

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This section applies where—

The requirement mentioned in subsection (1)(b) above is that the contract insures—

If the payment is made by an individual who at the time it is made is resident in the United Kingdom (whether or not he is the individual or one of the individuals insured by the contract) the individual shall be entitled to relief under this subsection in respect of the payment; and (except where subsections (4) to (6) below apply) relief under this subsection shall be given—

In a case where— for the purposes of subsection (2) above in its application to the contract the surviving spouse shall be deemed to be aged 60 or over at the time mentioned in paragraph (b) above.

In such cases and subject to such conditions as the Board may specify in regulations, relief under subsection (3) above shall be given in accordance with subsections (5) and (6) below.

An individual who is entitled to such relief in respect of a payment may deduct and retain out of it an amount equal to income tax on it at the basic rate for the year of assessment in which it is made.

Where an individual is entitled to relief under subsection (3) above in respect of one or more payments made in a given year of assessment, the amount of his liability for that year of assessment to income tax on his total income shall be the amount to which he would be liable apart from this section less whichever is the smaller of—

The person to whom the payment is made—

The amount referred to in subsection (3A)(a) above is an amount found by—

The Treasury may make regulations providing that in circumstances prescribed in the regulations—

In determining for the purposes of subsection (3A) above the amount of incomers on would be liable apart from this section, no account shall be taken of—

Regulations under subsection (7) above may include provision adapting or modifying the effect of any enactment relating to income tax in order to secure the performance of any obligation imposed under paragraph (b) of that subsection.

In this section—

This section has effect to determine whether a contract is at a particular time (the relevant time) an eligible contract for the purposes of section 54 above.

A contract is an eligible contract at the relevant time if—

The first condition is that the contract is certified by the Board under section 56 below at the relevant time.

The conditions referred to in subsection (2)(ba) above are that—

The second condition is that, at the time the contract was entered into, it conformed with a standard form certified by the Board as a standard form of eligible contract.

In a case where— the contract shall not thereby be regarded as failing to satisfy at the relevant time the condition set out in subsection (2A)(b) above.

The third condition is that, at the time the contract was entered into, it conformed with a form varying from a standard form so certified in no other respect than by making additions—

For the purposes of subsection (2B) above a material right is a right which—

Where a contract is varied, and the relevant time falls after the time the variation takes effect, subsections (1) to (5) above shall have effect as if “entered into” read “varied” in each place where it occurs in subsections (4) and (5) above.

This subsection applies in the case of a contract (the main contract) if—

For the purposes of this section a contract is connected with another contract at any time if—

For the purposes of this section each of the following is a qualifying insurer—

For the purposes of this section a benefit is an approved benefit if it is provided in pursuance of a right of a description

For the purposes of this section a benefit is also an approved benefit if it is not a cash benefit and—

In this section the reference to a premium, in relation to a contract of insurance, is to any amount payable under the contract to the insurer.

For the purposes of this section the prescribed sum is £30.

The Treasury may by order substitute for the sum for the time being specified in subsection (12) above such sum as may be specified in the order; and any such substitution shall have effect in relation to cases where the relevant time falls on or after such date as is specified in the order.

The Board shall certify a contract under this section if it satisfies the conditions set out in subsection (3) below; and the certification shall be expressed to take effect from the time the conditions are satisfied, and shall take effect accordingly.

The Board shall revoke a certification of a contract under this section if it comes to their notice that the contract has ceased to satisfy the conditions set out in subsection (3) below; and the revocation shall be expressed to take effect from the time the conditions ceased to be satisfied, and shall take effect accordingly.

The conditions referred to above are that—

The certification of a contract by the Board under this section shall cease to have effect if the contract is varied; but this is without prejudice to the application of the preceding provisions of this section to the contract as varied.

Where the Board refuse to certify a contract under this section, or they revoke a certification, an appeal may be made to the Special Commissioners by—

Where a contract is certified under this section, or a certification is revoked or otherwise ceases to have effect, any adjustments resulting from the certification or from its revocation or ceasing to have effect shall be made.

Subsection (6) above applies where a certification or revocation takes place on appeal as it applies in the case of any other certification or revocation.

In this section the reference to a premium, in relation to a contract of insurance, is to any amount payable under the contract to the insurer.

The Board may by regulations—

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The following provisions of the Taxes Management Act 1970, namely— shall apply in relation to an amount which is paid to any person by the Board as an amount recoverable by virtue of section 54(6)(b) above but to which that person is not entitled as if it were income tax which ought not to have been repaid and, where that amount was claimed by that person, as if it had been repaid as respects a chargeable period as a relief which was not due.

In sections . . . 257D(8) and 265(3) of the Taxes Act 1988 after paragraph (c) there shall be insertedor .

In the application of section 86 of the Taxes Management Act 1970 by virtue of subsection (3) above in relation to sums due and payable by virtue of an assessment made under section 29(1)(c) or 30 of that Act, as applied by that subsection, the relevant date—

In subsection (1) above—

In section 202(7) of the Taxes Act 1988 (which limits to £240 the deductions attracting relief) for “£240” there shall be substituted “£480”.

This section shall have effect for the year 1989-90 and subsequent years of assessment.

In determining whether a payment made to a charity within subsection (2) below is — there shall be disregarded any consideration for the payment which is of a kind described in subsection (3) below.

A charity is within this subsection if its sole or main purpose is—

The consideration referred to in subsection (1) above is the right of admission—

In subsection (3) above “right of admission” refers to admission of the person making the payment (or of any member of his family who may be admitted because of the payment) either free of the charges normally payable for admission by members of the public, or on payment of a reduced charge.

Subsection (1) above shall not apply unless the opportunity to make payments of the kind in question is available to members of the public.

For the purposes of this section—

This section shall apply to payments due on or after 14th March 1989.

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Part III of Schedule 9 to the Taxes Act 1988 (requirements applicable to savings-related share option schemes) shall be amended as follows.

In paragraph 24(2)(a) (scheme not to permit monthly amount of contributions linked to schemes to exceed £100), for “£100” there shall be substituted “£150”.

In paragraph 25(b) (requirement that price at which share may be acquired under scheme be not less than 90 per cent. of market value), for the words “90 per cent.” there shall be substituted the words “80 per cent.”.

Subsection (2) above shall come into force on such day as the Treasury may by order made by statutory instrument appoint.

In section 187(2) of the Taxes Act 1988, in the definition of “relevant amount” (limit on the value of shares that may be appropriated to a participant in a year of assessment), for the words “not less than £l,250 and not more than £5,000” there shall be substituted the words “not less than £2,000 and not more than £6,000”.

This section shall apply for the year 1989-90 and subsequent years of assessment.

In relation to offers made on or after 11th October 1988, section 68 of the Finance Act 1988 (which provides for the benefits derived from priority rights in share offers to be disregarded in certain circumstances) shall have effect with the following amendments.

In subsection (1), the words from “at the fixed price” to “tendered” shall be omitted.

After that subsection there shall be inserted—

In subsection (2), for paragraph (a) (priority shares not to exceed 10 per cent. of shares subject to the offer) there shall be substituted—.

After subsection (2) there shall be inserted—

This section applies where—

In such a case the sum—

For the purposes of subsection (1)(b) above, the question whether one company is controlled by another shall be construed in accordance with section840 of the Taxes Act 1988.

For the purposes of subsection (1)(d) above each of the following is a qualifying purpose—

For the purposes of subsection (1)(d) above the expenditure period is the period of nine months beginning with the day following the end of the period of account in which the sum is charged as an expense of the company, or such longer period as the Board may allow by notice given to the company.

For the purposes of subsection (1)(e) above the claim period is the period of two years beginning with the day following the end of the period of account in which the sum is charged as an expense of the company.

For the purposes of this section the trustees of an employee share ownership trust shall be taken to expend sums paid to them in the order in which the sums are received by them (irrespective of the number of companies making payments).

This section applies where a chargeable event (within the meaning of section 69 below) occurs in relation to the trustees of an employee share ownership trust.

In such a case—

If the whole or any part of the tax assessed on the trustees is not paid before the expiry of the period of six months beginning with the day on which the assessment becomes final and conclusive, a notice of liability to tax under this subsection may be served on a qualifying company and the tax or the part unpaid (as the case may be) shall be payable by the company on service of the notice.

Where a notice of liability is served under subsection (3) above— shall be payable by the company.

Where a notice of liability is served under subsection (3) above and any amount payable by the company (whether on account of tax or interest) is not paid by the company before the expiry of the period of three months beginning with the date of service, the amount unpaid may be recovered from the trustees(without prejudice to the right to recover it instead from the company).

For the purposes of this section each of the following is a qualifying company—

A company falls within this subsection if, before it is sought to serve a notice of liability on it under subsection (3) above—

For the purposes of section 68 above each of the following is a chargeable event in relation to the trustees of an employee share ownership trust—

For the purposes of subsection (1)(a) above a transfer is a qualifying transfer if it is made to a person who at the time of the transfer is a beneficiary under the terms of the trust deed.

For the purposes of subsection (1)(a) above a transfer is also a qualifying transfer if—

For the purposes of subsection (1)(b) above a transfer of securities is made on qualifying terms if—

For the purposes of subsection (1)(a) above a transfer is also a qualifying transfer if—

For the purposes of subsection (1)(d) or (e) above each of the following is a qualifying purpose—

For the purpose of determining whether a transfer by the trustees is a qualifying transfer within subsection (3AA) above, where on or after 21st March 2000— the relevant shares shall be treated as transferred or disposed of before any other shares included in that holding. For this purpose “ holding ” means any number of shares of the same class held by the trustees, growing or diminishing as shares of that class are acquired or disposed of.

For the purposes of subsection (4) above, the fact that terms vary according to the levels of remuneration of beneficiaries, the length of their service, or similar factors, shall not be regarded as meaning that the terms are not similar.

For the purposes of subsections (3AA) and (3AB) above—

In ascertaining for the purposes of this section whether particular securities are retained, securities acquired earlier by the trustees shall be treated as transferred by them before securities acquired by them later.

For the purposes of subsection (3AC) above—

For the purposes of this section trustees—

For the purposes of subsection (1)(a) above a transfer is also a qualifying transfer if it is made by way of exchange in circumstances mentioned in section 85(1) of the Capital Gains Tax Act 1979 or section 135(1) of the Taxation of Chargeable Gains Act 1992.

The exceptions are these—

If trustees agree to take a transfer of securities, for the purposes of this section they shall be treated as becoming entitled to them when the agreement is made and not on a later transfer made pursuant to the agreement.

For the purposes of subsection (1)(b) above a transfer of securities is also made on qualifying terms if—

If trustees agree to transfer securities to another person, for the purposes of this section the other person shall be treated as becoming entitled to them when the agreement is made and not on a later transfer made pursuant to the agreement.

For the purposes of subsection (1)(c) above the qualifying period is— and for this purpose a trust is established when the deed under which it is established is executed.

For the purposes of this section the following are securities—

The period referred to in paragraph (e) of subsection (1) above is the period—

This section has effect to determine the chargeable amount for the purposes of section 68 above.

If the chargeable event falls within section 69(1)(a), (b) or (c) above the following rules shall apply—

If the chargeable event falls within section 69(1)(d) above the chargeable amount is an amount equal to the sum concerned.

If the chargeable event falls within section 69(1)(e) above the chargeable amount is an amount equal to—

This section applies where—

In the following provisions of this section—

If any of the total outstanding amount is repaid after the initial chargeable event occurs, a further chargeable event shall occur in relatio nto the trustees at the end of the year of assessment in which the repayment is made.

In such a case—

Subject to subsection (6) below, for the purposes of subsection (4) above the chargeable amount is an amount equal to the aggregate of the total outstanding amount repaid in the year of assessment.

In a case where section 72(2)(b) below had effect in the case of the initial chargeable event, for the purposes of subsection (4) above the chargeable amount is an amount equal to the smaller of—

For the purposes of subsection (6) above—

If, before the further chargeable event occurs, one or more prior chargeable events have occurred in relation to the trustees by virtue of the prior repayment of any of the total outstanding amount found for the time the initial chargeable event occurs, the amount found under this subsection is an amount equal to the chargeable amount for the prior chargeable event or to the aggregate of the chargeable amounts for the prior chargeable events (as the case may be).

In a case where— the sum or part (as the case may be) shall not be included in the total outstanding amount found for the time the other chargeable event occurs.

In ascertaining for the purposes of this section whether a repayment is in respect of a particular amount, amounts borrowed earlier shall be taken to be repaid before amounts borrowed later.

Subsections (3) to (7) of section 68 above shall apply where tax is assessed by virtue of this section as they apply where tax is assessed by virtue of that section.

For the purposes of this section each of the following is a chargeable event in relation to the trustees of an employee share ownership trust—

If a chargeable event (the event in question) occurs in relation to the trustees of an employee share ownership trust, the following rules shall apply—

For the purposes of subsection (2) above the deductible amount (as regards the event in question) is an amount equal to the total of the sums falling within subsection (4) below.

A sum falls within this subsection if it has been received by the trustees before the occurrence of the event in question and—

An inspector may by notice in writing require a return to be made by the trustees of an employee share ownership trust if they have at any time received a sum which has been deducted as mentioned in section 67(2)(a) above or treated as mentioned in section 67(2)(b) above.

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

The information which may be specified is information the inspector needs for the purposes of sections 68 to 72 above, and may include information about—

The information which may be required under subsection (3)(a) above may include the persons from whom the sums were received.

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

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

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

In a case where a sum has been deducted as mentioned in section 67(2)(a)above, or treated as mentioned in section 67(2)(b) above, the inspector shall send to the trustees to whom the payment was made a certificate stating—

In the Table in section 98 of the Taxes Management Act1970 (penalties for failure to comply with notices etc.) at the end of the first column there shall be inserted— “ Section 73 of the Finance Act 1989 ”.

In computing the amount of the profits or gains to be charged under Case I or Case II of Schedule D, no sum shall be deducted in respect of any expenses falling within subsection (2) or (3) below; and no expenses falling within either of those subsections shall be treated for the purposes of section 75 of the Taxes Act 1988 (investment companies) as expenses of management.

Expenses fall within this subsection if—

Expenses fall within this subsection if—

No sum shall be deducted in respect of any expenses falling within subsection (5) or (6) below— unless the sum has actually been expended.

Expenses fall within this subsection if—

Expenses fall within this subsection if—

In this section—

This section has effect in relation to expenses incurred on or after the day on which this Act is passed.

Where, in the case of a certified unit trust and apart from this subsection, section 468(5) of the Taxes Act 1988 would apply as regards a distribution period beginning after 31st December 1989, section 468(5) shall not apply in the case of the trust as regards that period.

Where by virtue of subsection (1) above the last distribution period as regards which section 468(5) applies in the case of a certified unit trust is one beginning on or before, and ending after, 31st December 1989, the trustees' liability to income tax in respect of any source of income chargeable under Case III of Schedule D shall be assessed as if they had ceased to possess the source of income on the last day of that distribution period.

But where section 67 of the Taxes Act 1988 applies by virtue of subsection (2) above, it shall apply with the omission from subsection (1)(b) of the words from “and shall” to “this provision”.

For the purposes of this section “certified unit trust” means, as respects a distribution period, a unit trust scheme in the case of which—

In this section—

In section 758 of the Taxes Act 1988 (offshore funds operating equalisation arrangements) in subsection (6) (reference to section 78 of the Capital Gains Tax Act 1979 not to include reference to it as applied by section 82) for the words “but not” there shall be substituted the words “and a reference to section 78”.

This section shall apply where a conversion of securities occurs on or after 14th March 1989; and “conversion of securities” here has the same meaning as in section 82 of the Capital Gains Tax Act 1979.

Where the profits of an insurance company in respect of its life assurance business are, for the purposes of the Taxes Act 1988, computed in accordance with the provisions of that Act applicable to Case I of Schedule D, then, in calculating the profits for any period of account,—

For the purposes of this section an amount is allocated to policy holders or annuitants if, and only if,— and the amount of the allocation is, in a case within paragraph (a) above, the amount of the payments and, in a case within paragraph (b) above, the amount of the liabilities assumed by the company in consequence of the declaration or reduction.

The amount which, apart from this subsection, would be included in the closing liabilities of a period of account by virtue of subsection (1)(b) above shall be reduced or, as the case may be, extinguished by deducting therefrom the total of the amounts which—

Where the closing liabilities of a period of account include an amount by virtue of subsection (1)(b) above, the like amount shall be included in the opening liabilities of the next following period of account.

This section has effect with respect to periods of account ending on or after 14th March 1989; and the following provisions of this section shall apply for the purposes of the application of this section to any such period which begins before that date (in this section referred to as a “straddling period”).

For the purposes referred to in subsection (5) above, it shall be assumed that the straddling period consists of two separate periods of account,— and any reference in subsection (7) or subsection (8) below to a time apportionment is a reference to an apportionment made by reference to the respective lengths of the two notional periods.

To determine the profits of the first notional period and the amount excluded from the profits of that period by virtue of section 433 of the Taxes Act 1988 as being reserved for policy holders or annuitants,—

To determine the profits of the second notional period,—

Where the profits of an insurance company in respect of its life assurance business are, for the purposes of the Taxes Act 1988, computed in accordance with the provisions of that Act applicable to Case I of Schedule D, then, so far as referable to that business, the following items, as brought into account for a period of account (and not otherwise), namely,— shall be taken into account as receipts of the period; and if for any period of account there is a reduction in the value referred to in paragraph (b) above (as brought into account for the period), that reduction shall be taken into account as an expense of that period.

Except in so far as regulations made by the Treasury otherwise provide, in subsection (1) above “brought into account” means brought into account in the revenue account prepared for the purposes of the Insurance Companies Act 1982.

Subject to subsection (5) below, this section has effect with respect to periods of account ending on or after 1st January 1990; and the following provisions of this section shall apply for the purposes of the application of this section to any such period which begins before that date (in this section referred to as a “straddling period”).

Subject to subsection (5) below, for the purposes referred to in subsection (3) above, it shall be assumed that the straddling period consists of two separate periods of account,— and any reference in subsection (6) or subsection (7) below to a time apportionment is a reference to an apportionment made by reference to the respective lengths of the two notional periods.

In the case of any company which, by notice in writing given to the inspector on or before 31st December 1992, so elects,—

To determine the profits of the first notional period,—

To determine the profits of the second notional period,—

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Subject to subsection (2) below, where the profits of an insurance company in respect of its life assurance business are not charged under Case I of Schedule D, there shall be chargeable under Case VI of that Schedule any receipts referable to the company’s basic life assurance business— and for the purposes of paragraph (a) above, the provisions of section 83 above as to the manner in which any item is to be taken into account shall be disregarded.

The receipts referred to in subsection (1) above do not include—

This section has effect with respect to the receipts of accounting periods beginning on or after 1st January 1990 (including the 1990 component period).

For the purposes of this section, the acquisition expenses for any period of an insurance company carrying on life assurance business are such of the following expenses of management as are for that period attributable to the company’s basic life assurance business,— less any such repayments or refunds falling within section 76(1)(c) of the Taxes Act 1988 as are received in the period.

The exclusion from paragraph (a) of subsection (1) above of commissions in respect of industrial life assurance business shall not prevent such commissions constituting expenses of management for the purposes of paragraph (b) or paragraph (c) of that subsection.

Nothing in subsections (1) and (2) above applies to commissions (however described) in respect of insurances made before 14th March 1989, but without prejudice to the application of those subsections to any commission attributable to a variation on or after that date in a policy issued in respect of an insurance made before that date; and, for this purpose, the exercise of any rights conferred by a policy shall be regarded as a variation of it.

In subsection (1) above “the acquisition of business” includes the securing on or after 14th March 1989 of the payment of increased or additional premiums in respect of a policy of insurance issued in respect of an insurance already made (whether before, on or after that date).

In relation to any period, the expenses of management attributable to a company’s basic life assurance business are expenses—

Notwithstanding anything in sections 75 and 76 of the Taxes Act 1988 but subject to subsection (7) below, only one-seventh of the acquisition expenses for any accounting period (in this section referred to as “the base period”) shall be treated as deductible under those sections for the base period, and in subsections (8) and (9) below any reference to the full amount of the acquisition expenses for the base period is a reference to the amount of those expenses which would be deductible for that period apart from this subsectio

In the case of the acquisition expenses for an accounting period or part of an accounting period falling wholly within 1990, subsection (6) above shall have effect as if for “one-seventh” there were substituted “five-sevenths”; and, in the case of the acquisition expenses for an accounting period or part of an accounting period falling wholly within 1991, 1992 or 1993, the corresponding substitution shall be “four-sevenths”, “three-sevenths” or “two-sevenths” respectively.

Where, by virtue of subsection (6) (and, where appropriate, subsection (7)) above, only a fraction of the full amount of the acquisition expenses for the base period is deductible under sections 75 and 76 of the Taxes Act 1988 for that period, then, subject to subsection (9) below, a further one-seventh of the full amount shall be so deductible for each succeeding accounting period after the base period until the whole of the full amount has become so deductible, except that, for any accounting period of less thaa year, the fraction of one-seventh shall be proportionately reduced.

For any accounting period for which the fraction of the full amount of the acquisition expenses for the base period which would otherwise be deductible in accordance with subsection (8) above exceeds the balance of those expenses which has not become deductible for earlier accounting periods, only that balance shall be deductible.

This section has effect for accounting periods beginning on or after 1st January 1990 (including the 1990 component period).

Section 76 of the Taxes Act 1988 shall be amended in accordance with subsections (2) and (3) below.

and for this purpose “net income and gains” means income and gains after deducting any reliefs or exemptions which fall to be applied before taking account of this section.

For subsection (8) there shall be substituted—

In consequence of the amendment made by subsection (2) above, section 436(3)(b) of the Taxes Act 1988 (no deduction of expenses of management in certain cases) shall cease to have effect.

This section has effect with respect to accounting periods beginning on or after 1st January 1990; and, in relation to a straddling period, sections 75, 76 and 436 of the Taxes Act 1988—

If, for the 1989 component period, there is an amount of expenses of management available to be carried forward to the 1990 component period under section 75(3)(a) of the Taxes Act 1988 (as applied by section 76 thereof),—

In the case of a company which has an accounting period beginning on 1st January 1990, subsection (6) above shall apply as if—

Subject to subsection (2) below, in the case of a company carrying on life assurance business, the rate of corporation tax chargeable for any financial year on the policy holders' fraction of its relevant profits for any accounting period shall be deemed to be the rate at which income tax at the basic rate is charged for the year of assessment which begins on 6th April in the financial year concerned.

Subsection (1) above does not apply in relation to profits charged under Case I of Schedule D.

For the purposes of subsection (1) above, the relevant profits of a company for an accounting period are the total profits of its life assurance business, less any deduction due under section 76 of the Taxes Act 1988, but before allowing any relief under Chapter II or Chapter IV of Part X of that Act.

In determining for the purposes of section 13 of the Taxes Act 1988 (small companies' relief) the profits and basic profits (within the meaning of that section) of an accounting period of a company carrying on life assurance business, the policy holders' fraction of the company’s relevant profits for that period shall be left out of account.

This section has effect with respect to the profits of a company for accounting periods beginning on or after 1st January 1990 (including the 1990 component period); and, for this purpose, the profits of the 1990 component period shall be taken to be that portion of the profits of the straddling period which the length of the 1990 component period bears to the length of the straddling period.

In relation to an accounting period of an insurance company carrying on life assurance business, any reference to the shareholders' fraction or the policy holders' fraction is a reference to the appropriate fraction determined, subject to subsections (7) and (8) below, by the formulae in subsection (2) below.

The formulae referred to in subsection (1) above are— and

for the policy holders' fraction, where “A” and “B” are determined in accordance with the following provisions of this section.

In the formulae in subsection (2) above “A” is the profits of the company for the accounting period in respect of its life assurance business, computed in accordance with the provisions of the Taxes Act 1988 applicable to Case I of Schedule D, and, if there are no such profits (or there is a loss), “A” is zero.

Subject to subsection (6) below, in those formulae “B” is such a sum as, after deduction of corporation tax at the rate provided for by subsection (1) of section 88 above in relation to the policy holders' fraction of the company’s relevant profits for the accounting period (within the meaning of that subsection), is equal to the excess (if any) for the corresponding period of account of— and, if there is no such excess, “B” is zero.

The references in subsection (4) above to the opening and closing liabilities to policy holders are references to those liabilities including any such amount as is referred to in section 82(1)(b) above.

In relation to an accounting period, references in subsection (4) above to the corresponding period of account are references,— and, for the purpose of determining “B” in a case where paragraph (b) above applies, the aggregates referred to in paragraphs (a) and (b) of subsection (4) above shall each be proportionately reduced to reflect the length of the accounting period as compared with the length of the corresponding period of account.

Subject to subsection (8) below, if in the case of any accounting period of a company both “A” and “B” in the formulae in subsection (2) above are zero,—

In relation to an accounting period of an insurance company carrying on mutual life assurance business,—

In section 725 of the Taxes Act 1988 (Lloyd’s underwriters) the following subsections shall be inserted after subsection (9)—

In section 142A of the Capital Gains Tax Act 1979 (assets in premiums trust fund) the following subsections shall be inserted after subsection (4)—

This section applies where the transfer by the trustees of a premiums trust fund is made after the date specified as mentioned in section 129(6) of the Taxes Act 1988.

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Section 126 of the Taxes Act 1988 (tax not to be charged on certain securities in respect of discount under Case III of Schedule D) shall be amended as mentioned in subsections (2) and (3) below.

In subsection (2) (the securities affected) for the words “except Treasury bills” there shall be substituted the words except—

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

The preceding provisions of this section shall apply—

Subsection (7) below applies where—

Subsection (7) below also applies where—

In a case where this subsection applies, section 126 of the Taxes Act 1988 shall not apply in the case of the disposal, transfer or redemption (as the case may be).

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In section 240 of the Taxes Act 1988 (set-off of company’s ACT against subsidiary’s liability to corporation tax) at the end of subsection (5)(set-off not to be made against subsidiary’s liability to corporation tax for any accounting period in which, or in any part of which, it was not a subsidiary of the surrendering company) there shall be added the words “unless throughout that period or part both companies were subsidiaries of a third company”.

This section shall have effect in relation to accounting periods ending on or after 14th March 1989.

After section 245 of the Taxes Act 1988 there shall be inserted—

This section shall have effect where the change in the ownership of the relevant company occurs on or after 14th March 1989.

Section 247 of the Taxes Act 1988 (dividends etc. paid by one member of a group to another) shall be amended in accordance with this section.

In subsection (1) for paragraph (b) there shall be substituted—.

After subsection (1) there shall be inserted—

After subsection (8) there shall be inserted—

For subsection (9)(c) there shall be substituted—

After subsection (9) there shall be inserted—

This section shall have effect in relation to dividends and other sums paid on or after the day on which this Act is passed.

Section 769 of the Taxes Act 1988 (which contains rules for determining whether for the purposes of sections 245 and 768 of that Act there is a change in the ownership of a company) shall be amended in accordance with this section.

For subsection (6) there shall be substituted—

Subsection (7)(b) and (c) shall cease to have effect.

This section shall have effect where the change of ownership of a company would be treated as occurring on or after 14th March 1989.

Paragraph 1 of Schedule 18 to the Taxes Act 1988 (which contains definitions relating to group relief) shall be amended in accordance with this section.

For sub-paragraph (3)(b) there shall be substituted—.

For sub-paragraph (5)(a) there shall be substituted—.

This sub-paragraph applies to any shares which— This sub-paragraph applies to any securities representing a loan of or including new consideration and— For the purposes of sub-paragraphs (3) and (5) to (5B) above a company (“the parent company”) is another company’s “quoted parent company” if and only if— and in this sub-paragraph “ordinary shares” means shares forming part of ordinary share capital. In the application of sub-paragraphs (3) and (5) to (5B) above in determining for the purposes of sub-paragraph (5C)(a) above who are the equity holders of the other company (and, accordingly, whether section 413(7) prevents the other company from being treated as a 75 per cent. subsidiary of the parent company for the purposes of sub-paragraph (5C)(a)), it shall be assumed that the parent company is for the purposes of sub-paragraphs (3) and (5) to (5B) above the other company’s quoted parent company.

In sub-paragraph (6) for the words “to (5)” there shall be substituted the words “to (5D)”.

This section, so far as relating to Schedule 18 of the Taxes Act 1988 in its application (by virtue of section 138 below) for the purposes of subsections (1D) and (1E) of section 272 of the Taxes Act 1970, shall be deemed to have come into force on 14th March 1989.

Subsection (2) below applies where—

Where this subsection applies the two companies may, at any time before the refund is made to the surrendering company, jointly give notice to the inspector in such form as the Board may require that subsection (4) below is to have effect in relation to the refund or to any part of the refund specified in the notice.

In subsection (1) above—