Finance Act 2000
In section 36(1) of the Alcoholic Liquor Duties Act 1979 (rate of duty on beer), for “£11.50” substitute “£11.89”.
This section shall be deemed to have come into force on 1st April 2000.
In section 62(1A) of the Alcoholic Liquor Duties Act 1979 (rates of duty on cider)—
in paragraph (a) (rate of duty per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent.), for “£161.20” substitute “£166.70”;
in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent. which is not sparkling cider), for “£37.92” substitute “£39.21”; and
in paragraph (c) (rate of duty per hectolitre in any other case), for “£25.27” substitute “£26.13”.
This section shall be deemed to have come into force on 1st April 2000.
For Part I of the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine) substitute—
This section shall be deemed to have come into force on 1st April 2000.
In section 6(1A) of the Hydrocarbon Oil Duties Act 1979 (rates of duty on hydrocarbon oil)—
in paragraph (a) (light oil), for “£0.5288” substitute “£0.5468”;
in paragraph (b) (ultra low sulphur diesel), for “£0.4721” substitute “£0.4882”; and
in paragraph (c) (heavy oil which is not ultra low sulphur diesel), for “£0.5021” substitute “£0.5182”.
In section 11(1) of that Act (rebate on heavy oil)—
in paragraph (a) (fuel oil), for “£0.0265” substitute “£0.0274”; and
in each of paragraphs (b) and (ba) (gas oil which is not ultra low sulphur diesel and ultra low sulphur diesel), for “£0.0303” substitute “£0.0313”.
In section 13A(1A) of that Act (rebate on unleaded petrol)—
in paragraph (a) (higher octane unleaded petrol), for “£0.0367” substitute “£0.0379”; and
in paragraph (b) (other unleaded petrol), for “£0.0567” substitute “£0.0586”.
In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for “£0.0265” substitute “£0.0274”.
This section shall be deemed to have come into force at 6 o'clock in the evening of 21st March 2000.
In section 1 of the Hydrocarbon Oil Duties Act 1979 (definitions of oil), after subsection (3) insert—.
In section 2 of that Act (provisions supplementary to section 1), after subsection (1) insert—.
In section 6 of that Act (excise duty on hydrocarbon oil), for subsection (1A) (rates of duty) substitute—.
In section 13A of that Act (rebate on unleaded petrol)— Any directions given under subsection (1C) and in force immediately before the commencement of this section shall have effect as if given under section 2(1) of that Act.
in subsection (1) after “unleaded petrol” insert “, other than ultra low sulphur petrol,”; and
omit subsections (1B), (1C) and (2).
“ultra low sulphur petrol” has the meaning given by section 1(3A) above; “unleaded petrol” and “leaded petrol” have the meaning given by section 1(3B) above. “higher octane unleaded petrol” has the meaning given by section 1(3C) above;
This section shall come into force on such day as the Commissioners of Customs and Excise may appoint by order made by statutory instrument.
Schedule 2A to the Hydrocarbon Oil Duties Act 1979 (mixing of rebated oils) is amended in accordance with Schedule 1 to this Act.
The amendments in that Schedule come into force on the day appointed under section 5(6).
In the Hydrocarbon Oil Duties Act 1979, after section 2 insert—.
Section 13 of the Hydrocarbon Oil Duties Act 1979 (penalties for misuse of rebated heavy oil) is amended as follows.
In subsection (1)—
for “or, as the case may be, his becoming so liable” substitute “or his becoming so liable (or, where his conduct includes both, each of them)”, and
omit the words from “; and the Commissioners” to the end.
After subsection (1) insert—.
This section shall have effect in relation to liability arising on or after 1st May 2000.
Schedule 1 to the Hydrocarbon Oil Duties Act 1979 (which sets out the categories of excepted vehicle which may use rebated heavy oil as fuel) is amended as follows.
Omit the following provisions—
paragraph 2(1)(b) (which provides that off-road tractors are excepted vehicles) and the word “or” immediately preceding it, and
paragraph 2(4) (which defines off-road tractors).
This section shall have effect in relation to the use of rebated heavy oil as fuel on or after 1st May 2000.
The Hydrocarbon Oil Duties Act 1979 is amended in accordance with subsections (2) to (4).
In section 11 (rebate on heavy oil), after subsection (2) insert—.
In section 20AA(2) (provision in connection with allowing reliefs)—
in paragraph (a) (relief may take form of repayment or remission), after “repayment or remission” insert “or an allowance to be set off against duty payable to the Commissioners by the person claiming relief”; and
after paragraph (g) insert—.
In section 24 (regulations controlling use of duty-free and rebated oil), after subsection (4B) insert—.
Any decision which is made under or for the purposes of any regulations made under section 20AA of the Hydrocarbon Oil Duties Act 1979 and is a decision as to whether or not relief is to be allowed.
In section 6A of the Hydrocarbon Oil Duties Act 1979 (duty on fuel substitutes), after subsection (2) (definition of chargeable use) insert—.
This section shall have effect in relation to duty charged on or after the day on which this Act is passed.
1. Cigarettes An amount equal to 22 per cent. of the retail price plus £90.43 per thousand cigarettes. 2. Cigars £132.33 per kilogram. 3. Hand-rolling tobacco £95.12 per kilogram. 4. Other smoking tobacco and chewing tobacco £58.17 per kilogram.
This section shall be deemed to have come into force at 6 o'clock in the evening of 21st March 2000.
Section 5 of the Tobacco Products Duty Act 1979 (retail price of cigarettes) is amended as follows.
In subsection (1) (meaning of retail price) for the words from “shall be taken to be” to the end substituteshall be taken to be—.
In subsection (3) (determination of price by Commissioners), for “paragraph (a) of subsection (1)” substitute “paragraph (b) of subsection (1)”.
In subsection (4) (reference to arbitration of Commissioners' determination), for “subsection (1)(a)” substitute “subsection (1)(b)”.
After section 8 of the Tobacco Products Duty Act 1979 insert the following sections—.
The Tobacco Products Duty Act 1979 has effect subject to the following amendments.
that—
Section 7 (regulations for management of duty) is amended as follows.
After paragraph (a) of subsection (1) (method of charging duty and securing and collecting duty) insert—.
In paragraph (b) of subsection (1) (registration of premises for storage of tobacco), after “regulating their” insert “storage and”.
After that paragraph insert—.
In paragraph (c) of subsection (1), omit sub-paragraph (i) (which is superseded by the amendment made by subsection (6) above).
In paragraph (d) of subsection (1), for “and the making of such returns, as may be specified in the regulations” substitute “the notification of such information, and the making of such returns, as may be specified in the regulations or required by the Commissioners”.
After subsection (1) insert—.
Part of gross gaming yield Rate The first £470,500 2½ per cent. The next £1,045,500 12½ per cent. The next £1,045,500 20 per cent. The next £1,830,000 30 per cent. The remainder 40 per cent.
This section has effect in relation to accounting periods beginning on or after 1st April 2000.
Schedule 2 to this Act (which amends the Betting and Gaming Duties Act 1981) shall have effect.
Section 30 of the Finance Act 1994 is amended as follows.
determined in accordance with subsections (2) to (4) below.
In subsection (2) (rate where destination is in an EEA State etc)—
for “The rate is £10 if that place” substitute “If the place where the passenger’s journey ends”, and
the rate shall be determined in accordance with subsection (3A) below.
After subsection (3) insert—.
For subsection (4) (rate where destination is not in an EEA State etc) substitute—.
At the end of the section add—.
In consequence of the provision made by the preceding provisions of this section, in section 39 of the Finance Act 1994 (schemes for simplifying operation of reliefs)—
in subsection (4)(b), for “at the rate mentioned in section 30(2) above” substitute—;
in subsection (4B)(c), for “at the rate mentioned in section 30(2) above” substitute—;
in subsection (8)(b), for the words from “on the carriage” to the end substitute—; and
in subsection (8A)(c), for the words from “on the carriage” to the end substitute—.
This section applies to any carriage of a passenger on an aircraft which begins on or after 1st April 2001.
Section 31 of the Finance Act 1994 is amended as follows.
Omit subsections (1) and (2) (exemption in relation to passengers making return journeys within the United Kingdom).
After subsection (4A) insert—.
Omit subsection (6) (provision by regulations for subsection (1) to have effect in relation to journeys begun in the Isle of Man).
In consequence of the provision made by subsection (2) above, in section 43 of the Finance Act 1994 (interpretation)—
in subsection (2) (meaning of “journey” etc), omit “Subject to subsection (3) below”, and
omit subsection (3) (interpretation of references to a return ticket).
This section applies to any carriage of a passenger on an aircraft which begins on or after 1st April 2001.
In paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (rate of duty applicable where no other rate specified), in sub-paragraphs (2) and (2A) for “1,100 cubic centimetres” (the reduced rate threshold) substitute “1,200 cubic centimetres”. This amendment applies to licences issued on or after 1st March 2001.
Refunds shall be made by the Secretary of State, in accordance with the following provisions of this section, in respect of licences— where the amount of vehicle excise duty chargeable on the licence would have been less if the amendment in subsection (1) had applied.
issued in the period beginning with 1st March 2000 and ending with 28th February 2001, and
not surrendered before the end of that period,
The amount of the refund is—
£55 for a 12 month licence, and
£27.50 for a 6 month licence.
The person entitled to the refund is—
in the case of a licence in force on 28th February 2001, the keeper of the vehicle on that date;
in the case of a licence that has ceased to be in force before that date, the keeper of the vehicle when the licence expired.
For the purposes of subsection (4) the keeper of the vehicle shall be taken to be—
the person registered as keeper of the vehicle on the date in question, or
if the Secretary of State has received notification of a change of ownership of the vehicle as a result of which another person is on that date entitled to be registered as the new keeper of the vehicle, that person.
A refund shall only be made if an application is made for it in such form, and containing such particulars and supported by such documents, as the Secretary of State may require.
The Secretary of State shall give notice in writing to any person appearing to him to be entitled to a refund—
informing him that he appears to be entitled to a refund,
enclosing an application form, and
specifying the particulars and supporting documents to be provided.
An application for, or the making of, a refund under this section in respect of a licence does not affect the validity of the licence.
For the purposes of section 19 of the Vehicle Excise and Registration Act 1994 (surrender of licences) as it applies to the surrender on or after 1st March 2001 of a licence in respect of which a refund under this section has been made, or applied for, the annual rate of duty chargeable on the licence shall be taken to be that which would have been chargeable if the amendment in subsection (1) above had applied.
Section 45 of that Act (offence of false or misleading declaration) applies to a declaration in connection with an application for a refund under this section as it applies to a declaration in connection with an application for a vehicle licence.
In the application of this section to Northern Ireland, references to registration as the keeper of a vehicle shall be read as references to registration as the owner of the vehicle.
In paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (rate of duty applicable where no other rate specified)—
in sub-paragraph (2) (the standard rate), for “£155” substitute “£160”; and
in sub-paragraph (2A) (the reduced rate), for “£100” substitute “£105”.
This section applies to licences issued on or after 1st March 2001.
Schedule 3 to this Act has effect with respect to vehicle excise duty on light passenger vehicles and light goods vehicles first registered on or after 1st March 2001.
Schedule 4 to this Act has effect with respect to vehicle licences for vehicles in respect of which vehicle excise duty is chargeable at different rates.
Schedule 5 to this Act (which makes provision for new rates of vehicle excise duty for goods vehicles etc.) has effect.
The provisions of that Schedule apply in relation to licences issued after 21st March 2000.
In Part XII of the Customs and Excise Management Act 1979 (general supplementary provisions), for section 161 (power to search premises) substitute—.
In Part XII of the Customs and Excise Management Act 1979 (general supplementary provisions), after section 163 (power to search vehicles or vessels) insert—.
Section 157 of the Customs and Excise Management Act 1979 (bonds and security) is amended as follows.
In subsection (1) (power to require security), for “by bond” substitute “(or further security) by bond, guarantee”.
After that subsection insert—.
In subsection (2) (bonds for the purposes of assigned matters), after “Any bond” insert “, guarantee or other security”.
In paragraph (a) of that subsection (bonds to be taken on behalf of Her Majesty), for “on behalf of Her Majesty” substitute “either on behalf of Her Majesty or on behalf of Her Majesty and the tax authorities of each member State other than the United Kingdom”.
In this subsection “assigned matter” includes any excise duty charged as mentioned in subsection (1A) above.
In section 9(2)(a) of the Finance Act 1994 (how to calculate the penalty in cases where provision is made by any enactment for conduct to attract a penalty calculated by reference to an amount of excise duty), for “or any other enactment” substitute “, or by or under any other enactment,”.
In section 127 of the Finance Act 1999 (interest on repayments of customs duty), in subsection (1)(b) for “Council Regulation 2454/93” substitute “Commission Regulation 2454/93”. This amendment shall be deemed always to have had effect.
Schedule 6 to this Act (which makes provision for a new tax that is to be known as climate change levy) shall have effect.
Schedule 7 to this Act (climate change levy: consequential amendments) shall have effect.
Part V of Schedule 6 to this Act (registration for the purposes of climate change levy) shall not come into force until such date as the Treasury may appoint by order made by statutory instrument; and different days may be appointed under this subsection for different purposes.
Income tax shall be charged for the year 2000-01, and for that year—
the starting rate shall be 10%,
the basic rate shall be 22%, and
the higher rate shall be 40%.
Section 1A of the Taxes Act 1988 (application of lower rate or Schedule F ordinary rate to income from savings and distributions) is amended as follows.
In subsection (1)(b) (income of individuals to which those rates do not apply), after the words “is not” insert—.
After subsection (1) insert—.
This section has effect for the year 2000-01 and subsequent years and shall be deemed to have had effect for the year 1999-00.
In section 4 of the Taxes Act 1988 (construction of references in Income Tax Acts to deduction of tax), after subsection (1A) (which provides for deduction at lower rate from savings and distributions) insert—.
This section has effect for the year 2000-01 and shall be deemed to have had effect for the year 1999-00.
In section 257AA(2) of the Taxes Act 1988 (which specifies the amount by reference to which the children’s tax credit is calculated) for “£4,160” substitute “£4,420”.
This section has effect for the year 2001-02 and subsequent years of assessment.
Corporation tax shall be charged for the financial year 2001 at the rate of 30%.
For the financial year 2000—
the small companies' rate shall be 20%, and
the fraction mentioned in section 13(2) of the Taxes Act 1988 (marginal relief for small companies) shall be one fortieth.
In section 4 of the Taxation of Chargeable Gains Act 1992 (rates of capital gains tax), after subsection (1AA) insert—.
This section has effect for the year 2000-01 and subsequent years of assessment.
Where in accordance with a scheme approved under section 202 of the Taxes Act 1988 (donations to charity: payroll deduction scheme) an agent is to pay to a charity any sum which— the agent shall, within a period prescribed by regulations made by the Treasury, pay a supplement equal to 10% of that sum to the charity.
is withheld by an employer from a payment which an employee is entitled to receive; and
is paid by the employer to the agent,
On a claim made by an agent in such form as the Board may prescribe, the Board shall pay to the agent out of money provided by Parliament—
such amounts as are required—
to fund the payment of supplements falling to be paid by him; or
to reimburse him for supplements paid by him the payment of which has not been so funded; and
in the case of an agent which is a charity, an amount which is equal to 10% of the aggregate of sums which—
are withheld and paid as mentioned in paragraphs (a) and (b) of subsection (1) above; and
are sums to which the agent is itself entitled in its capacity as a charity.
The Treasury may by regulations make provision—
requiring agents to notify the Board of any failures of theirs to comply with subsection (1) above, and of the reasons for those failures;
requiring agents to keep records of supplements paid by them under that subsection; and
for the assessment and recovery under the Taxes Acts of amounts paid to agents under subsection (2) above which ought not to have been so paid. The regulations may contain such supplementary and incidental provision as appears to the Treasury necessary or expedient.
In this section—
“agent” means any such person or charity as is mentioned in subsection (4) of section 202 of the Taxes Act 1988;
“employee” and “employer” shall be construed in accordance with subsection (1) of that section;
“charity” has the same meaning as in section 506 of that Act and includes each of the bodies mentioned in section 507 of that Act;
“the Taxes Acts” has the same meaning as in the Taxes Management Act 1970.
in relation to England and Wales, means the register kept under section 1 of the Land Registration Act 1925;
in relation to Scotland, means the Land Register of Scotland or the General Register of Sasines;
in relation to Northern Ireland, means the register maintained under section 10 of the Land Registration Act (Northern Ireland) 1970;
In section 202 of the Taxes Act 1988—
in subsection (6), the words “must not be paid by the employee under a covenant” shall cease to have effect;
subsection (7) shall cease to have effect; and
in subsection (11), in the definition of “charity”, after “section 506” there shall be inserted “and includes each of the bodies mentioned in section 507”.
Subsections (1) to (4) above shall have effect in relation to supplements or other amounts payable in respect of sums withheld on or after 6th April 2000 and before 6th April 2003; and no claim under subsection (2) above shall be entertained if made on or after 6th April 2004.
Subsection (5) above shall have effect in relation to sums withheld on or after 6th April 2000.
Section 25 of the Finance Act 1990 (donations to charity by individuals) shall be amended in accordance with subsections (2) to (7) below.
In subsection (1)(c), for “an appropriate certificate” there shall be substituted “an appropriate declaration”.
In subsection (2)—
paragraphs (c) and (g) shall cease to have effect;
in paragraph (e), for “two and a half per cent of the amount of the gift” there shall be substituted “the limit imposed by subsection (5A) below”; and
for paragraph (i) there shall be substituted—.
For subsection (3) there shall be substituted—.
After subsection (5) there shall be inserted—.
For subsections (6) to (9) there shall be substituted—.
In subsection (12), paragraphs (b) and (e) and the word “and” immediately preceding paragraph (e) shall cease to have effect.
In subsections (1)(b) and (3)(b) of section 257BB of the Taxes Act 1988 (transfer of relief under section 257A where relief exceeds income), after “section 256(2)(b)” there shall be inserted “(read with section 25(6)(c) of the Finance Act 1990 where applicable)”.
In paragraph 4(1)(b) of Schedule 13B to that Act (children’s tax credit), after “section 256(2)(b)” there shall be inserted “(read with section 25(6)(c) of the Finance Act 1990 where applicable)”.
This section has effect in relation to— and any regulations made under subsection (3) of section 25 of the Finance Act 1990 (as substituted by subsection (4) above) within three months of the passing of this Act may be so made as to apply to any payments in relation to which this section has effect.
gifts made on or after 6th April 2000 which are not covenanted payments; and
covenanted payments falling to be made on or after that date;
Section 339 of the Taxes Act 1988 (charges on income: donations to charity) shall be amended in accordance with subsections (2) to (8) below.
In subsection (1), for paragraph (a) there shall be substituted—.
Subsections (2), (3), (3A), (3F), (6), (7) and (8) shall cease to have effect.
In subsection (3B)(b), for “two and a half per cent. of the amount given after deducting tax under section 339(3)” there shall be substituted “the limit imposed by subsection (3DA) below”.
After subsection (3D) there shall be inserted—.
For subsection (4) there shall be substituted—.
For subsection (7AA) there shall be substituted—.
In subsection (9), the words “in subsections (1) to (4) above includes” shall cease to have effect.
In subsection (1) of section 209 of the Taxes Act 1988 (meaning of “distribution”), for “section 339(6) and any other express exceptions” there shall be substituted “any express exceptions”.
In subsection (2)(a) of section 338 of that Act (allowance of charges on income and capital), after “company” there shall be inserted “or payments falling within paragraph (b) below”.
This section has effect in relation to payments made on or after 1st April 2000; and— shall be treated as separate accounting periods for the purposes of the amendment made by subsection (5) above.
so much of an accounting period as falls before that date; and
so much of it as falls after 31st March 2000,
In subsection (5)(b) of section 338 of the Taxes Act 1988 (allowances of charges on income and capital), for “a covenanted donation to charity” there shall be substituted “a qualifying donation”.
In section 347A of that Act (annual payments and interest: general rule), subsections (2)(b), (7) and (8) shall cease to have effect.
In subsection (3) of section 348 of that Act (payments out of profits or gains brought into charge to income tax: deductions of tax), at the end there shall be inserted “or to any payment which is a qualifying donation for the purposes of section 25 of the Finance Act 1990”.
In subsection (1) of section 349 of that Act (payments not out of profits or gains brought into charge to income tax, and annual interest), at the end there shall be inserted “or to any payment which is a qualifying donation (within the meaning of section 339) or a qualifying donation for the purposes of section 25 of the Finance Act 1990”.
In subsection (6) of section 505 of that Act (charities: general), the words “and, for this purpose, all covenanted payments to charity (within the meaning of section 347A(7)) shall be treated as a single item” shall cease to have effect.
In subsection (9) of section 660A of that Act (income arising under a settlement where settlor retains an interest), for paragraph (b) there shall be substituted—.
Section 59 of the Finance Act 1989 (covenanted subscriptions) shall cease to have effect.
Where a deed of covenant executed by an individual before 6th April 2000 provides for the payment of specified amounts, any amount payable under the deed on or after that date shall be determined as if the individual were entitled to deduct tax from that amount at the basic rate.
This section shall have effect in relation to covenanted payments—
falling to be made by individuals on or after 6th April 2000; or
made by companies on or after 1st April 2000.
In section 48 of the Finance Act 1998 (gifts of money for relief in poor countries), subsections (3), (6) and (7) shall cease to have effect.
In subsection (4) of that section—
in paragraph (a), after “made” there shall be inserted “before 6th April 2000”;
after paragraph (b) there shall be inserted—; and
in paragraph (c), for “appropriate certificate” there shall be substituted “appropriate declaration”.
“relevant gift” means a gift to which this section applies—
After section 587A of the Taxes Act 1988 there shall be inserted—.
In subsection (2) of section 338 of that Act (allowances of charges on income and capital), immediately before paragraph (a) there shall be inserted—.
This section has effect in relation to—
disposals made by individuals on or after 6th April 2000; and
disposals made by companies on or after 1st April 2000.
Chapter IA of Part XV of the Taxes Act 1988 (liability of settlors) shall not apply to any qualifying income which arises under a trust the trustees of which are resident in the United Kingdom (a “UK trust”) if—
it is given by the trustees to a charity in the year of assessment in which it arises; or
it is income to which a charity is entitled under the terms of the trust.
Subject to subsection (3) below, where in any year of assessment qualifying income arising under a UK trust from different sources exceeds the amount of that income falling within subsection (1) above, that amount shall be rateably apportioned between those sources.
Nothing in subsection (2) above shall affect the operation of any requirement that the whole, or any specified part, of the income from a particular source be given to a charity.
Where in any year of assessment qualifying income arising under a UK trust exceeds the amount of that income falling within subsection (1) above, any management expenses for that year shall be rateably apportioned between—
so much of that income as is equal to that amount; and
so much of that income as exceeds that amount.
In this section— and the reference to Chapter IA of Part XV of the Taxes Act 1988 includes a reference to that Chapter as it has effect by virtue of section 660E of that Act (application to settlements by two or more settlors).
“technical provisions”, except in relation to an underwriting member, means any of the following— and in this definition expressions which are used in Schedule 9A to the Companies Act 1985 have the same meanings as in that Schedule;
in sub-paragraph (2) (disposal by individual), for paragraphs (d) and (e) substitute—;
provisions for unearned premiums;
“shares” includes stock and the reference to shares in a company includes a reference to securities issued by a company.
provisions for claims outstanding;
This section has effect in relation to qualifying income arising to a UK trust on or after 6th April 2000.
In Chapter IA of Part XV of the Taxes Act 1988 “settlement” does not include any arrangement so far as it consists of a loan of money made by an individual to a charity either—
for no consideration; or
for a consideration which consists only of interest.
In this section “charity” has the same meaning as in section 44 above.
This section has effect in relation to income arising on or after 6th April 2000 on loans made before, as well as loans made on or after, that date.
Subject to subsection (2) below, exemption from tax under Case I or VI of Schedule D shall be granted, on a claim made in that behalf to the Board, in respect of any income of a charity if the requirements of subsection (3) below are satisfied with respect to the income.
Exemption shall not be granted under subsection (1) above in respect of income which is chargeable to tax under Case VI of Schedule D by virtue of any of the following—
section 30 of the Taxes Management Act 1970;
sections 214, 412, 547(1)(b) and (6), 553(6), 660C, 677, 703, 776, 788, 790 and 804 of the Taxes Act 1988;
paragraph 14 of Schedule 4 to the Finance (No. 2) Act 1997;
paragraph 52(4) of Schedule 18, and paragraph 13(7) of Schedule 19, to the Finance Act 1998; and
any other enactment specified in an order made by the Treasury.
The requirements of this subsection are satisfied with respect to any income for a chargeable period if it is applied solely for the purposes of the charity and either—
the charity’s gross income for the chargeable period does not exceed the requisite limit; or
the charity had, at the beginning of the period, a reasonable expectation that its gross income for the period would not exceed that limit.
Subject to subsection (5) below, the requisite limit is whichever is the greater of—
£5,000; and
whichever is the lesser of £50,000 and 25% of all of the charity’s incoming resources for the chargeable period.
For a chargeable period of less than twelve months, the amounts of £5,000 and £50,000 specified in subsection (4) above shall be proportionally reduced.
In this section—
“income”, in relation to a charity, means any profits or gains or other income which is chargeable to tax under Case I or VI of Schedule D and which is not, apart this section, exempted from tax under that Case.
This section applies for the year 2000-01 and subsequent years of assessment or, in the case of charities which are companies, for accounting periods beginning on or after 1st April 2000.
Schedule 8 to this Act (employee share ownership plans) shall have effect.
In the Taxation of Chargeable Gains Act 1992, after section 236 insert—.
After Schedule 7B to that Act insert the Schedule 7C set out in Schedule 9 to this Act.
The Board shall not approve a profit sharing scheme under Schedule 9 to the Taxes Act 1988 (approval of share option schemes and profit sharing schemes) unless the application for approval is received by the Board before 6th April 2001.
For the purposes of subsection (1) an application for approval which is not accompanied by the particulars and evidence referred to in paragraph 1(2) of that Schedule is not regarded as received by the Board until the required particulars and evidence have been received by them.
In section 186 of that Act (approved profit sharing schemes), in subsection (1) (under which the section applies to appropriations of shares made after 5th April 1979) after “5th April 1979” insert “and before 1st January 2003”.
This section has effect to phase out deductions under section 85 of the Taxes Act 1988 (corporation tax relief for payments to trustees of approved profit sharing schemes).
In the case of sums paid to the trustees on or after 21st March 2000 and before 6th April 2002 no deduction may be made by virtue of subsection (2)(a) of that section (sums applied in acquiring shares for appropriation) unless the trustees appropriate the shares acquired, by the application of the sum, as mentioned in that provision—
before the end of the period of nine months beginning on the day following the end of the period of account in which payment to the trustees was made, and
before 1st January 2003.
No deduction may be made by virtue of subsection (2)(a) of that section in respect of any sum paid to the trustees on or after 6th April 2002.
No deduction may be made by virtue of subsection (2)(b) of that section (sums to meet expenses of trustees in administering the scheme) in respect of any sum paid to the trustees more than three years after the date of the last appropriation of shares to individuals which was made—
in accordance with the approved profit sharing scheme, and
before 1st January 2003.
For the purposes of this section references to a deduction under section 85 are to a deduction under subsection (1)(a) or by virtue of subsection (1)(b) of that section.
In Schedule 9 to the Taxes Act 1988 (approved share option schemes and profit sharing schemes), in paragraph 3(2) (grounds for withdrawing approval of profit sharing schemes), after “below” in paragraph (e) insert—,; or.
For the purposes of sub-paragraph (2)(f) above the reference to persons having had free shares appropriated to them includes persons who would have had free shares appropriated to them but for their failure to obtain a performance allowance (within the meaning of paragraph 25 of Schedule 8 to the Finance Act 2000). In sub-paragraph (2)(f) and (4) above— For the purposes of sub-paragraph (5) above “connected company” means—
Schedule 9 to the Taxes Act 1988 (share option schemes and profit sharing schemes) is amended in accordance with subsections (2) to (4).
In paragraph 9(1) (requirements to be satisfied by shares in share option schemes), after “below” insert “(disregarding paragraph 11A)”.
After paragraph 11 (requirements as to listing etc.) insert—.
In paragraph 12—
in sub-paragraph (1), in paragraph (c) for “other than” to the end of that paragraph there shall be substituted “other than those permitted by sub-paragraph (1A) below.”, and
Subject to sub-paragraph (1B) below, scheme shares may be subject to— In the case of a profit sharing scheme, scheme shares must not be subject to any restrictions affecting the rights attaching to those shares which relate to— other than restrictions which attach to all other ordinary shares in the same company.
Subsections (1) to (4) shall be deemed to have come into force on 21st March 2000.
Subsections (3) and (4) do not have effect in relation to shares acquired before 21st March 2000 by the trustees of a profit sharing scheme approved under Schedule 9 to the Taxes Act 1988.
The Board shall not approve a profit sharing scheme unless they are satisfied— For the purposes of sub-paragraph (2A) above “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.
In paragraph 3(2) of that Schedule (withdrawal of approval of profit sharing schemes), before paragraph (d) insert—.
This section shall be deemed to have come into force on 21st March 2000.
No claim for relief under section 229(1) or (3) of the Taxation of Chargeable Gains Act 1992 (roll-over relief where disposal made to employee share ownership trust) may be made in relation to a disposal of shares, or an interest in shares, made on or after 6th April 2001.
Section 69 of the Finance Act 1989 (chargeable events in relation to employee share ownership trusts) is amended in accordance with subsections (2) to (5).
In subsection (1) (definition of “chargeable event”), after paragraph (d) insert—.
After subsection (3) insert—.
In subsection (5) after “(1)(d)” insert “or (e)”.
After that subsection insert—.
In section 70 of the Finance Act 1989 (chargeable amounts), after subsection (3) insert—.
In Chapter IV of Part V of the Taxes Act 1988 (provisions relating to the Schedule E charge: other exemptions and reliefs), after section 187 insert—. Section 187A inserted by this subsection applies to any agreement or election having effect as mentioned in subsection (6) of that section, whether made before or after the passing of this Act.
Section 203FB of the Taxes Act 1988 (PAYE: gains from share options) is amended as follows—
in subsections (2) and (3), for “subsection (7)” substitute “subsection (6A)”;
after subsection (6) insert—;
in subsection (7), for “any of the preceding provisions of this section” substitute “subsection (4) or (5) above” and for “section 135, 140A or 140D” substitute “section 140A or 140D”. These amendments apply where the event giving rise to the charge to tax occurs after the passing of this Act.
In section 136(6) of the Taxes Act 1988 and section 85(1) of the Finance Act 1988 (duty to deliver particulars relating to share options, etc. within 30 days after end of year of assessment), for “30 days” substitute “92 days”. These amendments apply where the event giving rise to the duty to deliver particulars occurs on or after 6th April 2000.
After section 136(6) of the Taxes Act 1988 add—. Section 136(8) inserted by this subsection applies to any amounts recovered or met as mentioned in section 187A(2)(a) or (3) of the Taxes Act 1988, whether before or after the passing of this Act.
Chapter II of Part V of the Taxes Act 1988 (provisions relating to the Schedule E charge: benefits in kind, etc.) is amended in accordance with Schedule 10 to this Act.
The amendments have effect for the year 2000-01 and subsequent years of assessment.
After section 200D of the Taxes Act 1988 (work-related training) insert—.
In section 200A(3)(b) of that Act (definition of a qualifying absence from home), at the end of sub-paragraph (iv) insert, or.
This section applies for the year 2000-01 and subsequent years of assessment.
Schedule 11 to this Act (which makes provision in relation to the taxation of cars available for private use) has effect for the year 2002-03 and subsequent years of assessment.
Schedule 12 to this Act has effect with respect to the provision of services through an intermediary.
Schedule 13 to this Act (which makes provision in relation to occupational and personal pension schemes) has effect.
Schedule 14 to this Act (enterprise management incentives) has effect in relation to any right to acquire shares granted after the passing of this Act.
Schedule 15 to this Act (which makes provision for the corporate venturing scheme) has effect.
Schedule 16 to this Act (which makes consequential amendments) has effect.
Paragraph 3(2)(a)(i) to (iii) and (3) of Schedule 16 (and paragraph 3(1) so far as it relates to those provisions) have effect—
in relation to claims made under section 573 of the Taxes Act 1988, in respect of disposals on or after 1st April 2000, and
in relation to claims made under section 574 of that Act, in respect of disposals on or after 6th April 2000.
Subject to that, Schedules 15 and 16 apply in relation to shares issued on or after 1st April 2000 but before 1st April 2010.
The provisions relating to the enterprise investment scheme are amended in accordance with Schedule 17 to this Act. In that Schedule— Part I makes amendments reducing various periods which apply in relation to the provisions which determine the reliefs under the scheme; Part II makes amendments about qualifying companies; Part III makes other minor amendments.
The provisions relating to venture capital trusts are amended in accordance with Schedule 18 to this Act. In that Schedule— Part I makes amendments reducing various periods which apply in relation to the provisions which determine the reliefs; and Part II makes amendments about qualifying holdings.
Section 2A of the Taxation of Chargeable Gains Act 1992 (taper relief) is amended as follows.
In subsection (5), for the first two columns of the table (which relate to gains on disposals of business assets) substitute— Gains on disposals of business assets Number of whole years in qualifying holding period Percentage of gain chargeable 1 87.5 2 75 3 50 4 or more 25
For subsections (8) and (9) substitute—.
This section applies to disposals on or after 6th April 2000.
Schedule A1 to the Taxation of Chargeable Gains Act 1992 (application of taper relief) is amended as follows.
In paragraph 4 (conditions for shares to qualify as business assets)—
in sub-paragraph (4) (disposal by personal representatives), for the words following “if at that time” substitute “the relevant company was a qualifying company by reference to the personal representatives”; and
in sub-paragraph (5) (disposal by legatee), for paragraph (b) substitute—.
and
in sub-paragraph (3) (disposal by trustees of settlement), for paragraphs (e) and (f) substitute—.
For paragraph 6 (companies which are qualifying companies) substitute—.
“unlisted company” means a company— and omit the definitions of “full-time working officer or employee” and “qualifying office or employment”.
After paragraph 22 insert—.
This section has effect for determining whether an asset is a business asset at any time on or after 6th April 2000. It does not affect the determination on or after that date whether an asset was a business asset at a time before that date.
Schedule 19 to this Act (meaning of “research and development”) has effect. In that Schedule— Part I contains a new definition of “research and development” for the purposes of the Tax Acts, and Part II contains consequential amendments.
The amendments in Part II of that Schedule have effect—
for the purposes of income tax and capital gains tax, in relation to the year 2000-01 and subsequent years of assessment, and
for the purposes of corporation tax, for accounting periods ending on or after 1st April 2000.
Schedule 20 to this Act (tax relief for expenditure on research and development) has effect for accounting periods ending on or after 1st April 2000. In that Schedule— Part I provides for entitlement to relief, Part II provides for the manner of giving effect to the relief, and Part III contains supplementary provisions.
Schedule 21 to this Act (which contains consequential amendments) has effect accordingly.
In section 22(3D) of the Capital Allowances Act 1990 (expenditure qualifying for 40% first year allowances), for “in the period beginning with 2nd July 1998 and ending with 1st July 2000” substitute “on or after 2nd July 1998”.
In that Act—
in section 22(3C)(a), (3CA)(a) and (3D)(a), for “a small company or a small business” substitute “a small or medium-sized enterprise”;
in section 22A— substitute “small or medium-sized enterprise”. The amendments in this subsection are of nomenclature only.
in the sidenote, for “small company or small business”,
in subsection (1) for “small company”, and
in subsection (2) for “small business”,
In section 22 of the Capital Allowances Act 1990 (first-year allowances), after subsection (3D) insert—.
In sections 22(4), (6B) and (6C), 23(6), 42(9) and 50(3) and (4A) of that Act, for “and (3D)” substitute “, (3D) and (3E)”.
In sections 43(5), 44(5), 46(8) and 48(7) of that Act, for “or (3D)” substitute “, (3D) or (3E)”.
In section 39(2)(a) of that Act for “to (3D)” substitute “to (3E)”.
After section 22A of the Capital Allowances Act 1990, insert—.
In section 118 of the Finance Act 1994 (notification requirements)—
subsections (1) to (5) and (7) to (9) shall cease to have effect; and
in subsection (6), for “the provisions mentioned in subsection (2) above” there shall be substituted—.
This section has effect for chargeable periods as respects which the period specified in subsection (3A) of that section ends on or after 1st April 2000.
In section 41 of the Capital Allowances Act 1990 (writing-down allowances etc for leased assets and inexpensive cars)— shall cease to have effect for chargeable periods ending on or after the relevant date.
in subsection (1), paragraphs (b) and (c) and the word “or” at the end of paragraph (a); and
in subsection (4), paragraph (a) and, in paragraph (b), the words from “or within (1)(b) or (c)” to “subsection (1)(c)” and the words “or subsection (1)(b) or (c)”,
Subsection (3) below applies where—
immediately before the end of the relevant chargeable period, a person was treated for the purposes of sections 24, 25 and 26 of the Capital Allowances Act 1990 as having incurred expenditure on the provision of machinery or plant wholly and exclusively for the purposes of a separate trade carried on by him;
the expenditure fell within subsection (1)(b) or (c) of section 41 of that Act; and
qualifying expenditure in respect of the separate trade for the relevant chargeable period exceeded any disposal value brought into account in respect of that trade for that period.
The balance of the excess (after the deduction of any writing-down allowances made by reference to it) shall be treated for the purposes of sections 24, 25 and 26 of the Capital Allowances Act 1990 as capital expenditure which—
was incurred by that person in the relevant chargeable period on the provision of the machinery or plant for the purposes of the trade which is the actual trade for the purposes of section 41 of that Act; and
does not form part of his qualifying expenditure for that period.
In this section—
“the relevant chargeable period” means the chargeable period immediately preceding that which begins on or before and ends on or after the relevant date;
A person may, by a notice given to an officer of the Board, elect that this section shall have effect in relation to any trade carried on by him as if the relevant date were 6th April 2001 or, as the case may be, 1st April 2001.
In section 83 of the Capital Allowances Act 1990 (interpretation of Part II), after subsection (2) there shall be inserted—.
After section 79 of that Act there shall be inserted—.
In section 81 of that Act (effect of bringing an asset into use for the purposes of a trade after it has been used for a purpose that does not attract capital allowances), after subsection (2) there shall be inserted—.
The following subsection shall be treated as inserted after subsection (4)—.
In section 53 of the Capital Allowances Act 1990—
in subsection (1), paragraph (bb) (which, for the purposes of making allowances in respect of machinery or plant subject to equipment leasing, requires the equipment lessee to be within the charge to tax) shall cease to have effect; and
in subsection (1B)(b), for “paragraphs (bb) and” there shall be substituted “paragraph”.
In this section—
subsections (1), (4) and (5) have effect for chargeable periods ending on or after 21st March 2000;
subsection (2) has effect where the change of circumstances occurs on or after that date; and
subsection (3) has effect where the condition mentioned in section 81(1)(a) of that Act is fulfilled on or after that date.
Section 82 of the Capital Allowances Act 1990 (capital expenditure to which Part II does not apply) shall be renumbered as subsection (1) of that section; and after that provision as so renumbered there shall be inserted—.
In paragraph 9(4) of Schedule 5 to the Taxes Act 1988 (treatment of farm animals etc for purposes of Case I of Schedule D), for the words from “in relation to animals” to the end there shall be substituted—.
The enactments amended by subsections (1) and (2) above shall be deemed always to have had effect with the amendments made by those subsections.
After section 76A of the Capital Allowances Act 1990 insert—.
In subsections (1), (2) and (3) of section 75 of that Act, after “76A” there shall be inserted “, 76B”.
Section 51 of the Capital Allowances Act 1990 (application and interpretation of Chapter VI: plant and machinery: fixtures) is amended as follows.
In subsection (1) for the words from the beginning to “other land” substitute—.
“fixture”, subject to subsection (2A) below, means machinery or plant that is so installed or otherwise fixed in or to a building or other description of land as to become, in law, part of that building or other land;
After subsection (2), insert—.
For subsection (8) substitute—.
The amendments in this section shall be deemed always to have had effect.
In section 53 of the Capital Allowances Act 1990 (fixtures: expenditure incurred by equipment lessor), after subsection (1C) insert—.
In the second column of the table in section 98 of the Taxes Management Act 1970 (penalty for failure to provide information etc.), in the entry relating to requirements imposed by provisions of the Capital Allowances Act 1990, for “and 51(6A)” substitute “51(6A) and 53(1H)”.
This section has effect in relation to expenditure incurred after the passing of this Act and before 1st January 2008.
In section 60 of the Capital Allowances Act 1990 (machinery and plant on hire-purchase etc.), after subsection (3) insert—.
After that section insert—.
In section 60A of that Act (as inserted by subsection (2) above)—
subsection (1) shall be deemed always to have had effect, and
subsection (2) does not apply where the machinery or plant concerned became a fixture (within the meaning of that section) before the passing of this Act.
After section 64 of the Capital Allowances Act 1990 insert—.
In section 26(1) of the Capital Allowances Act 1990 (disposal value), for the word “and” at the end of paragraph (ee) there shall be substituted—.
This section has effect where the capital expenditure—
is incurred on or after 21st March 2000; or
is treated as incurred by virtue of section 81(1)(a) of the Capital Allowances Act 1990 and the condition mentioned in that provision is fulfilled on or after that date.
Schedule 22 to this Act (tonnage tax) has effect.
In section 365(3) of the Taxes Act 1988 (loans to buy annuities)—
for the words “the qualifying maximum for the year of assessment”, in the first place where they occur, there shall be substituted the words “the sum of £30,000”; and
for those words, in the second place where they occur, there shall be substituted the words “that sum”.
In section 353(1G) of that Act (percentage of interest eligible for relief), for the words from “the percentage” to the end there shall be substituted “23 per cent.”.
In section 369(1A) of that Act (deductible percentage where interest payable under deduction of tax), for the words from “the percentage” to the end there shall be substituted “23 per cent.”.
This section has effect in relation to payments of interest made on or after 6th April 2000.
This section applies to—
the scheme under section 2(2) of the Employment and Training Act 1973 known as “New Deal 50plus”, and
the corresponding scheme under section 1 of the Employment and Training Act (Northern Ireland) 1950.
A payment to a person as a participant in the scheme by way of an employment credit or training grant under the scheme is exempt from income tax and, accordingly, shall be disregarded in computing the amount of any receipts brought into account for income tax purposes.
This section applies to any such payment made on or after 25th October 1999.
A payment to a person as a participant in an employment zone programme is exempt from income tax and, accordingly, shall be disregarded in computing the amount of any receipts brought into account for income tax purposes.
An “employment zone programme” means an employment zone programme established for an area or areas designated under section 60 of the Welfare Reform and Pensions Act 1999.
This section applies to any such payment made on or after 6th April 2000.
In section 209 of the Taxes Act 1988 (meaning of “distribution”), after subsection (3A) insert—. This subsection applies to payments made on or after 21st March 2000.
In Schedule 18 to the Taxes Act 1988 (group relief: equity holders and profits available for distribution), in paragraph 1(5E)—
in paragraph (a), after “improving” insert “, or for the rate of interest to be increased in the event of the results of the company’s business or any part of it deteriorating”; and
in paragraph (b), after “increasing” insert “, or for the rate of interest to be increased in the event of the value of any of the company’s assets diminishing”. This subsection applies for the purposes of determining whether, at any time on or after 21st March 2000, a loan is a normal commercial loan for the purposes of paragraph 1(1)(b) of Schedule 18 to the Taxes Act 1988.
Schedule 23 to this Act has effect with respect to the treatment of amounts relating to the acquisition, disposal or revaluation of—
licences granted under section 1 of the Wireless Telegraphy Act 1949 in accordance with regulations made under section 3 of the Wireless Telegraphy Act 1998 (bidding for licences),
indefeasible rights to use a telecommunications cable system, or
rights derived, directly or indirectly, from a right within paragraph (a) or (b).
In sections 79(11) and 79A(7) of the Taxes Act 1988 (relief for contributions to local enterprise agencies, business links and similar organisations: time limits), the words “and before 1st April 2000” shall cease to have effect.
In Chapter V of Part IV of the Taxes Act 1988 (provisions relating to the Schedule D charge: deductions), after section 91B (waste disposal: site preparation), insert—.
In section 165(1) of the Taxation of Chargeable Gains Act 1992 (relief for gifts of business assets), in the closing words (which list the provisions restricting relief), for “sections 166 and 167” substitute “sections 166, 167 and 169”.
In section 260(1) of that Act (gifts on which inheritance tax is chargeable etc.), in the closing words (which list the provisions restricting relief), for “section 261” substitute “sections 169 and 261”.
In section 165(2)(b)(i) of, and paragraph 2(2)(b)(i) of Schedule 7 to, that Act (shares or securities in respect of which gifts relief may be claimed), for “neither listed on a recognised stock exchange nor dealt in on the Unlisted Securities Market” substitute “not listed on a recognised stock exchange”.
In section 165(3)(b) of that Act (disposals of shares or securities excepted from gifts relief), after “shares or securities,” insert “the transferee is a company or”.
This section has effect in relation to disposals made on or after 9th November 1999.
After section 76 of the Taxation of Chargeable Gains Act 1992, insert—.
After Schedule 4 to that Act insert the Schedule 4A set out in Schedule 24 to this Act.
This section applies to any disposal of an interest in settled property made, or the effective completion of which falls, on or after 21st March 2000. Expressions used in this subsection have the same meaning as in Schedule 4A to the Taxation of Chargeable Gains Act 1992.
After section 76A of the Taxation of Chargeable Gains Act 1992 (inserted by section 91(1) above), insert—.
After Schedule 4A to that Act (inserted by section 91(2) above), insert the Schedule 4B set out in Schedule 25 to this Act.
After section 85 of that Act, insert—.
After Schedule 4B to the Taxation of Chargeable Gains Act 1992 (inserted by subsection (2) above), insert the Schedule 4C set out in Part I of Schedule 26 to this Act. The consequential amendments in Part II of Schedule 26 to this Act have effect.
The provisions of this section have effect in relation to any transfer of value in relation to which the material time is on or after 21st March 2000. The expressions “transfer of value” and “material time” have the same meaning in this subsection as in Schedule 4B to the Taxation of Chargeable Gains Act 1992.
After section 79 of the Taxation of Chargeable Gains Act 1992, insert—.
This section applies to gains accruing on or after 21st March 2000.
After section 79A of the Taxation of Chargeable Gains Act 1992 (inserted by section 93 above), insert—.
This section applies where a chargeable gain accrues on or after 21st March 2000 to a company that is not resident in the United Kingdom.
Section 85 of the Taxation of Chargeable Gains Act 1992 (disposal of interest in non-resident settlements) is amended as follows.
In subsection (2) (market value uplift for interest where trustees become non-resident) for “Subject to subsections (4) and (9) below,” substitute “Subject to subsections (4), (9) and (10) below,”.
In subsection (5) (market value uplift for interest where trustees become treaty non-resident), at the beginning insert “Subject to subsection (10) below,”.
After subsection (9) add—.
This section applies where the material time (within the meaning of section 85(10) of the Taxation of Chargeable Gains Act 1992, inserted by subsection (4) above) falls on or after 21st March 2000.
In section 96(5) of the Taxation of Chargeable Gains Act 1992 (capital payments by trustees to non-resident company), in the opening words (which refer to the persons by whom the company is controlled), omit “and each of them is then resident or ordinarily resident in the United Kingdom”.
This section applies to payments received on or after 21st March 2000.
Schedule 27 to this Act has effect. In that Schedule— Part I makes amendments of Chapter IV of Part X of the Taxes Act 1988 (group relief), and Part II contains consequential amendments.
Schedule 28 to this Act has effect with respect to the recovery of unpaid corporation tax payable by a company not resident in the United Kingdom.
The provisions of that Schedule have effect in relation to corporation tax for accounting periods ending on or after 1st April 2000.
In paragraph 77 of Schedule 18 to the Finance Act 1998 (power to make provision by regulations about joint arrangements for group relief), in sub-paragraph (1)(a) (arrangements permitting claim for relief without copy of notice of consent to surrender), after “the surrendering company” insert “, provided authority for the claim being so made is given by a company which is authorised in relation to the claimant company as mentioned in paragraph (b)”.
For section 403C of the Taxes Act 1988 (special rules for consortium cases) substitute—.
In section 406(6) of the Taxes Act 1988 (claims relating to losses etc. of consortium company or group member), for “accounting period in respect of which the member’s share in the consortium” substitute “overlapping period in respect of which the relevant fraction”.
The following provisions shall cease to have effect—
in section 402(4) of the Taxes Act 1988, the words from “if the share in the consortium” to “is nil or”; and
in section 413 of that Act, subsections (8) and (9).
In Schedule 18 to the Taxes Act 1988—
in paragraphs 1(1), 2(1), 3(1), 4(3) and (4), 5A(3) and (4), 5C(3) and (4), 5D(3) and (4), 5E(3) and (4) and 6, for “section 413(7) to (9)” substitute “sections 403C and 413(7)”; and
in paragraph 7(1)(b), for “subsection (8) of that section” substitute “section 403C”.
The amendments in this section shall be deemed always to have had effect.
After section 171 of the Taxation of Chargeable Gains Act 1992 insert—.
This section has effect in relation to disposals made on or after 1st April 2000.
Schedule 29 to this Act has effect. In that Schedule— Part I makes provision with respect to the application of the Taxation of Chargeable Gains Act 1992 to companies not resident in the United Kingdom and groups of companies etc, Part II contains minor and consequential amendments, and Part III contains transitional provisions.
Schedule 30 to this Act (double taxation relief) shall have effect.
Schedule 31 to this Act (which makes provision in relation to controlled foreign companies) shall have effect.
For sections 92 to 95 of the Finance Act 1993 there shall be substituted—.
Where any of the items referred to in section 93(4)(b) of the Finance Act 1993 (as substituted by subsection (1) above) fall to be taken into account in the first accounting period in relation to which this section has effect, the amounts of those items shall be computed and expressed in the relevant currency by reference to the London closing exchange rate for the last day of the immediately preceding accounting period.
Where any of the items referred to in section 25(1) of the Capital Allowances Act 1990 which fall to be taken into account for the first accounting period in relation to which this section has effect relate to expenditure which was incurred before the beginning of that period, the amounts of those items shall be computed and expressed in the relevant currency by reference to the London closing exchange rate for the last day of the immediately preceding accounting period.
Subject to subsection (5) below, this section has effect for accounting periods beginning on or after 1st January 2000 and ending on or after 21st March 2000.
Any company which did not, for the accounting period immediately preceding the first accounting period falling within subsection (4) above, make an election in respect of a trade or part of a trade under the Local Currency Elections Regulations 1994 may, by notice given to an officer of the Board on or before 31st August 2000, elect that this section shall not have effect in relation to it until the first accounting period beginning on or after 1st July 2000.
In subsection (2) of section 149 of the Finance Act 1993 (local currency to be used)—
for “trade or trades”, in both places where they occur, there shall be substituted “business or businesses”; and
for “any such trade” there shall be substituted “any such business”.
In subsection (4) of that section—
the words “the asset or contract was held, or the liability was owed, by the company solely for trading purposes and” shall cease to have effect; and
for “sections 125 to 128” there shall be substituted “sections 125 to 129”.
In subsection (5) of that section—
the words “the asset or contract was held, or the liability was owed, by the company solely for trading purposes and” shall cease to have effect;
for “sections 125 to 128” there shall be substituted “sections 125 to 129”; and
for “trade”, in both places where it occurs, there shall be substituted “business”.
For subsection (6) of that section there shall be substituted—.
For subsection (7) of that section there shall be substituted—.
For subsection (9) of section 128 of the Finance Act 1993 (trading gains and losses) there shall be substituted—.
After section 135 of that Act there shall be inserted—.
For subsection (12) of section 140 of that Act (deferral of unrealised gains) there shall be substituted—.
For subsection (2) of section 142 of that Act (deferral non-sterling trades) there shall be substituted—.
In subsections (3) and (5) of that section, for “trade”, in each place where it occurs, there shall be substituted “business”.
For subsection (4) of that section there shall be substituted—.
In subsection (1) of section 163 of that Act (local currency of a trade), for “trade” there shall be substituted “business”.
For subsections (2) and (3) of that section there shall be substituted—.
In section 164 of that Act (interpretation: miscellaneous), subsections (6) and (7) shall cease to have effect.
In section 167 of that Act (orders and regulations)—
in subsection (5A), for “the provisions of Chapter II of Part IV of the Finance Act 1996 (loan relationships)” there shall be substituted—;
in subsection (5B), for “subsection (5A)” there shall be substituted “subsection (5A)(a)”; and
after that subsection there shall be inserted—.
In subsection (4)(b) of section 110 of the Finance Act 1998 (determinations requiring the sanction of the Board), after “section 135,” there shall be inserted “135A,”.
This section has effect for accounting periods beginning on or after 1st January 2000 and ending on or after 21st March 2000.
Where an amount representing the whole or any part of the technical provisions which are made by a general insurer for a period of account is taken into account in computing for tax purposes the profits of his trade for that period—
subsection (2) below applies if it becomes apparent in a later period of account that the amount taken into account was excessive; and
subsection (3) below applies if it becomes apparent in such a period that that amount was insufficient.
For the purpose of making good to the Exchequer the loss occasioned by the excess, an amount calculated by applying, for a prescribed period, a prescribed rate of interest to the amount of the excess shall be treated as a receipt of the general insurer’s trade in computing for tax purposes the profits of that trade for the later period of account.
For the purpose of making good to the general insurer the loss occasioned by the deficiency, an amount calculated by applying, for a prescribed period, a prescribed rate of interest to the amount of the deficiency shall be treated as an expense of the general insurer’s trade in computing for tax purposes the profits of that trade for the later period of account.
A general insurer may, before the end of a prescribed period, elect that any part of the technical provisions made by him for a period of account shall not be taken into account in computing for tax purposes the profits of his trade for that period; and where he does so, the profits of his trade for the next period of account shall be adjusted accordingly for the purposes of any computation for tax purposes.
The Board may by regulations make provision for giving effect to subsections (1) to (4) above.
The regulations may, in particular—
exclude from the operation of subsections (1) to (4) above such descriptions of general insurer as may be prescribed;
make such provision as appears to the Board to be appropriate for determining for the purposes of subsections (1) to (3) above whether any amount taken into account was excessive or insufficient and, if so, the amount of the excess or deficiency, including—
provision requiring discounting at a prescribed rate; and
provision allowing a prescribed margin for error;
make provision for applying subsections (1) to (3) above, to such extent and with such modifications as appear to the Board to be appropriate, to cases where it becomes apparent—
that any amount taken into account was or has become insufficient; or
that any amount treated as a receipt or expense of a trade was excessive;
make such provision as appears to the Board to be appropriate for dealing with cases where a general insurer transfers his general business to, or enters into a qualifying contract with, another person; and
in the event of any changes in the rules or practice of Lloyd's, make such amendments of this section as appear to the Board to be expedient having regard to those changes.
In this section— and for the purposes of this section a syndicate is an open syndicate at any time after the end of its closing year if, at that time, the accounts of its business for the underwriting year for which it was formed have not been closed.
“closing year”, in relation to a syndicate, has the same meaning as in Chapter III of Part II of the Finance Act 1993 or Chapter V of Part IV of the Finance Act 1994;
“general business” has the same meaning as in the Insurance Companies Act 1982;
“general insurer” means any of the following which carries on general business—
a controlled foreign company within the meaning of Chapter IV of Part XVII of the Taxes Act 1988; and
an underwriting member of Lloyd’s (“an underwriting member”);
Regulations under this section may—
make different provision for different cases or descriptions of case, including different provision for different entitlements to participate in the general business carried on by syndicates; and
make such supplementary, incidental, consequential and transitional provision as appears to the Board to be appropriate.
An amount which under subsection (2) or (3) above is treated as a receipt or expense of an underwriting member’s trade—
shall not be included in the aggregate amount mentioned in paragraph 1 of Schedule 19 to the Finance Act 1993; but
shall be regarded as arising directly from his membership of one or more syndicates for the purposes of section 172(1)(a) of the Finance Act 1993 or section 220(2)(a) of the Finance Act 1994.
Nothing in paragraph 7 of Schedule 19 to the Finance Act 1993 shall be taken to affect the operation of subsection (2) or (3) above or the exercise of the power conferred by subsection (4) above.
Section 177 of the Finance Act 1993 and section 224 of the Finance Act 1994 (which are superseded by this section) shall cease to have effect.
In this section—
subsections (1) to (3), subsections (5) to (8) and (10) so far as relating to those subsections and subsection (9) have effect where—
the first period of account mentioned in subsection (1) begins on or after 1st January 2000; and
the later period of account mentioned in that subsection begins on or after 1st January 2001;
subsection (4), and subsections (5) to (8) and (10) so far as relating to that subsection, have effect in relation to periods of account beginning on or after 1st January 2000;
subsection (11) has effect in relation to profits of underwriting members' trades which are declared in periods of account beginning on or after that date.
In subsection (1) of section 431D of the Taxes Act 1988 (meaning of “overseas life assurance business”), for “or life reinsurance business” there shall be substituted “, life reinsurance business or business of any description excluded from this section by regulations made by the Board”.
For subsections (2) to (8) of that section there shall be substituted—.
Where the policy or contract for any life assurance business was made before such day as the Treasury may by order appoint, the amendments made by this section (and any regulations made under them) shall not have effect for determining whether the business is overseas life assurance business.
the proportion A/B where— A is the total of the linked liabilities of the company which are liabilities of the internal linked fund in which the asset is held and are referable to that category of business; B is the total of the linked liabilities of the company which are liabilities of that fund.
For subsection (6) of that section there shall be substituted—.
In the subsections mentioned in subsection (4) below—
in paragraph (a), after “reduced” there shall be inserted “(but not below nil)” and for “values” there shall be substituted “net values”; and
for paragraph (b) there shall be substituted—.
The subsections are—
subsection (6) of section 432A of the Taxes Act 1988 (apportionment of income and gains);
subsection (4) of section 432C of that Act (section 432B apportionment: income of non-participating funds); and
subsection (3) of section 432D of that Act (section 432B apportionment: value of non-participating funds).
For subsection (8) of section 432A there shall be substituted—.
After subsection (9) of that section there shall be inserted—.
In subsection (5)(b) of section 432C, after “subsection (1)” there shall be inserted “or (2)”.
In Schedule 11 to the Finance Act 1996 (loan relationships: special provisions for insurers), after paragraph 3 there shall be inserted—.
In consequence of the preceding provisions of this section—
in section 431(2) of the Taxes Act 1988 (interpretative provisions in relation to insurance companies), the definition of “investment reserve” shall cease to have effect;
in paragraph 4(2) of Schedule 19AA to that Act (overseas life assurance fund), after “investment reserve” there shall be inserted “(within the meaning of section 432A)”; and
in paragraph 7(3) of Schedule 19AC to that Act (modification of Act in relation to overseas life insurance companies)—
in paragraph (b), for “value” there shall be substituted “net value”; and
paragraph (c) shall cease to have effect.
This section shall have effect in relation to accounting periods beginning on or after 1st January 2000 and ending on or after 21st March 2000.
At the end of Part II of the Taxes Act 1988 (provisions relating to the Schedule A charge) insert—.
The provisions inserted by subsection (1) have effect in relation to transactions entered into on or after 21st March 2000.
Chapter VIIA of Part IV of the Taxes Act 1988 (paying and collecting agents) shall cease to have effect.
In section 349 of the Taxes Act 1988 (payments under deduction of tax)—
in subsections (3)(c) and (3B) (payments excepted from deduction of tax), for “payment to which section 124 applies” substitute “payment of interest on a quoted Eurobond”; and
“quoted Eurobond” means any security that— and accordingly section 124 of that Act (interest on quoted Eurobonds) shall cease to have effect.
In section 482 of the Taxes Act 1988 (supplementary provisions with respect to deposit-takers etc)—
after subsection (2) insert—; and
subsection (11)(a) shall cease to have effect.
In section 477A of the Taxes Act 1988 (building societies: regulations for deduction of tax), after subsection (2) insert—.
In section 37(11) of the Finance (No.2) Act 1997 (interest to be paid gross), for “Sections 50 and 118D(4)” substitute “Section 50”.
In this section—
subsections (1) and (5) apply to relevant payments or receipts in relation to which the chargeable date for the purposes of Chapter VIIA of Part IV is on or after 1st April 2001;
subsection (2) applies in relation to payments of interest made on or after that date;
subsection (3) applies in relation to declarations under section 481(5)(k)(i) of the Taxes Act 1988 made on or after 6th April 2001.
In subsection (A1) of section 50 of the Taxes Act 1988 (Treasury directions for payment of public revenue dividends without deduction of tax), for “registered gilt-edged securities” substitute “gilt-edged securities”.
After subsection (3B) of section 349 of that Act (payments not out of profits or gains brought into charge to income tax, and annual interest) insert—.
“UK public revenue dividend” means any income from securities which is paid out of the public revenue of the United Kingdom or Northern Ireland, but does not include interest on local authority stock.
After section 350 of that Act insert—.
This section applies to payments made on or after 1st April 2001.
In section 68 of the of the Capital Allowances Act 1990 (expenditure relating to films, tapes and discs), for subsection (1) substitute—.
For subsection (2) of that section substitute—.
In section 42 of the Finance (No.2) Act 1992 (relief for production or acquisition expenditure), for subsection (9) substitute—.
In section 43 of that Act (interpretation)—
in subsection (2)(b) (treatment of acquisition of rights in film), for “any description of rights in it” substitute “any rights in the film (or its soundtrack) that are held or acquired with the master negative, master tape or master audio disc”; and
in subsection (3), omit paragraph (b) and the word “or” preceding it.
This section applies to expenditure on the production of a film— For this purpose a film is completed at the time when it is first in a form in which it can reasonably be regarded as ready for copies of it to be made and distributed for presentation to the general public. Any election under paragraph (b)(ii) above, once made, is irrevocable.
if the first day of principal photography is on or after 21st March 2000, or
if the first day of principal photography is before that date but—
the film is completed on or after that date, and
the person incurring the expenditure elects that the provisions of this section should apply.
This section applies to expenditure incurred on the acquisition of a master negative, master tape or master audio disc of a film (as defined in section 43 of the Finance (No.2) Act 1992) on or after 6th April 2000.
In Schedule 13 to the Finance Act 1999 (instruments chargeable and rates of duty), in Part I (conveyance or transfer on sale), in the third column of the table in paragraph 4—
in the third entry, for “2.5%” substitute “3%”; and
in the fourth entry, for “3.5%” substitute “4%”.
This section applies to instruments executed on or after 28th March 2000.
But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless—
the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right; or
the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract, because of an assignment (or, in Scotland, assignation) or further contract made after that date.
This section shall be deemed to have come into force on 28th March 2000.
In Schedule 13 to the Finance Act 1999 (instruments chargeable and rates of duty), in Part II (lease)— for “£500” substitute “£5,000”.
in paragraph 11, in paragraph 1 of the table, and
in paragraph 12(3), in paragraph 1(a) and (b) of the table,
This section has effect in relation to instruments executed on or after 28th March 2000.
This section shall be deemed to have come into force on 28th March 2000.
In paragraph 12(3) of Schedule 13 to the Finance Act 1999 (rates of stamp duty on leases where part of consideration is rent), in paragraph 1 of the table, for “less than 7 years” substitute “not more than 7 years”.
This section applies to instruments executed on or after 1st October 1999, subject to Schedule 32 to this Act (which makes transitional provision for instruments executed on or after 1st October 1999 but before 28th March 2000).
This section shall be deemed to have come into force on 28th March 2000.
Schedule 33 to this Act (power to vary stamp duties) has effect.
Subsection (2) applies where—
an instrument transferring or vesting an estate or interest in land would not, apart from this section, be or fall to be treated as a conveyance or transfer on sale for the purposes of stamp duty; but
the transfer or vesting of the estate or interest is for consideration; and
the consideration is or includes any property (“the other property”).
For the purposes of Part I of Schedule 13 to the Finance Act 1999 (stamp duty on conveyance or transfer on sale) the instrument transferring or vesting the estate or interest shall be taken to be a transfer on sale of the estate or interest.
If— the amount of duty that would (apart from this subsection) be chargeable in consequence of subsection (2) on the transfer on sale there mentioned shall be reduced (but not below nil) by the total of the ad valorem duty chargeable as mentioned in paragraph (b).
the other property is or includes one or more estates or interests in land, and
ad valorem duty is chargeable on the conveyance or transfer of all or any of those estates or interests,
If, for the purposes of Part I of Schedule 13 to the Finance Act 1999, the amount or value of the consideration for the transfer on sale mentioned in subsection (2) would (apart from this subsection) exceed the market value of the estate or interest immediately before the execution of the instrument transferring or vesting it, the amount or value of the consideration shall be taken for those purposes to be equal to that market value.
For the purposes of this section, the market value of property at any time is the price which that property might reasonably be expected to fetch on a sale at that time in the open market.
Subsection (2) has effect even though—
the transfer or vesting of the estate or interest is the whole or part of the consideration for a sale of the other property; or
the transaction is by way of exchange.
Subsection (2) does not affect any charge to stamp duty in respect of the same or any other instrument so far as it relates to the transfer of the other property.
This section is subject to subsection (5) of section 119.
This section shall be construed as one with the Stamp Act 1891.
This section applies to instruments executed on or after 28th March 2000.
But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless—
the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right; or
the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract, because of an assignment (or, in Scotland, assignation) or further contract made after that date.
This section shall be deemed to have come into force on 28th March 2000.
This section applies where an estate or interest in land is transferred to or vested in a company (“A”) and—
the person transferring or vesting the estate or interest (“B”) is connected with A; or
some or all of the consideration for the transfer or vesting consists of the issue or transfer of shares in a company with which B is connected.
For the purposes of Part I of Schedule 13 to the Finance Act 1999 (stamp duty on conveyance or transfer on sale) an instrument transferring or vesting the estate or interest shall be taken to be a transfer on sale of the estate or interest.
If for those purposes the amount or value of the consideration for the transfer on sale of the estate or interest would, apart from this subsection, be less than the value determined under subsection (4), the consideration shall be taken for those purposes to be the value determined under subsection (4).
That value is—
the market value of the estate or interest immediately before the execution of the instrument transferring or vesting it; but
reduced by the value of so much of any actual consideration as does not consist of property.
Where— the stamp duty chargeable on the instrument shall be determined in accordance with this section (instead of that section).
apart from this section, an instrument would be chargeable to stamp duty in accordance with section 118, and
apart from that section, the instrument would be chargeable to stamp duty in accordance with this section,
This section applies only if, in consequence of its application, the instrument transferring or vesting the estate or interest is chargeable with a greater amount of stamp duty than it would be apart from this section and section 118.
For the purposes of this section, the market value of property at any time is the price which that property might reasonably be expected to fetch on a sale at that time in the open market.
In this section—
“company” means any body corporate;
For the purposes of this section, the question whether any person is connected with another shall be determined in accordance with the provisions of section 839 of the Taxes Act 1988.
This section shall be construed as one with the Stamp Act 1891.
This section applies to instruments executed on or after 28th March 2000.
But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless—
the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right; or
the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract, because of an assignment (or, in Scotland, assignation) or further contract made after that date.
This section shall be deemed to have come into force on 28th March 2000.
Section 119 does not apply by virtue of paragraph (a) of subsection (1) of that section in any of the following cases (any reference in this section to A or B being taken as a reference to the person referred to as A or B, as the case may be, in that subsection).
Case 1 is where B holds the estate or interest as nominee or bare trustee for A.
Case 2 is where A is to hold the estate or interest as nominee or bare trustee for B.
Case 3 is where B holds the estate or interest as nominee or bare trustee for some other person and A is to hold it as nominee or bare trustee for that other person.
Case 4 is where (in a case not falling within subsection (2) or (4) above)—
the transfer or vesting is a conveyance or transfer out of a settlement in or towards satisfaction of a beneficiary’s interest;
the beneficiary’s interest is not an interest acquired for money or money’s worth; and
the conveyance or transfer is a distribution of property in accordance with the provisions of the settlement.
Case 5 is where (in a case not falling within subsection (3) above) A—
is a person carrying on a business which consists of or includes the management of trusts; and
is to hold the estate or interest as trustee acting in the course of that business.
Case 6 is where (in a case not falling within subsection (3) above) A is to hold the estate or interest as trustee and, apart from section 839(3) of the Taxes Act 1988 (trustees as connected persons), would not be connected with B.
Case 7 is where—
B is a company;
the transfer or vesting is, or is part of, a distribution of assets (whether or not in connection with the winding up of the company); and
the estate or interest was acquired by B by virtue of an instrument which is duly stamped.
This section shall be construed as one with the Stamp Act 1891.
This section applies to instruments executed after the day on which this Act is passed.
This section applies where a lease is granted to a company (“A”) and—
the person granting the lease (“B”) is connected with A; or
some or all of the consideration for the grant of the lease consists of the issue or transfer of shares in a company with which B is connected.
Subsection (3) has effect for the purposes of stamp duty chargeable under Part II of Schedule 13 to the Finance Act 1999 (stamp duty on a lease) by reference to Part I of that Schedule (conveyance or transfer on sale).
If, apart from this subsection, the amount or value of the consideration for the grant would be less than the value determined under subsection (4), the consideration shall be taken to be the value determined under subsection (4).
That value is—
the market value, immediately before the instrument granting the lease is executed, of the lease granted; but
reduced by the value of so much of any actual consideration as does not consist of property.
This section applies only if, in consequence of its application, the lease is chargeable with a greater amount of stamp duty than it would be apart from this section.
For the purposes of this section, the market value of property at any time is the price which that property might reasonably be expected to fetch on a sale at that time in the open market.
In this section—
For the purposes of this section, the question whether any person is connected with another shall be determined in accordance with the provisions of section 839 of the Taxes Act 1988.
This section shall be construed as one with the Stamp Act 1891.
This section applies to instruments executed on or after 28th March 2000.
But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless—
the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right; or
the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract, because of an assignment (or, in Scotland, assignation) or further contract made after that date.
This section shall be deemed to have come into force on 28th March 2000.
Subsection (2) applies where—
an instrument transferring marketable securities would not, apart from this section, be or fall to be treated as a transfer on sale for the purposes of stamp duty; but
the transfer of the marketable securities is for consideration; and
the consideration is or includes any qualifying property (“the other property”).
For the purposes of Part I of Schedule 13 to the Finance Act 1999 (stamp duty on conveyance or transfer on sale) the instrument transferring the marketable securities shall be taken to be a transfer on sale of those securities.
If the amount or value of the consideration for that transfer on sale would (apart from this subsection) exceed the market value of the marketable securities immediately before the execution of the instrument transferring them, the amount or value of the consideration shall be taken to be equal to that market value. For this purpose the market value of property at any time is the price which that property might reasonably be expected to fetch on a sale at that time in the open market.
Subsection (2) has effect even though—
the transfer of the marketable securities is the whole or part of the consideration for a sale of the other property; or
the transaction is by way of exchange.
Subsection (2) does not affect any charge to stamp duty in respect of the same or any other instrument so far as it relates to the transfer of the other property.
In this section “qualifying property” means any debt due, stock or securities, to the extent that the debt, stock or securities are not chargeable securities, within the meaning of Part IV of the Finance Act 1986 (stamp duty reserve tax).
This section shall be construed as one with the Stamp Act 1891.
This section applies to instruments executed on or after 28th March 2000.
But this section does not apply to an instrument giving effect to a contract made on or before 21st March 2000, unless—
the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right; or
the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract, because of an assignment (or, in Scotland, assignation) or further contract made after that date.
This section shall be deemed to have come into force on 28th March 2000.
Amend section 42 of the Finance Act 1930 as follows.
In subsection (2) (instruments on which stamp duty not chargeable) in paragraph (a) for “to another” substitute “(“the transferor”) to another (“the transferee”)”.
unless 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 transferee but not of the transferor.
In subsection (2B) (body to be parent of another if beneficial owner of 75% of ordinary share capital) after “if at that time the first body” insert “(a)” and at the end of the subsection add—.
In subsection (3)—
after “The ownership referred to in” insert “paragraph (a) of”; and
for “this section” substitute “that paragraph”.
At the end of the section add—.
This section has effect in relation to instruments executed after the day on which this Act is passed.
Amend section 11 of the Finance Act (Northern Ireland) 1954 as follows.
After subsection (2) (instruments on which stamp duty not chargeable) insert—.
In subsection (3AA) (body to be parent of another if beneficial owner of 75% of ordinary share capital) after “if at that time the first body” insert “(a)” and at the end of the subsection add—.
In subsection (3A)—
after “The ownership referred to in” insert “paragraph (a) of”; and
for “this section” substitute “that paragraph”.
At the end of the section add—.
This section has effect in relation to instruments executed after the day on which this Act is passed.
Amend section 151 of the Finance Act 1995 as follows.
This subsection is subject to subsection (4A) below.
After subsection (4) insert—.
In subsection (8) (body to be parent of another if beneficial owner of 75% of ordinary share capital) after “if at that time the first body” insert “(a)” and at the end of the subsection add—.
In subsection (10)—
after “The ownership referred to in” insert “paragraph (a) of”; and
for “this section” substitute “that paragraph”.
After subsection (10) insert—.
This section has effect in relation to instruments executed after the day on which this Act is passed.
Amend section 55 of the Stamp Act 1891 (calculation of ad valorem duty in respect of stock and securities) as follows.
After subsection (1) insert—.
This section has effect in relation to instruments executed after the day on which this Act is passed.
Amend section 75 of the Finance Act 1986 (acquisitions: reliefs) in accordance with subsections (2) and (3).
In subsection (4), in paragraph (a) (which requires that the consideration for the acquisition consists of or includes the issue of shares) after “the issue of” insert “non-redeemable”.
In paragraph (a) above, “non-redeemable shares” means shares which are not redeemable shares.
In section 76 of the Finance Act 1986 (acquisitions: further provisions about reliefs) in subsection (3)(a) (which requires that the consideration for the acquisition consists of or includes the issue of shares) for “shares” substitute “non-redeemable shares (within the meaning of section 75(4)(a) above)”.
This section has effect in relation to instruments executed after the day on which this Act is passed.
Where a lease is or has been surrendered or, in Scotland, renounced at any time, a document evidencing the surrender or renunciation shall be treated for the purposes of stamp duty as if it were a deed executed at that time effecting the surrender or renunciation.
Stamp duty shall be chargeable by virtue of subsection (1) on a document containing a statutory declaration, notwithstanding anything in rule 316(1) of the Land Registration Rules 1925 or any other provision of those Rules or of any other rules (whenever made) under section 144 of the Land Registration Act 1925.
Stamp duty shall not be chargeable by virtue of subsection (1) on any lease or agreement for a lease or with respect to any letting if the lease or agreement—
is made in consideration of the surrender or renunciation; and
relates to the same subject matter as the lease surrendered or renounced.
Stamp duty shall not be chargeable by virtue of subsection (1) on any document if a document falling within subsection (5) has been duly stamped.
The documents that fall within this subsection are—
a deed effecting the surrender or renunciation;
an agreement which falls to be treated for the purposes of stamp duty as if it were such a deed;
any document which falls to be so treated by virtue of subsection (1); and
any lease or agreement falling within subsection (3).
A land registrar shall regard a document which by virtue of subsection (4) is not chargeable to stamp duty by virtue of subsection (1) as not duly stamped unless—
it is stamped as if it were a deed effecting the surrender or renunciation; or
it appears by some stamp impressed on it that the full and proper duty chargeable on such a deed has been paid on another document; or
it appears by some stamp impressed on it that a lease or agreement falling within subsection (3) has been duly stamped; or
the land registrar is aware of a document falling within subsection (5) which has been duly stamped.
The documents which evidence the surrender or renunciation of a lease shall be taken to include an application, in consequence of the surrender or renunciation of the lease, for— of an entry relating to the lease.
the making in a land register, or
the removal from a land register,
In this section—
This section shall be construed as one with the Stamp Act 1891.
This section applies to documents relating to the surrender or renunciation of a lease after the day on which this Act is passed.
No stamp duty is chargeable on an instrument for the sale, transfer or other disposition of intellectual property.
In subsection (1) “intellectual property” means—
any patent, trade mark, registered design, copyright or design right,
any plant breeders' rights and rights under section 7 of the Plant Varieties Act 1997,
any licence or other right in respect of anything within paragraph (a) or (b), and
any rights under the law of a country or territory outside the United Kingdom that correspond or are similar to those within paragraph (a), (b) or (c).
Schedule 34 to this Act (which contains provisions supplementing this section) has effect.
This section and Schedule 34 shall be construed as one with the Stamp Act 1891.
This section applies to instruments executed on or after 28th March 2000.
This section shall be deemed to have come into force on that date.
No stamp duty shall be chargeable under Part I or II, or paragraph 16 of Part III, of Schedule 13 to the Finance Act 1999 on a conveyance or transfer of an estate or interest in land, or on a lease of land,—
to a qualifying landlord controlled by its tenants;
to a qualifying landlord by a qualifying transferor; or
to a qualifying landlord purchasing the estate or interest, or the grant of the lease, with the assistance of a public subsidy.
For the purposes of this section the cases where a qualifying landlord is controlled by its tenants are those cases where the majority of the board members of the qualifying landlord are tenants occupying properties owned or managed by the qualifying landlord.
For the purposes of subsection (2) a “board member” means—
in relation to a qualifying landlord which is a company, a director of the company;
in relation to a qualifying landlord which is a body corporate whose affairs are managed by its members, a member;
in relation to a qualifying landlord which is a body of trustees, a member of that body of trustees;
in relation to a qualifying landlord not falling within any of paragraphs (a) to (c), a member of the committee of management or other body to which is entrusted the direction of the affairs of the qualifying landlord.
In subsection (3), “company” has the same meaning as in the Companies Act 1985 (see section 735(1) of that Act).
In this section “qualifying landlord” means—
in relation to England and Wales, any body registered as a social landlord in a register maintained under section 1(1) of the Housing Act 1996;
in relation to Scotland—
any housing association registered in the register maintained under section 3(1) of the Housing Associations Act 1985 by Scottish Homes; or
any body corporate whose objects correspond to those of a housing association and which, pursuant to a contract with Scottish Homes, is registered in a register kept for the purpose by Scottish Homes;
in relation to Northern Ireland, any housing association registered in the register maintained under Article 14 of the Housing (Northern Ireland) Order 1992.
In this section “qualifying transferor” means any of the following—
a qualifying landlord;
a housing action trust established under Part III of the Housing Act 1988;
a principal council, within the meaning of the Local Government Act 1972;
the Common Council of the City of London;
a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994;
Scottish Homes;
the Department for Social Development in Northern Ireland;
the Northern Ireland Housing Executive.
In this section “public subsidy” means any grant or other financial assistance—
made or given by way of a distribution pursuant to section 25 of the National Lottery etc. Act 1993 (application of money by distributing bodies);
under section 18 of the Housing Act 1996 (social housing grants);
under section 126 of the Housing Grants, Construction and Regeneration Act 1996 (financial assistance for regeneration and development);
under section 2 of the Housing (Scotland) Act 1988 (general functions of Scottish Homes); or
under Article 33 of the Housing (Northern Ireland) Order 1992 (housing association grants).
Where stamp duty would be chargeable on an instrument but for paragraph (c) of subsection (1), that subsection shall only have effect in relation to the instrument if the instrument is certified to the Board by the qualifying landlord concerned as being an instrument on which stamp duty is by virtue of that paragraph not chargeable.
An instrument on which stamp duty is not chargeable by virtue only of this section shall not be taken to be duly stamped unless—
it is stamped with the duty to which it would be liable but for this section; or
it has, in accordance with section 12 of the Stamp Act 1891, been stamped with a particular stamp denoting that it is not chargeable with any duty.
This section applies to instruments executed after the day on which this Act is passed.
This section applies to an instrument of any of the following descriptions executed in the period beginning with 22nd March 2000 and ending with the day on which this Act is passed—
an instrument transferring or vesting an estate or interest in land in such circumstances as are mentioned in section 119 (transfer of land to connected company), in a case specified in section 120 (excepted cases);
a conveyance or transfer of an estate or interest in land, or a lease of land, to a qualifying landlord within the meaning of section 130 (transfers to registered social landlords, etc.) from a qualifying transferor within subsection (6)(c), (d), (e), (f) or (h) of that section.
If the instrument is not stamped until after the day on which this Act is passed, the law in force at the time of its execution shall be deemed for stamp duty purposes to be that which would have applied if it had been executed after that day.
If the Commissioners are satisfied that— they shall pay to such person as they consider appropriate an amount equal to the duty (and any interest or penalty) that would not have been payable if the law in force at the time of execution of the instrument had been that which would have applied had it been executed after that day.
the instrument was stamped on or before the day on which this Act is passed,
stamp duty was chargeable in respect of it, and
had it been stamped after that day no stamp duty, or less stamp duty, would have been chargeable,
Any such payment must be claimed before 1st April 2001.
Entitlement to a payment is subject to compliance with such conditions as the Commissioners may determine with respect to the production of the instrument, to its being stamped so as to indicate that it has been produced under this section or to other matters.
For the purposes of section 10 of the Exchequer and Audit Departments Act 1866 (Commissioners to deduct repayments from gross revenues) any amount paid under this section shall be treated as a repayment.
This section shall be construed as one with the Stamp Act 1891.
Amend section 55 of the Finance Act 1987 (Crown exemption from stamp duty) as follows.
In subsection (1) (which specifies the bodies relieved from stamp duty)—
after “agreed to be made” insert “(a)”;
after “Minister of the Crown or” insert “(b)”; and
after “Treasury, or” insert “(c)”.
In subsection (1), after “National Assembly for Wales,” insertor.
Subsection (3) has effect in relation to instruments executed on or after 28th March 2000.
This section shall be deemed to have come into force on 28th March 2000.
In section 79 of the Finance Act 1986 (loan capital), after subsection (7) insert—.
For the purposes of stamp duty, subsection (1) above has effect where the instrument is executed on or after 21st March 2000.
For the purposes of stamp duty reserve tax, subsection (1) above has effect—
in relation to the charge to tax under section 87 of the Finance Act 1986, where—
the agreement to transfer is conditional and the condition is satisfied on or after 21st March 2000, or
the agreement is not conditional and is made on or after that date;
in relation to the charge to tax under section 93(1) of that Act, where securities are transferred, issued or appropriated on or after 21st March 2000 (whenever the arrangement was made);
in relation to the charge to tax under section 96(1) of that Act, where securities are transferred or issued on or after 21st March 2000 (whenever the arrangement was made);
in relation to the charge to tax under section 93(10) of that Act, where securities are issued or transferred on sale, under terms there mentioned, on or after 21st March 2000;
in relation to the charge to tax under section 96(8) of that Act, where securities are issued or transferred on sale, under terms there mentioned, on or after 21st March 2000.
In Part III of the Finance Act 1986 (stamp duty), after section 72 insert—.
In Part IV of the Finance Act 1986 (stamp duty reserve tax), after section 97A insert—.
In sections 67(9), 70(9), 95(1) and 97(1) of the Finance Act 1986 (transfers between depositary receipt systems or between clearance systems), the words “and is resident in the United Kingdom” and “and is so resident” shall cease to have effect.
In section 97A of that Act (clearance services: election for alternative system of charge), after subsection (12) add—.
The amendments in this section have effect as follows—
subsection (1), and subsections (3) and (4) as they apply for stamp duty purposes, apply in relation to instruments executed after the day on which this Act is passed;
subsection (2), and subsections (3) and (4) as they apply for the purposes of stamp duty reserve tax, apply where the securities are transferred after that day.
Schedule 35 to this Act (which amends Schedule A1 to the Value Added Tax Act 1994 for the purpose of extending the range of supplies to which the reduced rate of value added tax applies) has effect.
The amendments made by that Schedule have effect in relation to supplies made on or after 1st April 2000.
Subsection (2) does not apply to the amendment made by paragraph 8(5) of that Schedule. That amendment has effect in relation to supplies made after the day on which this Act is passed.
In section 3(2) of the Value Added Tax Act 1994 (taxable persons and registration), for “Schedules 1 to 3” there shall be substituted “Schedules 1 to 3A”.
In section 67 of that Act (failure to notify)—
in subsection (1)(a), for “or with paragraph 3 or 8(2) of Schedule 3” there shall be substituted “, with paragraph 3 or 8(2) of Schedule 3 or paragraph 3, 4 or 7(2) or (3) of Schedule 3A”;
in subsection (3)(a), for “or paragraph 3 of Schedule 3” there shall be substituted “, paragraph 3 of Schedule 3 or paragraph 3 or 4 of Schedule 3A”; and
in subsection (3)(b), for “or with sub-paragraph (2) of paragraph 8 of Schedule 3” there shall be substituted “, with sub-paragraph (2) of paragraph 8 of Schedule 3 or with sub-paragraph (2) or (3) of paragraph 7 of Schedule 3A”.
In section 69(1)(a) of that Act (breaches of regulatory provisions), for “or paragraph 5 of Schedule 3” there shall be substituted “, paragraph 5 of Schedule 3 or paragraph 5 of Schedule 3A”.
In section 73(3)(b) of that Act (failure to make returns etc.), for “or paragraph 6(2) or (3) of Schedule 3” there shall be substituted “, paragraph 6(2) or (3) of Schedule 3 or paragraph 6(1) or (2) of Schedule 3A”.
In section 74(1)(c) of that Act (interest on VAT recovered or recoverable by assessment), for “under paragraph 8 of Schedule 3” there shall be substituted “, under paragraph 8 of Schedule 3 or under paragraph 7 of Schedule 3A”.
In the following provisions of that Act— for “or paragraph 6(3) of Schedule 3” there shall be substituted “, paragraph 6(3) of Schedule 3 or paragraph 6(2) of Schedule 3A”.
paragraph 1(4)(a) and (5) of Schedule 1 (registration in respect of taxable supplies); and
paragraph 1(4) of Schedule 2 (registration in respect of supplies from other member States),
In paragraph 1(3) of Schedule 3 to that Act (registration in respect of acquisitions from other member States), for “or paragraph 6(2) of Schedule 2” there shall be substituted “, paragraph 6(2) of Schedule 2 or paragraph 6(2) of Schedule 3A”.
After Schedule 3 to that Act there shall be inserted the Schedule 3A set out in Schedule 36 to this Act.
In paragraph 5(5) of Schedule 4 to that Act (matters to be treated as a supply of goods or services), for the words from “under sections 25 and 26” to the end there shall be substituted—.
Subsections (1) to (7) and (9) above have effect in relation to supplies made on or after 21st March 2000; and subsection (8) above and Schedule 36 to this Act have effect in relation to relevant supplies (within the meaning of Schedule 3A to that Act) made on or after that date.
Part IV of the Value Added Tax Act 1994 (administration, collection and enforcement) is amended as follows.
After section 69 (breaches of regulatory provisions) insert—.
In section 70(1) of that Act (mitigation of penalties), for “or 67” substitute “, 67 or 69A”.
In section 76(1) of that Act (assessment of amount due by way of penalty etc.), for “to 69” (in both places) substitute “to 69A”.
In section 83 of that Act (appeals), in paragraph (n) for “59 to 69” substitute “59 to 69A”.
The Inheritance Tax Act 1984 is amended as follows.
In section 13 (dispositions by close companies for benefit of employees), in subsection (4), after paragraph (b) insert; or.
In section 72 (property leaving employee trusts and newspaper trusts)—
in subsection (2) after “subsection (4)” insert “, (4A)”, and
after subsection (4) insert—.
In section 86 (trusts for benefit of employees), in subsection (3), after paragraph (b) insert; or.
After section 9 of the Oil Taxation Act 1975 insert—.
This section has effect in relation to expenditure incurred on or after 21st March 2000.
In section 42 of the Finance Act 1996 (amount of landfill tax), in subsections (1)(a) and (2) for “£10” substitute “£11”.
This section has effect in relation to taxable disposals made, or treated as made, on or after 1st April 2000.
In section 62 of the Finance Act 1996 (regulations about taxable disposals) amend subsection (7) (limit on power to make regulations providing that a disposal is not taxable) as follows.
For paragraph (a) substitute—.
In paragraph (b) for “the temporary disposal is made” substitute “the material in question is held temporarily”.
In section 60 of the Finance Act 1996 (which gives effect to Schedule 5 to the Act), after “penalties” insert “, secondary liability”.
Accordingly the sidenote to that section becomes “Information, powers, penalties, secondary liability, etc”.
At the end of Schedule 5 to that Act (supplementary provisions relating to landfill tax) add the Part VIII set out in Schedule 37 to this Act.
Subsection (3) has effect in relation to taxable disposals made on or after the day on which this Act is passed.
Regulations may be made in accordance with Schedule 38 to this Act for providing incentives to use electronic communications.
Anything received by way of incentive under any such regulations shall not be regarded as income for any purposes of the Tax Acts.
A person commits an offence if he is knowingly concerned in the fraudulent evasion of income tax by him or any other person.
A person guilty of an offence under this section is liable—
on summary conviction, to imprisonment for a term not exceeding six months or a fine not exceeding the statutory maximum, or both;
on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine, or both.
This section applies to things done or omitted on or after 1st January 2001.
In section 17 of the Taxes Management Act 1970 (interest paid or credited by banks etc without or after deduction of tax), subsections (4B) and (4C) shall cease to have effect.
In subsection (5) of that section—
for paragraph (c) there shall be substituted—; and
The further information required as mentioned in paragraph (a) or (b) above may include, in prescribed cases, the name and address of the person beneficially entitled to the interest paid or credited.
After paragraph (a) of subsection (6) of that section there shall be inserted—.
In subsection (1) of section 18 of that Act (interest paid without or after deduction of tax)—
for “by whom” there shall be substituted “by or through whom”; and
for “who receives any such interest” there shall be substituted “by whom any such interest is received”.
Subsections (3) and (3AA) of that section shall cease to have effect.
In subsection (3A) of that section, after “interest paid” there shall be inserted “or received”.
The further information required as mentioned in paragraph (a) above may include, in prescribed cases, the name and address of the person beneficially entitled to the interest paid or received.
After paragraph (a) of subsection (3C) of that section there shall be inserted—.
For subsection (3D) of that section there shall be substituted—.
Section 482A of Taxes Act 1988 (audit powers in relation to non-residents) shall cease to have effect.
This section has effect in relation to amounts paid, credited or received on or after 6th April 2001.
After section 815B of the Taxes Act 1988 there shall be inserted—.
In subsection (2) of section 816 of that Act (disclosure of information), after “section 788” there shall be inserted “or 815C” and after that subsection there shall be inserted—.
Subsections (1) to (8) and (8C) to (9) of section 20 of the Taxes Management Act 1970 (powers to call for information relevant to liability to income tax, corporation tax or capital gains tax) shall have effect as if the references in those provisions to tax liability included a reference to liability to a tax which—
is a tax of a territory outside the United Kingdom; and
is covered by arrangements having effect under section 788 or 815C of the Taxes Act 1988 and containing provision with respect to the obtaining (as well as the disclosure) of information.
In their application by virtue of subsection (3) above those provisions shall have effect as if—
the reference in section 20(7A) to any provision of the Taxes Acts were a reference to any provision of the law of the territory concerned;
the references in subsection (2) of section 20B to an appeal relating to tax were references to an appeal, review or similar proceedings under the law of that territory relating to the tax in question; and
the reference in subsection (6) of that section to believing that tax has or may have been lost to the Crown were a reference to believing that the tax in question has or may have been lost to that territory.
After section 220 of the Inheritance Tax Act 1984 there shall be inserted—.
Section 219 of the Inheritance Tax Act 1984 (power to obtain information for purposes of the Act) shall have effect as if the reference to that Act in subsection (1) of that section included a reference to any provision of the law of a territory outside the United Kingdom in accordance with which there is charged any tax which—
is of a character similar to that of inheritance tax or is chargeable on or by reference to death or gifts inter vivos; and
is covered by arrangements having effect under section 158 or 220A of the Inheritance Tax Act 1984 and containing provision with respect to the obtaining (as well as the disclosure) of information.
Information obtained by an officer acting for the purposes of the National Minimum Wage Act 1998 (“the 1998 Act”) by virtue of section 13(1)(a) or (b) of that Act (officers) may be supplied by or with the authority of the Secretary of State to the Board for the purpose of any of its functions.
Information obtained by an officer of the Board acting in accordance with section 13(1)(b) of the 1998 Act may be used for the purpose of any functions of the Board.
Information supplied to the Secretary of State under section 16(2) of the 1998 Act (information obtained by agricultural wages officers) may be supplied by the Secretary of State to the Board for the purpose of any of its functions.
For section 15(6) of the 1998 Act (restrictions on use of information) there shall be substituted—.
After section 20B of the Taxes Management Act 1970 insert—.
After Schedule 1 to the Taxes Management Act 1970, insert the Schedule 1AA set out in Schedule 39 to this Act.
In section 20BB of that Act (falsification etc. of documents)—
in subsection (1)(a), after “above” insert “or an order under section 20BA above”;
in subsection (3), after “notice is given” insert “or the order is made”; and
after “notice”, in the second place where it occurs in that subsection, insert “or order”.
In section 20D(1) of that Act (meaning of “appropriate judicial authority”), after “20A” insert “, 20BA”.
Section 20C of the Taxes Management Act 1970 (search warrants) is amended as follows.
After subsection (1) insert—.
After subsection (3) insert—.
For subsection (4) substitute—.
After subsection (8) insert—.
The Treasury may pay from the National Loans Fund to the Debt Management Account an amount representing all or any of any excess mentioned in sub-paragraph (1) above, and if they do the liability there mentioned shall be extinguished or reduced accordingly.
In section 4 of the National Savings Bank Act 1971 (deposits: limits and minimum balances), after subsection (3) insert—.
In section 26 of that Act (regulations and orders etc.), for subsections (2) and (3) (parliamentary control of regulations under section 2 and orders under section 4) substitute—.
If a draft of a statutory instrument containing an order under section 4 of that Act has been laid before Parliament, but the instrument has not been made, before the day on which this Act is passed, the instrument may be made either—
as if section 26 of that Act had not been amended by this section, or
in reliance on section 26(2) as substituted by this section. The instrument shall be taken to be made as mentioned in paragraph (a) unless it states that it is made in reliance on section 26(2) as substituted by this section.
This section applies to a national savings certificate issued under section 12 of the National Loans Act 1968 if—
it was purchased on or before 7th October 1999, and
the fifth anniversary of its purchase falls after the day on which this Act is passed.
The power of the Treasury (under the prospectus under which the certificate was issued) to alter or end the extension terms for the certificate shall have effect as if it included power for the Treasury to decide before the fifth anniversary of the certificate’s purchase that the extension terms for the certificate are to involve it (so far as not cashed in) undergoing automatic roll-over on that anniversary.
Where a certificate undergoes automatic roll-over on any occasion, the Treasury has power to decide before the fifth anniversary of that occasion that the extension terms for the certificate are to involve it (so far as not cashed in) undergoing automatic roll-over on that anniversary.
For the purposes of this section a certificate undergoes “automatic roll-over” on an occasion if during the period of 5 years beginning with that occasion the certificate (so far as not cashed in) will earn interest as though it were a national savings certificate—
purchased on that occasion for a term of 5 years at a price equal to the value (rounded, if necessary, to the nearest penny) of the certificate on that occasion, and
earning such interest (whether at fixed rates or at rates that give effect to index-linking or partly one and partly the other) as has been decided by the Treasury before that occasion.
Subject to subsections (2) and (3), a certificate to which this section applies continues (so far as not cashed in) to be held on the terms of the prospectus under which it was issued. However, any obligation of the Director of Savings to take steps to inform the holder of the certificate before the fifth anniversary of its purchase of what is to happen to the certificate after that anniversary extends to taking the corresponding steps in relation to the fifth anniversary of each occasion on which the certificate has undergone automatic roll-over.
Nothing in this section shall be taken as prejudicing the rights of the holder of a certificate to which this section applies to apply at any time to cash in the certificate.
References in this section to cashing in a certificate include reinvesting it.
For section 4 of the Exchange Equalisation Account Act 1979 (examination and certification of the Account) substitute—.
This section applies in relation to the operation of the Exchange Equalisation Account in the financial year ending 31st March 2001 and subsequent financial years.
In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988.
The enactments mentioned in Schedule 40 to this Act (which include provisions that are spent or of no practical utility) are repealed to the extent specified in the third column of that Schedule.
The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained or referred to in the notes set out in that Schedule.
This Act may be cited as the Finance Act 2000.
Section 6.
In paragraph 1(1) of Schedule 2A to the Hydrocarbon Oil Duties Act 1979 (converting unleaded petrol into leaded petrol), before paragraph (a) insert—. In the case of a mixture produced in contravention of paragraph 1 above, the rate is the rate in force under section 6(1A)(b) at the time the mixture is produced.
In that Schedule, for paragraph 2 substitute—. In the case of a mixture produced in contravention of paragraph 2 above, the rate is the rate produced by deducting from the rate referred to in sub-paragraph (2) the rate of rebate which at that time is in force under section 13A(1A)(a) of this Act.
After paragraph 2 of that Schedule insert—. In paragraph 3 of that Schedule, for “paragraph 1 above or (as the case may be) paragraph 2 above” substitute “paragraph 1, 2 or 2A above”. In the case of a mixture produced in contravention of paragraph 2A above, the rate is— Sub-paragraph (1) does not apply in the case of any such mixture as is mentioned in paragraph 8(3A)(b) as regards the duty paid in respect of any ingredient in the mixture that is subject to a higher effective rate of duty than the resulting mixture.
References in this Schedule to the effective rate of duty, in relation to petrol of any description, are to the rate of duty in force reduced by any applicable rebate.
Section 17.
The Betting and Gaming Duties Act 1981 is amended as follows.
In section 21(3A) (types of amusement machine excepted from requirement to be licensed) in paragraph (b) (five-penny machine which is a small-prize machine) for “five-penny machine” substitute “ten-penny machine”.
In section 22(2) (definition of small-prize machines)— In section 22(3) (power of Commissioners to amend the sum mentioned in the definition of prize machines), for “the sum” substitute “a sum”.
In section 23(2) (amount of duty)— At the end of section 23 insert—.
In section 25 (meaning of amusement machine), in paragraph (b) of subsection (1B) (meaning of video machine) omit “, other than one consisting only in a blank surface onto which light is projected”. In that section, in subsection (7) (application of provisions to a machine that falls to be treated as more than one machine) omit the word “or” at the end of paragraph (c) and after that paragraph insert—.
“ten-penny machine” means an amusement machine which can only be played by the insertion into the machine of coins of a denomination, or aggregate denomination, not exceeding 10p;
Paragraphs 2 to 4, 5(2) and 6 shall have effect in relation to any amusement machine licence for which an application is received by the Commissioners of Customs and Excise after 4th August 2000. Paragraph 5(1) shall have effect on and after the day on which this Act is passed.
Amend paragraph 4 of Schedule 4 as follows. In sub-paragraph (2) (which provides for a seasonal licence to remain in force during October of the year for which it is granted) for the words from “during October of that year” to the end substitutethe provision of that number of relevant machines on the premises during the period in that year—. In sub-paragraph (8) (meaning of “winter period”) for “November to February” substitute “the period beginning with the first Monday in November and ending with the last day of February”. Sub-paragraph (2) applies in relation to any licence expressed to be granted for a period beginning with 1st April in 2000 or any subsequent year. Sub-paragraph (3) has effect for determining what was comprised in the winter period beginning in 1999, and for determining what is comprised in any subsequent winter period.
After section 24 insert—.
After Schedule 4 insert—. This paragraph has effect in relation to amusement machines which appear to the Commissioners of Customs and Excise to have been provided for play on premises in contravention of section 21(1) or 24(3) or (4) of the Betting and Gaming Duties Act 1981 on or after the day falling three years before the day on which this Act is passed.
Section 22. After Part I of Schedule 1 to the Vehicle Excise and Registration Act 1994, insert— .
Section 23.
This Schedule applies to vehicles in respect of which different rates of vehicle excise duty are, under the provisions listed below, chargeable in respect of vehicles by reference to characteristics of the vehicle. The provisions referred to in sub-paragraph (1) are— Part I of Schedule 1 to the Vehicle Excise and Registration Act 1994 (the general rate), Part IA of that Schedule (graduated rates for light passenger vehicles first registered on or after 1st March 2001), or Part II of that Schedule (motorcycles).
The Secretary of State may make provision by regulations as to the particulars to be furnished on an application for a vehicle licence in respect of a vehicle to which this Schedule applies. The regulations may make different provision for different descriptions of vehicle and different descriptions of licence. The prescribed particulars may include— Every person making an application with respect to which regulations under this paragraph are in force shall— A person applying for a licence need not make the declaration specified for the purposes of sub-paragraph (4)(b) if he agrees to comply with such conditions as may be specified in relation to him by the Secretary of State. The conditions which may be specified include— In relation to applications with respect to which regulations under this paragraph are in force, the preceding provisions of this paragraph have effect in place of the provisions of subsections (1) to (3B) of section 7 of the Vehicle Excise and Registration Act 1994.
The Secretary of State may make provision by regulations—
requiring an application for a vehicle licence in respect of a vehicle to which this Schedule applies to be supported by such documentary or other evidence as may be specified in the regulations, and
authorising him to refuse to issue the licence applied for if such evidence is not provided.
The powers conferred by paragraphs 5 to 11 below are exercisable in a case where—
a vehicle licence is issued to a person on the basis of an application stating that the vehicle—
is a vehicle to which this Schedule applies, or
is a vehicle to which this Schedule applies in respect of which a particular amount of vehicle excise duty falls to be paid, and
the vehicle is not such a vehicle or, as the case may be, is one in respect of which duty falls to be paid at a higher rate.
The Secretary of State may by notice sent by post to the person inform him that the licence is void as from the time when it was granted. If he does so, the licence shall be void as from the time when it was granted.
The Secretary of State may by notice sent by post to the person require him to secure that the additional duty payable is paid within such reasonable period as is specified in the notice. If that requirement is not complied with, the Secretary of State may by notice sent by post to the person inform him that the licence is void as from the time when it was granted. If he does so, the licence shall be void as from the time when it was granted.
The Secretary of State may in a notice under paragraph 5 or 6(2) require the person to whom it is sent to deliver up the licence within such reasonable period as is specified in the notice.
The Secretary of State may in a notice under paragraph 5 or 6(2) require the person to whom it is sent— The “monthly duty shortfall” means one-twelfth of the difference between—
A person who— commits an offence. A person committing such an offence is liable on summary conviction to a penalty not exceeding whichever is the greater of— The “annual duty shortfall” means the difference between—
Where a person has been convicted of an offence under paragraph 9, the court shall (in addition to any penalty which it may impose under that paragraph) order him to pay an amount equal to the monthly duty shortfall for each month, or part of a month, in the relevant period (or so much of the relevant period as falls before the making of the order). In sub-paragraph (1) the “monthly duty shortfall” has the meaning given by paragraph 8(2). Where— the order to pay an amount under this paragraph has effect instead of that requirement and the amount to be paid under the order shall be reduced by any amount actually paid in pursuance of the requirement.
References in this Schedule to the “relevant period” are to the period—
beginning with the first day of the period for which the licence was applied for or, if later, the day on which the licence first was to have effect, and
ending with whichever is the earliest of the following times—
the end of the month during which the licence was required to be delivered up;
the end of the month during which the licence was actually delivered up;
the date on which the licence was due to expire;
the end of the month preceding that in which there first had effect a new vehicle licence for the vehicle in question.
This Schedule and the Vehicle and Excise Registration Act 1994 shall be construed and have effect as if this Schedule were contained in that Act. References in any other enactment to that Act shall be construed and have effect accordingly as including references to this Schedule.
Section 24.
Part VIII of Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of vehicle excise duty: goods vehicles) is amended as follows.
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 kgs £ £ £ 3,500 7,500 165 165 165 7,500 12,000 300 300 300 12,000 13,000 470 490 350 13,000 14,000 650 490 350 14,000 15,000 840 490 350 15,000 17,000 1,320 490 350 17,000 19,000 1,600 850 350 19,000 21,000 1,600 1,020 350 21,000 23,000 1,600 1,470 510 23,000 25,000 1,600 2,230 830 25,000 27,000 1,600 2,340 1,470 27,000 29,000 1,600 2,340 2,320 29,000 31,000 1,600 2,340 3,360 31,000 44,000 1,600 2,340 4,400
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 kgs £ £ £ 3,500 7,500 160 160 160 7,500 12,000 160 160 160 12,000 13,000 160 160 160 13,000 14,000 160 160 160 14,000 15,000 160 160 160 15,000 17,000 320 160 160 17,000 19,000 600 160 160 19,000 21,000 600 160 160 21,000 23,000 600 470 160 23,000 25,000 600 1,230 160 25,000 27,000 600 1,340 470 27,000 29,000 600 1,340 1,320 29,000 31,000 600 1,340 2,360 31,000 44,000 600 1,340 3,400
Revenue weight of tractive unit Rate for tractive unit with two axles Rate for tractive unit with three or more axles (1) (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 kgs £ £ £ £ £ £ 3,500 7,500 165 165 165 165 165 165 7,500 12,000 300 300 300 300 300 300 12,000 16,000 460 460 460 460 460 460 16,000 20,000 520 460 460 460 460 460 20,000 23,000 810 460 460 460 460 460 23,000 26,000 1,190 590 460 590 460 460 26,000 28,000 1,190 1,130 460 1,130 460 460 28,000 31,000 1,740 1,740 1,090 1,740 660 460 31,000 33,000 2,530 2,530 1,740 2,530 1,000 460 33,000 34,000 5,170 5,170 1,740 2,530 1,470 570 34,000 35,000 5,170 5,170 2,340 2,530 2,100 860 35,000 36,000 6,750 6,750 2,340 2,530 2,100 860 36,000 38,000 9,250 9,250 2,710 2,820 2,820 1,280 38,000 41,000 9,250 9,250 3,950 3,750 4,250 2,500 41,000 44,000 9,250 9,250 3,950 7,250 7,250 2,950
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 kgs £ £ £ £ £ £ 3,500 7,500 160 160 160 160 160 160 7,500 12,000 160 160 160 160 160 160 12,000 16,000 160 160 160 160 160 160 16,000 20,000 160 160 160 160 160 160 20,000 23,000 160 160 160 160 160 160 23,000 26,000 190 160 160 160 160 160 26,000 28,000 190 160 160 160 160 160 28,000 31,000 740 740 160 740 160 160 31,000 33,000 1,530 1,530 740 1,530 160 160 33,000 34,000 4,170 4,170 740 1,530 470 160 34,000 35,000 4,170 4,170 1,340 1,530 1,100 160 35,000 36,000 5,750 5,750 1,340 1,530 1,100 160 36,000 38,000 8,250 8,250 1,710 1,820 1,820 280 38,000 41,000 8,250 8,250 2,950 2,750 3,250 1,500 41,000 44,000 8,250 8,250 2,950 6,250 6,250 1,950
In the following provisions— insert “and paragraph 11C”. After paragraph 11B insert—.
Section 30.
A tax to be known as climate change levy (“the levy”) shall be charged in accordance with this Schedule. The levy is under the care and management of the Commissioners of Customs and Excise.
The levy is charged on taxable supplies. Any supply of a taxable commodity is a taxable supply, subject to the provisions of Part II of this Schedule.
The following are taxable commodities for the purposes of this Schedule, subject to sub-paragraph (2) and to any regulations under sub-paragraph (3)— The following are not taxable commodities— The Treasury may by regulations provide that a commodity of a description specified in the regulations is, or is not, a taxable commodity for the purposes of this Schedule.
A supply of a taxable commodity (or part of such a supply) is a taxable supply for the purposes of the levy if levy is chargeable on the supply under— paragraph 5 (supplies of electricity), paragraph 6 (supplies of gas), or paragraph 7 (other supplies in course or furtherance of business), and the supply (or part) is not excluded under paragraphs 8 to 10 or exempt under paragraphs 11 to 22. In this Schedule— but paragraphs 23 and 24 have effect subject to any exceptions provided for under paragraph 21.
Levy is chargeable on a supply of electricity if— Levy is chargeable on a supply made from a combined heat and power station of electricity produced in the station if— Levy is chargeable on a supply of electricity that is deemed to be made under paragraph 23(3). Except as provided by sub-paragraphs (1) to (3), levy is not chargeable on a supply of electricity.
Levy is chargeable on a supply of any gas if— Levy is chargeable on a supply of gas that is deemed to be made under paragraph 23(3) (self-supply by producer) if the gas— Except as provided by sub-paragraphs (1) and (2), levy is not chargeable on a supply of any gas that is supplied in a gaseous state.
This paragraph applies to a supply of a taxable commodity other than— Levy is chargeable on any such supply if the supply is made in the course or furtherance of a business.
A supply is excluded from the levy if it is— For the purposes of this paragraph, a supply is for charity use if the commodity supplied is for use by a charity otherwise than in the course or furtherance of a business. If a supply is partly for domestic or charity use and partly not, the part of the supply that is for domestic or charity use is excluded from the levy. Where a supply of a commodity is partly for domestic or charity use and partly not—
For the purposes of paragraph 8 the following supplies are always for domestic use— For the purposes of paragraph 8, supplies not within sub-paragraph (1) are for domestic use if and only if the commodity supplied is for use in— For the purposes of this paragraph use for a relevant residential purpose means use as— except use as a hospital, a prison or similar institution or an hotel or inn or similar establishment. The power to make provision by order under section 2(1C) of the Value Added Tax Act 1994 varying, or varying any provision contained in, Schedule A1 to that Act (supplies for domestic use and non-business use by a charity that attract reduced VAT rate) includes power to make provision for any appropriate corresponding variation of, or of any provision contained in, this paragraph.
Any supply made before 1st April 2001 is excluded from the levy.
A supply of a taxable commodity to which this sub-paragraph applies is exempt from the levy if the person to whom the supply is made has, before the supply is made, notified the supplier— Sub-paragraph (1) applies to supplies of a taxable commodity other than— A supply of electricity, or of gas in a gaseous state, is exempt from the levy if the person to whom the supply is made has, before the supply is made, notified the supplier that— Regulations under paragraph 22 may, in particular, include provision as to the application of sub-paragraph (3) in cases where a person who is both an exporter and an importer of a commodity intends to be a net exporter of the commodity.
A supply of a taxable commodity is exempt from levy if the commodity is to be burned (or, in the case of electricity, consumed)— In this paragraph— Sub-paragraph (1)(a) to (c) does not apply in relation to the transporting of passengers to, from or within— that is a place to which rights of admission, or where rights to use facilities at it, are supplied by the person to whom the commodity is supplied or by a person connected with him within the meaning of section 839 of the Taxes Act 1988.